The Dangers That May Await Us in Trading
- Thread starter Jamie J.
- Start date
I haven't really had a big loss as of late -- that only happened when I first started out...of hanging onto a loser because I thought it would turn. 
Back then, I was just basically gambling. This was when I first jumped into the market.
Back then, I was just basically gambling. This was when I first jumped into the market.
http://www.elitetrader.com/et/index.php?threads/lessons-learned.7386/
Some of mine.
- To turn bad luck into big losses.
Because at that time it was luck only.
- To be afraid about letting profit run.
Emotional trading is really not profitable.
- To trade to escape boredom
When I see no opportunity but trade anyway.
- To believe I'll be right 100% and that losing's awful
And that even without a trading plan ....
- To trade without knowing what I actually trade (Instruments, Strategy..)
Some of mine.
- To turn bad luck into big losses.
Because at that time it was luck only.
- To be afraid about letting profit run.
Emotional trading is really not profitable.
- To trade to escape boredom
When I see no opportunity but trade anyway.
- To believe I'll be right 100% and that losing's awful
And that even without a trading plan ....
- To trade without knowing what I actually trade (Instruments, Strategy..)
Last edited:
A big mistake starting out was assuming trading would be easy, not appreciating the time (years) it needs to mature in mind and game plan. This includes spending so much time playing with uber-complex math formulas (hello "sliding goertzel"!), hoping, while being confused about what is real in the markets and not. Ie. to truly appreciate "trend is your friend", the inherently chaotic nature of the markets and its implications for complex predictions.
Another confusion that lingered for a long time, is assuming "win chance" in trading to be 50/50, while ignoring risk. Truly, one is a function of the other. So a risk of "0" forces a minimal winratio and vica versa.
My biggest mistake, but probably also a great driver along the beaten path, would be my relentless ego to "figure it all out myself". Though, without other ancient sages pointing the way, I would probably still be completely lost in the dark. It's too easy to get lost in complexity. It's like the basis of trading is so simple it's hard to grasp for most folks. Sages say simple things, not to confuse you or appear smart, but because it's the best advice and they've probably tried many of the blind-alleys already.
Another confusion that lingered for a long time, is assuming "win chance" in trading to be 50/50, while ignoring risk. Truly, one is a function of the other. So a risk of "0" forces a minimal winratio and vica versa.
My biggest mistake, but probably also a great driver along the beaten path, would be my relentless ego to "figure it all out myself". Though, without other ancient sages pointing the way, I would probably still be completely lost in the dark. It's too easy to get lost in complexity. It's like the basis of trading is so simple it's hard to grasp for most folks. Sages say simple things, not to confuse you or appear smart, but because it's the best advice and they've probably tried many of the blind-alleys already.
The dangers that may await us in trading.
This should read " The dangers that await in trading"
In the beginning you would never fully agree with some one when they warned you that you WILL lose money in trading. For some reason you thought you were different, but then during the learning period you realized what that person was talking about.
For me looking back, trend trading would have been the smarter choice all from longer term charts. I have done my fair share of d trading but in truth once again from my perspective; the hours and returns just don't add up.
Making your money work for you is what I find makes much more sense but of course this requires a totally different mind set to adapt.
Couple more things, never bet big, never think your good, there's more but I don't want to bore you for the next 2 hours.
Just remember it's the hardest easiest money you will ever make if you can get there
This should read " The dangers that await in trading"
In the beginning you would never fully agree with some one when they warned you that you WILL lose money in trading. For some reason you thought you were different, but then during the learning period you realized what that person was talking about.
For me looking back, trend trading would have been the smarter choice all from longer term charts. I have done my fair share of d trading but in truth once again from my perspective; the hours and returns just don't add up.
Making your money work for you is what I find makes much more sense but of course this requires a totally different mind set to adapt.
Couple more things, never bet big, never think your good, there's more but I don't want to bore you for the next 2 hours.
Just remember it's the hardest easiest money you will ever make if you can get there
I haven't really had a big loss as of late -- that only happened when I first started out...of hanging onto a loser because I thought it would turn.
Back then, I was just basically gambling. This was when I first jumped into the market.
Similar to mine. I remember "revenge trading" myself into dumping over 10% of my account one single August day chasing SINA. Back in 2003 anyway, that beast was doing the weirdest, craziest moves intraday and I guess I hadn't thought of just looking for easier pastures, the intraday range was often 5%+ in the AM alone and that was the flame to my moth.
(Correction: that was the last day I tried to tame that one, and chase losers in general, and the only day I revenge traded, so that was education money well-spent. Didn't feel like it until much, much later though of course.)