Monday, March 29, 2010

Sim Trade Gains & Loses

I sim traded a lot, and made some mistakes, but learned from them. Net loss on the day, but the mistakes I made were more experimental and I worked some things out with them. I have a hundred screen caps and notes from today.

In summary, I observed the problem with wide stops, taking trades when the current direction is weakening, not taking gains when they are looking realistically like the leg will now pivot, waiting for more - greed, and ending up with a stop loss.

The good moves were, excellently judging internals pushing while price is resisting and the end result being follow thru to the downside on my short TR7. Other good was realizing that the minor break on weakness seen by top tails was not going to continue, killing it before large stop loss, and reversing the position for a gain. TR5 & 6.

TR3 was good. TR2 was a very quick move that I took and as soon as I did, I realized that I was reacting exactly as those few who were driving price down on high emotion, I reacted fast and shorted as I saw the reversal up fail to downside, but this was a very tall bar and price was down at support and these bars were tall and volatile and I immediately knew that this was a trap, and I got trapped and took it and rode it and felt what it was like to be one of these traders. It is good and safe to do this when doing serious simulation like this.

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