To Trade or Not to Trade?

[chiquita]

OK, so this is more of a money management problem.
Or not holding winners long enough, which is common. You could try posting your trades. Sounds like you may have an edge, which you are giving up.

I think you might be right. One thing I noticed is that right after I close the trade it generally goes back to a profitable price. Another possible issue I see is that sometimes I don't close them early enough. I think I need a better rule as to when I should close my winners. I was reading how some people use the ATR for this purpose and it looks reasonable.

If I do a single contract and it goes to $100 I would usually hold and try to get to a bit more.

I tried TastyTrade strategies for a few months as well. You can have a high rate of profitable trades, but then there is always the one - trades that eat your profits. Also, the commissions are insane.

 

[chiquita]

I'm thinking about buying an ETF and sticking with covered calls and similar strategies.

 

[dealmaker]

They all worked, but then my gains get wiped out by losing trades.

A trader has to develop positive expectancy models that forces them to overcome their Hard-Wired bias towards small profits and large losses...

 

[Cswim63]

My trading got better when I was able to dump a trade that was in no man's land, knowing that I could get back in after reassessing the market. Sometimes it's OK to beat your stop, taking a smaller loss or scratching. This I believe comes with time. Try to cut your size and risk till the money is barely meaningful. Put time on your side, and continue learning.

 

[i960]

1. If the market environment or context is not producing good results and you're certain it's not your methods, stop trading - the market is not conducive to your methodology. Accept it and be patient. Recognize that the current market is in a period of uncertainty in ways and violent moves up and down are to be expected. It's volatile and not always a "good" kind of volatile.
2. If you don't have any risk parameters or make them up as you go, stop doing that and make a plan.
3. If you're bailing too early because you're worried about losing money rather than obeying your risk parameters you're hawking your P/L too much and focusing too much on money.
4. If you're bailing too late because you're getting greedy or fantasizing about all the money you could make on this trade if it only went to xyz you're stepping outside the parameters of the trade and thinking too much about money.
5. If you're doing stuff like selling OTM options (naked, iron condors, etc) and just hoping, based on "probability", that price won't go near your strike - then you're a slave to gamma and will get screwed eventually. These strategies don't really work IMO, get closer to the money and learn how to hedge with the underlying when necessary. If your size is so large, just to produce a substantial concern, vs your account size, that you couldn't even hedge, then it's only a matter of time until a blow up happens.
6. Don't screw around with earnings.
7. Possibly don't even screw around with individual stocks if that's what you're doing, instead trade index options.
8. If you're making trades because you just want to trade and not because there's any significant setup, stop doing that.
9. Patience.

 

[rick cremer]

You can have a high rate of profitable trades, but then there is always the one - trades that eat your profits. Also, the commissions are insane.

Does your your trading plan not have an exit strategy (one that you follow religiously) to limit your losses on those occasions when the market goes against you?

Also what kind of commissions are you paying? You should be able to get $.70 -$.90 a contract which is not insane. Granted commissions eat into your profits but you shouldn't be paying over a buck per contract.

 

[VTS]

VTS posted:
"2 years is plenty of time to make certain realizations on your own and find your own unique style of trading that does work"

Keep dreaming. As an independent trader, on average, it it takes much longer

We will agree to disagree then. It didn't take me more than a few months and I have several friends who are also full time traders who were the same. The vast majority of people who actively trade lose money. Of the few people that do well at it, most of them figured it out in less than 2 years.

There's no shame what so ever in trying and failing, and just because a person isn't a good trader doesn't mean they aren't smart. Some of the smartest people I know are crap traders, it means nothing.

Being a successful trader isn't rocket science, and most of the people I know who are successful at it including myself have reasonably simple systems that work.


Perhaps if 2 years hasn't been enough time to be profitable, you are overcomplicating it? If you want input from the community, maybe describe your basic strategies and give a general outline of your trading rules.

 

[Redneck]

Perhaps if 2 years hasn't been enough time to be profitable, you are overcomplicating it?

Perhaps you are being a condescending prick

Perhaps you're allowing your alligator ego to overload your hummingbird ass

Perhaps it takes longer that 2 years - to identify / assimilate all the moving parts

Perhaps it takes longer that 2 yrs - - to experience the mkt various stages / environments / stages

Perhaps it only took me 18 mo - and could ask you what took you so long (even then.., and looking back - there a hellofalot I still didn't know..., hadn't seen..., nor experienced)

Perhaps we don't have a web site linked to our profile - selling services (before you blocked yours of course)

Perhaps a trader would never disrespect another trader - aspiring or otherwise

Yes..., just perhaps

RN

 

[zdreg]

I need some advice. I've taken tons of options trading courses and paper traded for a long time. I've been options trading with real money for about two years now and have done nothing but loose money. I spent a lot of money on classes and have learned a ton. I've practiced like crazy too.

I've analyzed everything and don't see any issues with emotional trading. I recently (two weeks) started using Ichimoku. I'm seeing a slight improvement, but the market is such a mess right now its hard to tell. There is a lot of chop, which messes up Ichimoku. I haven't been using Ichimoku long enough yet.

My question is: do retail traders ever really make money long term or am I better off investing my money? Everybody I speak to in the financial world tells me trading is a waste of time. I'm considering dropping trading options and investing in ETF's. Maybe focus more on dollar cost averaging.

Trading is time consuming, but I enjoy it. Its difficult because I've put in 110% and am not seen any results.

Oh, I've also been through all the TastyTrade stuff and haven't found much success there either.

Any thoughts? Thanks.

--
Quita

eat Chiquita bananas and enjoy life.

study the mind psychology of successful traders.

 

[zdreg]

Perhaps you are being a condescending prick

Perhaps you're allowing your alligator ego to overload your hummingbird ass

Perhaps it takes longer that 2 years - to identify / assimilate all the moving parts

Perhaps it takes longer that 2 yrs - - to experience the mkt various stages / environments / stages

Perhaps it only took me 18 mo - and could ask you what took you so long (even then.., and looking back - there a hellofalot I still didn't know..., hadn't seen..., nor experienced)

Perhaps we don't have a web site linked to our profile - selling services (before you blocked yours of course)

Perhaps a trader would never disrespect another trader - aspiring or otherwise

Yes..., just perhaps

RN

lighten up.
"Perhaps if 2 years hasn't been enough time to be profitable, you are overcomplicating it?" this remark is neither condescending nor insulting. VTS is making a serious point. try to grasp it.