First of all, I am shocked by this thread. It is one of the most helpful, "wise comment" free threads I have seen. I thank everyone here for their intelligent comments to Mad's concern. Each comment here is worth its weight in gold.
Mad, you and I are at the same firm. And I know what the problem is. Two things:
1. Loss Limit
I have figured it out after 6 months. One of the biggest problems for new traders is the loss limit that they impose on us. I'm pretty sure that they started you out with a $100 loss limit. Whether you did 100 shares or 500 shares, that was probably your loss limit per day for a while (thats how it was for me at least). Loss limits are great but, they have to increase proportionately to the amount of shares per trade. This is the only way, you can confidently trade. I am telling you from experience. The first few months, I have been a nervous wreck. I would get in a trade with 300 shares and if it went against me by 5 cents, I'm out and then it moves in my intended direction. You cannot trade like that. Even if you are scalper, you have to give the trade a chance. At least 10-15 cents stops. Right now, I believe you said, that your trading 2000 shares sometimes. If thats the case, then you should have a $2000 loss limit. I know it sounds crazy and they're certainly not going to give you that. So don't trade 2000 shares. Trade proportionate to your loss limit. It has helped me a lot. When I was at $100 loss limit, I made 100-200, $200 loss limit and I made 300-400, $300 loss limit and I made 500-600, and now with a $400 loss limit, I find myself making 700-1000. It was a long and ugly fight to get the loss limit I wanted. I had to prove to them that I can pull money out of the markets, at least gross. There's at least one good thing about trading prop: If you prove yourself gross wise, they will give you what you want. But, you have to ask. If you don't ask, you won't get.
2. Mentor
I have a great mentor. He never yells at me and he always cheers me on for good trades. And he is always there for me to give me advice. A mentor that does not talk is NOT a mentor. He is simply making money off your commissions. As far as I can see, my mentor does not hide anything from me. He taught me everything he knows and he continues to teach me. On the other hand, there are some mentors in our firm that yell at their traders. If I had one of those mentors, I would have been long gone. So I consider myself very lucky. A mentor has to have a balance just like in trading. Someone who does not talk and some one who yells, is not a good mentor in my opinion. So, you have the RIGHT to get a better, more caring mentor if you don't like the current one. The mentor is not free, you are paying him thru a part of the fees.
What is your loss limit per day?
I hope this helps you. Because these two things have helped me "turn that corner".
p.s. I also hope you have not abandoned this thread, because it has a lot of valuable responses.
i wasnt referrin' to u but to what the op said.
