Tuesday, October 17, 2006

Searching for my own style.....

My trading has not gone too well in the past couple of days, so i will be cutting down on my position sizes. I will also force myself to be more selective with my setups, and protect profits even more (which goes against the "trade the trade and not the profits" line of thinking). Hitting a bunch of singles is preferable to striking out 5 times in between each home run. One way to do that is to practice the art of "less is more" - trading less often provides more stable returns, at least that is what I have found. So, I will learn the art of just sitting around and doing stuff other than trading.
I've also been "consuming" Brian Shannon's alphaTrends, Dave Landry's webcasts, Dan Fitzpatrick's chart readings and a couple other swing traders. They all produce high quality material. However, everyone has a different style. In reading all these different material on swing trading, I still haven't come up with a style that I can relate to, something I can call my own. I wonder if I just care too much about the profit and not enough about the process.
It really is a fine line between trading the trade and protecting the profits. For now, I think I need to lean more towards the latter because I feel I am in "trader's rehab."
One way to find my own style is to adopt the Toaist way of thinking - just start recording more of my trades and the "style" will start revealing itself. Eventually.


Tyro said...

I can relate to everything that you're saying. I have passed up some brilliant trends because I exit with every minor price twitch and so I'm rarely holding much more than one or occasionally two nights. It's a false economy, saving a dollar but passing up five!

Keep us up to date with what you learn. I'm still trying to find a style that I can trade, too.

Stick with it, Vancouver brutha!

Phileo said...

Tyro - tell me about it! That akam run-up in the past couple months has shaken me out several times. It's hard to hold on to a stock for too long, and yet, it's those multi-month run-ups that I am searching for.... bit of a paradox, isn't it?!?!
Hey, I noticed that your trading journal is only open by invitation, can you add me to the reader list for your trading Journal?

Tyro said...

Invitation only? Yeah, I guess that's a blogger thing. I was just trying to find a way to keep track of all of the minutiae of trading - entries, exits, charts - without boring the rest of the world to tears. I figured I'd put the charts and other dull stuff in a private journal.

I figure the best case is that people ignore it. Worst case is that it's interesting 'cause I start to self-destruct.

I'm trying to post a good selection of my trades in the main blog. This whole blogging thing is new to me so I may be making mistakes. If you want to see more, maybe I've gone too far and should start posting charts again.

Thanks for the feedback. I have some ideas on how to hold multi-month which I'll try to test. Let you know if anything pans out.

Phileo said...

yeah, you need to do what you're comfortable with. I can say that I alwasy try to record my entries and exits on a chart and post it to my blog since I tend to go back and review it later to see what went well, and what didn't work so well.
For sure, I'll be following with interest on any of your ideas to hang-on to these multi-mont runs AND still maintain a comfortable level of risk exposure....