20130313
Long 2 YM 14385, 14385, -0, -0
Long 2 YM 14359, 14356, -2, +7
Long 1 TF 934.0, +0.9
Long 1 NQ 2783, +3.0
Short 1 TF 937.5, -0.2
Short 1 NQ 2795.5, +2.0
Total YM +5
Total NQ +5.0
Total TF +0.7
In order to handle the emotions of trading, you need a rule for almost everything. That way, you leave little to intuition or fear when managing and entering positions. Even trailing stp-loss orders need a rule... or should I say especially stp-loss orders deserve a rule. Mine is simple, when I stick to it. When in a mini-Russell trade, for instance, I move the stp-loss to about b/e (break-even)when it moves a point in my direction. And although I desire to trail the stop to +1 if it continues on in my direction, I should not actually move the stop until it has zigzag'd higher, allowing first to be threatened by such a pullback towards my stop. But today, after entering at a perfect entry signal below the overnight low, price reacted with a great snap back up for a +1.5 favor, but still shy of an initial exit target closer to +2.0. So what did I do? Did I wait and suffer a threatening pullback to my b/e stp-loss order? If I had, I would have gotten that better target and even higher had I been a little patient. But no, I immediately moved my stp-loss up to +0.9, not wanting to give up too much of an almost target goal. ...and that's exactly all I got. Follow your rules. If you follow your rules and the rules are good, then the consequences will be better for the bottom line, even if the market doesn't cooperate all the time. Stay disciplined and your rules will remove the fear factor.
