New Scalper Nees Help!

Discussion in 'Trading' started by fishoilfan, Oct 7, 2007.

  1. Hi everybody! I am brand new to this board and have been actively trading for about a year now.

    I somehow doubled my money in the first 6 months (200k to 400k) and got REALLY over confident. I never really got cocky because I know life can turn in all departments when one gets arrogant...but definitely over confident.

    Initially I was playing the earnings game and betting the ranch on hunches that this or that stock would beat earnings. I was guessing right almost every time, but even a few of the initial winners quickly dropped before I could cash in! Then I bet a load on EBAY, NVDA, and GOOGLE last earnings, lost big, and decided I would stop playing the "Earnings Game".

    Then I started shorting stocks that had great earnings, but would gap up too much, waiting for a mini down trend, and making a quick buck or two. That works OK for me, but my damn etrade software crashed right at the wrong time and I lost HUGE after the short correction turned back into a huge, even higher rally...

    I also have had my ups and down trying to invest long term, but I don't think I have the patience for that crap. Especially when the market is is a bad mood. I would rather try to make money on the down days...

    But looking at my history, the only method I seem to have any kind of consistent success with is what I now have learned is called SCALPING. Over the last couple of months, I have a HUGE majority of winners vs losers...but I have noticed I have a major problem with this. My loosers are 4x or 5x the size of my winners. Even with my crummy ability to cut my losses, I am still ahead over the last few months.

    So my question to you is, what methods, ratios, any kind of advice do you have to limit my losses on scalping. Is it just a stupid stubbornness I need to overcome? I know it seems obvious, just close when it runs opposite, but is there any tried and tested rules for this kind of trading?

    Thanks a lot!