I think that posting this thread and telling what are my problem, how I see them and hopefully what other experienced and successful guys have to say can be very helpful to attain consistency and final success in my trading career. I started trading in the end of January with new Title trading branch. Unfortunately as this branch is a brand new we have no experienced traders whatsoever and everyone is on their own. Admittedly floor manager is doing his best to teach what is in Title Level I Theory book, he is as new as we are and there is no systematic approach to training. Ok, I have been trading and learning on my own by reading and practicing. Actually , I was able to graduate to more than 100 shares last week. But so far I decided to stay with 100 shares in the light of the last 2 days. I have not lost much in all this time. About $280. Actually 10 out 11 days before the last 2 days were winning ones with average 5-7 ticks daily. Here was the problem as I was trying to have 10 and more net ticks daily. However i noticed, the moment I start pushing myself, I start losing and this is what happened in last 2 days. Before the day before yesterday i almost traded back this month loss but dropped into it again after 2 losing days. Lost $50 Thursday-Friday. As I see it my problem is mostly of psychological nature. When I was winning I was so careful, I was letting trades go and was measuring 100 times and cutting once. Also, Once I achieved 5-7 ticks positive, I became scared to take other opportunities that existed and I saw them to avoid losing my measly 5-7 tick profit. Then on Thursday, I decided f*ck it and started pushing, with bad results. I have been bouncing between being too careful and being reckless. I also decided to trade 1 or may be 2-3 equities and no more. I concentrate on financial sector stocks. MS, FAZ and WFC. Last 2 weeks I practically traded only MS. Yesterday should have been a good day but I ruined it by being reckless. Here examples of my trades: I took a couple of long trades and lost but with small losses . was -8 ticks. Then I waited for price to hit support at 29.50 MS and entered aggressively long at 29.52 when print went green with mental stop loss at 29.49. I took profit at 29.65 with limit order. Then , I got too exited, and when price set in the range of 29.79-29.81 with probably big orders at 29.81-29.82 showing great resistance and price broke down 29.79, I entered aggressively but got filled at 29.76. Hence my stop loss became really big and I got stuck. I was thinking that price will break down further and ignored the fact that price consolidated above MA20. Although price action gave me few opportunities to get out at break even or even 1-2 ticks profit, I stayed until the price moved from the bottom to 29.82 and I was trying to close trade at 29.83 but got filled at 29.86 losing 10 ticks. Ok, I saw it as opportunity to go long and bought at 29.86 but got scared by reaction and sold at another 5 ticks loss while price quickly moved up giving some profit. I stopped trading at this point. The day that should have been a good winning one turned a losing one due to my recklessness and lack of patience. I understand that what I should have done is to place limit oder in first case at 29.80. Before that resistance level and wait. In most cases prices at least does test broken level , hence I would have reduced my risk and I would make 4-5 ticks on the trade. I could have entered aggressively as well but again at same level. Same should have been done on long side. Waiting for price to move down to 29.82 level which was broken and which the price did and then enter. I am looking for advice from experienced successful traders. What people think? I am also planning to write down the plan for my next week trading setting guard lines and what set ups I am going to trade ignoring the rest. Thank everyone on advance.
most of your trading examples say "i thought",wait and let the stock set up, when it does , put on a position and wait for it to move in your direction, 5 or 7 cents is an awful tight stop,i would rethink that
Thank you Ammo. However, you need to understand that I trade for Title prop office and it is the company that sets risk limits for us. I have to follow and I actually get absolutely paranoid when seeing even 4-5 ticks in red. Obviously once I am at much higher level I will be able to have bigger stop losses but for now I gotta keep it really tight. Plus , I noticed that it actually can be done with small stops. Our daily limit for 100 shares is $20 loss. and with 200-300 shares it is $30 loss. If I decide to trade 200 shares for example which I can do, my daily limit is $30.
I also started thinking of letting price come to me on retest of broken level. I can set limit order there or even enter at market price but still at that level. I am talking break out trades here.
There is no sense of entitlement. But i hope I might get some good advice along the way. When I become good, I will not hesitate to give some advice to serious dedicated guy to succeed.
Very good chart. I should have checked it on daily. After the fact. There was a double top at 30.68 twice.
Monday was ok. But obviously could be better as I went long MS at 29.20. closed very early. I wonder how price action and tape camn give me a clue to stay in trade longer. so far my biggest winners were up to 15 ticks.
shiko, what you're suffering from is a lack of experience. Happened to me when I was first starting out. As you gain more experience, your "i should have done this or I should have held for longer" thoughts will slowly go away. Certainly a mentor can help speed up the process, but understand you are doing nothing wrong. Stick with those 100 shares and just put in the time until you get a good grasp on the markets. It doesn't come overnight. Its a slow process. good luck !
Thank you wiesman02, Yes, the lack of experince is obvious. I can trade already more than 100 shares but ia m holding back. Want to make sure things work. Yet another good day. Finally made $10 today. I trade only financial stocks. MS, FAZ, WFC and think of C and BAC. MS is the one I trade 90% of the time. Today the day was choppy so, I was going long and short , but most of the time was just shitting bricks and cancelling orders most of which would be good tardes actually. Fear rules over me at this point,. Lost 1 trade when my mental stop was hit. -$4 at 29.46 but trade was a good one actually, then going with tape went long 29.47, traded loss back.. . Went long FAz at 13.97, then shorted it from 14.03 all for few ticks. In hindsight should have made more today.