Many thanks to Tom C. for great posts, comments, and overall content! I plan to return sometimes in July, and I hope Tom C. sticks around as a regular contributor.
I wanted to drop in and point everyone to "Five Rules For Life" - Jon made a new compilation post and I think you will enjoy reading it and all of the other submissions on the site (scroll down to read the compilation post).
It is a great source for motivation and reflection, and many traders have contributed!
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Positive Trading Psychology - III: Framework
20 hours ago
3 comments:
Hi X, glad to know you will be posting regularly in July. I have a question regarding your fib profit target:
I find your profit target, which is the 30min fib extension, often yield lots of set-ups, but with usually less than 1R profit potential.
Is there a minimum R amount you will trade? Or do you just trade "any" set-up once it fits your criteria?
In addition, if the 30 min fib target is less than 1R, do you switch to prior day's fib high/low to 30min high/low as your new profit target?
IMO, I think it is not very good money management to risk 1R for 1/2R gains? At this rate, I'll need 2 wins to offset 1R losses? Meaning, I must have an exceptionally high win rate %, to trade less than 1R gains.
Or am I skewed in my thinking, somehow?
I really appreciate your insight and prompt response. And, once again, thank you for all your help.
Robert
I am new to full time Day Trading and your info is top notch. I made a donation as hard work should be rewarded. I have adopted Fibonacci as my strategy and will keep you advised of my progress. Thanks for what you do.
I get a lot of inspiration from Five Rules for life. One day I may even submit my own.
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