Cut Your Losses?? (Mean Reversion)

[GaryCook]

True, I need to get better with trading and do that more than gambling. I think it hard to read the markets though and knowing when to get in or out at the right times.

I bet some of you had a cracker with that 2-1 today.

[Derek27]

Where have you been for the last four months?

[wearthefoxhat]

Blimey, 4 years ago...........

Its passed quick hasn't it!
Do you think we will still be here in another four years mate?
....If so, Ill reply to this post in march 2018!

Well, we're still here!

[PeterLe]

Blimey, 4 years ago...........

Its passed quick hasn't it!
Do you think we will still be here in another four years mate?
....If so, Ill reply to this post in march 2018!

Well, we're still here!

Wow over nine years since the original post!
And I'm still running compare/contrast strategies between accounts.
If the original tests were run on todays markets i wouldnt be surprised to see similar results

One thing I have changed since those days is that I dont green up anymore. In my experience, this gave me better results (even greening at reverse is out)
Maybe Ill post on this again in another 10 years (December 2029) , I wonder how many of us will be around then!

[Kai]

Brilliant, you guys are my real inspiration

Can't imagine anything harder than achieving such longevity in these markets.

[abgespaced]

Well, because this post was bumped I'll chime in. Now that I feel I've got some kind of trading sense, "cutting your losses" to me means that I've made the wrong decision and the true value is now being reflected in the market price in opposition to what I thought the value was. It doesn't necessarily mean the price has gone against me after taking a position. The price often goes against me after taking a position, because the market is on the wrong side of the true value. So I hold my nerve and wait for a correction. But if I really have go it wrong, some signs will show and I will close out.