I Discovered the Reason I Lose Money Trading.

G

GotherL

Daytrading simply isn't for me. It's an emotional roller coaster. Fast pace with too many risks.. The commission takes huge chunks of my profit. I get suckered into p&d's very often. Then lose money due to my own psychological leaks and the nature of daytrading. I am to scared not to take profit early on winners. But when I am down. I am too late to sell on losers. It just takes one big loss or a string of losers for me to go downhill. I got a solid strategy/trading style but I can't overcome the mental aspect of daytrading in a real account. Consistent huge winner on paper. Consistent big fat loser on real money.

Solution I found to all this. I will diversify most of my funds into swing trading and leave only some for daytrading.

With swing trading, I can take the time choosing stocks ahead of time. Avoid the requirement to make decisions in a miniscule timeframe and the rush of emotions that come along with it . Most of my BP will be thrown into a portfolio. Therefore, if I don't do well daytrading, I will not get triggered into blowing up my account so easily. Transitioning from daytrading to swing trading should not be difficult for me either.

I should've thought of this sooner....
 
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I can relate, that sounds exactly like myself and I'd bet 90% of the posters on here, if they where honest, which is a rare thing.

I used to Swing and I did well, better than I do Daytrading 20years later, but the time required to do so, always being in the market and keeping an eye on ( easier these days smart phones / tablets ), research, checking 100's of charts to find the next trade sucks.

I'm still 100% Daytrading mine, getting there but cheating, got a very simple easy to follow method, automated the SL side and it trails aswell to keep that in check, hidden away the SL value and my ability to change it on Friday, doubled account recently ( can give it back in a day hour mind ), so hopefully improving and getting over.

Swings not as easy at it seems, it'll feel a lot more of a gamble as the price goes up and down over the days your holding it, you'll be very near 50/50 wins wise and morning gaps against you, just when you think all is going well, suck!! It's okay in strong trending markets, whipsaw not so much.


Enjoy :)
 
Turveyd said:
I can relate, that sounds exactly like myself and I'd bet 90% of the posters on here, if they where honest, which is a rare thing.

I used to Swing and I did well, better than I do Daytrading 20years later, but the time required to do so, always being in the market and keeping an eye on ( easier these days smart phones / tablets ), research, checking 100's of charts to find the next trade sucks.

I'm still 100% Daytrading mine, getting there but cheating, got a very simple easy to follow method, automated the SL side and it trails aswell to keep that in check, hidden away the SL value and my ability to change it on Friday, doubled account recently ( can give it back in a day hour mind ), so hopefully improving and getting over.

Swings not as easy at it seems, it'll feel a lot more of a gamble as the price goes up and down over the days your holding it, you'll be very near 50/50 wins wise and morning gaps against you, just when you think all is going well, suck!! It's okay in strong trending markets, whipsaw not so much.


Enjoy :)
More...


Great points, agree. I also use automated trailing stops for daytrading with OTO orders, huge help.

Exactly right re swings need trending markets, and problem of gaps.

I do both, many small daytrades plus swings, combination approach. My biggest cause for when I lose is overtrading marginal charts vs waiting for great setups.

Good luck!
 
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KCalhoun said:
Great points, agree. I also use automated trailing stops for daytrading with OTO orders, huge help.

Exactly right re swings need trending markets, and problem of gaps.

I do both, many small daytrades plus swings, combination approach. My biggest cause for when I lose is overtrading marginal charts vs waiting for great setups.

Good luck!
More...

I seems can't find OTO order with IB and tradestation, which broker you placing order with ? i think with IB conditional order to trigger two orders , this might possible but i never used it
 
GotherL said:
Daytrading simply isn't for me. It's an emotional roller coaster. Fast pace with too many risks.. The commission takes huge chunks of my profit. I get suckered into p&d's very often. Then lose money due to my own psychological leaks and the nature of daytrading. I am to scared not to take profit early on winners. But when I am down. I am too late to sell on losers. It just takes one big loss or a string of losers for me to go downhill. I got a solid strategy/trading style but I can't overcome the mental aspect of daytrading in a real account. Consistent huge winner on paper. Consistent big fat loser on real money.

Solution I found to all this. I will diversify most of my funds into swing trading and leave only some for daytrading.

With swing trading, I can take the time choosing stocks ahead of time. Avoid the requirement to make decisions in a miniscule timeframe and the rush of emotions that come along with it . Most of my BP will be thrown into a portfolio. Therefore, if I don't do well daytrading, I will not get triggered into blowing up my account so easily. Transitioning from daytrading to swing trading should not be difficult for me either.

I should've thought of this sooner....
More...
Congratz.

How much of the real $ it took you, to learn this / to make this decision ?
 
My suggestion is to pick one, either day trading or swing trading. Given what you revealed about your discipline to follow your plan you are likely to turn day trades into swing trades.

If you don't follow your plan when day trading what makes you think you will follow it when swing trading? Holding overnight opens up a lot of risks you don't encounter when going flat at the end of the day. I'd work on plugging the psychological leaks.

FWIW; I switched from day to swing trading a few years ago. I make about the same return with a lot less stress.
 
Nobert said:
Congratz.

How much of the real $ it took you, to learn this / to make this decision ?
More...
I don't like the idea of giving up so I blew up at least 25+ small accounts ranging from $500-$2500 over the last 4 years. It's not as much about the loss of money. But the failure to be profitable after so many attempts.
 
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