Post feedSo much for Trading Rules
Like Alanis Morisette once said... "You live...You learn."
I love walking the line of deciding when to break your rules, and when to stick to them. Did I actually type that? Are rules ever meant to be broken? Sure they are. However there are risks involved, but obviously we wouldn't toy with the notion of breaking rules if there wasn't a big reward behind doing it.
Yesterday I took a position on Todco without confirmation. I also justified my point in doing it...but today you can see I am left high and dry weeping over the loss I have suffered. Had I waited for a better signal (FOLLOWED MY RULES), I would be killing it so far today.
I am not upset with the trade yet, and not totally upset with my entry. I still think I got the options at a cheap price. If THE breaks my upper resistance, I am gone. Until then...I need to patiently wait and try and focus on why I entered and not let this get me emotional.
As a trader, try and find balance in your approach. Meaning...I know you all have trading rules to help you with your decision making process. When you are trying to decide when to break a rule, balance it with breaking a second rule. For example...If you take an aggressive entry on a trade without a confirm, perhaps you also change your exit and make it tighter. This will balance that whole "Risk Reward" thing we beat to death.
Just my .02 cents...
I love walking the line of deciding when to break your rules, and when to stick to them. Did I actually type that? Are rules ever meant to be broken? Sure they are. However there are risks involved, but obviously we wouldn't toy with the notion of breaking rules if there wasn't a big reward behind doing it.
Yesterday I took a position on Todco without confirmation. I also justified my point in doing it...but today you can see I am left high and dry weeping over the loss I have suffered. Had I waited for a better signal (FOLLOWED MY RULES), I would be killing it so far today.
I am not upset with the trade yet, and not totally upset with my entry. I still think I got the options at a cheap price. If THE breaks my upper resistance, I am gone. Until then...I need to patiently wait and try and focus on why I entered and not let this get me emotional.
As a trader, try and find balance in your approach. Meaning...I know you all have trading rules to help you with your decision making process. When you are trying to decide when to break a rule, balance it with breaking a second rule. For example...If you take an aggressive entry on a trade without a confirm, perhaps you also change your exit and make it tighter. This will balance that whole "Risk Reward" thing we beat to death.
Just my .02 cents...
Jeff,
Loaded up the boat huh! I didn't have enough nerve to do that so I did the spread on THE your suggested earlier. It will give me good practice on getting out if it doesn't go my way. You know, we are learning an awfull lot from you sharing your trades, strengths, weaknesses, all out in the open. You are a dedicated teacher and I'm going to make sure all my people check out your blog.
Scott Avery
Posted by
Anonymous |
8/09/2006 06:12:00 PM
What made it so appealling as to break your own rules?
Posted by
Anonymous |
8/09/2006 09:56:00 PM
The .jpg made me laugh.
The market sure isn't so I had to laugh at something.
B
Posted by
Anonymous |
8/10/2006 01:05:00 PM
Hey Jeff, I noticed that Todco was going to purchase $150 million of their own stock back. How will this effect the stock? Should it still continue it's downtrend or will this turn it around? What's your thoughts
on this particular trade.
Posted by
Anonymous |
8/12/2006 12:10:00 AM