When did I say that? I said I've seen many new traders gravitate towards stocks they shouldnt. Although I worked in a group where the success rate was far higher than avg, I did see other groups or individuals at my previous firm who were brand new (under 3 months) and when i would walk by their screen they were trading CME, X (during earnings), VLO (when it was $100) etc. Basically stuff they shouldnt touch as their chances to actually profit were very low.
madbulgarian i was in the same boat you were in not too long ago, i was slowly making about 1k a wk wondering if I was ever gonna make more and worried to death if i wasn't, then all of sudden earlier this yr that fear went away and started making money well over my target...so for me the change happened when i started keeping a log of my trades, stopped over analyzing the market, and lost my fear of losing money.
When I first started, I was given three earnings, up/downgrades that I would watch and trade throughout the day and did that for like 8 months while I gradually built up my lot size from 100, 300, 600, up through about 2k depending on the stock,etc. Then I started trading only one oil/nat gas and a metals stock everyday for about 4 months (may-august) volatility dried up and the quant programs started targeting the strategy I was playing so I couldn't find any good entrys anymore and stopped trading them. So since September I've gone back to trading earnings/news plays in the morning and throughout the day I scan and look for stocks that fit a few set ups that I've been having a little success with. Also during the day my mentor and others in our group will call stuff out and IM each other setups that look good. We also have a news desk that looks at a bloomberg terminal and calls some news out during the day, I've been playing them quiet often. That is what I've been doing intraday wise.
So you're saying that you gave up day trading and took a day job, but continued to trade longer time frames?
MadB, You need a longer time frame. Most people take more than 1 year to even find out if trading is for them...nevermind make $$$. ps: were you trading the tape all this time? it sounds like it.
What firm? Sounds like you are being pressured to trade too actively. Active trading (>250,000 shares per day with a 1k lot size) is not for everyone. There ARE strategies that exist, which can be traded intraday, but it's a matter of finding a stock that fits that strategy rather than the other way around, which is what most daytraders do.
First of all, I am shocked by this thread. It is one of the most helpful, "wise comment" free threads I have seen. I thank everyone here for their intelligent comments to Mad's concern. Each comment here is worth its weight in gold. Mad, you and I are at the same firm. And I know what the problem is. Two things: 1. Loss Limit I have figured it out after 6 months. One of the biggest problems for new traders is the loss limit that they impose on us. I'm pretty sure that they started you out with a $100 loss limit. Whether you did 100 shares or 500 shares, that was probably your loss limit per day for a while (thats how it was for me at least). Loss limits are great but, they have to increase proportionately to the amount of shares per trade. This is the only way, you can confidently trade. I am telling you from experience. The first few months, I have been a nervous wreck. I would get in a trade with 300 shares and if it went against me by 5 cents, I'm out and then it moves in my intended direction. You cannot trade like that. Even if you are scalper, you have to give the trade a chance. At least 10-15 cents stops. Right now, I believe you said, that your trading 2000 shares sometimes. If thats the case, then you should have a $2000 loss limit. I know it sounds crazy and they're certainly not going to give you that. So don't trade 2000 shares. Trade proportionate to your loss limit. It has helped me a lot. When I was at $100 loss limit, I made 100-200, $200 loss limit and I made 300-400, $300 loss limit and I made 500-600, and now with a $400 loss limit, I find myself making 700-1000. It was a long and ugly fight to get the loss limit I wanted. I had to prove to them that I can pull money out of the markets, at least gross. There's at least one good thing about trading prop: If you prove yourself gross wise, they will give you what you want. But, you have to ask. If you don't ask, you won't get. 2. Mentor I have a great mentor. He never yells at me and he always cheers me on for good trades. And he is always there for me to give me advice. A mentor that does not talk is NOT a mentor. He is simply making money off your commissions. As far as I can see, my mentor does not hide anything from me. He taught me everything he knows and he continues to teach me. On the other hand, there are some mentors in our firm that yell at their traders. If I had one of those mentors, I would have been long gone. So I consider myself very lucky. A mentor has to have a balance just like in trading. Someone who does not talk and some one who yells, is not a good mentor in my opinion. So, you have the RIGHT to get a better, more caring mentor if you don't like the current one. The mentor is not free, you are paying him thru a part of the fees. What is your loss limit per day? I hope this helps you. Because these two things have helped me "turn that corner". p.s. I also hope you have not abandoned this thread, because it has a lot of valuable responses.
1.) I don't know what my loss limit is set at. Around my 2nd month of trading I was still trading in 100 share lots and I lost a little over 500 gross during the morning session and I was still able to continue trading in the afternoon. A few other times I lost a few hundred bucks while trading 100-300 shares lots and never was cut off for the rest of the day. 2.) I've never heard my mentor or any others yelling at the traders in thier groups and he has never yelled personally at me, so I can't comment about what you've experienced in your group or heard from others. I have recently purchased a hand tailored custom made suit from Brooks Brothers and have been wearing it while trading and my performance has been fabulous. I think I really turned the corner there is no looking back for me STRAIGHT TO THE TOP with the other big swinging dicks