Interesting story gordon. I'm a new guy with only a year on the books and still have managed to pay for my education through making less than intelligent moves. I never had the pleasure to trade in strictly a bull market as many of you have and maybe it has helped the trading methodoligy. I'll probaly never know though because it may be sometime before the bull gets out. When I got into this deal it took a long time to break the ingrained thinking of buy low sell high. To go against the general perception was harder than DIFFICULT. I started looking at the market as it has a self need to be able to feed it self in order to survive. It moves like the serpent coming down to feed and then rest only to repeat the process when in search of food again and then find another direction to go in. The education has been an expensive one but I guess thats what you do when you like someting. Stay Healthy
what to do when you're screwed
- Thread starter Gordon Gekko
- Start date
Look, If one has the desire to ever succeed in this profession, then it is an absolute must that a trader have a proven and consistant STRATEGY. Believe me, I am no different than traders in their novice times. I lost money and lots of it. I quit jobs to trade full time only to be right back in the same chair that I swore I would never sit in again.
So what made my trading career for me a reality, FINALLY! I started watching another trader whom I traded with at a firm during the boom times. He only traded CSCO and that is it! He knows exactly how it moves, what MMs control the blocks, the intraday TA, etc. Guess what, he still trades CSCO for a living. The point here is that after four years, he is able to consistantly scalp 0.25-50 a day on it and thus developed a consistant and stable STRATEGY while sticking with it day in and day out.
I learned a similiar stategy with an ETF and found myself gaining consistant results. Sure I have losing days, but I stay very focused and almost always have a winning week if I just stick to the game plan and never stray from it. You MUST have a strategy or else you might as well give your trading money away to charity. Find what works for you and go with it. Just my 2 cents.
So what made my trading career for me a reality, FINALLY! I started watching another trader whom I traded with at a firm during the boom times. He only traded CSCO and that is it! He knows exactly how it moves, what MMs control the blocks, the intraday TA, etc. Guess what, he still trades CSCO for a living. The point here is that after four years, he is able to consistantly scalp 0.25-50 a day on it and thus developed a consistant and stable STRATEGY while sticking with it day in and day out.
I learned a similiar stategy with an ETF and found myself gaining consistant results. Sure I have losing days, but I stay very focused and almost always have a winning week if I just stick to the game plan and never stray from it. You MUST have a strategy or else you might as well give your trading money away to charity. Find what works for you and go with it. Just my 2 cents.
Realist this is a good reminder to go visit a trading firm. I was talking to a firm manager and got an invit to go in and check it out. Like gg many times I would find myself being so bummed by the day and loses that I couldn't figure out where to turn. So having to spend time and re-evaluate a trading style was the only thing to do or get the hell out. Reading all the postings hasn't hurt one bit either one needs to hear it from all sides. Let me just say my trading style needs much improvement. Spending time time with the herp hobby helped though. Had to get a secondary source of activity to take my mind off things. Hope gg finds his answer.
You guys at ET are a great inspiration for helping to find the method. Its nice to see the response that gg's posting got.
My philosophy has been " if you don't ask the question you won't get the answer " Happy Trails People
You guys at ET are a great inspiration for helping to find the method. Its nice to see the response that gg's posting got.
My philosophy has been " if you don't ask the question you won't get the answer " Happy Trails People
Original Realist
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Look, If one has the desire to ever succeed in this profession, then it is an absolute must that a trader have a proven and consistant STRATEGY.
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IMO, this statement and many similar ones is certainly part of the problem. If you traded a few years ago, especially TECH stocks it was not unusual to see them move $5. to $15. a day. If you happen to be on the right side of that move, it was great for your account.
Today is much different, most stocks on average days move much closer to $1.00 and often less.
If one does not adapt to the changes that go on, then big hits to one's account is inevitable. Sometimes I think it would be best to stop trading for a few weeks or months, and just watch what is going on. I've seen many traders, hold on when they're $.50 to $.75 to the positive, either short or long, and while holding on for more, watch those gains disappear.
In this market, if you are not going both ways, that is shorting as well as going long, you will be lost, which many seem to be.
There is no method that works all the time. A few years ago when a stock broke through yesterday's high, everyone piled on and drove it up. Check it out today, see how many times that happens or doesn't happen. Same goes for many other old "tried and true methods.
All of this is just my opinion, of course.
Don
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Look, If one has the desire to ever succeed in this profession, then it is an absolute must that a trader have a proven and consistant STRATEGY.
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IMO, this statement and many similar ones is certainly part of the problem. If you traded a few years ago, especially TECH stocks it was not unusual to see them move $5. to $15. a day. If you happen to be on the right side of that move, it was great for your account.
Today is much different, most stocks on average days move much closer to $1.00 and often less.
If one does not adapt to the changes that go on, then big hits to one's account is inevitable. Sometimes I think it would be best to stop trading for a few weeks or months, and just watch what is going on. I've seen many traders, hold on when they're $.50 to $.75 to the positive, either short or long, and while holding on for more, watch those gains disappear.
In this market, if you are not going both ways, that is shorting as well as going long, you will be lost, which many seem to be.
There is no method that works all the time. A few years ago when a stock broke through yesterday's high, everyone piled on and drove it up. Check it out today, see how many times that happens or doesn't happen. Same goes for many other old "tried and true methods.
All of this is just my opinion, of course.
Don
GG
Some absolutely great replies have been posted here - thanks to you and all.
The one thing that strikes me is that you have over 1300 posts on ET and are in the position you are in. Without being a qualified Psychologist, it suggests to me that you may need to look and rely a little more within yourself for your answers.
All the best. I don't know any succesful trader who hasn't hit the bottom hard, sometimes more than once, before being successful. Stick a stake in the ground and move froward from there.
Bouds
Some absolutely great replies have been posted here - thanks to you and all.
The one thing that strikes me is that you have over 1300 posts on ET and are in the position you are in. Without being a qualified Psychologist, it suggests to me that you may need to look and rely a little more within yourself for your answers.
All the best. I don't know any succesful trader who hasn't hit the bottom hard, sometimes more than once, before being successful. Stick a stake in the ground and move froward from there.
Bouds
GG, this is from an E-mail I got from Innerworth, today.
Stress Management
"It is crucial to maintain a good attitude, so it is important to approach investing with positive thinking. Donât be glum. Avoid foolish thoughts. Learn from every experience. Do what you are supposed to do. No door closes that doesnât open another. If you have your health, you still have everything - without health, you have nothing. Tomorrow is another day. We live and learn. Life goes on - this is the way it is and therefore is supposed to be. Investing results are no reflection on your manhood, or your womanhood. We have ups and downs, and we will prevail. We have defeats yet are never defeated. There are no guarantees. If you donât have any other options, you donât have a problem, so donât worry about what you canât affect; the challenge is to understand when there are no other options, and to stop chasing what does not work. When you hear bad news yet canât change it, donât worry about it; the world was made that way and it will remain so long after weâre gone. Let things be."
Stress Management
"It is crucial to maintain a good attitude, so it is important to approach investing with positive thinking. Donât be glum. Avoid foolish thoughts. Learn from every experience. Do what you are supposed to do. No door closes that doesnât open another. If you have your health, you still have everything - without health, you have nothing. Tomorrow is another day. We live and learn. Life goes on - this is the way it is and therefore is supposed to be. Investing results are no reflection on your manhood, or your womanhood. We have ups and downs, and we will prevail. We have defeats yet are never defeated. There are no guarantees. If you donât have any other options, you donât have a problem, so donât worry about what you canât affect; the challenge is to understand when there are no other options, and to stop chasing what does not work. When you hear bad news yet canât change it, donât worry about it; the world was made that way and it will remain so long after weâre gone. Let things be."
From my perspective, I don't see how one can trade while really depending on their small daily gains. I could not do it.
My suggestion would be to take a break from real trading and instead papertrade aggressively and realistically. Perhaps, use daily charts, study the market and take positions in the evening.
At the same time, get a job and make some money. After you feel safe in your trading skills, and with some money to support yourself and also trade for, say, 6-12 months, give it another try.
Good luck!!
My suggestion would be to take a break from real trading and instead papertrade aggressively and realistically. Perhaps, use daily charts, study the market and take positions in the evening.
At the same time, get a job and make some money. After you feel safe in your trading skills, and with some money to support yourself and also trade for, say, 6-12 months, give it another try.
Good luck!!
Oldtrader:
I know this is out of left field, but was that the sugar market in the early 70's where it ran to something wild like sixty cents?
My dad was trading with a partner in those days and got taken out by that move. (To this day he blames his partner for doubling down on a big short position without his knowledge or permission, and swears that he wanted to go long- I just nod and smile.)
He dropped out of all things financial and basically became a hippie shortly after that, I don't think he's traded since.
Small world if it was the same market.