trading in the zone
My trading has been heading to mastery in a hurry lately since I've been starting all of my plays with only token share sizes. I'd recommend just 1 lot of 100 shares on what ever time frame you are playing. My favorite entries are the PBS or PSS on the 15 minute chart where I'll enter just 1 lot with my stop entered under the prior bars low. About 50%+ of the time my 1 lot will stop out which would drive me crazy with a full or even 1/3rd lot size. My big problem and I believe many traders problems is how to lose small and win much bigger. I've been able to kill my losing trades with tiny loses because I've been starting my plays with just 1 lot, who cares if it stops out, it's only 1 lot and the loss is tiny which really improves my sharp ration Vs. attempting to improve my batting average. Now the only thing to look for is the next PBS or PSS on the time frame that you are playing, if your first lot has not been stopped out yet. The next entry that triggers above your first entry will now be seen by many more traders who will gladly take the setup as well. Once the 2nd entry has been triggered, I go all in but I'll risk size from my original stop, just incase my trigger bar is retested, and I'll still be safely in the play. My accuracy is about 90% so far when using this method, the only downfall is that it will take lots of patience waiting for the next PBS or PSS to setup on the same time frame as your entry. Don't be tempted on going full on a GBI or RBI, wait for the next legit setup to trigger. Now I've tried 1/2 the shares twice the stop but when you lose, you're still losing a full risk unit. I'd rather go in with 1 lot and take my stop where my method teaches, my stop is at the prior bars low or the trigger bar. If you don't take your stop, You'll be tempted on holding your 1 lot to some magic painful number that seems to get larger and larger with a few working out, but most won't and you will be in a much better mind state if you just take your stop. Remember taking your stops saves you time, allowing you to go on to find your next better, more profitable play, it also reaffirms your method of trading to your psychi.
Management! Use whatever it takes to find longer targets such as daily pivot lines, the high, low, opens and closes, on the daily chart so that you don't discount the chances for a really big move. I like to take 3 targets, the first @ the prior pivot high and the last two are usually big dream targets. I'll usually move up my stops using pivots on the same time frame that I'm playing. I'm looking for level 4 pivots to move my stops that means 4 bars to the left of the pivot bar and 4 bars to the right that have closed. I'm always looking for adding shares back and reducing my stop once I've hit target one and have taken profits, this allows for really big targets to be hit with larger share sizes.
Using this method you will find that your trading will become much more controlled, relaxed. Any psychological problems will slowly fade as you begin to perfect the method. Your eyes will get better at spotting those "all in" moments in time when a full lot size is justifiable but for most this will take time. Using my small entry method will take your trading to the next level, controlled tiny little loses, many small winners, and every once in awhile.... OMG!