Years ago, maybe it's still going, there was a goofy TV games show in the U.K. called Catchphrase. The game involved the contestants watching a cartoon drawing to be revealed bit by bit and them having a contest as to who could say the well known phrase that the cartoon depicted. The compere (do they still call them that) kept urging the contestants to "Say what you see!"
Trading becomes exactly that. Trade what you see. I've often kicked myself when I see a picture and say to myself: "Ah, that's hit resistance (support) and it should reverse here" and then I DON'T trade it. I feel pretty stupid afterwards and don't know why I didn't take the trade. Lack of focus or lack of conviction at that moment? I don't know, but that's an issue I'm working hard on now: "Trade what I see".
I am considering adding a rule to my TP and was wondering your thoughts:
ReplyDeleteIf I enter an inside-out position, and the trade has not provided any IG within the first 10 minutes, scale down to a 50% or smaller position.
I plan to run the rule through my walk forward trades and see the results, but was curious if you see value or have ever used such a rule.
Vincent, I assess risk going in. If the reason for going into a trade is either still there or it isn't, for me. A trade that goes stale is usually because the order flow is not in the direction of the trade. IF that is the case, I cut and start again. That is different from just a slow move in my favour.
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