great comments about the emotion. As an example a new
member who signed up maybe a month ago or less, on Wed wrote in
asking to cancel and wanted his money back, and his reason was the
SPY system trade was down. He hadn't taken the previous
winning trades because he was new here. I tried to explain to
him that's how the system trades at times and it wasn't doing
anything out of the ordinary such as baking a big draw down
Anyway I couldn't help but email him back today saying you
should have taken that second entry on Wed as you would have paid
for the membership at least.
anyway people get really emotional on these trades, I get it,
it's not easy, it's just something that you learn to deal with if
you stick with it.
also position size is key relative to your account size. I think
he was someone who had a very small account. And if you have a very
small account which means you end up having to use your whole
account capital in a working trade that is taking a little draw
down, it's tough to stomach it and not get emotional.
it's best to set aside a portion of capital that you will be
trading with the system (not your whole account) and it's an amount
that is such you don't freak out on trades that take some draw
down, i.e. let the system work.
Posted by steverobin on 4th of Oct 2019 at 08:36 pm
I agree with your comments on position size. No trade
should be taken that is too large for your account size whether it
is a "regular" trade or the SPY system trade.
Thanks for the insight Matt. I joined back in July and figured
it would be "easy" emotionally to adhere to the SPY system. On the
SPY trades back in early Aug you recall we had a draw down then as
well and I could not get myself to take the CCI subsystem trade
because the other trades were so underwater at the time. FEAR. This
time, there was no hesitation in taking the second entries for both
subsystems. It comes with a better understand of how the systems
work and increased belief in there positive performance over the
long term. It is a definitely a learning process. I remember
you mentioned before if you are going to trade the SPY systems
don't pick and choose which entries to take. Thank you to you and
Steve for all you guys do to help us.
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great comments about the emotion.
SPY trade numbers
Posted by matt on 4th of Oct 2019 at 02:23 pm
great comments about the emotion. As an example a new member who signed up maybe a month ago or less, on Wed wrote in asking to cancel and wanted his money back, and his reason was the SPY system trade was down. He hadn't taken the previous winning trades because he was new here. I tried to explain to him that's how the system trades at times and it wasn't doing anything out of the ordinary such as baking a big draw down Anyway I couldn't help but email him back today saying you should have taken that second entry on Wed as you would have paid for the membership at least.
anyway people get really emotional on these trades, I get it, it's not easy, it's just something that you learn to deal with if you stick with it.
also position size is key relative to your account size. I think he was someone who had a very small account. And if you have a very small account which means you end up having to use your whole account capital in a working trade that is taking a little draw down, it's tough to stomach it and not get emotional.
it's best to set aside a portion of capital that you will be trading with the system (not your whole account) and it's an amount that is such you don't freak out on trades that take some draw down, i.e. let the system work.
I agree with your comments
Posted by steverobin on 4th of Oct 2019 at 08:36 pm
I agree with your comments on position size. No trade should be taken that is too large for your account size whether it is a "regular" trade or the SPY system trade.
Thanks for the insight Matt.
Posted by craigm on 4th of Oct 2019 at 02:52 pm
Thanks for the insight Matt. I joined back in July and figured it would be "easy" emotionally to adhere to the SPY system. On the SPY trades back in early Aug you recall we had a draw down then as well and I could not get myself to take the CCI subsystem trade because the other trades were so underwater at the time. FEAR. This time, there was no hesitation in taking the second entries for both subsystems. It comes with a better understand of how the systems work and increased belief in there positive performance over the long term. It is a definitely a learning process. I remember you mentioned before if you are going to trade the SPY systems don't pick and choose which entries to take. Thank you to you and Steve for all you guys do to help us.