How is Your Trade Aggressiveness?

[Sledge 13]

The more threads I have read, whether it is about a trading style, a type of method to trade, a timeframe preference.. each thread invariably tends to take a detour briefly.. One poster thinks another is being hateful or stepping on their method, the other poster backpedals signaling that "was not the intent” and it occurred to me that a lot of these tend to boil down to one simple statement: "Oh well I trade this way because that is what I am comfortable with and what works for me." Generally one trader is far more aggressive in their trade choices than the other trader in the conversation.

 

With my study of VSA I also saw this come to pass even with Tom Williams and Todd K (both work together in the same company and present VSA to students.) Tom Williams is an aggressive trader- when he has determined that he is looking to go long when he sees a bar that suits his fancy and BAM he is in. Todd K on the other hand waits for confirmation. He will wait out the next bar or even two before he gets in to his position.

 

What this does for the more conservative trader is give him/her a higher probability of success. What it does for the aggressive trader is let him/her be in on the entire start of the move when it does plow northward.

 

I have a good fellow trader who is more "confirmation oriented" and I tend to be the Tom Williams aggressive trader apparently.

 

I wanted to get a feel of how some of the traders here feel they fit into what category vs. the other? If I see a beautiful bull move on the horizon but will be unable to physically be at my platform to pull the trigger at the "perfect moment" I will accept the drawdown to be sure I get in on the trade. My fellow and well-respected trader from above would think I was crazy because he'd wait for the confirmation of that trend to form before pulling the trigger. Plus he is less susceptible to the fact that if it did decide to punch down a tad lower- I am now either stopped out or riding a nasty drawdown before the good times come.

 

I'd be interested in hearing others own self-reflection of what type of trader they really are. I'd be very interested in people who once sat in the "Aggressive Chair" and had a moment of clarity to become a more "Conservative Trader."

 

Once again I see an inadvertent lesson I was taught by a wonderful friend and fellow trader that I had to come too on my own... my aggressive days may be coming to an end... I may be leaning towards the “Conservative” and “boring” side with higher probability of win than I currently do now!

Aaron

[james_gsx 16]

Naturally, I am a more aggressive trader. For equities, I like to be in the trade before the breakout. But on the other hand, I never enter with a big position. In fact, I am extremely conservative in that sense. I realize that if the breakout doesn't come and the stock moves the other way, it quickly wipes out the position due to various components against me such as IV, Delta, etc.

 

On the ES, I typically don't wait for confirmation if I see a setup. I just enter and adjust my risk/reward accordingly. But again, I never take on a big position, but the trade itself could be deemed "aggressive."

 

I also take on other approaches in options that aren't aggressive at all, such as credit spreads. This allows a more consistent income, but it's not as exciting. It's kind of like the bread and butter, it gets the job done. I utilize my other trading strategies because I find it to be more challenging, and I like a challenge.

[Soultrader 12]

Interesting thread... throughout the early years of my trading career, I went through a phase where I would be right about short term moves in the market but could not seem to profit from it. After thorough analysis, I realized I was overly aggresssive which forced me to jump into trades too early. Even my old mentor mentioned I was too aggressive. As a result, one of the things I struggled to change was to hold myself back and wait for further confirmation.... allowing me to time my trades better.

 

This took practice and time as I started to learn that being conservative didnt necessarily mean you had less balls. It was simply practicing more discipline and patience. In the end, all that really mattered was your PNL.... and thus changed my style of trading to a more sniper approach, crafting my timing and entry as careful as possible.

[MidKnight 12]

99.9% of the traders out there want confirmation. With that in mind, it makes more sense for me to be on the aggressive side.

 

All my best,

MK

[Soultrader 12]

99.9% of the traders out there want confirmation. With that in mind, it makes more sense for me to be on the aggressive side.

 

All my best,

MK

 

I think there are degrees to the confirmation. This could be one extra bar, two bars, indicator based, etc... The more confirmation you require, you are in with the herd.

[BlowFish 10]

Degree of aggression can be measured by degree of 'earliness' or 'lateness' as measured from a turning point. By waiting for confirmation you often give up trade location to have confirmation and also momentum already on your side. As you note the very earliest (most aggressive traders) will trade before the turn. (buying into a selling climax) This by definition would be counter trend trading.

 

The later you trade (the further away) the less aggressive you are. You pay for this with poorer trade location and so potentially higher risk. As I mentioned above you have momentum working for you as compensation. 'Break out' traders and 'trend followers' are the latest. Of course if you are really late trading a pull back for example you run the risk of trading straight into the next turn.

 

Getting the right style (early or late) for your personality is one of the fundamental choices you make as a trader so worthy of special consideration.

 

Personally I trade early (I try and trade as close to the turn as possible) and with quite a high frequency.

[Paul71 10]

The more threads I have read, whether it is about a trading style, a type of method to trade, a timeframe preference.. each thread invariably tends to take a detour briefly.. One poster thinks another is being hateful or stepping on their method, the other poster backpedals signaling that "was not the intent” and it occurred to me that a lot of these tend to boil down to one simple statement: "Oh well I trade this way because that is what I am comfortable with and what works for me." Generally one trader is far more aggressive in their trade choices than the other trader in the conversation.

 

With my study of VSA I also saw this come to pass even with Tom Williams and Todd K (both work together in the same company and present VSA to students.) Tom Williams is an aggressive trader- when he has determined that he is looking to go long when he sees a bar that suits his fancy and BAM he is in. Todd K on the other hand waits for confirmation. He will wait out the next bar or even two before he gets in to his position.

 

What this does for the more conservative trader is give him/her a higher probability of success. What it does for the aggressive trader is let him/her be in on the entire start of the move when it does plow northward.

 

I have a good fellow trader who is more "confirmation oriented" and I tend to be the Tom Williams aggressive trader apparently.

 

I wanted to get a feel of how some of the traders here feel they fit into what category vs. the other? If I see a beautiful bull move on the horizon but will be unable to physically be at my platform to pull the trigger at the "perfect moment" I will accept the drawdown to be sure I get in on the trade. My fellow and well-respected trader from above would think I was crazy because he'd wait for the confirmation of that trend to form before pulling the trigger. Plus he is less susceptible to the fact that if it did decide to punch down a tad lower- I am now either stopped out or riding a nasty drawdown before the good times come.

 

I'd be interested in hearing others own self-reflection of what type of trader they really are. I'd be very interested in people who once sat in the "Aggressive Chair" and had a moment of clarity to become a more "Conservative Trader."

 

Once again I see an inadvertent lesson I was taught by a wonderful friend and fellow trader that I had to come too on my own... my aggressive days may be coming to an end... I may be leaning towards the “Conservative” and “boring” side with higher probability of win than I currently do now!

Aaron

 

 

Mainstream TA is an endless supply of patterns, techniques, methods etc. Depending on which books a person reads, what they see in a chart and the individuals personality is all relavant.

 

Personally i've never really understood the aggresive/passive arguement, Jeckyll and Hyde trading in an individual can't be good for the curve.

 

Good trading.

[Sledge 13]

Interesting thread... After thorough analysis, I realized I was overly aggresssive which forced me to jump into trades too early. Even my old mentor mentioned I was too aggressive. As a result, one of the things I struggled to change was to hold myself back and wait for further confirmation.... allowing me to time my trades better.

 

This took practice and time as I started to learn that being conservative didnt necessarily mean you had less balls. It was simply practicing more discipline and patience. In the end, all that really mattered was your PNL.... and thus changed my style of trading to a more sniper approach, crafting my timing and entry as careful as possible.

 

James-

Thank you, After self-analysis, I appear to be in your former state. I don't like drawdown, but my trades virtually always work out and end in the + side of my sheet (sometimes not at the dollar figure I had intended because of the further downward movement.) I think I would prefer to be a little later in the move- but be more certain that the move is going to bank money.

 

Anyone here work out their trades in this way, I have been toying with it but not come close to mastereing it at all:

 

Instead of doing an instant execution trade and having drawdown, you put in a pending order at some pre-determined price and when the market does go in your direction, you are filled. This way their is little or no drawdown and you are in on the major part of the move. I'm looking at this as a potential way to solve both problems. I get into the major part of the move, but don't ride the drawdown. If the order doesn't fill, I'll reassess after and see if their is a better entry.

 

Thoughts?

Aaron