When to quit?

M

Mike777

Here's an interesting one for everyone.

When I re-started trading earlier in the year I set total amount of risk dollars that I would expose and if I dipped below that then I'd quit and find something else to do.

Now I have just dipped below that amount so if I have the discipline to follow my own trading rules I should quit right now. On the otherhand, you cannot expect to become expert at anything without perserverance, so it's a conundrum.

We all have to face the fact that we might be succesful at this job and there is lots of other things to do in life but at what point do you stand up and say 'I gave it my best shot but I need to find another sport'.

Any thoughts?

Cheers
Mike:cool:
 
if you don't have the discipline to quit then you don't have the discipline to trade either.

I would quit for at least a few months and go back and examine every LOSING TRADE, not the winners. The winners teach you nothing, you learn from getting your fingers burned. Also, don't quit your day job, you will probably need it for several more years.
 
Thanks Lundy,

Actually I do have a job and daytrade part time and the risk money I set aside is not money that I actually need. My decision is made but just opened up the discussion because I'm wondering what full time traders use as their uncle point.

It's got to be a tough call if you have nothing else to fall back on.
 
how much was the risk? 20K 50K

I feel if you can't afford to risk at least 20K you shouldn't trade. Many traders will loose much more than that before the light goes on. Did you pay any one for a class?
 
Originally posted by TickerWatcher
how much was the risk? 20K 50K

I feel if you can't afford to risk at least 20K you shouldn't trade. Many traders will loose much more than that before the light goes on. Did you pay any one for a class?
More...

Nowhere near, it was 5k.

Interesting thought though.
 
Originally posted by dotslashfuture

I would quit for at least a few months and go back and examine every LOSING TRADE, not the winners. The winners teach you nothing, you learn from getting your fingers burned.

dot....

I disagree. I believe we also learn from winning trades. Many times this can be a way to enforce good trading habits. (Otherwise, good advice, IMHO.) However, analyzing trades that were made in the past isn't as easy as some may think. Just looking at a copy of a chart doesn't tell nearly all the story. It would be virtually impossible to remember what was going on in the market at the precise time of a trade, say, even 3 or 4 days ago. Best time to review a trade is the day on which it was made. Learn as you go type deal.


Mike777...
I am assuming you have decided to bail, if I am understanding your posts. Might want to sit out a while and practice without using real money...a.k.a. papertrading. Takes a LONG time to really begin to grasp trading. Strangely enough, one can know quite a lot about trading and still not do well at it; I suppose for a number of reasons. When I first started I was COMPLETELY in the dark. Funny when I look back now. (Well, not funny in the classic sense, but one either has to laugh or cry!! I prefer laughing. :p )

TickerWatcher......
20 to 50K risk to learn trading.....Sounds more like gambling just for the hell of it to me. Man, thought I was dumb. Are there people really willing to lose that kind of money? Maybe we should start one of those "chat" rooms for 300 bucks a month!!!:D

BSAM
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Originally posted by Mike777

On the otherhand, you cannot expect to become expert at anything without perserverance, so it's a conundrum.


Mike
P.S.--What's a conundrum? Didn't Ringo play one of those occasionally?:p

BSAM
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Actually my decision is stop daytrading and go back to position trading which I am relativley succesful at. My risk capital was set aside for a particular style. I'm sure I'll come back to it.

My point is, regardless of $$s, % or whatever, how do you all set a break point and do you stick to it. If you do not have a criteria by which you will cease trading (applies to any business) then surely you run the risk of just trading your way to the poor house.
:)
 
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