"I think most lose money because they are not prepared to lose money." This post is deep. Newbies pay attention.
I like cutting my losses but when I trail I lose my profits. I must use profit targets. I wish I could trail yesterday went short NQ at 1994 out at 1975 just to see it in a few minutes at 1920.
You hit the nail on the head. This is why people are not consistently successful. They think their TA gives the information to confirm their belief that they knew what was going to happen next.... and when that belief or expectation is not fulfilled... people go on tilt. TA is nothing more than edge... trade your edges with pre-defined risk and you almost have to go out of your way to be unsuccessful. IMHO, this is the so-called "secret" to long term success... and it's really no secret at all... when you can get over the "mind freeze" of a losing trade, you can execute your plan without the slightest bit of pain... and move on to the next trade.
On the ball robbie, that was why. And the release was 45 min early. And to the OP a good trader wouldn't panic. Buying tops and selling the bottom is called a whipsaw and you would be holding the bag as they say.
Is more than just that. Some people are able to control their situations better than others and is not because one trader is better than the other (well maybe) it is because the way that individual was raised by their "parents" or how they were taught how to deal as a young person with tough situations. Sample might be, if the young person was tramautized (death, accident, abusive parents) whatever might have been and they were not properly counsel when they were young. Some of you might disagree and other are thinking about it. Those of us, who have issues that at times can't or do not know how to deal with it. know what I am talking about and many will never find the root as to why they act the way they do. My 2 cents:eek:
Yeah - those are the conclusions I've been slowly coming to. It appears to me (as a newbie) that one also needs to have some confidence in particular setups/strategies whatever ---- based on experience and in a reasonable grasp of the probabilities of success. Without that grasp I dont know how you ever gain sufficient confidence to be willing to take the next trade as a loss
Another potential killer is using tiny time frames. Beginners are ever mindful of the value of a single tick, often far too much leverage. Combine this with choppy and wild and you've got some shit scared consistent losers. A crazy game. Better to pull back and loosen things up. listen to some reggae and trade a longer frame with a super volatile markets or nice and tight with a slow moving friendly giant like the Z's. To relax is a must, to feel comfortable with a defined loss. To see the madness but not lose your head while all around etc, etc.
This is what I've been doing. Making huge trades and trying to gain 1 or 2 percent. Haven't done better than 50/50 so far.