Able to recognize good trading Opportunities....

Discussion in 'Psychology' started by JamesEM, May 7, 2007.

  1. JamesEM


    Hi all:) ,

    I'm new to the world of trading...started learning last August. I've been trading regularly since January now, with a $6k account. I've read alot of books...started out with a seminar...

    My problem is, I seem to recognize lots of good opportunities- evident to me by looking back over my Telechart notes- I'm even in many of those opportunities, but I seem to be stuck at break even point...after 4 months!

    I don't let losses run, I have strict rules as to how much I risk, position sizing etc but my largest win has been only about $200. I don't know if it's my account size or, more likely, something psychological...

    To summarize, if you looked at my notes, you'd expect me to be a profitable trader...which I'm not.

    Any advice?
  2. (1) Part of "it" is your account size and psychological factors. With a $6,000 account, you're badly constrained as to what you can trade without overcommitting to one position. If you buy 100 shares of a $30 stock or a one-lot of eMini S&P, it becomes tough to add-on any other positions. (2) You mentioned being able to control losses and your biggest profit is $200 on one trade. I get the idea that you're time horizon is very short-term with that profit and loss profile. That's okay. The problem becomes you'll have to work a lot harder to grind out consistent profit if you don't have a means of extending your time horizon in order to earn larger gains. You'll always be gripped by the fear of loss and the fear of a profitable trade turning into a loss where you are now. Another way of looking at'll eat like a bird and defecate like a bird and continue to be a small bird. (3) Rigorously quantify what these "opportunities" look like that you claim to see. Chances are that not as good as they appear. (4) Focus more on "trending" markets so you can get on board a trade and let it move your way without trading too actively around it. I hope some of that helps.
  3. James, what are you paying for commission?

    Paying $10 / trade to trade 100 shares or so is killer.

    Consider IB, $1 / trade for up to 200 shares.

    I felt the pain of $10 commissions when every trade I made involved $20K of leverage.

    If you switch to IB, don't ACATS anything other then cash and stock, the best way to do it is just transferring cash.

    Let's say you made 20 trades in the 4 months, if you overpay $9 / trade, that's $180 profit you could've had.

    If you want to trade such a small account, you ABSOLUTELY need rock bottom commissions.
  4. RL8093


    Ahhh - obviously a good trait but do you let your winners run? Sounds like you're letting fear grab you soon after your position starts to turn a profit.
  5. "but I seem to be stuck at break even point...after 4 months!"

    Market has basically been going up since you have started trading, if your even and the market has been going up something is not working as well as you think.

    Imo, if your plan is to continue to trade your way to some break through ephipany, I don't see that happening.

    Sounds like you have absorbed alot of information in a short time, this information needs to be internalized which came only come from more thought and a "Break" from trading.

    Regards and good luck
  6. JamesEM


  7. JamesEM


  8. JamesEM


    Sounds familiar...I do try, but I always move my stop after I get into a position of having $100 profit...then I usually get stopped out prematurely...
  9. JamesEM


  10. You should be lucky u r are brake eve and u have not blow and got busted with your account
    You see to be doing preety good
    Hang in there and see what mistake,s u r making and try to improve them.
    Wehn i started trading i was up like $500 in a week and then the next day i started playing with 1000 share os this and that and i blew it
    Hang in there Strong if you have a will
    #10     May 11, 2007