I've been doing a lot of intraday trading over the last several months. My records show that 60% of my trades are losing trades. The average loss per losing trade is also higher than the average loss per winning trade, so I have been losing money. At this point, I have tried various strategies, none of them working, so I am ready to give up. But I wonder if I can't somehow turn my consistent losing into consistent winning? It would be one thing if I had done a bunch of trades and ended up breaking even. But I consistently lose, so there must be a way for me to recognize what I previously did in my losing trades, and do the opposite to make them winning trades instead. I will post more thoughts later.
When you are a losing trader it normally doesn't mean your system is bad, it means you don't manage your trades well. Want proof? Do the opposite, and I will bet you a dollar to a doughnut that you still lose 60% of the time.
I am by no means an expert but I have run into the same situation as you in the past. I have blown out once and two other times closed my account when it reached my pain threshold. Here is my next progression or mindset if you will... Trading is a business just like opening a restaurant or retail store. IN those businesses you will have days that you make money, lose money and everything in between. You have ideas for marketing your business, new products for your customers, etc. I look at each trade as the same thing. If in your retail business you put in an ad and it works, then you conclude that was a good idea and you keep running the ad and squeeze as much money out of that idea as possible. On the other hand if you get no business from the ad you quickly move on to another strategy to bring in sales. In trading it is the same thing with individual trades. If trade A begins making money, you keep with that trade and ride it to as much profit as you can. If it is a loser like the bad ad, you cut it and move on to another trade that makes money. You don't look back (other than to learn). I am really trying to see the bigger "business" picture in trading and am really excited about it. In short, ride your winners and cut your losers, which is sometimes easier said than done. FWIW Stephen
even gambling, should be 50/50! that is odd. that should be related to your mindset. something holds you there and let you think that way. it is a systematic error!
Could it be that you are trading against the trend and trying to pick tops and bottoms? Try to do the opposite by betting on price moves to continue instead of end.
You should do so. If not you should at least stop trading and confine yourself solely to study of this game. You will never gain anything from actually trading when what you know and do is so deficient. Trust me when I tell you that the deepest stupidity, exhibited over and over again at ET, is to be punting around in the market like some deadbeat. Time is valuable and it is best spent doing your homework until you have constructed an accurate methodology for trading. But if this is beyond you as it may well be, quit this game. A true level of success is only reached by the few and you should get another life that is better for you.
I would suggest you back out of real trading and paper trade (or do more if you already did) you you can't make paper profitable then you have no chance of doing it with real money.
To the OP, Read the above quote, again and again, and then, stop reading this thread - in order to follow the plan presented. You need no additional information. You've already received the best possible advice. - Spydertrader