Consistency is my goal

Hey man, we all know how it feels to go through the ups and downs of this business. The best thing you can do is go back to your bread and butter and get yourself back on track. Grind out a few winning days and to get it going again. Be strict on taking small losers. Good luck.

 

Thanks ElecEquity. One of my biggest downfalls is not being able to take small losers. That is one thing I am working on.

I was taught by my mentor to always fight fight fight a position. That works for some but not for others.

 

Fight (my definition) – to exert sufficient influence over someone/ something – so they / it... goes/ moves in the direction/ way you desire



Not disrespecting your mentor – but…..


Do you really thing you can influence the market, or price - one iota… seriously


Market doesn’t even know we exist… much less care.. It’ll do what it damn well pleases


I trust you’ll come to realize – you are only fighting yourself…

I would bet there are a hundred conservations going on inside your head – every time - its time - to exit a small loser…

There is a time to think… and there is a time to do…. Never confuse the two


Rock on

RN

 

Redneck, you are spot on. I do not disrespect my mentor since he taught me a ton. It works for him, so be it.

I am getting better. Unfortunately, I got away with it for 3 years cause of the volatility in the market. I have been trading 3.5 years and this is my first "REAL" drawdown, going on 7 months, approx $100k. So yes it is playing mind games with me.

In the end, I will become a stronger trader and get to the next level that everyone strives for. Yes, taking losses without the gazillion toughts of justification to stay in the trade will be part of what makes me stronger.

Thanks for the advice.

 

Many traders use a metaphor for trading, and I know that a battle or warrior type of metaphor is very common. But, I learned from my coach, that for me and my style of trading, a battle oriented metaphor is counter-productive. It might work for others but not for me.

A lot of macho lingo and stuff gets used in trading, and I can tell you (my handle is a hint) that I've been a thrill seeker in my life, pushing things to the limit at times....in other words, very macho in my activities outside of trading. But I have learned that in trading such stuff is downright dangerous and not worth it.

What my coach helped me realize is that a battle metaphor suggests one is fighting. So, that brings up the question, who is the opponent? The market? Our self? I certainly don't want to fight the market and I certainly don't want to fight myself. I want to be at peace with myself and focus on what I need to do to take advantage of opportunity and minimize risk.

Another thing about battle type metaphors, if you think about it, in war, soldiers or warriors are often taught to fight til the death. In trading, that is not a such good idea, we need to manage our risk and take small losses.

As my coach would say, 'choose your metaphor carefully'.

 

X,

I'm glad you're back posting Sir


eta – The battle metaphor also hold a connotation of ego - as you elude too… Ego and trading simply do not mix...


RN

 

The slide continues. Don't have much to say. I am just not trading rationally. Decided again to reset, this time for 2 weeks. A true reset, no charts, no trading, no financial news, nothing.

I will start back on Feb 28 with the thought of "one day at a time". If I feel the urge to trade something new, it will take place in SIM account until I prove it has an edge.

This is just crazy. I know I am good trader. Last 3 years were not a fluke. This rut is bringing out things that I never thought I would have to deal with in trading. Amazing how psychological it can get when you are losing money week after week.

Week ending 2/11
Daily Net P/L: -1800, +200, +700, -800, -1000
Week Net P/L: -2700 on 124,000 shares traded

 

I've fought stocks before in the past....looking back, those are all of my worst days. I've lost many thousands doing that...usually on fade plays. Go with the trend or wait for it reverse and then go with it. Do what the stock is doing...you cannot make it do want you think it should be doing -- if you continue to try forcing your will, you will not be around much longer buddy.

I'm sure a lot of shorts were fighting WTW today -- I'm guessing they're paralyzed right now.

I guess others already commented, but I haven't read their posts yet. But everybody can't be wrong (in this case anyway).

 

Thanks ElecEquity. My reason for another break is to stop forcing it. When I return, slow and steady. One day at a time. One strat at a time. Only way to survive what I am going through.

This is my first rut that has lasted this long. All part of becoming a better trader.

 

It really sounds like your trying to hit home runs. This is an awful strategy to come out of a hole. Trust me I have been there.... I got in a big hole... I would say I was about 25% responsible for it and the rest was a halt and I couldn't do anything about it.

Anyways, after getting in a big hole for the next 3-4 months I tried to really push it and make big trades. I really didn't make much back and was basically was just treading water and not making any progress.

For example I was easily making $2-4k a day but I wasn't being consistent and would lose 100% of what I made over 3 days in just one bad day. I would look back and go "wow if I just add up my positive days this month I would have made 25-30k" however then I include my bad days I would be up a couple of thousand if I was lucky.

The big change came when I just took small profits, smaller size, looking to have a string of positive days rather then up 1 day down the next. I started stringing runs together like 1-2 negative days out of 20. This is when things started to click again and I could make $$$. I had stopped trying to hit the ball out of the park and focused on making singles and focusing on not losing much when things were not going well.

I know this example below is simple but think about it!

Strategy 1
+$2,500 (Day 1) + $3,000 (Day 2) - $3,800 (Day 3) - $1,000 (Day 4) +$1,200 (Day 5) = +$1,900 for the week

Strategy 2
+$600 (Day 1) + $800(Day 2) - $100 (Day 3) + $200 (Day 4) +$500 (Day 5) = +$2,000 for the week

Although its not fun and exciting you make more in the second strategy... It was not until I realised and fully accepted this that I was able to then implement my change.

I'm not making as much as I used to but now I am making $$$ much more consistently and more importantly I was able to get out of my hole. Nothing feels better then doing that