Argh! 2 day losing streak to start my Da-Trading career...

Discussion in 'Professional Trading' started by BostonKiller, Sep 25, 2008.

  1. The title is pretty self-explainatory.

    But short story first: Got interested in day-trading 2 yrs ago, traded a little in 07 (mixed results), decided to go at it this year. Needless to say the results have been, erm disappointing.

    So far this year I am down about $4,200 just day-trading. But what's worse is that the system that I have developed in response to my earlier losses is not working outside my Excel spreadsheet.

    The system seemed almost 'bulletproof' during paper-trading. I figured that I'd just take signals from Stock Picker RT, enter above 10:00 High (by $0.10-0.50 depending on the price of the stock) and set a 1.5% Trailing Stop. Since the SPRT stocks could go either way after 10AM, I would also set Short Buy Orders and set Trailing Stops on the Short side. Throw in some ProShares (also buying over 10AM High) and I'm golden I thought.

    Not quiet.
    This Monday (9/22) I have made $100 on 3 small positions (about $6000 each, about half of what I anticipated I'd do), and sky seemed the limit. However, I have skipped Tuesday (which according to my spreadhseet would have been hugely profitable) and yesterday and today...well, nothing works.

    I have opened a total of 11 positions in those 2 days and none was a winner.

    This is just from today (all Long):

    AMT. Entered at 36.69, lost $24
    CMCSA. Entered at 19.95, lost $60
    DIS. Entered at 32.88, lost $75
    ARO. Entered at 31.83, lost $70
    PL. Entered at 32.55, lost $132
    MYGN. Entered at 68,63, lost $61

    And it goes on.

    I can only blame lack of preparation and overconfidence. Right now I feel like I am on a raft that is falling apart in the middle of the storm that is getting fiercer.

    I am skipping again tomorrow and I guess it's back to the drawing board if next week keeps going like this...

    Thanks for reading. I seriously needed to ventilate this.
  2. your strategy is just based on stockpicker? this doesnt sound good. on the lighter side, maybe tomorrow will be a big winner!
  3. Sir what are you doing???? You must have manure for brains!
  4. real trading is NEVER even close to paper trading results. Systems traders can't conceptualize this fact until they actually try it.

    no paper trader ever loses money. (or they wouldn't go live).

    90 to 95% of em lose when they go live.
  5. Welcome to cash trading.

    If your system is, in fact, someone else's, then 1) you dont understand it, 2) cant fix it when it breaks and 3) wont know its broken until after your account is blown.

    I don't doubt that some retail systems out there are good, but I prefer my own systems, so I can feel them, not just hope they work. Kinda like buying a new car you could never diagnose or fix yourself. You will pay for a good system, whether you rent it or invest time to make it. Your choice.
  6. Your "system" may have been optimized to conditions before last week's volatility. The market should be calmer in November and December to your liking.
  7. Agreed. The last three weeks of price action shift will mellow out IF the market likes what comes from this bailout. If not, time to write a system to exploit the "new" price action. I already have.

    Watch the VIX, but not only the VIX.
  8. You might be onto something here (at least I hope so, otherwise I do have 'manure for brains').

    I agree that paper-trading, however real you are trying to make it, will be somewhat detached from reality, but no winners on 11 straight positions???

    Has any of you struggled in the last couple of days?

    What do you attribute it to?
  9. Spunky


    Volitility my friend. It will take your stops out every time.
  10. Correct. This is why I do not trade my primary (most profitabile) strategies when the VIX is approaching or is over 30.

    High volatility and whipsaw. Bitches.
    #10     Sep 25, 2008