Aliassmith Beats a "Dead Horse"

[aliassmith]

TRO has recently added some order block indis to his 2021 bundle, FYI. They often coincide with a momo candle for finding zlines - or maybe the algorithm is similar to Blubb's. He keeps adding more great stuff... P.S. Longtime lurker here, you guys have taught me so much!

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I SEE SQUIGGLYS

Oh damn the squiggly police found their way here

[spacamonte]

[aliassmith]

I was watching a video from a Dutch man talking about the years he spent watching trader from the point of view of worker at a broker. I can't remember his job, he said did say he was in a position to see how different types of traders trade, especially losing traders.

The stats were 75% of the people lost money.
He said that over many years of compiled trades 60% of the trades were winners.

He said that most losing traders lose more money in those 40% losing trades.
This happens because they take profits to soon
This happens because they risk more than they make in general.
This happens because they hold losers longer than they should.
This happens because they add to losing trades.

So to have the best chance to make money you can stack the odds in your favor by not doing the things that the losers do.
You can be a winner with less than 1:1 RR.
You can be a winner adding to losers, but it can be a harder road and take a lot of skill.

[aliassmith]

To follow that up we can go over some of my experience.

I was learning to trade by adding to losing trades.
Over time I noticed that some of my biggest losses were from adding to losing trades, and holding losing trades to long

One of my biggest losses was a 40% loss over 2 days.

It turns out that my biggest gain was a trade I added to that made 130% in 1 day.

It turns out that managing risk and adding to winners can be lucrative.
There are various ways to accomplish this, how do you do it?

[LeMercenaire]

To follow that up we can go over some of my experience.

I was learning to trade by adding to losing trades.
Over time I noticed that some of my biggest losses were from adding to losing trades, and holding losing trades to long

One of my biggest losses was a 40% loss over 2 days.

It turns out that my biggest gain was a trade I added to that made 130% in 1 day.

It turns out that managing risk and adding to winners can be lucrative.
There are various ways to accomplish this, how do you do it?

The hardest aspect I had to overcome was my need for perfection.

My scalping style - in heavy and stack into MOMO - lends itself to long winning runs. Usually small bites and then a bigger, sometimes much bigger, runner. To get these runners means you need to be in the game. So, small bites, etc...

Problem was, it meant that the urge to hold a bad move was strong...very strong.

It wasn't until I broke down the numbers that I realised that by simply cutting the losses really tight - and here's the key - going back in again if and when it turned back in my direction - did I actually make far, far more money.

Of course it also helped that I could use (trading) psychology to tell myself that well, see, it wasn't a loss, it was a strategic decision and I had in the end been correct in my original decision anyway. I was actually being clever in my cutting losses strategy, not passively negative.

[aliassmith]

To follow that up we can go over some of my experience.

I was learning to trade by adding to losing trades.
Over time I noticed that some of my biggest losses were from adding to losing trades, and holding losing trades to long

One of my biggest losses was a 40% loss over 2 days.

It turns out that my biggest gain was a trade I added to that made 130% in 1 day.

It turns out that managing risk and adding to winners can be lucrative.
There are various ways to accomplish this, how do you do it?

The hardest aspect I had to overcome was my need for perfection.

My scalping style - in heavy and stack into MOMO - lends itself to long winning runs. Usually small bites and then a bigger, sometimes much bigger, runner. To get these runners means you need to be in the game. So, small bites, etc...

Problem was, it meant that the urge to hold a bad move was strong...very strong.

It wasn't until I broke down the numbers that I realised that by simply cutting the losses really tight - and here's the key - going back in again if and when it turned back in my direction - did I actually make far, far more money.

Of course it also helped that I could use (trading) psychology to tell myself that well, see, it wasn't a loss, it was a strategic decision and I had in the end been correct in my original decision anyway. I was actually being clever in my cutting losses strategy, not passively negative.

So I've known all this time that adding to winners/ buiding a position is better for risk management and outcome.

BUT, I never wanted to wait and be patient

I've done well not doing it that way

BUT, Could do better building that rocketship.

[aliassmith]

Added in today

[aliassmith]

When I exit
About 12%

[aliassmith]

Original Target hit
Over 16% and I was already out

[spacamonte]

These are great posts. When you have an open position, how do you manage sleep? If you have a multi-day trade, are you moving stops before you add? I know building a rocket ship is the best plan, but the details of trade management for such a scenario is something I change my mind about all the time. Thanks for the honest posts...