Confusion:
I would like any traders who have some input on this to tell me a different sort of thinking because I want to attempt to trading differently but I am not sure "where the thinking is faulty" and pehaps I am just confused.
here is my situation:
I want to stay in a stock I believe in and catch a nice nice move. The problem has been the volatility in many stocks and let's use ARBA as example. It is hard for me to get in at the absolute bottom of the day. Therefore, there is a good chance that sometime during the day that I can be "in the money, out of the money, in the money".
Now the next day if I held (just look at the ordinary bar overlaps on daily bars) I could be "still in the money, in the money a little more, out of the money, even, and a touch in the money"
Now the next day if I held I could be "out of the money, oops scarey out of the money, even, in the money, in the money bigger and 'good for you autumn!" by end of three days.
Now this is causing me havoc. First I want to say I would never add to a losing position or "average down" so that is not part of this. But I find that my mind would say---the axiom--"Never let a winning position turn into a losing one".
This confuses me.
Am I thinking incorrectly here? Am I misunderstanding the axiom? There are so many times I get a miserable 3 points because it is obvious that I didn't catch the perfect bottom and therefore maybe there would be a lower bottom and eventually I would be proven correct but I have to go from the axiom "winning position" to a "losing position" to get the more long run hit.
This is driving me insane and I have been left all to myself to try and figure out via this thread or reading or whatever how to think on this issue.
I remember once reading that you have two choices of taking entry poison so pick your poison to suit your pain level.
On entry: (the chances of perfect is very low but that does not mean you are not a winner after some time)
l. either you are in a bit early (early in the move)and have to suffer the pains of waiting for it to get back up to your entry price and then continue upward
or
2. you found the bottom and now you entered above the (later in the move)bottom and have to suffer it drooping against you (all this movement is very natural movement ---not the dying stock kind but natural movement).
I find I am more comfortable with number 2 personally so far. But that relates to my ARBA example above and what I can experience naturally.
***
Now what this is doing is causing me to miss excellent moves because if I didn't get it "perfectly" I feel like a fool if I have some profits (let's say 3 or 4 points) and then it starts drifting against me. I wind up taking peanuts and spending stupid time trading in and out in tiny ninny trades to keep that axiom from happening.
And this HAS to stop. Now when you have money in a trade already built up it is not so hard but when "starting the trade" that is where the trouble is. Getting the trade started.
***
Now does anyone know what I heck I am talking about? How do you deal with it on the first entry? Can you leave it go out of the money some and that doesn't really break the axiom or what?
Am I understanding the axiom correctly?
Or do you guys always get perfect entries and never have to think about this?
:)
But I am serious......HELP! help me be able to show how smart I am, turn my trading around, capitalize on my smartness (I deserve it trust me if you knew my whole story), become the trader I am capable of, stop ninny trading with tiny moves that get eaten up in losses, etc.
Because trading can be such a secretive thing and so isolated and because you guys treat me so well I am showing you the "dirty laundry" of my trading psyche and thinking.
I have had to go through a bunch of psychological hell during different times in trading and I have fought to overcome and flourish. Well, right now I have the opportunity because of my giftedness to make a great deal of money and break through some barriers to excel in a way that would warm anyone's heart if you knew my history.
The irony is I am making people around my family a fortune in picks cause they will get an "imperfect" entry, it will go against them sometimes a big big and sometimes moderate and they will still with it and wow they are up 200% and ME---I have 3 quarters in my pocket!!! Cause of that axiom! Not cause I doubt my picks.
So HELP!!!! Somebodie(s_) throw me a trading life preserver cause I am drowning in PAIN because of this!
Now I am not going to be able to go back and edit this cause I just can't bear to go through it again and it is very late and I am tired and doing spreadsheets for taxes for hundred's of stupid ninny trades that are just killing me due to the above Axiom.
So bear with me with kindness and any thoughts or clarity will be taken with the most grateful heart on my part.
THERE!
I am exposed and honest. This "stupid" in my trading life is just killing me. Thank you for any and all thoughts and help.
Gratefully,
Autumn |
