Great perspective!
Need Help Need Perspective!
- Thread starter Leob
- Start date
Great perspective!
I fail one time ( try to scalp CL, GC, ES at once, it start as practice to execute under pressure and in one day I decided to live like that
)
Any way, back then I didn't think I'm stupid.
Any way, in current state I feal pressure after few days of success. Like a rucky players. That have few good game and the didn't stand in the pressure. Psychology instability. Maybe I should accept the fact the for me no point to trade after first hour. At least to analyze my intrady day trade much more cerfully. Maybe little different rule for trade after first hour. Always place to improve.
For day trading I think it may be wise to limit yourself to one symbol. I trade ES since it's what I've followed forever, but I hear from other players that NQ might be a better instrument for scalping.
The way you describe it seems like you're feeling lucky after winning and not really confident in your process. Obviously, you can't be successful/consistent if that's the case. Humbly, I think trading should be routine/process based - meaning it's a repeatable process/operation you do on a daily basis.
If it's something new every day and the market surprises you on a daily basis, you're not there yet. So, keep learning and keep practicing.
To re-iterate on quitting the day job. I think doing so depends on what you're risking. If you have a lot of savings and can easily get your old job back (maybe you could take an absence of leave or a long vacation instead) - I don't see the harm in trying. However, it's a different story if getting a new job would be very difficult.
well in this case we're talking apples and oranges here.
If you trade just 10 lots to fight boredom or prevent dementia then your results don't affect your life, because well...if you lose or don't feel like it, you just sit out.
But if you do this for a living, bad results or the loss of edge affect your financial well being which in return affects your emotional well being which again affect your results.
If you don't care about your results because you're financially save then I don't think it makes sense to tell anyone who is not in your situation "well, just go for it, everything will be fine".
Because it won't. People trade because they get a kick out of it (like you), they want a change, they want to be independend or they are greedy for the money.
All of these reasons above are the wrong reasons to trade. The only reason you should be trading is because you're wired for it and you have an understanding of creating, maintaining and realizing edge.
And before you jump into the deep end, you should prove it to yourself that it indeed makes sense to pursue that career
This story is from 2 years ago. I believe I fully define my adge in scalping. I'm asked this question to understand if exhaustion in some degree, is an outcome of scalping. Is it common between consistency profit trader.
For now I insist on scalping because of the account size and my returns expectations.
Thank you all for yours point of view. Very helpful.
Will be happy for more..
Your account size?
So what is the maximum number of contracts you can responsibly trade with your account, if I may ask?
2 - 4
I think that you can't rule out personality types and how different people deal with risk and putting their money on the line. I know fairly wealthy people who are extremely conservative and afraid to take on much risk at all while other people (like me) may be more reckless.
Personally, if I trade 1 MES - it won't cause me any stress at all. I can go to bed without a stop and don't worry about it. But, I usually trade with much higher leverage (too high most would think) and I can't deny that it causes me some stress, but I would not say stress that leads to exhaustion.
My guess is that when the risk per trade is small and the edge/methodology is well defined (and proven to be so with cumulative profits) your stress level should be very low.
However, if you're shooting from the hip with too high leverage, win some/lose some, that's definitely going to cause most people some stress and I think that's the bigger factor. Not if you're scalping or holding intraday. Personally, I find scalping less stressful because I'm quickly in and out. My most stressful days have been holding unrealized losses on wider stops throughout a full session waiting for a favourable outcome.
You'll need exceptional trading skills to make a living from trading that small, really.
Your monthly target should be 20k$+ in profits, otherwise the risk is not worth taking. Half of it is probably taxes, the other half goes to expenses and the rest should stay on account.
Imagine that you'll have bad months where you make nothing or lose money or the fact that you'll lose your edge and have nothing to fall back to.
I'm not advising against trading at all, I also started out undercapitalized...but I was in my 20s had no responsibilities and lot's of gritt to power through the shitty times. On top of that I had massive edge that allowed me to make double digit returns on my account every month.
I do, however, advise against going full time with a small account like that, with retail infrastructure and commissions.
Go ahead and keep trading but build it into your current schedule. Trade 1 or 2h at the open, then return to your current job. Ease into it and focus on growing your capital base first.
The time to go full time is when you see that you make consistent money relatively stress free.
If you start now, the pressure will be insane and you'll make mistakes that cost you money.
Be smart about it and don't commit financial suicide just because of ego, greed or despair. It'll destroy you
I know.
forget the physical toll. The emotional toll can be far worse.