Obsession with trading and the markets. Does it get better or only worse?

[themickey]

....I still get the occasional big losing day, though....

Everybody does.
This past week when gold fell over, two days in a row I suffered very heavy drawdown, moreso than usual.
Then I could see an opportunity from this and snapped up a couple of bargains even in the midst of feeling pain.
At the weekend tally, I was down $216.00.
I thought that was ok considering my paper losses (because I never sold or stopped out) had been subtantial and very rapid.
If you can't keep your nerve and wear pain then I don't know what to say.

 

[virtusa]

The market is bores me because I already know everything I need to know about it.
If you're still obsessed it means you still not there.

As long as you don't have 100% winning trades, and take all the points that theoretically are available, you are not there. Because there is still room for improvement.

I never heard, or know anybody, who knows everything.

While trading the most time is spent waiting. The more you wait, and the less you have to think, the better.

if you feel bored, I suggest you enter a few trades on a very bad entry. You will not get bored anymore. You will have plenty to do.

 

[themickey]

....Lesson learned.

The only lesson you need to learn is, when a trade turns sour, it was not an error as such, it was how the dice landed, much of it outside your control.
Forget about "lessons" so long as you breathe, you will have losing trades.
Take your pain, laugh and move on.

 

[Laissez Faire]

Everybody does.
This past week when gold fell over, two days in a row I suffered very heavy drawdown, moreso than usual.
Then I could see an opportunity from this and snapped up a couple of bargains even in the midst of feeling pain.
At the weekend tally, I was down $216.00.
I thought that was ok considering my paper losses (because I never sold or stopped out) had been subtantial and very rapid.
If you can't keep your nerve and wear pain then I don't know what to say.

I suppose it's common.

But I genuinely believe it's possible to get close to zero losing days. And further that it's possible to at least limit the size of your losing days. A simple solution is a daily loss limit which is always respected.

This week's f''k-up was actually done by doubling down on a trade where I was supposed to exit, i.e., adding a contract instead of exiting. Market moved very fast and I didn't take my losses when I should have.

The only lesson you need to learn is, when a trade turns sour, it was not an error as such, it was how the dice landed, much of it outside your control.
Forget about "lessons" so long as you breathe, you will have losing trades.
Take your pain, laugh and move on.

Yes. But the point I was making here is that you can be greatly ahead and then lose it all if you compound too fast.

If my daily loss limit is 15 ES points and I hit that two days in a row on 6 contracts, I give back those 200 ES points made on 1-2 contracts just like that.

That's why I'm very cautious about scaling up too fast this time. I want to build up a cushion and have some margin of error. As losses are inevitable at this point in time for me and my system.

 

[virtusa]

The only lesson you need to learn is, when a trade turns sour, it was not an error as such, it was how the dice landed, much of it outside your control.
Forget about "lessons" so long as you breathe, you will have losing trades.
Take your pain, laugh and move on.

Traders try to make money. Of course you will have losing trades. But always analyze them to see if there is no way to avoid that loss. It is called: improve your system.

Don't just take your pain. Try to learn from it.

 

[themickey]

Traders try to make money. Of course you will have losing trades. But always analyze them to see if there is no way to avoid that loss. It is called: improve your system.

Don't just take your pain. Try to learn from it.

That's logical, it doesn't need explaining. Every human being who is a trader will do this naturally.
Trading is a journey of learning with no end, we are always attempting to hone our edge.

But for a second let me bang on about my pet subject....(again).
There is a huge amount if randomness in trading it's outside our control. We have no control of the countless stupid idiot traders who will in a heartbeat whack you in the face.

....But I genuinely believe it's possible to get close to zero losing days.....

It's not gonna happen!!!
Give up on the idea.
It's like going to church and hoping one day you'll be a perfect human being practising perfection.
So long as you believe that, you're gonna live a traders hell.
Accept your losses, your weaknesses and failings, accept the market will shaft you.

 

[GrowleyMonster]

Just my opinion, day trading is too much work for the rewards.
My opinion again, when holding multiple stocks overnight for lengthy periods, days/weeks/months, the stocks make you money while you sleep.
It is hugely common in my experience, as soon as the market opens my portfolio will leap up in value.
This because of the sharp moves up right on open. A day trader will rarely or never catch these moves.
A common complaint I hear from daytraders is that holding overnight is risky and they would have trouble sleeping.
My answer: If you are careful with your picks, the bias is always upward/positive surprises more so than negative.
All of this translates to less work, higher profits, easier to compound.

I agree. I have been in voluntary PDT exile with my small account since I resumed trading a couple months ago, and I started out trying to save day trades by letting promising stocks ride overnight. My picks have more often than not leaned toward improving overnight and into the opening candles. Usually if it is worth holding all day, it is worth holding overnight. The large cap tech stuff is almost always good for overnight improvement if volatility is fairly low but up trend is good. One exception, social media type stocks which can drop badly from bad news or publicity. Doesn't happen often but when it does the down side can be quite disconcerting.

 

[virtusa]

There is a huge amount if randomness in trading it's outside our control. We have no control of the countless stupid idiot traders who will in a heartbeat whack you in the face.

There is far less randomness than most people assume. Idiot traders are always everywhere, so they are part of the market. Their behavior is mesutable and part of the way markets move. The fact that 90% seems to lose money, means that the majority are idiots... So better study the idiots first.
Sounds probably idiotique to you...

 

[GettingThere]

Hhhmmmmmmm, don't know what to say here.....but let me try....
I have currently over 40 positions on I'm holding, it's been like that for months now (+40 positions), some have been on for a year or so, others days, weeks and months and I'm still not fully loaded up.

This is cool to hear, because I always have about 70 positions going at once and it seemed like I must be the only one doing it since I never read of other folks doing the same. Many small positions means each position is, in effect, its stop loss. Very profitable method. Unlike you, I use low float/pennies and I end up selling about 7 or 8 a day, then loading up on that same amount, so there's always this large rotation.

 

[GettingThere]

There is far less randomness than most people assume.

I agree. The day I "discovered" channels, how symmetric they were, how they're all over the place, well...that took me from thinking it's all a random thing I don't understand to realizing how much is somewhat predictable. Of course, within reason, but the fact that there was anything that followed repeatably was eye-opening.

*I say "discovered" because you can read about all things stocks, but it's not till you internalize it and have the AHA! moments, that you truly get it.