If you feel discouraged about losing, be prepared, because a trader will experience EVERY possible way to lose money before he can be successful. Revenge trading, letting loser run, bottom fishing, averaging down, software problems, hardware problems, broker problems, exchange problems, and sometimes just plain stupid errors (one time I lost a bunch because I loaded up on some calls while I though I was getting puts ) Personally, I can feel the negative mental energy that comes with losing just dies off little by little. Every trader is different, and it takes me a long time to get where I am today (still having tough time occasionally dealing with string of losing trades). I guess the only way is to experience losing very often, like Douglas said in his 'Disciplined Trader' and 'Trading in the Zone'.
Loosing sux. Today was my day this month. I blew $9500. I bought too soon, so my basis sucked. I'm gonna get my money back from usi tomorrow. The point is that you need to maintain your composure while trading. When I exited that position, I was down 12k. By taking it easy, and choosing my trades, I was able to make back 2500 of it afterhours. Had I done one of the rookie things, like revenge trading, or panic trading, or forced trading, I would have had a mere three mile island turn into a veritable chernobyl.
P2, I read from your postings that you do a few k shares per position... how long does it take you to build up the share size? I have been intraday NAZ for 1 year now and have never exceeded 1500 shares combined for all positions (big caps, $50-100 per share). of course since I go for 1-3 points with 1/4 to 1/2 risk, the risk profile is a bit higher than scalping, which I believe is what you do. Thanks for sharing experience.
I can honestly say I know all about losing today. When I first started, not too long ago, I was consistantly profitable (for a short while of course) but when I took that first loss, (then my second, third, fourth and fifth all in a row) it killed my self esteem for about a month. During that month I barely traded and I probably did myself a favor because my state of mind wouldn't have been condusive to trading well. Anyway, today I took a very stupid loss when I could have been out with a profit, all because I was hoping for a few more cents and rationalizing on the way down rather than responding to what was happening in front of me and just getting out with a little less. It hurts but it really doesn't bother me like it would have a month ago - maybe because I accept responsibility for my mistake and know that I have the power to prevent things like this from happening again. Easier said than done, I know. Also, I noticed that the less I think about monetary value while trading, the better I do. Does that make sense to anyone? Good luck, Nov.
Absolutely agree with that! It took me a long time to think of a trade as just points and not "my house payment" or some other concrete. I can still have difficulty depending on the size I put on.
Dozu, I trade mainly nyse, that position was in the 40k's. I don't remember exactly. I sent it in in 3-8k market orders every 5 or so minutes. The stock was pretty liquid, and I was just taking off the offer. I don't trade nas, cause I don't get the size I want/need. IT took like, 20 mins to build, and about 30 secs to bail on all to a bid that I was leaning on.
This is a fantastic thread. I've learned more in this thread than I have in the last 2 books I read. Thanks to everyone for the insights and good advice.