Comments on: Good Trades vs. Good Results http://www.thestockbandit.net/2008/04/22/good-trades-vs-good-results/ Trading blog for day trading, swing trading, and trading psychology Sun, 14 Mar 2010 00:40:14 +0000 http://wordpress.org/?v=2.7 hourly 1 By: Options for Rookies » Comfort Zone http://www.thestockbandit.net/2008/04/22/good-trades-vs-good-results/comment-page-1/#comment-131021 Options for Rookies » Comfort Zone Mon, 26 Jan 2009 14:44:37 +0000 http://www.thestockbandit.net/2008/04/22/good-trades-vs-good-results/#comment-131021 [...] White, in his blog espouses a similar philosophy for day [...] [...] White, in his blog espouses a similar philosophy for day [...]

]]> By: Quick-Hit Trading | TheStockBandit.net http://www.thestockbandit.net/2008/04/22/good-trades-vs-good-results/comment-page-1/#comment-102406 Quick-Hit Trading | TheStockBandit.net Tue, 02 Sep 2008 12:20:57 +0000 http://www.thestockbandit.net/2008/04/22/good-trades-vs-good-results/#comment-102406 [...] From there, continually look to improve your approach over time, getting more and more efficient with your timing, entries and exits. Evaluating your trading for the sake of growth will pay off big, because even the occasional minor change can make a big difference. Review your results regularly, and you’ll start to make out like a Bandit! [...] [...] From there, continually look to improve your approach over time, getting more and more efficient with your timing, entries and exits. Evaluating your trading for the sake of growth will pay off big, because even the occasional minor change can make a big difference. Review your results regularly, and you’ll start to make out like a Bandit! [...]

]]> By: Broken Trades | TheStockBandit.net http://www.thestockbandit.net/2008/04/22/good-trades-vs-good-results/comment-page-1/#comment-100331 Broken Trades | TheStockBandit.net Mon, 18 Aug 2008 14:06:59 +0000 http://www.thestockbandit.net/2008/04/22/good-trades-vs-good-results/#comment-100331 [...] Good trading requires a cold approach. Building and implementing a game plan is followed by reviewing results so that any adjustments can be made. If you want to trade successfully, make a commitment to operate in such a manner. It might not be an overnight process, but it’s one which will be well worth it to you in the long haul. [...] [...] Good trading requires a cold approach. Building and implementing a game plan is followed by reviewing results so that any adjustments can be made. If you want to trade successfully, make a commitment to operate in such a manner. It might not be an overnight process, but it’s one which will be well worth it to you in the long haul. [...]

]]> By: TheStockBandit http://www.thestockbandit.net/2008/04/22/good-trades-vs-good-results/comment-page-1/#comment-74677 TheStockBandit Sun, 18 May 2008 22:58:15 +0000 http://www.thestockbandit.net/2008/04/22/good-trades-vs-good-results/#comment-74677 Hey Mark, Thanks for sharing your comments here. I think you bring up a good point regarding when a trade becomes "uncomfortable." My opinion on that is that at the very least the position should be reduced (aka, "sell down to the sleeping level"), or closed out as you described. Trade well this week! Jeff Hey Mark,

Thanks for sharing your comments here. I think you bring up a good point regarding when a trade becomes “uncomfortable.” My opinion on that is that at the very least the position should be reduced (aka, “sell down to the sleeping level”), or closed out as you described.

Trade well this week!

Jeff

]]> By: Mark Wolfinger http://www.thestockbandit.net/2008/04/22/good-trades-vs-good-results/comment-page-1/#comment-74626 Mark Wolfinger Sun, 18 May 2008 20:47:37 +0000 http://www.thestockbandit.net/2008/04/22/good-trades-vs-good-results/#comment-74626 “I’d say that if before the trade you saw a risk/reward which fit your preference, that it was still a good trade.” I couldn't agree more. It's amazing how some people only judge whether a trade is 'good' is by the result. As traders we know that not all trades can be profitable. Not all decisions are going to be winners. But when we make a trade that allows us to remain within our comfort zones (as you define it: r/r fits traders preference), it's a good trade. If the position becomes uncomfortable, we exit the trade and move on. Even though I trade options and am not a day trader, you may be interested in my investment philosophy because it's compatible with yours: http://www.mdwoptions.com/Philosophy.html I've posted a link back to this blog. “I’d say that if before the trade you saw a risk/reward which fit your preference, that it was still a good trade.”

I couldn’t agree more. It’s amazing how some people only judge whether a trade is ‘good’ is by the result.

As traders we know that not all trades can be profitable. Not all decisions are going to be winners. But when we make a trade that allows us to remain within our comfort zones (as you define it: r/r fits traders preference), it’s a good trade. If the position becomes uncomfortable, we exit the trade and move on.

Even though I trade options and am not a day trader, you may be interested in my investment philosophy because it’s compatible with yours: http://www.mdwoptions.com/Philosophy.html

I’ve posted a link back to this blog.

]]> By: TheStockBandit http://www.thestockbandit.net/2008/04/22/good-trades-vs-good-results/comment-page-1/#comment-71438 TheStockBandit Tue, 06 May 2008 19:52:14 +0000 http://www.thestockbandit.net/2008/04/22/good-trades-vs-good-results/#comment-71438 TSR, thanks for your comments here, you've shared some good ideas. I think it just boils down to not only following your own trading method, but keeping tabs on those "what if" trades that you consider along the way. That's probably the best way to incorporate new strategies into one's method. Good stuff! Jeff TSR, thanks for your comments here, you’ve shared some good ideas. I think it just boils down to not only following your own trading method, but keeping tabs on those “what if” trades that you consider along the way. That’s probably the best way to incorporate new strategies into one’s method. Good stuff!

Jeff

]]> By: Trading System Reviews http://www.thestockbandit.net/2008/04/22/good-trades-vs-good-results/comment-page-1/#comment-71435 Trading System Reviews Tue, 06 May 2008 19:48:52 +0000 http://www.thestockbandit.net/2008/04/22/good-trades-vs-good-results/#comment-71435 When I first started out I had huge problem with the psychological elements of this. I had read all about the mechanics of making a trade and it all made sense - you spot what you are looking for and you get into the trade understanding the size of your position, your exit criteria etc and it is all perfect as you enter. You make the trade and it loses you money, nothing much but it loses. Now the same stock turns round and once again the set-up is perfect, you enter the trade and once again you lose money. Then once again the set-up is right and you think 'nah' and look elsewhere for your next trade. I did this for a while before I read about the psychological effects of losers being larger than those of gains (which is why low hit rate/high return strategies are the hardest to trade effectively) From then on I started keeping a record of the trades I didn't make and the reasons why. I looked back after a year and it became obvious I lost a huge amount by not being tough enough as there were some trades that bombed me out several times before flying off into a huge overall gain - in fact I still get the urge to kick myself when I see an Abercrombie and Fitch store after I figured out how much money I lost by not taking a trade on them in 2000 which was when I went through this process! So the point I am trying to make in my ponderous way, is that what you don't do is just as important as what you actually do in trading, whether this is actually taking the trade or what you do during the trade, such as not letting a position run or not taking your losses. When I first started out I had huge problem with the psychological elements of this. I had read all about the mechanics of making a trade and it all made sense - you spot what you are looking for and you get into the trade understanding the size of your position, your exit criteria etc and it is all perfect as you enter. You make the trade and it loses you money, nothing much but it loses. Now the same stock turns round and once again the set-up is perfect, you enter the trade and once again you lose money. Then once again the set-up is right and you think ‘nah’ and look elsewhere for your next trade.
I did this for a while before I read about the psychological effects of losers being larger than those of gains (which is why low hit rate/high return strategies are the hardest to trade effectively) From then on I started keeping a record of the trades I didn’t make and the reasons why. I looked back after a year and it became obvious I lost a huge amount by not being tough enough as there were some trades that bombed me out several times before flying off into a huge overall gain - in fact I still get the urge to kick myself when I see an Abercrombie and Fitch store after I figured out how much money I lost by not taking a trade on them in 2000 which was when I went through this process!
So the point I am trying to make in my ponderous way, is that what you don’t do is just as important as what you actually do in trading, whether this is actually taking the trade or what you do during the trade, such as not letting a position run or not taking your losses.

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