If you keep losing money, how do you do the opposite?

Discussion in 'Psychology' started by opposite, Mar 24, 2008.

  1. You are likely not losing because of only 1 reason.
    If you don't dissect it all, they will not be fixed.
     
    #21     Mar 27, 2008
  2. cold

    cold

    hey hey hey, I like a man with the bran, I mean the brain :D

    the beautiful thing is, this is already done, so yes you can do it as well
     
    #22     Mar 27, 2008
  3. opposite

    opposite

    Calculator7: that is pretty similar to another idea I have.

    Given that I have consistently lost money, I think that I am a very good contrarian indicator. So my idea is to set up a chat room, where I post my trades in real time. Everyone else in the chat room is then supposed to do the opposite. I may make some good trades occasionally, but over the long haul, everyone else in the room will be sitting on a huge profit. To be able to participate in the room though, you must sign a contract stipulating that I will receive a share of your profits.
     
    #23     Mar 27, 2008
  4. opposite

    opposite

    A couple people have mentioned how newbies will hold onto losses while refusing to admit that they are wrong, and finally exiting the trade at a huge loss.

    I have taken a few big losses, but that really hasn't been my problem. My problem is that I have taken so many small losses, that they have added up and exceeded all of my gains combined.
     
    #24     Mar 27, 2008
  5. opposite

    opposite

    A few people in this thread have mentioned going with the trend, instead of trying to pick reversals. I think that is one of my problems, as the majority of my trades have tried to pick reversals.

    I even read in one of the threads in the Trading forum (the thread about contrarianism becoming mainstream) where one guy posted that running with the herd will be successful 80% of the time.

    Is that for real? 80% of the time? I know that most traders end up failing, and one mistake that they commonly make is trying to chase a stock. They might see a stock go up, and up, and then finally they jump in because they don't want to be left behind. But then that's when the stock starts going back down, and they have to sell at a loss. I know I made that mistake many times, before I shifted to trying to fade everything.
     
    #25     Mar 28, 2008
  6. You have a lot to do before you can make money consistently.

    First of all, unlearn what you have learned so far. You have been poisoned, get the poison out of your body first.

    In the field of trading, there is no standardized textbook, as in mathematics or physics. If someone writes such a textbook for successful trading, it will become the PIN for ATM. You could withdraw money endlessly after reading that book. But don't expect others to give you the PIN, because nobody will give you the PIN. If someone offers you an advice, it is definitely NOT the PIN. If it is not the PIN, it might be just a general direction to the ATM. It is not going to help even if you find the ATM, because you don't have the PIN. You may stand beside the ATM for years, but you won't get a single bill out of it.

    Sometimes, the advice borders on giving your a debit card (some posters did write something truely helpful. Unfortunately, you won't recognize the usefulness of their advices until you get to a stage where you don't need their advices anymore). But without the PIN, the card is useless.

    You may ask: "Where can I get the PIN?" The answer is: From yourself. P stands for personal. You yourself think of a number, and that number is your PIN.
     
    #26     Mar 28, 2008
  7. Wait till AFTER the trend has changed in smaller time frames
     
    #27     Mar 28, 2008
  8. ammo

    ammo

     
    #28     Mar 28, 2008
  9. mokwit said the "opposite" trading strategy is already being used... the retail FX model ?
    What firm or CTA is already using it? I'd be curious to see the performance, or at least a website...

    thnx
     
    #29     Mar 28, 2008
  10. JB3

    JB3

    It doesn't work that way. You can reverse a losing strategy and still lose.
     
    #30     Mar 28, 2008