Trading is compared to brainsurgery; you don't expect to learn brainsurgery in a few weeks or few months. Even Livermore said it took him about 5 years to become a satisfactory trader. Most people will not learn it even if they spent 50 years, it's that difficult, I think. Most of Schwager's Market Wizards took several years to become good traders, and had a few bankruptcies along the way. Have realistic expectations.
May be I forgot to mention that I am a system trader or didn't explain myself clearly.. there are some comments that I am a terrible trader that may be true... but I really felt like petting myself on the back after the experience because I had the discipline to follow the MY system during its one of its biggest losing streak the markets had been bad and there is None of us can do anything about it.. my own evaluation of my trading these two weeks is that it has been nothing less than Phenomenal not in terms of the results , but the way I handle the situation.. I didn't deviate from my rules and took every trade even though I thought profit expectation were low.. the thought just keep coming back that if I had not taken the last trade which was a HUGE winner...I would still be in a $60,000 drawdown.. and I was at the point of giving up right b4 the winner came... I had about 9 losses in a row then I had this 1 winner which covered all my looses and more( I am a little bit ahead) a 9:1 win/loss ratio.. I can be profitable even I wrong 8 out of times... and to ME...that's what trading ALL about!!
My trend following system is getting killed also: Monday -$900 Tues -$900 (as bad as -$1200) Wed +$400 (recovered from -$1100) Thurs -$1900 this whipsaw after the fed announcement just killed me, as I trade on longer term charts and it made new highs and new lows of the day within 10 minutes. Sick.
if only you could have done the opposite, somehow. does the system that produced those results have clear rules which could be reversed? or was it poor discretion that would be hard to define? do you usually make money and just recently you're not? or do you normally not do so well and lately it's just worse? i'm a big believer in figuring out what losing traders do. i say this because most losing traders would probably be happy to make money close to the rate they're currently losing it--aside from commissions, spreads, etc. here's something that always intrigues me: a lot of traders, including myself, seem to think that you need to know something other than you already know to make money. it's as if you need to know something complicated that you don't know already. but really, you managed to lose a good amount of money with what you already know. the key is to find out how to do the opposite. i know this isn't easy, by no means am i saying it is. i don't make money either. just something to think about..
Hi Vegasoul I too have felt a lot of pain in the last few weeks - this market is very strange indeed Hang in there - I get losing streaks all the time and expect it. When it happens, I take a few steps back, re-read some of my books, re-assess the situation and work out why I was wrong and re-buiild my confidence before getting back in the market. A great piece of advice from one of the books I have read: "If you decide to attempt to do what only one person in a thousand can do - trade or invest in markets successfully - set aside a specific amount of money that is significantly less than your total net worth. That way, when you inevitably lose it all at the end of stage one, you will have enough funds to live on while you investigate the reasons for your losses. When those reasons begin to sink in, you will finally be on your way to stage two........." It's a long and painfull process - good luck Bouds
Adapt to the current market conditions. Be patient and allow the market to come to you. If you are in a losing streak its time to reduce position size considerably. When you get back to a more balanced win percentage increase size again a little at a time.
In today's volatile market, trading is like doing brain surgery on an epileptic patient without anesthesia. The advantage traders have is that they can be selective on which stocks to trade, whereas surgeons have to take ALL patients (with insurance, at least).
hey gordon, Now you're talking. I knew you had a good head. Now you're getting it straightened out. When you're thinking right, you are winning.
Alas, I too have felt the pain of loss... Like losing time while reading some of the bleak (dare I say pathetic?) comments on this thread Cheer up everybody, life is good, trading keeps us young