Why can't I make money - when I know what do do?

Well I actually am able to make some $ on them.

The reason I lost big last year was really simple - and stupid.

1. I bought Fannie Mae...and Rode it from 13 to 6. lostlike 20k there.
2. I bought WaMu, on the day of the JPM buyout, when I came home shit was @ .20 cents....I "betted" they will buy it all out and the stock included.


I learned it the hard way, trading isnt about making bets and shit, so I kept reading and learning more and more.


I dont know what other stocks I should be trading that have good liquidity , mostly on the NYSE
 
try reading when supertraders meet kryptonite by art collins. its a book of interviews where sucessful traders took huge hits far far larger than yours. One trader took a million dollar account and lost 99 percent was only left with 5k or something. Might boost your spirits in this tough time.

But you need to paper trade. When you do so focus ending each day net positive (yes take in consideration comm.) Also only trade size you actually trade. so if your down 100 bux on a trade dont double up because its a paper account. Only you can be honest with yourself nobody will know if you had a dollar gain, 10k gain, or a 5k loss. your goal is to not inflate your ego with fake trades and profits but to get the process down. take your training seriously. CT
 
Quote from DrEvil:

neveralOne,

In my experience, the psychological problems of fear and greed are strongest when your bets are too big for your account. Try this, half your size and observe how you feel about putting on a trade, cutting your losses and letting a winner run. If you are still not calm and almost distant from the result, then cut your size in half again. Rinse and repeat until you feel relaxed and centred no matter win or lose on a bet.
More...

Some good, constructive comments in this thread (unusual for ET - well done, guys!) - and this is one of the best!

Try trading 10 or 20 shares. Yeah, you pay odd-lot fees - so what. The money you save when wrong, and the ability you gain by trading as though it doesn't matter, will more then cover these.
 
I agree, I think if i trade with smaller shares, once I'm consistantly profitable I will have less of a problem stepping it up a notch. Im usually goin on margin 50%...like 7500-8000$, just to make more $.

I am very strict with my stop losses though, no more than 100$-150$ allowed on a given trade. These rules have saved me plenty of times.

Ill do 50-75 shares for a while to see how it goes, thanks guys, everyone is very supportive here - keep it up!
 
Quote from Vespasian:

I have spent the last 3 years trying to learn the craft of trading (had minimum success) I finally broke down and hired an incredible mentor (that was referred by a good friend, who he helped turn his trading around).

I spent 3 months studying with this guy and I've learned how to use some amazing tools for reading the markets.

Going into today I was looking for shorts and every trade I took was a long. :confused:

This is truly becoming UNBEARABLE and I am at my wits end.

I've read all the psychology books and I've even had some counseling with a noted trading therapist but it never F ing changes anything.

I'm beginning to hate myself and I know now hate trading, after being so passionate about it for so long.

This really SUCKS !

Should I quit or should I keep at it ?
More...

Go to the gym.

Go to the free weights section.

Find a guy that can at least bench 350.

Befriend him and tell him you will pay him to punch the living shit out of you for a 10-20 seconds.

Everytime you break your rules call him over and get beatin to a pulp.

You won't break your rules after that. I am somewhat serious. Unorthodox methods of finding a way in order to not break your rules is essential. Think of yourself as an Arab women. If you break your rules and make love to another man you will be stoned to death. Your capital is your life. Get some discipline.

Can you be happy not making one trade in a single day? If you have to trade like some addict then you will never make it.
 
Self sabotage is a demon that all traders have to deal with.

one big bad terrible undesciplined trade wipes out all winning disciplined trades.

most traders are long because most people are hopeful and want to be optimistic about the future. and besides if you are a trader you can make money short or long intra-day .

it could be your trading plan needs working.




Quote from Vespasian:

I have spent the last 3 years trying to learn the craft of trading (had minimum success) I finally broke down and hired an incredible mentor (that was referred by a good friend, who he helped turn his trading around).

I spent 3 months studying with this guy and I've learned how to use some amazing tools for reading the markets.

Going into today I was looking for shorts and every trade I took was a long. :confused:

This is truly becoming UNBEARABLE and I am at my wits end.

I've read all the psychology books and I've even had some counseling with a noted trading therapist but it never F ing changes anything.

I'm beginning to hate myself and I know now hate trading, after being so passionate about it for so long.

This really SUCKS !

Should I quit or should I keep at it ?
More...
 
Vespasian,

I’ve put together 3 different posts, two from me, one from NeoRio1



QUOTE]Quote from Redneck trader:

Vespasian,

No measure is too extreme if you want this (read into this statement what you will)[/QUOTE]


Take the above statement


Add to it one of my posts in another thread about following my rules





Quote from Redneck trader:

FWIW Sir


I punished myself every time I broke a rule, no matter how small the rule - And I punished myself especially hard if I broke a rule and made money



Now following the rules is more important than any trade's outcome


btw - I don't believe you can learn discipline, I believe you become disciplined by defining and following a set of rules

Redneck
More...


Take the below from NeoRio1


QUOTE]Quote from NeoRio1:

Go to the gym.

Go to the free weights section.

Find a guy that can at least bench 350.

Befriend him and tell him you will pay him to punch the living shit out of you for a 10-20 seconds.

Every time you break your rules call him over and get beatin to a pulp.

You won't break your rules after that. I am somewhat serious. Unorthodox methods of finding a way in order to not break your rules is essential. Think of yourself as an Arab women. If you break your rules and make love to another man you will be stoned to death. Your capital is your life. Get some discipline.

Can you be happy not making one trade in a single day? If you have to trade like some addict then you will never make it. [/QUOTE]


And I’ll tell you straight up – I am totally serious






See if this sounds familiar to you Sir..

Price going one way – it hesitates – may retrace ever so slightly – then moves back in the original direction – stops heads back (retracement) just a bit – you enter – damn entered the wrong way – as it continues back again - in its original direction

(Commonly known as trying to pick tops / bottoms)


OR

You enter – trade goes with you – you get nervous – you exit

You enter – trade goes against you – you become calm – almost eerily so


AND

At, or almost at, the EOD you look up at the chart and all at once everything become crystal clear – as to what you should have done

(Commonly known as NOT living on the hard right edge – and staying “in the present” while trading)



If it does - know I've been there


And take what NeoRio1 and I have said deadly serious



BTW suggestion to reduce share size – IMHO – you can trade 1 share (if you like) till the cows come home, and as soon as you increase your size appreciably – you’ll be right back where you are

Ask me how I know this



Aside

If the trade scenarios I’ve stated above sound familiar – I’ve been there – and You have work to do

If they don’t – I’ll sit down and shut up



Also please know – I’ve eaten plenty of “poo” to get here, except now I call it shit sandwiches – why – it is what it is

(Those last 4 words will mean something to you once you get a handle on this problem)


Like I said if this post makes sense – YOU have work to do

Otherwise I’ll shut the hell up

Redneck
 
Redneck, nice post.

Question...

My problem is that everything does become crystal clear EOD, I See beautiful patterns/formations/singals/ trends/ ....how do I work on spotting this in real time ?
 
Quote from neveral0ne:

Redneck, nice post.

Question...

My problem is that everything does become crystal clear EOD, I See beautiful patterns/formations/singals/ trends/ ....how do I work on spotting this in real time ?
More...


I wish I could tell you but I can't - because everyone is different

What I can say is - the words "It is what it is"

Once I learned how to teach me - I taught myself how to stay in the present - which is partly what they mean - to me

sorry man - it's all I have to offer


eta - I had a thought

Define your set ups and trade em come hell or high water - and Journal your trades to identify weaknesses and possible changes you need to make to said setups

I keep forgetting about setups because I really don't use them anymore - I just trade it
 
If you have the right ideas but can't pull the trigger, then the best solution is to hire someone else who can pull the trigger. Just hire some 18 year old kid out of school, pay him minimum wage and tell him whenever you get a signal. Tell him he will get fired if he ever ignores a signal from you, or makes a trade without a signal.

Alternatively, if your trading is not rapid-fire scalping, then maybe work in an office with 1 or more other traders. Befriend some and describe your hesitation problem, and whenever you get a good signal, tell them - they will be able to encourage you to pull the trigger.
 
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