How long have you been learning Trading for? Your profile says you've been on ET since 2018.
If you look at most great Traders they don't turn a profit until after 7 or so years of learning.
Why do traders find it difficult to make money?
- Thread starter Waylen
- Start date
If you look at most great Traders they don't turn a profit until after 7 or so years of learning.
Good Evening volpri,
Thank you very much. I always enjoy reading your post. Your knowledge and analysis is very practical and logical
Thank you,
You are welcome.
It can be very frustrating knowing that your take on the market has been invalid for years, and you ended up with serious losses in the end. That is why every time a trade goes against your analysis you keep losing a bit of confidence to the point where you find it impossible anymore.
Good Morning zghorner,
Did you read what myself and @volpri stated about trading the ES and that is to start as small as possible?
Even if that is only a $1000 account to trade the MES, start small so you be a mental peace.
Even if you have $100,000 in savings account, start small.
Here is how I scalp grabbing profits and just don't worry about what happens afterwards. Three trades this morning. All winners. I give my rationale or thinking for each trade so you can see what I am thinking and why I took the trade. These ended up being multiple points gained.
See this kind of scalping can go on all session long. Grabbing what the market gives. Using proper SL placement. Sure there will likely be some losses through the session but if one can maintain a win rate of 70% to 80% with this kind of scalping then it is a feasible way of making money. \
Concerning SLs I put them far enough out (based on PA and Volatility of the moment) to give the trade a chance to work in my favor without bleeding to death from 1000 paper cuts. However, that doesn't mean I will take the entire SL. If I see conditions change I will exit quickly with a smaller SL than my initial SL. But I want an initial SL (bigger) in there for some unexpected reason that makes the market surge or plunge. We can never know what factors may enter in and move the market. There is uncertainty in trading and we have to learn to embrace that and at the same time make money while simultaneously protecting ourselves.
Back to trading as I have already missed more scalps typing this.
Note: Short entries are red. Covering short entries are blue. Long entries are green. Exiting longs are orange.
See this kind of scalping can go on all session long. Grabbing what the market gives. Using proper SL placement. Sure there will likely be some losses through the session but if one can maintain a win rate of 70% to 80% with this kind of scalping then it is a feasible way of making money. \
Concerning SLs I put them far enough out (based on PA and Volatility of the moment) to give the trade a chance to work in my favor without bleeding to death from 1000 paper cuts. However, that doesn't mean I will take the entire SL. If I see conditions change I will exit quickly with a smaller SL than my initial SL. But I want an initial SL (bigger) in there for some unexpected reason that makes the market surge or plunge. We can never know what factors may enter in and move the market. There is uncertainty in trading and we have to learn to embrace that and at the same time make money while simultaneously protecting ourselves.
Back to trading as I have already missed more scalps typing this.
Note: Short entries are red. Covering short entries are blue. Long entries are green. Exiting longs are orange.
I think we have all been there and done that, to some degree. It can be disheartening. That is why I strongly suggest a trader start small and do it all on a sim first many, many times (not just a few times but 100's of time maybe 1000's of times). A trader has to give himself time to learn, time to practice and work through all the issues that have to be dealt with. Not only must a strategy or technique prove itself out going forward (on a SIM), not backtesting (I do not use backtesting) but the strategy or technique must fit one's personality too.
For instance, I am too impatient for investing in say a mutual fund where someone else makes the decisions. I am too controlling. I am too detailed. If I win or lose then I have to know it is ME. If I lose I am just not yet good enough so more practice is in order. More forward testing must be done until a technique proves itself to work over multiple market conditions. If I win I can congratulate myself for working through issue and techniques to have finally find something that fits and works for me.
But it is important to myself that I bear the full responsibility for my wins and losses. It does me nary a benefit blaming the feds or blaming market manipulation. It only hurts more and worse than that it poisons my mind. That poison can become so pervasive that it is very hard to transcend.
The market is not out to "get" me. But I am out to get a piece of it! I have to just learn and practice until I can have the confidence that I can achieve that and at the same time survive losses.
The reason I suggest SIM trading to new traders is because there is no sense (in my books) in just throwing money at the market until the trader has confidence in the techniques he has practiced. Then once trading live starts the emotions will become involved and the psychology of trading will certainly come to the forefront and test the traders mettle and test his techniques all over again. That is where one must work through those issues and learn to stay the course and if doubts arise (and they will) go back to practicing on a SIM. There is no law saying a trader must trade live. Yet to succeed one has to be passionate about it and practice and persist.
There is light at the end of the tunnel!
Do what you have to do. Nothing wrong with that. Odds are you will return to trading. You got a taste of it in your blood. You miss it so you have experienced something that grabs your interest and attention. Something you are somewhat passionate about.
I suggest when you return start small and practice..practice..practice. Do this on a SIM with a small SIM account. Not a large SIM account or you will tend to get careless. Once you can find something that works on a small SIM trading small positions, and have developed the execution skills for that strategy or technique then you might consider going live but again going live with a small account and small positions. Confidence takes time to build and skill execution takes a lot of practice to hone it. There is NO HURRY unless maybe you are 95 years old!
The Hondurans have a saying: "There is more time than life" "Hay más tiempo que vida."
Unfortunately we North Americans say: "But time is gold"....so we rush..we want instant grits (if from south as yankees don't know about grits LOL) instant oatmeal....fast food...We are so wound up tighter than Dicks's hatband that we can't even relax on weekends. Always gotta be doing something. Then we get old...wore out..sickly..fossilized.. and wonder what is life really about. My Dad use tell me "son, stop to smell the roses along the way". Dad turns 91 this month. Not long ago I asked him "Dad do you think about life... living and dying much?" He answered back "everyday son!" Life is bounded by time. When we are gone time will still be. We have to learn to like how we live. The same thing goes for trading. It has become something enjoyable and something you can be passionate about. Otherwise, one must move on to something else. And there is absolutely nothing wrong with "moving on".
I can have a terrible day trading (some days I am just out of sync with the markets) but by end of the session I am flat, win or lose. Tommorow is another day. Losing hurts. I grapple with it during the night hours but by morning its impact has lessened and I face a NEW DAY with NEW OPPORTUNITIES. I arise "ready to go".