Michelle B submits:
Peter has queried regarding the merits of anticipating versus confirming/reacting when entering trades. Here is an excerpt from an earlier post of mine:
Also note that an additional lot could have been purchased via an automatic buy stop once the resistance at 21 was cleared. Since the price action from the open was setting up a high probability trade, I decided to anticipate a breakout, keeping my stop loss fairly tight, just under the pullback lows. But a style combining both anticipation and confirmation/reaction to the breakout could have used—see a previous trade. And of course, a pure confirmation style could have been used, with only buying once the 21 resistance was taken out.
Beginner traders are often anxious to do the right thing. They want to be firm and disciplined. However, an experienced trader will be able to combine flexibility with a firm hand in order to enhance her/his edge. I would encourage Peter and others who are interested in this topic to read the following posts:
ININ, An Anatomy of a Friday Morning Daytrade
VCLK, Not Just another Pretty Face
Another post of mine, focuses on the importance of being true to yourself by discovering through trying various approaches the one which fits you the best. This awareness of your uniqueness as a trader with a specific set of abilities, skills, and preferences will encourage you to put in the time and effort needed to acquire the experience to become a consistently successful trader, meaning that you can rely upon yourself to accumulate profits. The trader's best friend and mentor is her/himself.
dear michelle,
thanks for the effort...so, it seems to be all about "adding a little disrection" to your trading programm...reminds me of the saying: good judgement comes from experience and experience comes from bad judgement.. :)
Peter, you are very welcome.
Michelle - we all read, print and actively study your posts...I am certain that many people are doing this and very appreciative of the way you break down a trade, strip it apart and share your thinking with us.
bbc, thanks for your positive feedback. When writing these posts, I imagine that I am talking to real traders, as if they were right next to me, asking me questions on why I am doing what I am doing.
I appreciate comments which will allow me to expand upon this approach, to elaborate even further via follow-up posts.