So let's say you have a trading system. You have the rules for entry, exit, s/l, and money management and so on. So you enter your trades.
Now you have multiple postions open. You have observed them from day to day. One day all of the positions are up hundreds of pips, the next day it retraced a bit, then the next day it's up a little bit. Basically everyday it fluctuates. But the system you designed hasn't told you to exit yet.
Do you guys think that monitoring your trades AFTER you opened them have negative psychological effects on the trader?!?! Because after seeeing the trades up for many pips, you think 'oh man, i would get some gooood money if i close all of them now' But then you think 'wait, it could go higher, i need to stick to the rules and not follow greed.' Then the next day the trades went down and you think 'damn it! i should've closed all of them. Now I'm freakin nervous of what the trades might do'
So I need veteran traders out of their experience to tell me how to deal with such incidents. I have a system that implements moving s/l if price makes higher highs using fibs. But I don't know if i should just close these trades for a handsome profit or follow the system. I know no system is perfect but if i keep closing the trades out of FEAR that it might retrace and possibly end in breakeven or slight loss, how would i know if this system wil ever work? How would I know by closing trades early that I am cutting my profits in the long term?!?!?
I don't know if it would affect me more seeing that the market moves up even more after i close my trades for a profit, or leaving the trades open and follow the system and get stopped out for small loss or breakeven. I just don't know
I only have traded my system for 2 days , But i have been trading for close to 3 months. I have discovered that I am more of a trend following rather than a range trader. Up to this point, i am down close to 20% drawdown. Mainly because I haven't stuck to any rule or system. But i think my money management skills are improving given that I have made over 1000 pips in loss and only couple of hundred pips in profit.
so before i babble more, someone please post their opinons, pep talk, or something!
Now you have multiple postions open. You have observed them from day to day. One day all of the positions are up hundreds of pips, the next day it retraced a bit, then the next day it's up a little bit. Basically everyday it fluctuates. But the system you designed hasn't told you to exit yet.
Do you guys think that monitoring your trades AFTER you opened them have negative psychological effects on the trader?!?! Because after seeeing the trades up for many pips, you think 'oh man, i would get some gooood money if i close all of them now' But then you think 'wait, it could go higher, i need to stick to the rules and not follow greed.' Then the next day the trades went down and you think 'damn it! i should've closed all of them. Now I'm freakin nervous of what the trades might do'
So I need veteran traders out of their experience to tell me how to deal with such incidents. I have a system that implements moving s/l if price makes higher highs using fibs. But I don't know if i should just close these trades for a handsome profit or follow the system. I know no system is perfect but if i keep closing the trades out of FEAR that it might retrace and possibly end in breakeven or slight loss, how would i know if this system wil ever work? How would I know by closing trades early that I am cutting my profits in the long term?!?!?
I don't know if it would affect me more seeing that the market moves up even more after i close my trades for a profit, or leaving the trades open and follow the system and get stopped out for small loss or breakeven. I just don't know
I only have traded my system for 2 days , But i have been trading for close to 3 months. I have discovered that I am more of a trend following rather than a range trader. Up to this point, i am down close to 20% drawdown. Mainly because I haven't stuck to any rule or system. But i think my money management skills are improving given that I have made over 1000 pips in loss and only couple of hundred pips in profit.
so before i babble more, someone please post their opinons, pep talk, or something!
Working towards CME membership