I don't know if anyone other than Rearden is following along, so I did this set of trades for Rearden's benefit, but if anyone else is following along, look at the picture and see what you think, take note of your feelings about what you see, and then read the rest of the post.
So, we made a high on Wednesday and ended the day and started the next running back at the high, but failed and went back to the pivot. I have seen this a number of times during the exercise and the majority of time hasn't worked out well. BUT, I took these trades because I noticed some things in Rearden's journal and I wanted to make a point to Rearden. Once you have learned trading this way, you easily see what others are struggling with, especially on this forum where we have to type out our thoughts.
I know these are low probability trades, but they are the "out of the box" basic trades of the exercise. In up bias, up move, enter a trade from the 50 and pivot. Rearden is struggling with things seen and should I deviate from basic rules to incorporate things seen. Now, this sounds easy enough, but when you see something during the exercise, you immediately want to see if you can find 100 other things. If you've traded before, you already have 1000 bad ideas from everything you've ever read about trading. If you hang out on FF, you already have 10,0000 bad ideas locked in the noggin.
During the exercise hopefully things will be learned just from the few things on the chart. I only have a s50 and pivot, along with lines I use to make the swings. I've learned 4 things and am on the brink of a 5th thing. The 4 things are listed a few posts above.
Now, based on what I have learned to date, I shouldn't still have these trades open. I learned this lesson in Things Learned #1. It was some of the first things learned a few months ago. I know there is danger in these trades and even if I missed the signs and found myself in the trades, I have learned I can close them on a close and stay below the 50 and pivot (which Rearden did).
But even if I opened them, and didn''t close them, and then opened more from the bottom... ITS NOT A BIG DEAL. I am in the exercise. I am not getting rich or going broke in the exercise. I AM LEARNING. I clearly see again the trouble of the trade, the place I could close the original trades, the place I could have closed the lowest trade and reduced the net loss to almost nothing. More data points.
If you are doing the exercise and find yourself mad about how you handled anything, hopefully you identified that anger or fear, etc. That's the point. But also identify that having those emotions tells you your grip is still way too tight. Make sure you address that... don't start going through the mental rolodex of 10,000 bad ideas.
I'll ride these trades out, they will work or they will not. I will not be broke, I will not be rich from it. But, I will have further learned something.
So, we made a high on Wednesday and ended the day and started the next running back at the high, but failed and went back to the pivot. I have seen this a number of times during the exercise and the majority of time hasn't worked out well. BUT, I took these trades because I noticed some things in Rearden's journal and I wanted to make a point to Rearden. Once you have learned trading this way, you easily see what others are struggling with, especially on this forum where we have to type out our thoughts.
I know these are low probability trades, but they are the "out of the box" basic trades of the exercise. In up bias, up move, enter a trade from the 50 and pivot. Rearden is struggling with things seen and should I deviate from basic rules to incorporate things seen. Now, this sounds easy enough, but when you see something during the exercise, you immediately want to see if you can find 100 other things. If you've traded before, you already have 1000 bad ideas from everything you've ever read about trading. If you hang out on FF, you already have 10,0000 bad ideas locked in the noggin.
During the exercise hopefully things will be learned just from the few things on the chart. I only have a s50 and pivot, along with lines I use to make the swings. I've learned 4 things and am on the brink of a 5th thing. The 4 things are listed a few posts above.
Now, based on what I have learned to date, I shouldn't still have these trades open. I learned this lesson in Things Learned #1. It was some of the first things learned a few months ago. I know there is danger in these trades and even if I missed the signs and found myself in the trades, I have learned I can close them on a close and stay below the 50 and pivot (which Rearden did).
But even if I opened them, and didn''t close them, and then opened more from the bottom... ITS NOT A BIG DEAL. I am in the exercise. I am not getting rich or going broke in the exercise. I AM LEARNING. I clearly see again the trouble of the trade, the place I could close the original trades, the place I could have closed the lowest trade and reduced the net loss to almost nothing. More data points.
If you are doing the exercise and find yourself mad about how you handled anything, hopefully you identified that anger or fear, etc. That's the point. But also identify that having those emotions tells you your grip is still way too tight. Make sure you address that... don't start going through the mental rolodex of 10,000 bad ideas.
I'll ride these trades out, they will work or they will not. I will not be broke, I will not be rich from it. But, I will have further learned something.
Be bullish on you.