Why do I cause panic on Nasdaq each time I trade?
- Thread starter jasonH
- Start date
Agree with Rito.
The only thing we can (relatively) control is how much money we accept to risk on every trade. Then everything can happen, except losing more than planned. Obviously, this is more difficult in swing trades because of overnight exposure. But to limit this risk, I never have more than 5% of my total equity on one single stock. In other words, money management (position size, stop loss) is the real edge in this business, in my opinion.
The only thing we can (relatively) control is how much money we accept to risk on every trade. Then everything can happen, except losing more than planned. Obviously, this is more difficult in swing trades because of overnight exposure. But to limit this risk, I never have more than 5% of my total equity on one single stock. In other words, money management (position size, stop loss) is the real edge in this business, in my opinion.
It's because they know. No one wants to sell until YOU buy. 
Really! So you are a big player that can cause panic on Wall Street, and you are the second greatest speculator after Jesse Livermore.
Wait. Are you panic when you trade or Wall Street panics when you trade? From the above title make me understand that you cause Wall Street to panic each time you trade.
By the way, it's normal to be panic when trading because losing money is the most fearful in life after facing a dead. What you can do to reduce it is to have your own trading system (strategy) then follow your system. When you have something you will have more confident then eventually will reduce your fear.
Wait. Are you panic when you trade or Wall Street panics when you trade? From the above title make me understand that you cause Wall Street to panic each time you trade.
By the way, it's normal to be panic when trading because losing money is the most fearful in life after facing a dead. What you can do to reduce it is to have your own trading system (strategy) then follow your system. When you have something you will have more confident then eventually will reduce your fear.
Quote from rito:
which book?
You'll find this qoute on a couple of other threads on this site as well. After several years of making mediocre gains and then getting the stuffing beat out of me over and over agian I feel like I am at long last makeing some headway. Implementing the principals found in the following quote have been probably equally as important to me as any TA knowledge ever could be.
.ANYTHING CAN HAPPEN
.YOU DONT NEED TO KNOW WHATS GONING TO HAPPEN NEXT IN ORDER TO MAKE MONEY.
.THERE IS A RANDOM DISTRIBUTION BETWEEN WINS AND LOSSES FOR ANYGIVEN EDGE.
.AN EDGE IS NOTHING MORE THAN AN INDICATION OF A HIGHER PROBABILITY OF ONE THING HAPPENING OVER ANOTHER.
.EVERY MOMENT IN THE MARKET IS UNIQUE.
If you havnt read the book yet do so and live by it.
Rito
The Book is "Trading in the Zone" by Mark Douglas. Very worthwhile read.
This same thing puzzled the crap out of me last year when I started trading. 90% of my demo trades were profitable, but as soon as I went live everything changed. Most trades were losers, and the winners were just pure luck. Very hard for the little guy to make money in this biz.
LOL, 2 or 3 months! Try 8-12 months. Its not even worth giving trading a try for a career if you arent willing to give it at least 1 full year.
Nothing worthwhile is ever given to you. You'v gotta earn it.
Tradeing is undoubtably the most exasperating thing I've ever tryed to master, and yet there are guys out there making good money at it because they have paid their dues and learned how to do it. Its alot more worthwhile to concentrate on the infinate possibilitys of what could be and how you are going to get there than to bemoan how hard somthing is.
Traderon, when you figure out why you were so successful on demo and yet have so much trouble tradeing live you will have won a big part of the battle.
Tradeing is undoubtably the most exasperating thing I've ever tryed to master, and yet there are guys out there making good money at it because they have paid their dues and learned how to do it. Its alot more worthwhile to concentrate on the infinate possibilitys of what could be and how you are going to get there than to bemoan how hard somthing is.
Traderon, when you figure out why you were so successful on demo and yet have so much trouble tradeing live you will have won a big part of the battle.