If anyone is interested in a real answer to the question read on. This is a thread about a legitamate question, not more PDT whining. An effective way to trade correctly is to have a written plan. A real business plan will prevent you from overtrading, give you a sense of comfort when you need it, protect profits, keep you from making mistakes, and other benefits. Lets face it, many of us turn into complete idiots when we turn our computers on in the morning and start trading. Have a plan and you elimanate this. I'm not suggesting you change what works or to trade mechanically. Just get it in writing. The way to correct trading ills is to analyze everything you do. Your plan is the bench mark. Without the plan it is IMPOSSIBLE to analyze or be consistant. I'm sure there are a few traders that are inhuman automatons (not an insult, I wish I could trade that way) and the emotions of Spock. You few perhaps don't need a plan (but you could still do better with one). For the rest of us humans it can take a consistant loser and make you a winner, given some time.
good post bundlemaker. On a lighter note, 2 words: BOXING GLOVES put them on around 11:00-11:30 am and don't take em off till 2:30 - 3:00 pm. Few of the benefits: Just by doing so, you demonstrate to yourself good discipline. If you decide you want to trade in between, it will take time to take them off and by then the trade will not look as good, most trades are like that during dead zone anyway. You can also use them to take your frustrations out on a punching bag. Josh
hi. i do good in the morning and then watch in the afternoon and if something "sure thing" comes along then i'll do something. but i find that i lose more than i make in the afternoon.don't know why.2 hrs before close things get fast,maybe thats why? i find just walking away helps me protect my profits for the day, but then i feel like i'm lazy. i trade dow futures and sometimes naz futures.
tighter stops on the losers, follow the market dont ever go against the trend), do the same amount of shares everytime, and try not to trade between 11:45-1:45... just some tips...
I strongly, but respectfully, disagree with the idea of always trading the same number of shares. You can get burned very easily doing this. Equalize risk, not shares. Every trade say that you're not going to lose more than $X. Van Tharp's books do a great job of explaining how this works and why it's a must. Think about it: would you really trade 1000 shares of GT with a 15 cent stop and then trade 1000 shares of ERTS. You could easily envision a scenario where you got 90% of your trades right, but lost a ton of money.
...is blowing out your account. The "dick" comment may not have been entirely frivolous, or anyway may be on point: See Elder and others on the possible links between gambling and masturbation. You may have to accept that there may be authentic psychological and even physiological reasons for overtrading, and that it may have to be approached in the same way people deal with other bad habits or destructive behaviors.
Analyse your daily trades, look if there is a pattern in the time of the day when you have a lot of losing trade, and turn off the computer at those periods of time, go for a walk (or play with the ... as suggested by some...) Cheers!!
I can only speak for myself because I do not know your trading plan. However, I think the solution is the same: DO NOT TRADE if it is not a set-up defined in your strategy. Almost every time I have taken a trade that was not a part of my strategy (usually out of boredom) I have ended up with a loser.