Frustrated

Quote from Hamb-ltrd:

I am a discretionary trader and my goal is to trade the ES in the near future.
For now I am trading SPY to get the feeling.
Even though I traded part time in the 90’s, I still have a lot to learn.

Well I trade 100 shares of SPY for 5 weeks. I can go as high as 2000 shares
but I would rather increase my size gradually if and when I show a profit.
My plan is to add 100 shares for every $500 profit and also decrease accordingly
when I have a loss.

I made about 350 trades so far with only 100 shares.
I am $150 net, my commissions plus taxes about $500.
It looks like I am working for $30 a week and my broker gets 3 times that.

I am very frustrated and I search for solutions. I keep a trading diary and also
I also an Excel file with some statistics about my activity.
I am thinking to reduce my trades but I am not sure if that is the solution.
Win/Loss ratio is 2:1. I don’t know if I can improve that.
Definitely I have to work on my average loss, which will help a lot.
Increasing my size, providing I keep the same results, will do it.
I explained above how I plan to do it.

Any other ideas?
PM me if you need further statistical details.

I would appreciate any constructive comments.

Regards

Hamp
More...

Trade forex.
 
I just looked over your stats. The most imporant factor is that u are right about %66 of the time.. but your avg win/avg loss (.63) is way less than one. Your mathematical expectancy is a low 7.6 cents. Means for every dollar risked u are making roughly 7 cents.

If I were u I would stop trading altogether and re evalute. Your trading method is a classic churn and go no where. You have to fine tune your strategy to make your avg win/ avg loss over 1. You can stick with the SPY for now... but u have to get better stats once u go live on the ES.

Its a good smart thing u posted here to get feedback.



--MIKE
 
Quote from Trend Fader:

I just looked over your stats. The most imporant factor is that u are right about %66 of the time.. but your avg win/avg loss (.63) is way less than one. Your mathematical expectancy is a low 7.6 cents. Means for every dollar risked u are making roughly 7 cents.

If I were u I would stop trading altogether and re evalute. Your trading method is a classic churn and go no where. You have to fine tune your strategy to make your avg win/ avg loss over 1. You can stick with the SPY for now... but u have to get better stats once u go live on the ES.

Its a good smart thing u posted here to get feedback.



--MIKE
More...


Definitely reevaluate your methodology. 0.005/share is cheap, but commissions are still a problem, so are you overtrading? Maybe you're letting your losers go too far?

If you're right 2/3s of the time, cutting your losers earlier must be part of the solution.
 
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