Rookie Trader Journal - Advice Welcome
- Thread starter krolyk55
- Start date
Thanks all for your awesome posts. Reading through them has really, really helped me out today. I am starting to get past the denial phase now, I went back and did some post trade analysis, and it wasnât pretty. I donât know what I was thinking,I didnât really realize it at the time, but I completely ignored the moving averages which more than adequately warned me of what was coming on my two huge loss trades. I wasnât following my rules on many of the other trades. I donât know how I let myself do that, I guess I was really overcome with emotion.
It wasnât so much of a system failure as I thought, I did get caught off guard with my resistance levels not holding but there were other signals that I missed or ignored. I canât blame anything but myself.
Maybe Iâll give it another go.
It wasnât so much of a system failure as I thought, I did get caught off guard with my resistance levels not holding but there were other signals that I missed or ignored. I canât blame anything but myself.
Maybe Iâll give it another go.
"Stop it already, for the last time you need a daily loss limit. Last post."
--two weeks (today) you've been at this (discounting useless paper trading) you still HAVE YET to mention anything about money management - WHY??
--personally, I don't think - deep down in your heart - you want to be a good trader. I think you're in for the 'excitement' that is lacking somewhere else in your life.
Coincidentally, I just started trading full time myself. I have almost a decade in the ibanking industry and spent years as a mildly successful broker afterwards (I don't like the phone).
I'm starting with even less than they recommend (6k versus 10k). So far, I'm at a net loss but I can tell you one thing - I don't lose much money per trade - BECAUSE I SET LIMITS!!!!
Another thing, averaging down is for suckers. I've seen people who are much smarter than you (no offense mind you) do it and 8-9/10 - they lose even more. When I was a broker, the people who did that, I loved because I knew that all they wanted was action - not sound trading advice.
Finally, I see the amount of trades that you're making and from a broker's perspective - man, you are making someone some good money...
Before the market opens (and you immediately make hundreds of trades) why don't you say 'my limit for the day is X amount' and stick to it!
There are always other opportunities and it is only one day - why not try it?
I challenge you to take this advice. Can you do it?
--two weeks (today) you've been at this (discounting useless paper trading) you still HAVE YET to mention anything about money management - WHY??
--personally, I don't think - deep down in your heart - you want to be a good trader. I think you're in for the 'excitement' that is lacking somewhere else in your life.
Coincidentally, I just started trading full time myself. I have almost a decade in the ibanking industry and spent years as a mildly successful broker afterwards (I don't like the phone).
I'm starting with even less than they recommend (6k versus 10k). So far, I'm at a net loss but I can tell you one thing - I don't lose much money per trade - BECAUSE I SET LIMITS!!!!
Another thing, averaging down is for suckers. I've seen people who are much smarter than you (no offense mind you) do it and 8-9/10 - they lose even more. When I was a broker, the people who did that, I loved because I knew that all they wanted was action - not sound trading advice.
Finally, I see the amount of trades that you're making and from a broker's perspective - man, you are making someone some good money...
Before the market opens (and you immediately make hundreds of trades) why don't you say 'my limit for the day is X amount' and stick to it!
There are always other opportunities and it is only one day - why not try it?
I challenge you to take this advice. Can you do it?
Averaging down on a stock can work if that is your plan in the 1st place.
For example, say you want to buy a 1,000 shares of ABC. You put in 500 now, if you get a lower price, you put in the other 500 shares.
However, the problem is people average down into stocks during a bear market and the stocks keep going lower until they get a margin call.
I think the best defense is diversification in multiple sectors. My energy stocks have all been doing great lately. My financial stocks, have been doing bad, but I like alot of them still due to the dividend. I am not over margined and can wait till some of them come back to fair value.
For example, say you want to buy a 1,000 shares of ABC. You put in 500 now, if you get a lower price, you put in the other 500 shares.
However, the problem is people average down into stocks during a bear market and the stocks keep going lower until they get a margin call.
I think the best defense is diversification in multiple sectors. My energy stocks have all been doing great lately. My financial stocks, have been doing bad, but I like alot of them still due to the dividend. I am not over margined and can wait till some of them come back to fair value.
Another really bad day for me. It started off decent and I should have stopped while I was ahead, but I wanted to recover more of yesterdays loss back. I generally feel more comfortable shorting then going long, and today was the worst kind of day to look for short opportunities. Again it was one bad trade that did all the damage today. I shorted at the exact bottom of a huge rally, and then to make it worse I took my loss at the very top of it, had I waited a little longer I would have been able to break even or even make money. So frustrating. But I should have taken the loss way earlier anyway, I donât know whatâs wrong with me, when it starts running on me the wrong way I just freeze in disbelief, and I donât hold my stops.
I have to correct this! Iâve gotten plenty of good advice on this thread about sticking to my stops and I thought I was going to do it today, but I froze. I didnât do it, and now Iâm paying for it. If I continue trading, I am going to limit my losses from now on, this is ridiculous. Also looking back I still wasnât disciplined enough in following my moving averages, which called it correctly again, if I had listened to them at the end of the day, I could have made all of my money back.
Day 8 Results:
# of Trades: 25
Contracts Bought: 100
Contracts Bought Range: 2-14
Highest down: ($2800.00)
Highest up: $496.00
Net Profit/Loss: $(2228.60)
I have to correct this! Iâve gotten plenty of good advice on this thread about sticking to my stops and I thought I was going to do it today, but I froze. I didnât do it, and now Iâm paying for it. If I continue trading, I am going to limit my losses from now on, this is ridiculous. Also looking back I still wasnât disciplined enough in following my moving averages, which called it correctly again, if I had listened to them at the end of the day, I could have made all of my money back.
Day 8 Results:
# of Trades: 25
Contracts Bought: 100
Contracts Bought Range: 2-14
Highest down: ($2800.00)
Highest up: $496.00
Net Profit/Loss: $(2228.60)
Krolyk,
Some people, including myself, have suggested that you take a break (1 week or whatever suits you), this is not so that we can make money in the markets while you're away. This is so that you calm down yourself. Otherwise you will continue to do revenge trading (with the usual result of such emotional trading).
Take a look http://www.traderslog.com/jankovsky.htm
Also, if you want to be successful at trading, shouldn't you start with one contract and then, as you are successful with one contract, start trading with two, and then three and so on? At the worst scenario, it will take you a few more weeks or months to become rich, life is such a bitch. At the best, it will prevent you for blowing up all your capital.
For the umpteenth time, the best advice you could listen to now is:
1) Take a break until you calm down and recover your perspective. When you come back, start with a clean slate, that is, you start your second stage in trading with Zero P/L - no psychological or pathological need to recover your losses - the best way to recover from your losses is by not incurring in new ones.
2) Wire all the money out of your trading account except the bare minimum you need to trade one contract (2500, that way you won't be able to trade after-hours out of impulse).
3) Trade with one contract until either you earn the right (via profits) to trade two contracts or blow up your mini account. When successful, repeat with two, three... contracts
4) You trade with Ninja, right? Then place your trade and let it be until it either reaches your target or hits your stop. If necessary, place your trade, turn off the screen and go walk the dog (or whatever). Loss? See what went wrong and adjust. Profit? Repeat.
All the best,
Jorge
Some people, including myself, have suggested that you take a break (1 week or whatever suits you), this is not so that we can make money in the markets while you're away. This is so that you calm down yourself. Otherwise you will continue to do revenge trading (with the usual result of such emotional trading).
Take a look http://www.traderslog.com/jankovsky.htm
Also, if you want to be successful at trading, shouldn't you start with one contract and then, as you are successful with one contract, start trading with two, and then three and so on? At the worst scenario, it will take you a few more weeks or months to become rich, life is such a bitch. At the best, it will prevent you for blowing up all your capital.
For the umpteenth time, the best advice you could listen to now is:
1) Take a break until you calm down and recover your perspective. When you come back, start with a clean slate, that is, you start your second stage in trading with Zero P/L - no psychological or pathological need to recover your losses - the best way to recover from your losses is by not incurring in new ones.
2) Wire all the money out of your trading account except the bare minimum you need to trade one contract (2500, that way you won't be able to trade after-hours out of impulse).
3) Trade with one contract until either you earn the right (via profits) to trade two contracts or blow up your mini account. When successful, repeat with two, three... contracts
4) You trade with Ninja, right? Then place your trade and let it be until it either reaches your target or hits your stop. If necessary, place your trade, turn off the screen and go walk the dog (or whatever). Loss? See what went wrong and adjust. Profit? Repeat.
All the best,
Jorge
Man, he sure did expend a lot of energy giving you great advice ... hope you take it.
I agree. The advice in this thread is so invaluable. listen to those who have been through it all, lost it all, gained it all and got the t-shirt to prove it.
Happy trading
K... As long as you seem to be so committed to punishment and self destruction, why not cut off a thumb or a finger for each day you screw up. That way after 7 or 8 occurances you won't be able to operate the mouse to place any more trades and you may still have some of that $50k left. But being as determined as you appear to be, you will no doubt figure out how to work the mouse with your toes and press on until the bitter end..
Maybe when you get down to the final $5K perhaps you might consider giving it to a non-profit organization so they can keep some children from starving to death. Then this self indulgent exercise will only be 90% of an absolute waste......
This is painful to watch my friend.
You need to cut it out.
Maybe when you get down to the final $5K perhaps you might consider giving it to a non-profit organization so they can keep some children from starving to death. Then this self indulgent exercise will only be 90% of an absolute waste......
This is painful to watch my friend.
You need to cut it out.