Averaging down with 5K is suicide period. You might have a chance with 500K (and iron clad discipline) but 5K, it ain't gonna happen.
How many successful brick & mortar businesses were started with a) 5k starting capital b) ZERO competitive advantage Now why would the end results be any different in trading?
You have lost your confidence and it is possible you may never get it back unless you can get yourself a few winning days' The MM's are trying to suck you into the trend then "whip" you out of the trade by pushing it down before they run it up, I seldom enter a long trade on the uptick, I let the MM's push it down and I wait until selling seems to subside before I enter and I keep a tight stop loss such as you have done. On the bright side I think you have done a good job of capitol preservation so until you can get a few "winners" keep it small as you have done. You will not be able to make a living trading 100 shares but for now it's about getting your head straightened out with the trade. I have been in your position and it took me a very long time (almost 1 year) to get out of that rut. If the other traders are making money then try to learn from them weather you like their system or not, see what moving averages they use. You could also try different exchanges or stocks. Perhaps something like a XIU.TO or the Horizon Beta Pro Inverse ETS's might be more suitable. Can I ask which office you are trading out of? If you don't want to post it you can Private message me. I am wondering because I am also an ex Swiftrade Trader and presently using T.D Active Trader, but looking for a better broker Thanks and good luck
how can you compare trading to buisness start up you can compare trading only to sports betting , I don't know what are you people smoking , you have as much chance to make money off 5k as 20K . Everything is a erisk reward.
Yes, but you forget operational and opportunity cost. If you spend 10 years trading full-time making 20% on 5K each year -which is a very good performance - the 10-year total is about equal to what a good senior manager makes each month. If you qualify for a managerial position of this kind that is an opportunity cost of about $1,190,000, and yes, you read it well... and don't tell me people will give you money to trade with a 5K trading record.
I know an individual who turned roughly $5k into $60k in two years and received a 50/50 stake for $2MM, based-solely on the 5-60 run. He turned that $2MM into nearly $200MM in 7 years with zero added capital. So now you've been told.
Dude, you have NO EDGE. Plain and Simple. World Class traders have World Class Edges. Don't let anyone tell you differently. If you don't want to trade counter-trend, then don't. 90%+ of the people ultimately end up losing at trading, so forget about trying to follow everyone else. There are trend trading edges that exist, but finding a "true edge" will be the toughest thing you will probably ever do in your life. And no, I won't help you in this area because when you do find an edge, keep it to yourself like your life depended on it. I suggest that you trade on a simulator for no less than 3 months until you are SURE that you have an EDGE. Then start out will very small share size with real money. Unfortunately, it could take you years to learn how to develop winning edges because there are no books out there that I'm aware of that reveal true edges. It took me 5 years to find an edge and most importantly be able to design new edges and recognize whether or not I even have an edge. This, my son, is what seperates the pros from the wannabes.
You have entirely the wrong temperament for trading. Quit now, leave this forum, move on, and don't look back.
Yes but I was talking about the chances of succeeding as a professional trader that trades full time and lives off of trading alone. Capitalization is a key ingredient -- just like in any other business.
Hey, if you really aren't feeling it then get out and get yourself together first. If tradings not for you best to figure it out with no open positions! There is no shame is quitting if your heart's not in it. However, if you want to continue trading, I still suggest a break to get back to yourself and earn another trading stake. And get ahold of yourself, you need conviction to do this job or you'll go bald early.