I Quit
- Thread starter GolfTrader
- Start date
The only advice worth giving in trading is that you must first prove that you can make money trading small accounts for a year++, before you can put any real $$ on the line. Every time you move to a new strategy, you must prove that again. As you become more experienced, you can reduce that time to a couple of months. There are maybe fifty traders on this site with that amount of experience.
Most people believe that trading is a game of lots of luck with some skill. In fact, it is a game of mostly skill and very little luck.
I see stories like this all the time. The faces change, but the stories are the same:
Some middle aged guy can't stand his job anymore. He has saved $250,000 and decides to trade. He finds ET and everyone is a millionaire on ET, so he decides to go full force into trading. He tries hard, he works his ass off, he loses money. He reads motivational books, he reads zone trading books, he tries hard and concentrates hard, he loses money.
He reads more, he starts to read the posts of the traders that seem to be respected on ET, and he reads them several times. He prints them out, reads them before he goes to bed, he is excited for the next morning trading session. He trades, he tries hard, he concentrates hard, he takes small losses, he tries to let his winners run, he losses money. His account is half gone.
None of the above is anything to be ashamed about. The only shame is that you were trading 500 shares at a time when you should have been trading 10 shares at time. Then your five year losses would amount to $5k instead of $250,000.
Read this little story. If you don't have this sort of discipline, you are doomed:
http://www.fulltiltpoker.com/chris-ferguson-challenge
Finally, I think you did the right thing. But one day, if you ever decide to try again, try to prove first that you can make money trading 10 shares at a time. If you are trying futures, try the ETFs 10 shares at time. Then 20, then 30, then 40, etc. Every time you lose, you go back down a notch. So you may go the next trading day from 40 to 30 shares on a losing day. You may never become a winning trader, but then you would have given it a shot without playing Russian roulette with your life savings.
As far as actual trading advice that is worth it's weight in gold on this thread, read what open said hundred times. If you don't understand it, you are doomed.
nitro
Most people believe that trading is a game of lots of luck with some skill. In fact, it is a game of mostly skill and very little luck.
I see stories like this all the time. The faces change, but the stories are the same:
Some middle aged guy can't stand his job anymore. He has saved $250,000 and decides to trade. He finds ET and everyone is a millionaire on ET, so he decides to go full force into trading. He tries hard, he works his ass off, he loses money. He reads motivational books, he reads zone trading books, he tries hard and concentrates hard, he loses money.
He reads more, he starts to read the posts of the traders that seem to be respected on ET, and he reads them several times. He prints them out, reads them before he goes to bed, he is excited for the next morning trading session. He trades, he tries hard, he concentrates hard, he takes small losses, he tries to let his winners run, he losses money. His account is half gone.
None of the above is anything to be ashamed about. The only shame is that you were trading 500 shares at a time when you should have been trading 10 shares at time. Then your five year losses would amount to $5k instead of $250,000.
Read this little story. If you don't have this sort of discipline, you are doomed:
http://www.fulltiltpoker.com/chris-ferguson-challenge
Finally, I think you did the right thing. But one day, if you ever decide to try again, try to prove first that you can make money trading 10 shares at a time. If you are trying futures, try the ETFs 10 shares at time. Then 20, then 30, then 40, etc. Every time you lose, you go back down a notch. So you may go the next trading day from 40 to 30 shares on a losing day. You may never become a winning trader, but then you would have given it a shot without playing Russian roulette with your life savings.
As far as actual trading advice that is worth it's weight in gold on this thread, read what open said hundred times. If you don't understand it, you are doomed.
nitro
There is a fantasy on ET threads that sustains losers & wannabes; it is that most millionaires/billionaires made it & lost it all before making it again.
Losing it all is the hallmark of losers or repeat losers.
Most big winners are inexorable - building, building more wealth. They have unfailing savvy and if risk anywhere gets too dangerous they weed it out - they don't hang until it pulls them down. Fact is they often are betting on what is to them 'certainties' because of their savvy.
Losing it all is the hallmark of losers or repeat losers.
Most big winners are inexorable - building, building more wealth. They have unfailing savvy and if risk anywhere gets too dangerous they weed it out - they don't hang until it pulls them down. Fact is they often are betting on what is to them 'certainties' because of their savvy.
yes, but in order to become a big winner, you sometimes lose it all ....
If you swing for the stars all the time you'll strike out a lot. There is nothing wrong with making consistent singles. Nitro's post and poker analogy is very relevant. I did something similar, I deposited $300 on a poker site, doubled it, withdrew my $300, and turned the rest into over $110,000.
Here is a competing viewpoint by Daniel Negraneu that I don't agree with: http://www.cardplayer.com/author/article/all/36/10065
While every high limit player is a Johnny, very few of those Johnnys who try actually succeed.
I think he kind of inferred that. This actually was a great article about risk.
Remember this quote?
I see it happen all the time.
Peace.
Maria - over and out.
Darvas did. In certain ways Jesse Livermore did.
Peace
Maria - over and out. (won't say anything more on this subject)
Didn't Jessee Livermore also kill himself in the end? Golftrader, I admire you for what you were able to accomplish. If it is no longer fun then just quit. Maybe commit x amount of cash for FUN and put the rest into something secure where you can't touch it. You already did very well. Think about it. Either way you look at how your trading turned out your a winner.
I just started trading this year and what a year I picked to do this. I have studied the market since 2005 and even took a class where I paper traded. I had some good trades in 07 and fealt good. Now in 08 its a bear market and the conditions are becoming more treacherous by the day. I honestly hate logging into my account at this point. The volatility forces you to second guess everything you do. Even 30 year vets are having trouble in these conditions. After a few good trades last year I started making bad trade after bad trade. Right now its at the point where my profits are erased and I am already eating into my initial seed capital so I know how you feal.
I just started trading this year and what a year I picked to do this. I have studied the market since 2005 and even took a class where I paper traded. I had some good trades in 07 and fealt good. Now in 08 its a bear market and the conditions are becoming more treacherous by the day. I honestly hate logging into my account at this point. The volatility forces you to second guess everything you do. Even 30 year vets are having trouble in these conditions. After a few good trades last year I started making bad trade after bad trade. Right now its at the point where my profits are erased and I am already eating into my initial seed capital so I know how you feal.
Just a short update. First, thanks to those who sent me positive private messages as well as to those who posted replies with good suggestions. Also, thanks to those who also posted slams since I do have a good sense of humor and some were very creative.
I am in my mid-50s and have never had difficulty finding a job, even out of law school. In fact, I can't recall ever being turned down before. I have sent out about 40-50 resumes for various job openings and haven't heard anything positive. Some were non-legal jobs that a monkey could handle. I suspect I am too old and too much experience as a commercial litigator. Firms want young guys with only a few years experience.
I am thinking of going back to school to get certified as a teacher under an alternative certification plan for those who didn't major in education. I would be a kick ass high school teacher, although my kids think I am crazy.
In the meantime I am back day trading reducing my number of trades as well as my shares. I am making some $$. My wife thinks I should keep doing this, although I have my doubts.
I am in my mid-50s and have never had difficulty finding a job, even out of law school. In fact, I can't recall ever being turned down before. I have sent out about 40-50 resumes for various job openings and haven't heard anything positive. Some were non-legal jobs that a monkey could handle. I suspect I am too old and too much experience as a commercial litigator. Firms want young guys with only a few years experience.
I am thinking of going back to school to get certified as a teacher under an alternative certification plan for those who didn't major in education. I would be a kick ass high school teacher, although my kids think I am crazy.
In the meantime I am back day trading reducing my number of trades as well as my shares. I am making some $$. My wife thinks I should keep doing this, although I have my doubts.