"It took us six years to learn how to trade stocks," -Jim Simons. 'Mr. Simons is probably the most successful hedge fund manager of all time. His $26 billion hedge fund has yielded returns exceeding 30% for more than a decade.' http://www.elitetrader.com/vb/showthread.php?threadid=96757
This hits the nail on the head for me. It is not that I don't put in the hours for the past three years, I certainly do, but in the back of my mind I think the market should just move in my preferred direction. When it doesn't (whether as head fake or a reversal) I first get frustrated but eventually I get indignant which sooner or later leads to an emotional implosion. Unfortunately this is not an infrequent event . Apparently it is hard for me to reconcile all the effort and time devoted to trading and all I have to show for it are chronic and consistent losses. I don't think CM99 is doing poorly. At least by my standards. Sometimes I too think it is time to walk away. God knows my wife wishes I would (that way the rants would end and as a bonus, an actual income may be procured ). But after so much gut wrenching and inner turmoil I will continue to do everything short of selling my soul to make this work. Forgive me a snide chuckle. It seems utterly laughable that CM99 would consider throwing in the towel if he is accurate in his description of his results.
let me tell you a story: a guy wants to bake a cake. he has never went to baking school (if there is one), nor his mother ever shown him how to make one. but he remember reading it in magazines, and seeing it done on tv. he has his mind set on baking a cake, and he wants to do it for a living. he got out a piece of paper and start writing down what ingredient he thinks should be in a cake. so off he went, bought the material, and start baking his cake. the first one did not turn out. (you expected that, didn't you?) he changed the mix a bit and tried again. the second one did not turn out. (you expected that too, wouldn't you?) he added some new ingredient, and removed some old ones, and tried again. the third one was a bit better. it was edible, but i wouldn't call that a cake. he changed the method a bit and tried again the fourth one was a disaster. he used up all his ingredient and was about to give up. he gave the whole project some thought... he re-designed the whole "recipe", re-engineered the method, bought some new ingredients, and tried again... what do you think would be the outcome?
if the "recipe" does not produce cake, no matter how you try, it won't produce cake. if the "recipe" produces cake, but the way you go about doing it is wrong, the cake won't come out. you have to ask yourself, do i have the recipe? or am i doing it wrong?
if the "recipe" does not produce cake, you have to stop baking NOW. <img src="http://www.elitetrader.com/vb/attachment.php?s=&postid=1632823"> .
So what are you saying ... that cashmoney shouldnt bake cakes if his mother didnt show him how? - Next thing you will say is you cant have your cake and eat it too-
O.P. This problem definitely has a solution, but just like in life, nobody here is going to just give it away. Once YOU find the best solution that fits your needs you will will be much more satisfied. Everyone's situation in life is a bit different. For many, simply hanging it up would be the best solution. For others, keeping at it without changing a thing would be a viable course of action. I think the most positive thing about the question you pose is the fact that you are cognizant of your situation and feel the need to enact some kind of solution. My .02 for you is to approach this issue with a much more business oriented attitude. You must think of your trading as if you are running a small business. What would you do if this was a lemonade stand and your sales were good, not stellar, but good and your margins were getting squeezed? You have highlighted a couple of issues, one is blatantly simple to deal with, the others will take a little time, but are very manageable. Lastly, trading may be the name of the game, but remember this is chess, not checkers. There is as much work, maybe more, that needs to be done with your time and resources away from the trading screen as there is in front of it. Sounds like you are definitely on a good path to success, but it isn't easy, but I think you have found the right path. Hell, most can't ever see any path before they give it all up. Patience, perseverance, creativity and intelligence should be your inherit edge, now use them! Good Luck!
Cash money six niner; Just hang in there for two more months profitable month ahead. Losses occurring today consider them to be stock market tuition. Profitability not far away.
Not to beat an analogy to death, but I'd say think twice about scrapping the recipe until you're sure there's nothing in it worth saving. I started with what I thought was a great recipe. It turns out it wasn't. I slowly changed 1 or 2 things at a time, and waited for some time before judging the results. My recipe is pretty good now. I'd have to say it doesn't resemble what it started out to be, but I don't think I'll scrap it for a new one. I may start a new one, but keep this one in tact. There is a nuance to trading that I think you're figuring out. Successful trading is not exactly like a recipe. You can't share it, and expect the same results. Don't expect someone else's recipe to work. By all means, listen and share. Some of my tactics are taken from others' works. incidentally, I'd question if your BS filter is set to a high enough setting. The beginnings of trading ideas are here. That's about it. Plenty of bloviating, but not much valuable here for me. I too am somewhat isolated in my endeavors. I credit ET with teaching me how others thought. After the realization that this place isn't more than a sentiment indicator, I progressed. Now that I've done my share of bloviating...