Very hard time taking loss:(

[FaderTrader]

Quote from Ripley:

Taking losses isn't your issue. Its having a winning edge. Thus, there is a higher % that a trade will go against you. It could also be that you are risking a little too much on a single trade than what you can stomach.

With that kind of odds, even the most disciplined traders would have a hard time taking losses. Trade smaller, develop a winning edge.

Perfectly stated.

The original poster who scalps and has a hard time taking losses simply has no strategy. Specifically, no strategy that is based on statistical significance.

Develop that and you will know when an open loss is mere noise or an indication that you are wrong. Tangentially, you will also become much less fearful.

 

[FaderTrader]

Quote from novel20:

Just look at the small winning days and huge losing days. Not only you need to learn to cut loss quick, you need to learn how to take the maximum profit. Good luck.

Jan 12 -82.06
jan 13 +204.49
jan 17 +224.36
jan 18 -76.32
jan 19 +194.84
jan20 ( -1786.05 BLACK FRIDAY ) dow-200 naq -50
jan23 +65.94
jan24 +107.16
jan25 +108.56
jan26 +113.87
jan27 +163.81
jan30 +87.87
feb01 +67.95
feb02 -625.08 : (
feb03 +87.84
feb06 -47.07
feb07 +11.57
feb08 -75.85 was up+$200 gave all backand (-)

Question: WHY would you hold a long on "Black Friday"? Do you not have a signpost, which tells you that it's a down day - eg, if the down breaks below the opening range and the daily pivot range? Why the hell are you holding onto a long when the market is tanking? Get the hell out!

 

[SizesTrader]

I am just curious. All the advice in this post sounds very good. How many of the ET members are making good money? Say over $100K.

I believe that if an experience trader, at least 3 years, is making anywhere under $70k, is not worth trading. You can get a job and make that much without stressing yourself like trading.

How do you guys think? This is just a thought.

 

[Ripley]

Quote from SizesTrader:

I believe that if an experience trader, at least 3 years, is making anywhere under $70k, is not worth trading. You can get a job and make that much without stressing yourself like trading.

How do you guys think? This is just a thought.

It depends on the size of the account. Depends on if the $70K was made on a $5K account, or a $100K account..

edit: I know what you mean.. that $70K isn't nearly enough to live on. But, you also have to take into account where in the life cycle the specific trader is.

 

[Thunderdog]

Quote from SizesTrader:

I am just curious. All the advice in this post sounds very good. How many of the ET members are making good money? Say over $100K.

I believe that if an experience trader, at least 3 years, is making anywhere under $70k, is not worth trading. You can get a job and make that much without stressing yourself like trading.

How do you guys think? This is just a thought.

I think you're being rather optimistic.

 

[Commodz]

Hi,

I think I can give you some info on your question/problem. If you picture your trading like the standard bell curve. With your winning trades scaling out to the right... an example.. +500, +1000, +1500, +2000 out to infinity and also on the left hand side of the bell curve would signify your losing trades; -500, -1000, -1500, -2000 out to negative infinity, if you look over your actual account statements you will notice that most of your trades, whether they are winners or losers will fall somewhere in the middle of the bell curve. Standard distribution. You will also see that you had the "big losing trades" and the "huge winning trades much less frequently... (they will be out on the fat tails of the curve). The key is to cut off the left hand side of your bell curve (losing trades) at a certain point. Lets say -$500 and thats it, no matter what happens. If you do that and leave the right side of your bell curve open to the possibility of the "huge winners" and dont take your profits prematurely then when these big winning trades do come around.. which is not often.. you will be in them and these trades will take care of all your small losers and transaction costs. Play for the " Positive Fat Tails" and cut your losses. Hope this helps

 

[DblArrow]

Quote from Ripley:

edit: I know what you mean.. that $70K isn't nearly enough to live on. But, you also have to take into account where in the life cycle the specific trader is.

Perspectives are always amazing - how many millions upon millions of people live 3 - 4 times below. I am currently about 3x below this and doing just fine. (does not include any trading income, which is not enough to count)

Make 'em pretty, Chris

 

[Buy1Sell2]

The life cycle of the trader is extremely important. If you are attempting to live on the income, then it must be higher than if not. It is all relative to your position chronologically and financially in life. Rip had it right.--Doesn't mean DBL had it wrong.

 

[ksonsinc]

Well i have to say that
When a trader blow his account or has heavy loss he is still not ready for trading and that experience has taught him a lot ( Me )
AT present i am not trading but i have realized one thing that u have to be well capalized and to succeed u have to have experience and a good mentor.
Rest It all up to you
But $ backing has a lot to do

 

[Commodz]

Hi,

I think you should look at it this way... There is no dollar amount of starting capital too little or too big that allows you to sit back and assume that your starting capital alone is a secret key to success.

There are numerous other factors related to the correct amount of starting capital, not least of which is is your own personal discipline and ability to stick with it. Anyone who tells you there is some magic number is not being honest.

What if you had unlimited money? Do you think that would be to your advantage as far as trading is concerned? Let me know..