If you keep losing money, how do you do the opposite?

Quote from Calculator7:

The newbie mentality is naturally programed to lose money.

Rather simple... a trade makes a lil money, they see $$$ signs and exit with a quick, glorious, exciting profit. If the trade is a loser, they hang on to it, hoping it will turn and become profitable. The trade continues to lose, eventually they can't stand the pain, and exit the trade with a huge dent in their account.

The market cleverly and beautifuly strips newbies money from their accounts. The mind naturally wants to take quick small successful profits, but we hate to be wrong, so we let losses run hoping they'll turn around.

I'm opening a firm that only allows newbie traders to trade. They deposit their own money, and are led to believe that they are trading with their own hard earned money. They, naturally grab quick profits, and hang on to big losing trades. Little do they know that they're only trading in a simulated account that I've made to appear as a live account.

Meanwhile, I use my house account to take the opposite of every trade they make... they go short, I go long... and visa versa.

Once the newbie loses $10k, $20k, and is devistated, and quits, I then give them the good news. He actually didn't lose any money at all. He was trading a fake account. Didn't lose a dime. He's thrilled! I give him $1000 bucks, tell him he was part of an experiment, and kick him out. After I kick out 10 newbies, thats $100k+ profit in trading for my house account.

If I do come across a succesful newbie trader, who adds $10k of profit to his account, I cut him a check for $10k, kick him out and tell him to go trade at another prop firm. Afterall, only 1 in 10 inexperienced newbies will make money... if that. I'm still up $90k.

.... it's genius, I know! lol Who's in...?
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hey hey hey, I like a man with the bran, I mean the brain :D

the beautiful thing is, this is already done, so yes you can do it as well
 
Calculator7: that is pretty similar to another idea I have.

Given that I have consistently lost money, I think that I am a very good contrarian indicator. So my idea is to set up a chat room, where I post my trades in real time. Everyone else in the chat room is then supposed to do the opposite. I may make some good trades occasionally, but over the long haul, everyone else in the room will be sitting on a huge profit. To be able to participate in the room though, you must sign a contract stipulating that I will receive a share of your profits.
 
A couple people have mentioned how newbies will hold onto losses while refusing to admit that they are wrong, and finally exiting the trade at a huge loss.

I have taken a few big losses, but that really hasn't been my problem. My problem is that I have taken so many small losses, that they have added up and exceeded all of my gains combined.
 
A few people in this thread have mentioned going with the trend, instead of trying to pick reversals. I think that is one of my problems, as the majority of my trades have tried to pick reversals.

I even read in one of the threads in the Trading forum (the thread about contrarianism becoming mainstream) where one guy posted that running with the herd will be successful 80% of the time.

Is that for real? 80% of the time? I know that most traders end up failing, and one mistake that they commonly make is trying to chase a stock. They might see a stock go up, and up, and then finally they jump in because they don't want to be left behind. But then that's when the stock starts going back down, and they have to sell at a loss. I know I made that mistake many times, before I shifted to trying to fade everything.
 
Quote from opposite:

A couple people have mentioned how newbies will hold onto losses while refusing to admit that they are wrong, and finally exiting the trade at a huge loss.

I have taken a few big losses, but that really hasn't been my problem. My problem is that I have taken so many small losses, that they have added up and exceeded all of my gains combined.
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You have a lot to do before you can make money consistently.

First of all, unlearn what you have learned so far. You have been poisoned, get the poison out of your body first.

In the field of trading, there is no standardized textbook, as in mathematics or physics. If someone writes such a textbook for successful trading, it will become the PIN for ATM. You could withdraw money endlessly after reading that book. But don't expect others to give you the PIN, because nobody will give you the PIN. If someone offers you an advice, it is definitely NOT the PIN. If it is not the PIN, it might be just a general direction to the ATM. It is not going to help even if you find the ATM, because you don't have the PIN. You may stand beside the ATM for years, but you won't get a single bill out of it.

Sometimes, the advice borders on giving your a debit card (some posters did write something truely helpful. Unfortunately, you won't recognize the usefulness of their advices until you get to a stage where you don't need their advices anymore). But without the PIN, the card is useless.

You may ask: "Where can I get the PIN?" The answer is: From yourself. P stands for personal. You yourself think of a number, and that number is your PIN.
 
Quote from opposite:

that statement says you dont have any plan,thats why you keep losing,GET A PLAN, paper trade til you find something that works and then paper trade some more.Put your money in a bank acct, put $1 in another bank acct, every loss write yourself a check and deposit it in the $1 bank acct, keep doing this until your profitable,at least you will have some physical pain with losing,just the embarassment in front of the teller,should be painful.That will at least get you a profitable way of trading for free, then you have to learn the PHSYCOLOGY OF TRADING, being wrong and not worrying about taking a loss,no one picks tops and bottoms, every one is wrong all the time,a real trader has no problem being wrong and getting out, it's not personal ,just part of the business, that part is HARDER TO LEARN than a profitable system

""At this point, I have tried various strategies, none of them working, so I am ready to give up.""



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mokwit said the "opposite" trading strategy is already being used... the retail FX model ?
What firm or CTA is already using it? I'd be curious to see the performance, or at least a website...

thnx
 
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