struggling trader needs help

There is a lot of great advice on this thread ....

And everyone has their own way - I use a combination of many opinions here but I will highlight two (of a few more) points which help me.

1. Know your stats. If your computerized backtesting is crappy, then look at your trading history (therefore keep good trading records). Once you know your stats, you can be more committed to a trade, or know when not to get in.
If you got a 50/50 win loss ratio then don't take the trade if the risk/reward is less than 1/1.5 or so. Remind yourself, "I am not going to take this trade if I am going to go broke doing this in the long run, goddammit!"

Another way of visualizing this is to think of the future. Maybe you would like to trade for a client. How would you justify a revenge trade to your client? You couldn't - so don't do it. End of discussion.

2. Keep a trading plan handy which you did well with, and one where you really screwed up with. Keep it next to the computer. When you are in a trade, look at it. Ah, that is how it was last week on a good day. I am in the process of doing this again.
Or, I really did myself in on this day, I will not do this again. Maybe you have a trading sheet where you stuck to your guns but it was a crappy market. Commend yourself for a trading well but with no profits to show. Make notes on the trading sheet and keep that one handy too. It is a better outcome than then the "let me try this trade again" and trippling up on the loss.

Hope this helps.
 
Quote from RobertMcCall:

Talk about speaking out of two sides of your mouth at the same time.
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I understand why you would attack an opinion that traders should develop their own methodology.. after all you are a failed Hershey follower that needed someone to do your thinking for you
 
Everyone faces some demons of some kind on their way to success, in everything. Your own first post stated exactly what you know you are doing wrong, stated some solutions and then you said you wanted and needed some advice. Your problem is mental more than anything.

You have been trading off and on for a long time. You know the problem but just won’t address it. You already know you lack the discipline needed to be successful. You said you have to “fight back” because you care more about showing yourself or “the world” you are successful at trading and not wrong. Wanting to be right and wanting to make money do not necessarily go hand in hand in trading. Until you learn that following you plan and making money is more important than being right, you have no chance to be successful long term. You may consider a psychologist to help you understand why you won’t change what you know is a destructive behavior to your success.

And realistically, if after 14 years you know your problem but won’t solve it, you may consider that trading is not for you. Until you are willing to make a real change in your mindset, you are fighting yourself (and losing) more so than the market. You can’t be successful trading until you stop fighting yourself. Granted, much easier said than done.

You have said you have a real system but either you don’t and think you do or you don’t trust it. If you know what your expectation is, then you have no reason to not be optimistic. Remember you don’t know what any single trade will do (and really shouldn’t care) so you must follow your rules, EVERY TIME. Because you know one trade doesn’t matter because over the next 1000 trades or whatever, you will be up because you know what your real expectation is. If you have that knowledge and comfort level with your system (as you should) but still won’t follow your rules and revenge trade, then no one can help you.

I will close with what I think you want to hear. You are not alone. Yes, you can overcome your demons. Many have before you and many will in the future. But it is up to you and you alone. Thinking your trading is like gambling as others have said is not the path to success and excellent advice.

Good luck

BM
 
This may sound simplistic, but it seems that a lot of traders that cannot quite seem to put it together(and this will include myself in years past), is that proficient chart reading has not been emphasized.

Using support and resistance and trendlines are critical. Once that trendline is broken either back off or get in, setting reasonable stops and let the market make the decision for you.

Other indicators are just supporting information and nothing more. It is all about price. But you need chart analysis to back it up. Also, learning chart formations is useful for some, although it is secondary for myself.

Anything you can do to lessen the emotion is a step in the right direction. Learn to use charts adeptly and you will see improved results.
 
Quote from Jaytrade:

Discipline.

Learn how to play poker correctly. (cross apply to trading and vice versa)

Restraint. Learn it love it.

Keep rules. Then follow them.

Make 50-100$ a day and never get greedy. You can size up later.

If you've been trading off and on for 14 years, there's something wrong.
Just remember, this is a long game. Take home a small profit and call it quits. Do it everyday, it adds up quick.

Even a tiny $20 gain a day X 260 trading days = $5200. Eventually after all those gains you gain confidence too, thus slowly increasing size and gains.

That shouldn't be TOO hard. At least you would be consistently profiting. But most people just get greedy and want more and more...

Good luck

EDIT: For me, leaving my 9-5 and going full time has helped. Mainly because it has put pressure on me to NOT make sloppy trades. There's literally no room for stupid errors. With bills and expenses...you realize "wow this is it, it's just me vs me and I need to win"....for me this has helped me grow.
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Just about the best advice you'll ever get. Good work, Jaytrade

Do Not get Greedy, the market will cut your head off. Always know why you're placing a trade. If you're trading on gut feelings, you'll be better off in Vegas
 
Quote from NevouS:

Sounds like you need to set goals and limits for yourself. EG make 2% a day on your port and set stop losses of 1% on all your trades and really don't rush yourself into trades. Not trading for a day b/c of no entry points = a day of trading, but deciding not to.
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I second this opinion. You don't have to trade everyday. It can be frustrating, but a wise trader is the trader who learns to back away.

Please, DO NOT BE A HERO, and ALWAYS RESPECT PRICE ACTIONS. If you think the market is wrong for going in a certain direction, just wait till you find confirmation. Also make sure you're not missing a significant piece of information that may be driving the market.
 
Quote from hangsengtrader:

Most traders do not have the patience to trade and really think that scalping for a few ticks or even a point will do the trick. On the contrary, you will be more successful if you have a longer time frame. And yes it will require more than a $5k account.

The vast majority of day traders lose, while the vast majority of long-term traders win. Why? They don't let "noise" dictated their trading

I would suggest if you are capable of doing it to open two accounts of the same size. One for day trading and one for holding positions over night. You will be surprised at the end of the 12 month that your ROI on the long term will do much better than the day trading account.

Of course, you will get a "million" traders telling you the opposite.

But if you must day trade, because you have fire ants in your testicles, I would suggest that you do the 2-1 contract. Enter 2 and liquidate one when you see profits and bring the other one at entry point (break even) if you get stopped out. Most of the time you will, like 8-10 times, HOWEVER the other two you will see that you can easily hang on for a good $$ amount day trading. How much, that all depends on the instrument you are trading.

Again there will be another "gazillion" "traders" that will tell you the 2-1 approach sucks...and that is because they enter on the wrong time. When I enter my initial objective (covering cost) is 8-10 times. I get stopped out a lot, but do well on the other one or two. It is that 1-2 trade that does not look back and I am on it.

If you are having difficulties in finding a method to trade, PM
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Hi hangsengtrader,

I read through your another thread of posts, and it seems that you are day trading HSI, which is not a "long-term" trade, isn't it?
 
Quote from rnaugin:


Oddly, this has only been a problem for the past year or two. Before that losses didn't bother me as much, I thought of them as tuition. But I think it's starting to sink in that I might not actually be able to do this.
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So your losses reinforce what your subconscious has come to accept. You need to change your thinking

There seem to be some quality posts, sorry I have not read them.

http://www.elitetrader.com/vb/showthread.php?s=&postid=1706874&highlight=banjo#post1706874

http://www.bcx.net/hypnosis/self-hypnosis-start.html


http://www.elitetrader.com/vb/showthread.php?s=&threadid=134710&perpage=40&pagenumber=1

:)
 
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