I Need Some Reassurance Here

[tomorton]

Through some introspection I've realized my chief motivation for trading is selling myself this narrative where I fantasize about making phenomenal returns, turns a few thousand into tens of thousands, into hundreds of thousands and so on. The Psychology is a left over from the Timothy Sykes Penny stock marketing bullshit, it doesn't directly reflect in my paper trading though. So, my first option trade I made $1,650 off my $250(my first deposit) of an ORCL earnings release this past summer. I lost it all the next week, and deposited money trying to play earnings all summer with an account never lasting more than 2 weeks. The past 8 weeks I've been paper trading starting with an account of $2,500, and I had TD put it under the PDT Rule, I've Paid $1,800 in commissions and its down to $1,300. I want to go live again in March with $8,000 which is $5k excess student loans and $3k Tax return, is considering that insane. Also the market on has my undivided attention from 8-11am Mon.-Fri., how long is the learning curve in your experience?

You will have better results with high probability, low subjectivity trade set-ups. Stop trying so hard. I obviously mean trend-following.

For a stock, buy if all the following apply -
its main index is rising
the market main stock indices are rising
the 20EMA of both stock and index are above the respective 50EMA
the 50EMA of both stock and index are above the respective 200EMA
the 50EMA of both stock and index are sloping upwards

Set your stop below the most recent swing low. If this is impracticably far away, set the SL at 2 x ATR14 below entry. No profit targets. Pyramid the winners as soon as they break even.

Keep at it.

 

[TrustyJules]

Through some introspection I've realized my chief motivation for trading is selling myself this narrative where I fantasize about making phenomenal returns, turns a few thousand into tens of thousands, into hundreds of thousands and so on. The Psychology is a left over from the Timothy Sykes Penny stock marketing bullshit, it doesn't directly reflect in my paper trading though. So, my first option trade I made $1,650 off my $250(my first deposit) of an ORCL earnings release this past summer. I lost it all the next week, and deposited money trying to play earnings all summer with an account never lasting more than 2 weeks. The past 8 weeks I've been paper trading starting with an account of $2,500, and I had TD put it under the PDT Rule, I've Paid $1,800 in commissions and its down to $1,300. I want to go live again in March with $8,000 which is $5k excess student loans and $3k Tax return, is considering that insane. Also the market on has my undivided attention from 8-11am Mon.-Fri., how long is the learning curve in your experience?

(Tough love ahead)
Here is what I read:

- I dream of getting rich quick
- I listened to some marketing BS
- I had a lucky trade that made a bundle
- I then traded without concern for position size or loss management and lost everything
- I paper traded 90 transactions in the space of 8 weeks on a 2.5K account
- I am planning to trade with borrowed money

All of the above are red flags. The best returns are in fact steady but modest without losses. They is always NOT to lose money and position size is key to avoiding catastrophic losses. What you trade you should be willing to lose and not have to worry about except kick yourself for being a damn fool.

More is less - back here in Belgium my bank probably considers me a very active trader. I have 250 transactions since the beginning of this year (whereby an open and close are considered one transaction). My account is much larger than 2.5K - my costs are not above 5% of my account value. In my mother's and family accounts I manage the costs are not higher than 1.2% of the value of the account. The learning curve is perpetual - the big danger always is that you go in too deep and lose everything.

 

[777]

You will have better results with high probability, low subjectivity trade set-ups. Stop trying so hard. I obviously mean trend-following.

For a stock, buy if all the following apply -
its main index is rising
the market main stock indices are rising
the 20EMA of both stock and index are above the respective 50EMA
the 50EMA of both stock and index are above the respective 200EMA
the 50EMA of both stock and index are sloping upwards

Set your stop below the most recent swing low. If this is impracticably far away, set the SL at 2 x ATR14 below entry. No profit targets. Pyramid the winners as soon as they break even.

Keep at it.

Why can't he simply buy only the stocks that will rise a minimum of 20 percent each day and for sure not buy any stocks that will lose him money?

Money management?

Bet it all.. let her rip... preferably on maximum margin.

 

[themickey]

Why can't he simply buy only the stocks that will rise a minimum of 20 percent each day and for sure not buy any stocks that will lose him money?

Money management?

Bet it all.. let her rip... preferably on maximum margin.

20% per day is quite modest, yep, very achievable with one eye shut.

 

[Xela]

I Need Some Reassurance Here

With apologies for what may come across to you as an "unhelpful" response (though it isn't intended that way), your problem is that you haven't yet identified what it is that you need: you mistakenly think it's "reassurance". Actually it's very basic education about what trading is, and how it works.

 

[AceMav]

this is my favorite post

(Tough love ahead)
Here is what I read:

- I dream of getting rich quick
- I listened to some marketing BS
- I had a lucky trade that made a bundle
- I then traded without concern for position size or loss management and lost everything
- I paper traded 90 transactions in the space of 8 weeks on a 2.5K account
- I am planning to trade with borrowed money

All of the above are red flags. The best returns are in fact steady but modest without losses. They is always NOT to lose money and position size is key to avoiding catastrophic losses. What you trade you should be willing to lose and not have to worry about except kick yourself for being a damn fool.

More is less - back here in Belgium my bank probably considers me a very active trader. I have 250 transactions since the beginning of this year (whereby an open and close are considered one transaction). My account is much larger than 2.5K - my costs are not above 5% of my account value. In my mother's and family accounts I manage the costs are not higher than 1.2% of the value of the account. The learning curve is perpetual - the big danger always is that you go in too deep and lose everything.

 

[tomorton]

Why can't he simply buy only the stocks that will rise a minimum of 20 percent each day and for sure not buy any stocks that will lose him money?

Money management?

Bet it all.. let her rip... preferably on maximum margin.

Absolutely - mortgage the house and sell the car, Christmas is coming early!

 

[STD Deviant]

Through some introspection I've realized my chief motivation for trading is selling myself this narrative where I fantasize about making phenomenal returns, turns a few thousand into tens of thousands, into hundreds of thousands and so on. The Psychology is a left over from the Timothy Sykes Penny stock marketing bullshit, it doesn't directly reflect in my paper trading though. So, my first option trade I made $1,650 off my $250(my first deposit) of an ORCL earnings release this past summer. I lost it all the next week, and deposited money trying to play earnings all summer with an account never lasting more than 2 weeks. The past 8 weeks I've been paper trading starting with an account of $2,500, and I had TD put it under the PDT Rule, I've Paid $1,800 in commissions and its down to $1,300. I want to go live again in March with $8,000 which is $5k excess student loans and $3k Tax return, is considering that insane. Also the market on has my undivided attention from 8-11am Mon.-Fri., how long is the learning curve in your experience?

Keep paper trading until you are consistently profitable. Putting "skin in the game" does not make a bad strategy or poor trading behavior better; all you're going to do is get poorer.

 

[Scataphagos]

"... what it is that you need... it's very basic education about what trading is, and how it works.

Applies to waaayy more ET'ers than just rookie Ace, don't you think?

 

[rb7]

Through some introspection I've realized my chief motivation for trading is selling myself this narrative where I fantasize about making phenomenal returns, turns a few thousand into tens of thousands, into hundreds of thousands and so on. The Psychology is a left over from the Timothy Sykes Penny stock marketing bullshit, it doesn't directly reflect in my paper trading though. So, my first option trade I made $1,650 off my $250(my first deposit) of an ORCL earnings release this past summer. I lost it all the next week, and deposited money trying to play earnings all summer with an account never lasting more than 2 weeks. The past 8 weeks I've been paper trading starting with an account of $2,500, and I had TD put it under the PDT Rule, I've Paid $1,800 in commissions and its down to $1,300. I want to go live again in March with $8,000 which is $5k excess student loans and $3k Tax return, is considering that insane. Also the market on has my undivided attention from 8-11am Mon.-Fri., how long is the learning curve in your experience?

In that order:
1) Back-test your strategy with historical data, many years at least.
2) Paper trading in real-time.
3) If 2 doesn't work, go back to 1. If 2 is working for many consecutive months, go to 4.
4) Trade with real money but with minimum size.
5) if 4 doesn't work, go back to 1. If 4 is working for many consecutive months, go to 6.
6) Keep trading with real money by increasing your size.
7) Collect and enjoy!