After the kids got away to school and things settled down I did some thinking about the last few weeks without day trading, or, more accurately, without HAVING to trade the morning away. These days have been far more relaxed and less stressful.
As much as I enjoyed the trading while it was in progress I now realize that it was not really what I was looking for in my trading. Someday I may pick it back up or I might jump in for a day or two here and there but for now my current trading plan seems to be a much better fit... and seeing as it is all based solely on my ideas and strategies it is far more satisfying.
I have all my trade data from the stocks from over the last 16 months and change and the easiest thing to do is to continue with those studies while inserting my cash as the next trades come up. This makes a seamless move from study to reality and allows my mind to rest easy knowing that the statistical values will carry me through very nicely as nothing has really changed.
I am into three trades right now, as I already posted, and I am looking forward to more this week.
The plan is to have 20 stocks on my active hit list to start. Of those twenty I anticipate being in 1.5 trades per stock at any given time. That is from the 16 months worth of trade studies under my belt with my first batch of stats (I broke them up to make the number crunching easier and faster). Of course there would be times when that number might be a little low or a little high, it is an average after all. Oh, that includes first entries (67%) second entries (22%) and third entries (11%) into the same trade as the case may be depending upon the setup.
I ran the numbers based on only entering the first trades and found that, due to compounding, it was far more beneficial to plan to enter all trades as they setup. In fact, it almost doubled the profit potential of the account overall.
Well, that's all I have time to write right now.
Jeff.
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