Paper Trading: Log your results!

[Aussiest]

I thought i would start a thread for all you newbies to state our paper trades and log our results.

Try to take trades that you would normally trade, with real money.

Say what your strategy is and how you feel about the trade (if you need to, eg, are you anxious, excited?).

Perhaps we could structure it:

Instrument
Long or Short
Volume
Value
Amount of collateral you put up
Stop Loss
Strategy
Your thoughts and feelings (optional)

I'll start:

1. Took out a short on the Aus SPI at 3860 20/4/09. So far, $800.00 in the green. Full cash up front (no SL and no leverage). Do i take profits now, or hold on? Dedided to hold. Initial strategy = hold until 3,500. - put SL on at 3775.

2. Took out a short on Gold, 2 mini contracts. Collateral $1443.00, SL $881.00. $36.00 in the green. Strategy: hold.

 

[Aussiest]

Just closed out the SPI position at a $1250.00 profit. Dammit. Would have liked to have held, but, let's face it, if it was real cash, you'd close.

 

[Mr J]

Testing the SPI for a week, sold at 3780 and out at 3761. I also drive a Lamborghini and had two threesomes on the weekend. Just proving a point :.

 

[Aussiest]

I also drive a Lamborghini and had two threesomes on the weekend.

So, you're going to sell your Lambourghini and fund your trading account? :

 

[Mr J]

No, afternoon drives make my losses easier to take. Anyway, like most of these exotic cars, it's financed. So were the threesomes.

 

[tech/a]

Just closed out the SPI position at a $1250.00 profit. Dammit. Would have liked to have held, but, let's face it, if it was real cash, you'd close.

WHY

You had an initial target of 3500 so whats altered that?

You have demonstrated one of the main reasons Traders fail.

 

[Mr J]

Missed that. Why did you set 3500 as your target? The only reason to deviate is if that target wasn't correct under your strategy. Otherwise, you should stay in until the market suggests your strategy is no longer working.

 

[Aussiest]

Missed that. Why did you set 3500 as your target? The only reason to deviate is if that target wasn't correct under your strategy. Otherwise, you should stay in until the market suggests your strategy is no longer working.

Yes, you're right. Thanks tech/a for your feedback too. It's the same old problem for me, anxiety. "I might as well take the profit now" mentality. You're right, i probably would fail as a trader if i wigged out at every "small" profit.

That is something i really have to work on. Used to be good at it, but after suffering some loses last year, i am really anxious and decided to make "many small profits" part of my trading strategy.

I now, however, know that this will not work long term because of losses you sometimes suffer when your stop-losses are hit.

 

[Mr J]

I did it too. For me it was likely due to lack of confidence as I was new to trading (still am, but have more idea now). I realised how much we are handicapping ourselves though. Now, I'm inclined to leave it there until I'm unhappy with it.

 

[Wysiwyg]

I am attempting to trade using the multi time frame indicator. Obviously the trend is down so I have entered short at 1.2988 with a TP at 1.2975. The M1 is my entry bar indicator and the other bars are for general overview.

 

[Wysiwyg]

I am attempting to trade using the multi time frame indicator. Obviously the trend is down so I have entered short at 1.2988 with a TP at 1.2975. The M1 is my entry bar indicator and the other bars are for general overview.

Trade failed although came within 1 pip of my take profit. Games rigged I tell ya.

 

[Trembling Hand]

Trade failed although came within 1 pip of my take profit. Games rigged I tell ya.

If it gets within 1 pip why would you let it run back past BE to 1R?

 

[Wysiwyg]

If it gets within 1 pip why would you let it run back past BE to 1R?

Yes, I am aware of that and should have been watching the trade. Moving the initial stop loss to break even (BE) is the best procedure.

 

[tech/a]

WHY

You had an initial target of 3500 so whats altered that?

You have demonstrated one of the main reasons Traders fail.

So seeing its a paper trade why not take the view that its still open (option 2) and your now looking for an opportunity to Pyramid the position? IE Add to your already successful short while now moving your stop the B/E.

Shall we see how that developes?

 

[beamstas]

Just closed out the SPI position at a $1250.00 profit. Dammit. Would have liked to have held, but, let's face it, if it was real cash, you'd close.

Lets be honest here

Your doing this in a paper trade

What are you going to do with real money on the table?

Few Small Tips

1. Concentrate on the process and don't think about the money
2. Do the opposite to what you would normally do. Normal human instinct is to take the profit as soon as you get it because you fear you will lose profit by leaving it on the table, and to not sell a losing trade hoping the price will come back into profit. You want to do the exact opposite, you want to keep the winning trade and sell the losing trade before the loss gets any bigger

Brad

 

[Aussiest]

So seeing its a paper trade why not take the view that its still open (option 2) and your now looking for an opportunity to Pyramid the position? IE Add to your already successful short while now moving your stop the B/E.

Shall we see how that developes?

Good idea Tech/a. After i posted, i re-opened the position and am going to practise letting my trades run.

Not sure about pyramiding, as i am not sure whether i'd do that at this stage (i should have taken out two contracts), but i will definately move my SL to break even...

Thanks

 

[tech/a]

Your looking for an opportunity to add to your position.

IE if we have a pull back---the SPI has an up day--- then we are looking for a place to add to the short---not get out of it!

Your view is a longer period of bearishness thats why you are short.
That is our/your view I gather from your initial post 3200 or so.

I'm not interested in wether I or anyone else agrees with you---lets just trade it to the best of our ability to the short side---hope you dont mind me hopping on and giving a hand?

 

[alwaysLearning]

maybe post a chart when you place your calls? Just so that it's easier to visualise what's going on in that particular instrument or security that you are trading.

 

[alwaysLearning]

WHY

You had an initial target of 3500 so whats altered that?

You have demonstrated one of the main reasons Traders fail.

Quick question tech, but what would you say is the best way to do MM?

Some people like to let a trade go their way and then they take half profit and let the rest run and then add to that position as the market pulls back if if they think it will continue in their desired direction.

Then you read about strategies whereby you enter a position of say half a percent and if it goes your way then move your stop to break even and then add another half percent and keep doing this until you think the trend will break.

But the problem is what the heck do you do if you are in profit by a substantial amount and the market goes against you...you are still in profit but it feels like you need to t/p but you wait because you still think it will go lower. In the end you can lose the entire profit you had because of not taking profit when you could have.

Ok that sounds like babbing:
If you are in profit, there is a strong temptation to take profit so you can put it in the bag. We all know that we should let profits run but for how long? What sort of retracement drawdown should you allow before you MUST take profit?

So for example, let's say we are $200 in profit. Should we allow a 20% retracement on that $200 before we say, uh no, that's pulled back too much, I'm out. OR, should you just let it run, or should you take half off the table?

It's very difficult to work out the MM. I would think that the MM is dependent on the edge and working out the expectency but still MM can affect expectency as well since it has a bearing on how much you are willing to risk.

 

[tech/a]

Quick question tech, but what would you say is the best way to do MM?

Some people like to let a trade go their way and then they take half profit and let the rest run and then add to that position as the market pulls back if if they think it will continue in their desired direction.

More so if the move isnt considered to be over according to their analysis---what they think personally "Shouldnt" come into it.

Then you read about strategies whereby you enter a position of say half a percent and if it goes your way then move your stop to break even and then add another half percent and keep doing this until you think the trend will break.

Yes could do that too.

But the problem is what the heck do you do if you are in profit by a substantial amount and the market goes against you...you are still in profit but it feels like you need to t/p but you wait because you still think it will go lower. In the end you can lose the entire profit you had because of not taking profit when you could have.

Common happens to me on occasion but once in profit you should NEVER go below break even. Then when one does finally play out--pay day!

Ok that sounds like babbing:
If you are in profit, there is a strong temptation to take profit so you can put it in the bag. We all know that we should let profits run but for how long? What sort of retracement drawdown should you allow before you MUST take profit?

I take profit when its time to exit. Before then I'm just doing business.
Its the end result of that business thats important.

So for example, let's say we are $200 in profit. Should we allow a 20% retracement on that $200 before we say, uh no, that's pulled back too much, I'm out. OR, should you just let it run, or should you take half off the table?

At break even.

It's very difficult to work out the MM. I would think that the MM is dependent on the edge and working out the expectency but still MM can affect expectency as well since it has a bearing on how much you are willing to risk.

Your risking Zip if your moving to B/E as quick as possible.

Now for those who are nervous or who dont consider the move they are in is possible to predict an exit---then a Trailing stop is in order.
I have (When I use them) used a lower high, An obvious stop in the up move (Low volume test),double top on lower volume among other things.
The other is a parabolic stop.
When price advances basically vertical and then shows on a short term chart that is going to blow off.
Often getting me out before a 30-50% rapid down move.

But generally its longer term if I can.
But rarely if I can help it below B/E.