I am a fairly new futures daytrader. I am almost out of capital. The problem is probably not new, but, I am hoping that at least one reply to this may click in my neurons: I take profits quickly and therefore my losers are bigger than the winners. I play reversal patterns and flags intraday on 5m charts. In review, the patterns/entries that I have picked went in my favor for several points. I JUST CAN'T LET THEM RUN. It's tough because I am playing one lot. It's hard to let 1 lot run. Ya don't want a profit to turn into a loser. I suppose if I had 2 lots I could take that initial thrust and then feel secure to let the other lot run. Anyone been here, done that, and gotten over it ?
ALL traders have been there, done that at one time or another. The fix for me was to just trade size that was small enough that the money truley didn't matter. Since you are undercapitalized and a one lot is already too big for you to handle emotionally, I'd say your best option would be to trade spy or qqq with odd lots. This lets you focus soley on execution and following your plan. When you can trade your plan with consistency and discipline, then up the size incrementaly. If you start thinking about the money again, cut back and work your way back up. Trading 10 shares of SPY is like a game where money doesn't matter, yet you can still track real time results with real fills. If you still can't follow your plan, then you are probably not cut out to be a trader and should quit while you are ahead.
Good advice Lescor, When I feel like "Gambling",,,,I'll put on a 1 lot. It either goes my way .....or......it don't . No big deal.......just havin' fun.
Without knowing what the size of your trading account is I would say that the reason for your experiences is one of the following : 1. the small size of your bank is influencing your decision making process unduly (in which case it would be imperative to get some more money together before you trade again) or 2. you are making foolish decisions because you haven't gathered sufficient statistics for your trading method to have confidence in what is likely to happen You DO have a methodology (a system) don't you ? freealways
" 2. you are making foolish decisions because you haven't gathered sufficient statistics for your trading method to have confidence in what is likely to happen You DO have a methodology (a system) don't you ? " freealways Yes, I have a methodology. I use 5m reversal an flag patterns. They work. As mentioned, in review of past trades, the patterns did run in my favor several points. The purpose of my post (being under the psychology thread) is regarding just that, the psychology of lettin' em run. That seems to be my challenge.
If you use 5 minute data have you bothered to see whether the selections are trending in the same direction on the daily and weekly charts ? You are talking about some points in your favour. Over how long a time period did you test and how many trades did you come up with over that period ? And what is the average winning trade worth to you and how much is the average loss ? What about giving us your rules for entree and exit ? There may be people around who may have some good advice for you. freealways
Freealways. Thank you for your eager assistance. Please understand, the patterns I choose work. I'll repeat: in reviewing my past trades, they have all gone on to be successful. I just get out early and do not let them run. I am posting this for PSYCHOLOGY type replies not TRADING METHODOLGY type replies. Perhaps you and I should take up the conversation that you are leading in another thread. I'd love to talk methodology with ya but this thread is based on PSYCHOLOGY. Thanks again.
Are you trading ES/NQ? Maybe trade SPY and QQQ in 100 shares (or less) til you feel comfortable letting your winners run. Also, you can make your trading environment more conducive to letting winners run. For example, as soon as you enter a trade, put in your stop and target and turn your monitor off until you hear the "ding" for a fill (notifying you that your stop or target was hit). This way you won't know what the hell is going on so you won't be able to limit your winners.
Excellent advice here on this thread...I had to do exactly what Sprst was mentioning...a few years back I simply started entering my setups and then setting some alarms and walking away. The bell tolled eventually and I was either at my profit point or had been stopped, and since I was trading small size, either way was fine for me. As a month or 2 went by and I was able to really SEE in my head that my setups were working out ok, I was able to get my psychological edge...the ability to work the trade properly even with more size on. If being stopped out at your StopLoss is going to Hurt, and scar you psychologically, either your stop is too large or your account is too small.
One thing that I didn't see mentioned here are stops. I believe it is crucial to decide on a stop that suits your strategy and adhere to it like glue. My strategy on ES wouldn't work without the stops.