thank you for this advice. This will help me immensely !
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- Thread starter Equanimity
- Start date
thank you for this advice. This will help me immensely !
Quote from Equanimity:
... I cannot for the life of me put on a trade that makes me either win or lose $100 only per trade. I want to become a better trader and want to be able to make back a chunk of what I've given away.
These are mutually exclusive goals. If you really want to be a better trader you will have to accept that what you have lost is gone and forget about trying to make it back. You have to focus first on learning how to trade and how to protect what you have. Then you can move on to trying to grow your account which will require that you size your trades appropriately for your account.
You need to stop trading and build your account back up. You have to change your mindset: getting back to break even is a gambler mindset. Trading for greatness is my mindset.
I'm not sure how to help you. But, I will lay out a plan:
1. Stop trading
2. Built your account back to 60k.
3. Develop a trading system and do something 100% different then anything you've did. I mean if you pick direction, go dollar neutral. If you were hedged, do something different. Everything must change -- at least for initially. You can reflect on your lessons later.
If the 60k represented a large part of your capital then it will be difficult to become a great discretionary trader. However, you have proven yourself capable of risking a lot of money: you may be more suited to system trading. The problem is you don't have a system. it didn't have to be your problem but has proven to be your problem.
You need to focus on your strengths. Find whatever you win at and only do that. Never let yourself get busted. It is time to reload or quit. It will help your psychology. If the 7k is really all you have left then withdraw it, spend it. Build your account back. There is no glory in losing.
I'm not sure how to help you. But, I will lay out a plan:
1. Stop trading
2. Built your account back to 60k.
3. Develop a trading system and do something 100% different then anything you've did. I mean if you pick direction, go dollar neutral. If you were hedged, do something different. Everything must change -- at least for initially. You can reflect on your lessons later.
If the 60k represented a large part of your capital then it will be difficult to become a great discretionary trader. However, you have proven yourself capable of risking a lot of money: you may be more suited to system trading. The problem is you don't have a system. it didn't have to be your problem but has proven to be your problem.
You need to focus on your strengths. Find whatever you win at and only do that. Never let yourself get busted. It is time to reload or quit. It will help your psychology. If the 7k is really all you have left then withdraw it, spend it. Build your account back. There is no glory in losing.
Quote from Equanimity:
I have whittled down my $60,000 account to $7000 in 18 months trading full time. I've never had a winning week just a few winning days.
For the first 15 months I am convinced I had no idea what I was doing although I thought I did. Its just that in the last 3 months I have developed an edge and have been able to win small here and there. And I've also had a small breakthrough in my personal psychology in that I'm not afraid to enter a trade, although I'm confused as hell when I should exit. I've also discovered that I'm responsible for every trade and I need to control myself and not try and control the market.
My downfall has been classic newbie faults like over-leveraging and trading without a method or an edge. But I feel like I may have turned the corner but I cannot for the life of me put on a trade that makes me either win or lose $100 only per trade. I want to become a better trader and want to be able to make back a chunk of what I've given away.
Could you please assist me with your experiences?
Thank you.
You hit the nail on the head, psychology is the key! By now you already know the basics and right from wrong but, you got to TRUST yourself.
Here is a simple formula: 1) Grade your trades 1-5, 5 being excellent.
2) Since your capital is small, choose a strategy and stick with it until you have at least $20k.
3) Learn to trust yourself.
Best of luck!
Here is a simple formula: 1) Grade your trades 1-5, 5 being excellent.
2) Since your capital is small, choose a strategy and stick with it until you have at least $20k.
3) Learn to trust yourself.
Best of luck!
You've taken some large over leveraged losses.
Trade future options instead.
They will slow the game down and limit your losses to premium while giving you the opportunity to hit a home run.
Learn to trade/scalp inside an options covered range.
It will force you to adhere to your risk and money management plan.
Trade future options instead.
They will slow the game down and limit your losses to premium while giving you the opportunity to hit a home run.
Learn to trade/scalp inside an options covered range.
It will force you to adhere to your risk and money management plan.
Quote from Handle123:
You are kidding, right? You figured you just read some little paperback over the weekend and compete against the likes of me who have been trading for over 30 years? When I trade, my mentality is to stick it hard and often against those who are inexperienced by sticking to my well backtested/traded methods.
You want sympathy, go to your better half and tell them how you didn't come to the game well prepared and lost 88% of your funds cause you don't understand the game.
You might think I am a mean s.o.b., but I am trying to save your last 7 grand. You don't have a clue of all the mistakes you have made. What breakthough? You can hit the mouse cause you lost site of what $60k was? You are years away from grasping that one, you have displine problems and probably do trades based on sight/emotion and not on well tested ideas.
You have no edge, you have no method, cause if you did, you would know where to get out. A monkey can hit the mouse to get into a trade, what you do after the mouse is hit is where one makes the money, not so much the getting in.
#1 How far does price have to go for me to know it is not working out.
#2 How much time must go by for me to know it is not working out.
3# Will I use targets to take profit or will I trail protective stops.
4# How can price action tell me to get out early.
5# How does time of the day help me trade?
6# What does the other markets tell me on trading this market?
7# Do markets do reocurring patterns based on closing of bond market or crude oil.
8# What does trade the rumor, sell the fact mean to my trading.
9# How can I take advantage of reports?
10# When is it impractical to trade the markets?
You make a method and sim trade it for 15 days, it you can't make money 13 of 15 days in sim, you be losing the rest of your dough in real time.
Thank you for your post!
Yes, I did read a few books sim traded for a week or two and then jumped into the market and then I was swimming eye deep in oil. I could not see an inch in front of me. Lesson learned hopefully.
I have no discipline while trading, I see a signal based on an indicator and check to make sure I am with the trend on a longer chart and then I get in, lately, for the last 2 months or so, the trade almost always goes my way but since I have been trading small to protect my $7K that is remaining, I make chump change on a win, there are times I could have let the trade run for a while and would have been profitable but when the price comes back against me I get out.
Like I said, I have realized though that every trade is unique and that anything can happen after I enter a trade, I think I need to work on myself to be completely clear headed to know when to get out and when to let it run.
You figure I continue trading small after I sim trade for a couple weeks? Thanks.
I trade Forex.
Quote from Notes123:
can u, or can u not put on a trade?
Sorry, the sentence is convoluted. I meant, I can trade now, the fear is gone because I trade mini lots in Forex but maximum win or loss is at $100 per trade for me, at this rate I'll take me decades to recoup my losses, although I'm not completely focused on that, I want to become a better trader first.
Quote from killingtheta:
Note to the OP...
Read and reread. This advice, if taken, is about as good as it gets. I know several guys that can predict price like nobody's business, but they can't trade for sh#t because they either get out too soon with too small of a profit, or too late with too big of a loss. Sounds easy right? Master your exit. It may take a while, but don't stick your money out there for others to take from you until you get a handle on your money management.
May I ask what markets you trade?
T..
Thanks for the post. I trade Forex now but I did start with stocks then moved to futures (which really did me in) but now have moved to forex in the last 4 months and the losses have been smaller and i've won here and there.
Quote from Handle123:
You are kidding, right? You figured you just read some little paperback over the weekend and compete against the likes of me who have been trading for over 30 years? When I trade, my mentality is to stick it hard and often against those who are inexperienced by sticking to my well backtested/traded methods.
You want sympathy, go to your better half and tell them how you didn't come to the game well prepared and lost 88% of your funds cause you don't understand the game.
You might think I am a mean s.o.b., but I am trying to save your last 7 grand. You don't have a clue of all the mistakes you have made. What breakthough? You can hit the mouse cause you lost site of what $60k was? You are years away from grasping that one, you have displine problems and probably do trades based on sight/emotion and not on well tested ideas.
You have no edge, you have no method, cause if you did, you would know where to get out. A monkey can hit the mouse to get into a trade, what you do after the mouse is hit is where one makes the money, not so much the getting in.
#1 How far does price have to go for me to know it is not working out.
#2 How much time must go by for me to know it is not working out.
3# Will I use targets to take profit or will I trail protective stops.
4# How can price action tell me to get out early.
5# How does time of the day help me trade?
6# What does the other markets tell me on trading this market?
7# Do markets do reocurring patterns based on closing of bond market or crude oil.
8# What does trade the rumor, sell the fact mean to my trading.
9# How can I take advantage of reports?
10# When is it impractical to trade the markets?
You make a method and sim trade it for 15 days, it you can't make money 13 of 15 days in sim, you be losing the rest of your dough in real time.
+5. Tough to hear, but not cotton candy BS, and its true.
Quote from Equanimity:
Thanks for the post. I trade Forex now but I did start with stocks then moved to futures (which really did me in) but now have moved to forex in the last 4 months and the losses have been smaller and i've won here and there.
You can't scalp in forex because of the spread which means swing trade at minimum.