My Story of Trading Failure

F

failedtrader

I'm not sure this is the right category, but it seems to be the closest fit. I have just started a blog. The first post I have written is, The Story of a Failed Trader. If you don't feel like reading it, I'll summarize: I have never been a successful trader and have recently realized that it may be due to a bad research methodology.

I'm curious to know if there are similar traders who became successful after they corrected the same type of problem. If so, I am hoping they will share any insights gained.

Thanks
 
Quote from cooolweb:

what would you say to someone who was not admitted to harvard?

not much , a bit too common.
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I just want to make sure I'm understanding this correctly. It wasn't a jab at my intelligence, correct? That is, you weren't saying, "You didn't go to harvard, so there is not much I can say." You were saying, "what do you say to someone who belongs the overwhelming majority and wants to be in the minority?"
 
Quote from failedtrader:

I just want to make sure I'm understanding this correctly. It wasn't a jab at my intelligence, correct? That is, you weren't saying, "You didn't go to harvard, so there is not much I can say." You were saying, "what do you say to someone who belongs the overwhelming majority and wants to be in the minority?"
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if you have trouble figuring what he meant... how are you going to trade the markets??! They are much less clear in their "meaning"?! :-)
 
I haven't read your blog but I don't think your failure is because of the method you chose. Put a successful trader on your method and he/she may be able to turn it into a winner.

It would take pages and pages of text to sum up what it takes to trade successfully but if I had to pick one topic that divides winners and losers it would be the trader who knows when to break the rules. If you rely on a rigid system that has a 4 point target and 2 point stop, for example, your system will fail. Randomness guarantees it. There's simply no substitute for a talented trader's insights that another trader may not possess. Some are simply better at certain subjects than others. I sucked wind in English (mostly because I hated it) but exceled in Math and Science. I have a scense for reading price movement and I break the rules frequently. My system is not rigid, it's flexible. I have a set of parameters I have to trade within but I can't nail it down to something like a 4 point target, 2 point stop, triggered by a histogram divergence, for example. Sometimes I'll take the divergence, other times I won't. Sometimes I'll stop out at -2, other times my stop is 10 points away from the market.

Trading is an art that requires talent. The science behind trading is simply the brush you choose to pick up. My brush is heavily based in statistical analysis for no other reason than that's how I was schooled. If the market gaps up 250+ points and looks like one of those "close your eyes and buy days" I'll throw my brush to the curb in a New York Minute. There is a "feel" to how the plane handles. As the pilot you have to learn how to read what the plane is telling you -- call it a sixth sense, intuition, whatever. Rigid, scientific methods will fail 100% of the time.

I've mentored a number of traders over the years and all but one failed. The one who was successful was only mildly successful and chooses to use trading as a side business because she can make more money in her other business. She trades during her down time and knows what parameters she needs to trade within. She is a relentless profit taker who skims more off the top than she leaves on the bottom. She bats about 60% and trades within a time frame she is most comfortable -- she knows her paramaters.

Quote from failedtrader:

I'm not sure this is the right category, but it seems to be the closest fit. I have just started a blog. The first post I have written is, The Story of a Failed Trader. If you don't feel like reading it, I'll summarize: I have never been a successful trader and have recently realized that it may be due to a bad research methodology.

I'm curious to know if there are similar traders who became successful after they corrected the same type of problem. If so, I am hoping they will share any insights gained.

Thanks
More...
 
Quote from failedtrader:

I'm not sure this is the right category, but it seems to be the closest fit. I have just started a blog. The first post I have written is, The Story of a Failed Trader. If you don't feel like reading it, I'll summarize: I have never been a successful trader and have recently realized that it may be due to a bad research methodology.

I'm curious to know if there are similar traders who became successful after they corrected the same type of problem. If so, I am hoping they will share any insights gained.

Thanks
More...

Is it a spam blog?
 
@the1

Thanks for the lengthy reply.

I don't try to build systems that adhere rigidly, but I do see your point. Actually, a long time ago, I built a system that basically replicated all the recommended trading patterns of StockCharts.com, and attempted to trade based on them. As you might have guessed, it was not profitable. Oh, youth.

(Maybe that is a good demonstration for me to rewrite quickly and release...)
 
someone in this board's analysis is right.

trading failure is not related to the method. the failure comes from the way you use your method.

you need understand yourself, find something fit you. to me, I found I am logic man, love to reason, so basically not suitable to do day trading (where to place stop loss or cut loss then ;ate I found right is not acceptable to me, fast finger without thinking things over are not suitable to me), suitable for speculation.

know the market, at the mean time, know the "me".

when I day trade, I found I easily do impulsive trading such as revenge or reflexing trading (the market down, I sell, the market up I buy, but most time I am trapped, or whipsawed in random move, something in my brain drives me to do that even I do not want to do that, end up I trade lot with no good sound thoughts, of course the results is not good, so I move on, pick something that fits me).

I trade crude/index future lot, but now I rarely trade them, just focus on option trades. so I have time to do research and reason on my trade, bascially I do not check quote much. do not pay much attention to intra-day technicals, just daily charts and 50EMA. so I have plenty of time to prepare/plan my trade, I found most trade through this process makes sense to me, also very profitable.

everyone has talents, but the talent is different. find it and apply it, then you are on the roard toward success.
 
Could your blog have been any more generic? If you expect any sort of constructive feedback you need to provide something worth reading.
 
Quote from trader198:

someone in this board's analysis is right.

trading failure is not related to the method. the failure comes from the way you use your method.

you need understand yourself, find something fit you. to me, I found I am logic man, love to reason, so basically not suitable to do day trading (where to place stop loss or cut loss then ;ate I found right is not acceptable to me, fast finger without thinking things over are not suitable to me), suitable for speculation.

know the market, at the mean time, know the "me".

when I day trade, I found I easily do impulsive trading such as revenge or reflexing trading (the market down, I sell, the market up I buy, but most time I am trapped, or whipsawed in random move, something in my brain drives me to do that even I do not want to do that, end up I trade lot with no good sound thoughts, of course the results is not good, so I move on, pick something that fits me).

I trade crude/index future lot, but now I rarely trade them, just focus on option trades. so I have time to do research and reason on my trade, bascially I do not check quote much. do not pay much attention to intra-day technicals, just daily charts and 50EMA. so I have plenty of time to prepare/plan my trade, I found most trade through this process makes sense to me, also very profitable.

everyone has talents, but the talent is different. find it and apply it, then you are on the roard toward success.
More...


good advice

agree
 
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