Day Trading don't work
- Thread starter Lonely trader
- Start date
u don't need to know anything to trade....only to make money trading......
When I first started scalping I had to break the "countertrend" habit, which is a form of mass psychology that says "it can't go any higher, so sell" and "it can't go any lower, so buy".
Guess what? It CAN, and it DOES.
The Market Makers know that psychology, and they move price against it !
The smallest "mental bias" can be hard to correct.
If it looks "too easy", then it is too easy; and it's the wrong decision, usually.
And there are dozens of such bad habits which can cost you dearly to work out of your system.
FS
Guess what? It CAN, and it DOES.
The Market Makers know that psychology, and they move price against it !
The smallest "mental bias" can be hard to correct.
If it looks "too easy", then it is too easy; and it's the wrong decision, usually.
And there are dozens of such bad habits which can cost you dearly to work out of your system.
FS
For those select few that are in denial that day trading doesn't work.
Try looking at the Journals thread 2007 P/L thread. Those guys trade everyday posting there P/L screen shot.
Take a look if you need a smack of reality in the face.
Try looking at the Journals thread 2007 P/L thread. Those guys trade everyday posting there P/L screen shot.
Take a look if you need a smack of reality in the face.
actually, countertrend trading works fine if you enter intelligently, and KNOW WHEN TO ADMIT YOU ARE WRONG
for the last 6 years (at least) a means reversion strategy has worked VERY well.
i do sometimes enter "with the trend" trades and/or breakout trades but when it comes to futures trading intraday, selling strength and buying weakness works very well as long as you pay attention to key reference areas, market internals and use stops
most days are not "trend days" and most days this is a great strategy. the point is you never sell MERELY cause it has gone up, you must have a reason - watch tape, key reference areas (market profile helps in this a lot) and market internals.
most importantly - set hard stops.
a classic means reversion scalper setup often results in about 80% + winning trades, but usually slightly larger losing trades vs. winners.
it gives a very decent profit factor and a smooth equity curve.
lots of retail traders are always talking about "trends" and breakouts and the reality is that in index futures MOST OF THE TIME means reversion is the preferred intraday strategy NOT breakout/trend following.
of course most retail traders lose money
do the math
smart money is USUALLY selling the strength and buying the weakness
for the last 6 years (at least) a means reversion strategy has worked VERY well.
i do sometimes enter "with the trend" trades and/or breakout trades but when it comes to futures trading intraday, selling strength and buying weakness works very well as long as you pay attention to key reference areas, market internals and use stops
most days are not "trend days" and most days this is a great strategy. the point is you never sell MERELY cause it has gone up, you must have a reason - watch tape, key reference areas (market profile helps in this a lot) and market internals.
most importantly - set hard stops.
a classic means reversion scalper setup often results in about 80% + winning trades, but usually slightly larger losing trades vs. winners.
it gives a very decent profit factor and a smooth equity curve.
lots of retail traders are always talking about "trends" and breakouts and the reality is that in index futures MOST OF THE TIME means reversion is the preferred intraday strategy NOT breakout/trend following.
of course most retail traders lose money
do the math
smart money is USUALLY selling the strength and buying the weakness
Day trading works. I average about 60 trades a week; I seldom hold a position more than 20 minutes and sometimes less than 1 minute. Two weeks ago I made 78 trades and finished with a net profit of $2.12 . My broker made $546.00. Last week I made $142.00; my broker made $406.00 . Day trading works. Ask my broker.
In any case, if you'll note, my winnings last week were spectacular compared to the previous week. I've discovered a new trading strategy - get drunk before the opening; it makes you less jumpy.
All true.
Cheers,
Hans
In any case, if you'll note, my winnings last week were spectacular compared to the previous week. I've discovered a new trading strategy - get drunk before the opening; it makes you less jumpy.
All true.
Cheers,
Hans
Interesting. When I made my post about the "countertrend bias", I was simply illustrating how one single bias can result in strings of losses, even though the trader "knows" it may be a bad habit.
But in my own IB trading, I use custom "hi tech" analysis, and semi-automatic execution support, and so I am able to execute rapid fire counter-trend trading with high success rate. Specialist analysis is also required, imho.
Anyone who tries counter-trend trading must also consider use multi-contract scaling in order to "capture" the top or the bottom, as it is not easy to precisely peg the pivot (market turning) price. Better to use "averaging" when trying to "nail" that countertrend pivot point.
But, in general, trading success requires all links in the "chain" to be strong: analysis, execution, account strength, psychology, etc. Any weakness can result in strings of losses and the downward spiral we've all experienced at times in our careers.
bluedemon77
Guest
Quote from Lonely trader:
Thanks for your posts,
Today, I have hit rock bottom, I was getting out of a loosing trade, I was down $170 I doubled up to average the trade, It came down to $40 then went back to $100, then out of nowhere it went higher, I froze, I lost $430, So I though shit to all this, I do the opposite of my trades, because of late my trades don't seem to work, I thought by doing the opposite of what I'm doing I should have a chance. Well, how wrong I was today. My trading plan would have worked, but dumbass me done the opposite of my plan and as a result lost $1,200 today.
Today was the day I got frustrated trying to win my money back from previous losses, I now you guys are going to say, its my stupid fault and today it was and I know that. It's like the market is laughing at me and today of all days my trading plan would have worked if I stuck to it. I guess something is telling me to give up now before the little money I have goes to £0,.My wife came in to the room after the market had closed she looked over my shoulder, at the PC and saw my P&L, she then started screaming at me saying stop know before you lose it all she then walked out of the room, I felt like a school boy not answering here back, but I know she is right, she has supported me over the last 5 years reading, hours and hours looking at chart, I ask me self tonight where do I go from here, I am thinking of phoning my broker first thing tomorrow to close my account before I blow it all. I feel its been a waste of my time and my family time. However I still got something telling my don't give up. What am I thinking
Thanks for trying to help me but I think I am a lost case.
Bill
It seems like you're "revenge trading." Been there; done that. Read Trading in the Zone by Mark Douglas. Until you get a grip on your emotions, all of the technical stuff and other advice you're getting won't help.
If you can't get your wife's support, you're never going to be able to trade without fear, which is what you need to be able to do. Hell, I've got my wife's support and fear is still my major problem. Fear of failure and fear of missing an opportunity kill me. I hate losing money, but you have to be able to accept risk or you can't be a trader. Despite claims to the contrary from some people here that say they never make a bad trade, you have to be willing to take losses. This trading stuff looks real easy; it's not. You are your own worst enemy (so am I).