again, putting it into perspective, the 1st entry to the system
is only down by -1.09%. Most trade ideas on the watchlist I
give 5% or so.
That's why the system is based on the SPY. Now if you
bought say a leveraged ETF like SSO and then you also margined your
account, you would be down -4.4% (because SSO is 2X and your
account overnight margin is 2X for a total of 4) and over your
whole account that would hurt.
But again, that's on you guys if you margin up and/or use
leverage. To me if you have a decent account size, don't
leverage if you can't handle the emotion.
After dealing with the public for many years, one of the most
common trading mistake people do besides over trading is using
leverage that is beyond what their psychology can handle.
Your trade size should match your person risk tolerance,
because trading is mostly a mental/mind game.
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Lucky you. If it was
Advice on entering the current SPY trade
Posted by shinings on 8th of Jun 2011 at 12:55 pm
Lucky you. If it was me, i'd definately take the trade (100% for single or 60% for multiple). So unfair...
again, putting it into perspective,
Posted by matt on 8th of Jun 2011 at 01:06 pm
again, putting it into perspective, the 1st entry to the system is only down by -1.09%. Most trade ideas on the watchlist I give 5% or so.
That's why the system is based on the SPY. Now if you bought say a leveraged ETF like SSO and then you also margined your account, you would be down -4.4% (because SSO is 2X and your account overnight margin is 2X for a total of 4) and over your whole account that would hurt.
But again, that's on you guys if you margin up and/or use leverage. To me if you have a decent account size, don't leverage if you can't handle the emotion.
After dealing with the public for many years, one of the most common trading mistake people do besides over trading is using leverage that is beyond what their psychology can handle. Your trade size should match your person risk tolerance, because trading is mostly a mental/mind game.