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A belief mapping exercise concerning intraday trading


Stream-of-consciousness belief-mapping exercise on initial stops, moving to no lose, and intraday trade strategies 

Small fast losses are an expected result in my intraday trading because I am specifically looking for reversals that explode, with tight stops.  

Where I buy them, if they don’t reverse and pop, then normal behavior is to continue the selling which hits my stop. 

I like to move to NL (“no lose”), when it is moving up with power thru 1R, but not later than 2R in hand 

To have 2R in hand and then observe a -3R move to take out my iStop, and thus net -1R, is unacceptable to me, because I am using 2:1 r:r (reward to risk ratio) as a criteria for validating the tradeframe 

If I can see 2:1, frame it, and then let 2R get away and then “lose my bait” would indicate to me that I cannot manage the rewards & risks I am framing and I am in the wrong style of trading 

If I aim for 2, I’ll settle for 1, all day long 

If it goes thru 2 without stopping, i don’t deserve it, but i will take the gift 

If my average loss < -1R, then I am successfully identifying and managing risks 

If my average win > 1R, then I am successfully identifying a 2R potential, and managing it efficiently 

If my win rate >.5, then I am identifying opportunities at a better than random rate 

I notice a distinct and satisfying psychological state change when i move a trade to NL 

I manage trades better when my worst case going forward is no lose 

These rules and attitudes are well-tuned for who I am and my objectives

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  1. May 27, 2011 at 8:19 pm

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