I'm not a system trader or much of a day trader... more discretionary and intuitive, with a decent command of fundamental TA, options and market psychology. I can say that after having the experiences you're referencing... you should not continue trading for now. If you cannot step back and not trade for a period of time while you do soul searching; and objectively evaluate how to improve away from the markets... you will (imho) continue to repeat the same issues/problems, and lose. There is no doubt that once your fear level rise too high, and confidence is shaken badly (and you said you were pre-disposed to fear) the thing to do is not get right back on the horse; that's great for cowboys and rodeo riders, but the better approach for a trader is to (at least) reduce position size and not trade every day... and (at best) to take a meaningful working holiday. During that time confront your trading fears, and ask yourself 1. if you really think this is for you and 2. how and what you can do to overcome the fear to be come successful. For sure fear will rear it's head again and again; in different ways and different forms. There is always something in the market that can make you squirm if you let it, and are not prepared. Always!! One time you finally got "A" figured out and "B" comes along to rattle your cage. ETC. An example of things I do (and not a day trader per se) is to take my B/P during the day, and be sure my pulse and BP are at stressless levels. If not, I'll mediate for a few minutes. Also I listen to different types of music that fit my market moods, and the way the day is going. As an example IF I need to slow down and re-group, make some tougher decisions, will put on new age music of a mediative nature. this is my "reflective zone". When things are rocking, will listen to WDRV, a classic rock station in Chicago and crank up the volume. This my 'surgical' zone. Things are "operating" as planned; all the preparation and analysis is coming to fruition! The music then keeps me focused and also reminds me "if it's not broken, don't fix it" (i.e. let the profit(s) RUN)! An important thing I've done in recent years to gain a very high position/swing win % is to exercise patience, be bored if necessary, sit still, do nothing, tape my hands to the chair waiting patiently for the right set-up; the high probability shot. Wait for that good screen to be set; the defender to leave me, double team someone else and afford me a clear path to the basket. Rather than taking an offensive foul by bullying my way to the basket. Dunk! This as my 'Braveheart' zone. Recall the scene in Braveheart when horsemen are attacking Wallace and they have long wooden spears readied? He instructs: hold, hold, hold, HOLD... NOW! That's one of the images I envision as I try to feel the markets energy, and it divulges THIS is the set-up, go for it. One final thought. After many years I'm convinced that trading is no different than playing in the NBA. Some can come out of the gates like Stoudamire, but many/most need to take small steps first, work hard, beef up, learn... improve.. gain insight before they reach their stride. And there will always be slumps. And sure there's always beginner luck, too. But that is a definite double edged sword, and it was for me. In fact you'll find you learn (or should learn) as much or more from losing than winning. So those that can do it consistently from the get-go (and keep it up), my hat's off. But typically to make it to consistent and higher levels of profit and success you need to take care of your body, mind and emotional health. You need to avoid major "injuries", you need to balance things, inside and out. You need to re-group and re-charge, at times. If one burns out, all the computers and monitors and systems in the world won't matter one iota. This is some of the 'stuff' that's worked (s) for me. Hope it helps . Ice
You might want to try something Mark Douglas recommends. 1) stop doing what you do now 2) COMMIT to taking the next X trades EXACTLY as your method dictates - with the knowledge that this could mean X losers. It doesn't matter the outcome - it's just an exercise in executing your plan 3) when/if you fail to reach X trades before meddling, reduce X by a bit to something you know you CAN achieve 4) once you hit X, repeat increasing X slowly until successgful Q1
I'm the opposite I almost always make $300 per day, but thats all I make! I never have the big up days, but I also don't have the loosing days. Even on huge market days I make the same....sometimes I get pissed cuz I never make the large coin! I guess I should be happy Im not in your shoes.
Corrallus, sounds like your about where I am in my trading. I always take my stops, but have difficulty letting my profits run and i also exit positions that have not gone in my direction but that haven't hit my stop. Invariably when I get out that's when it goes in my direction big time. (it is the fear of loss which causes you and me to lose) We must not fear. The advice I have for you is the advice I'm taking myself. Which is, "know what you're doing wrong and then don't do it anymore" It may be some time before I am finally over this hump, but when I am I will be at least break even performance if not net profitable. Looking over the last few days if I had stayed with all the trades I made, and took the stops, trailed the profits only exiting upon those two objective conditions I would be up close to 2 grand. Instead I'm down 2-300. The problem isn't my ability to read the market, I'm good enough at that to make correct calls. STICK WITH THOSE WINNERS MAN!!!! BTW I'm trading 100 lots in stocks.
can you explain how you determined this ORB? aren't ORBs based on a time frame? for example, say the high and low after 30 minutes is the range. so when you say it "happened later than usual".. how did you determine the range and breakout? just curious.. thanks
don't give up if you truly love trading...if you feel you are close hats great because you still have some confidence..you need to be confident that you can trade profitably. When I went throught tough times I tried to just simplify everything and become much more selective and not take the mediocre trades. Try to concentrate on just one time frame,don't swing and daytrade,pick one and stick to it. Be aware of the time of day and stay much less active during the middle of the day doldrums..I know somedays big moves occur during that time but for the most part its just chop city. Don't give up you will make it..one last thing I do when struggling to keep my position sizes small enough where I feel bored by them..this helps take away the fear of a big loss until you get back in the flow and makes you less likely to exit too soon. Hope this helps some.
did you ever try graphing your profits and loss; it confirms what youalready know but seeing it in B&W anyway helped me with the ol taking winners too early, and holding onto losers longer, funny, knowing i had to "answer" to something, the graph, even though it was myself, made me hold winners longer. also look at the context, you know bigger moves are made in the morning so push winners longer than say, mid-day when something scalpier makes sense b/c bigger moves usually dont happen here just my two cents