Day trading difficulties

Quote from NoDoji:


It's a path everyone has to forge on their own, IMHO.
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^ absolutely agree, we're all fundamentally different people and handle the highs and lows of trading in different ways. The trading company I use (cannon trading) has published some resources that I've found helpful in coping with the highs and lows. I learn best by sitting down with solid reading/listening material, so if anybody else has something else they highly suggest I'd appreciate a PM with it, though I'll do my best to keep on following this thread if you post it here.

Here's my favorite article - it's about figuring out your "trading blood type"... basically going over the different types of traders and how important it is that you figure yourself out. This is a direct link to the pdf - http://www.cannontrading.com/pdf/blood-type.pdf

I also attend a service called the "daily webinar" put on by the V.P. (Ilan Levy-Meyer) where he shares his setups for the E-Mini S&P, crude, euro currency, etc... along with insight into the mental aspect, money management tips, technical stuff, etc... I've found it to be very blunt & straightforward without the B.S. of people trying to sell you indicators and crap that I've gotten in other "educational" services. Here's a link to an intro about it: http://www.cannontrading.com/daily/, if this type of thing is up your alley I recommend trying it out - I got two weeks free... and if I remember right everybody does whether you're a client or not, but I'd check out the site to make sure.
 
Quote from oilfxpro:

If day trader has designed a system with small stops and small targets ,when the discretionary day trader trades on instincts in fast moving markets , he will apply the small targets and stops execution , because that is in his memory and execution rules.

The day trader places swing trades with wider stops and wider targets.Unfortunately the memory of small stops and targets remains in his mind, and often interferes under stress and is applied in split seconds , and is often applied to the wider stops/targets system .

How does the trader eliminate this take small profits mindset?What is the solution.

Many of you who have read Trading in the Zone , may be able to propose a solution.
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the size, any thing from 2 or more ,could be your swing position, a part of that would be used to adjust your avg price,scalping in an out or adding and subtracting to your overall size,while at the end of day you are still net long or short,that day trading memory will be a great tool in building,reducing,protecting a swing trade position
 
Quote from ammo:

the size, any thing from 2 or more ,could be your swing position, a part of that would be used to adjust your avg price,scalping in an out or adding and subtracting to your overall size,while at the end of day you are still net long or short,that day trading memory will be a great tool in building,reducing,protecting a swing trade position
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That is a very good idea, one position would take care of dealing in ranging /narrow markets( the problem for swing traders) and the other would trade your swing strategy.


I have been back testing a 20 stop , 2 lot entry , with one target of 20 and a second target of 40 and a move to break even after 20.The results with a 50% hit rate on euro /usd are break even, so if trader is good a picking the 70 to 80 % directional success set ups , and re-enters on every pull back along the trend , it can work for both types of trading.


There are other position size management formulae which can enhance performance of the above. There can be mindset problems to overcome with variable position sizes.What are the problems with using flexible lot sizes?
 
u need to trade the 2 on sim for awhile so u know daytrading and swing trading together is something you are comfortable with, multiple lots ,there is a max size and max loss that needs to be set,then you trade size according to market conditions,strong ,weak setups,larger smaller size
 
Quote from ammo:

u need to trade the 2 on sim for awhile so u know daytrading and swing trading together is something you are comfortable with, multiple lots ,there is a max size and max loss that needs to be set,then you trade size according to market conditions,strong ,weak setups,larger smaller size
More...

3 quality posts on this thread from u.Thanks.
 
Interesting article here.

How long does it take to be a competent day trader? This is the question most frequently asked. The answer is: in my experience, it takes 10 years and 10-20,000 hours of practice before the average person gains enough expertise to succeed consistently in the trading shark tank

http://www.marketoracle.co.uk/Article533.html

A couple of days ago, I asked a 25-year veteran of options trading, a guy who has not had one single losing year the past twenty-five years (let's call him Danny) if he had a trading plan. He did not hesitate to reply: No I don't. I am unconscious.

What he means is that after 25 years of options trading he is Unconsciously Competent. Unconscious Competence is the penultimate stage of in the five levels of trading competence. Even with all this experience and reaching a high level of trading mastery, Danny continues to perform, day after day with remarkable success, always pushing himself to higher and higher levels of mastery. It is not about the money. It is about the continual challenge of dealing with everything that comes to him a way that is as natural as breathing. If stock gets "put" to him or called away, he knows immediately what to do and he does it without thinking. He does not panic or have an attack of high blood pressure or emotional outburst. He just does what he has to do. Because of the rapidity with which he trades, he cannot express well or teach another person exactly what he is doing, and if you review the article on Competence: So You Think You Can Trade, you will see why Danny, with all of his experience and profitability, has not reached the ultimate level of trading mastery
 
 
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