BTW, it looks like Caleb's Fooled by randomness was written exactly with examples from Options or some other derivatives. Options look to me like something where someone can make money for some time regularly but then lose everything in one trade. I remember one guy worked with me. He made $200 K one year and lost everything the next. I prefer to stay with original things like stocks.
What does "Generally, graduate progress and improvement will deal with this." mean? How do you propose to do this? What are you planning to do different? How will you know if it works? If you were watching me how could you tell if I was improving? You are having trouble pushing the trigger? My limited experience with firearms suggests you pull the trigger.
I mean gradual progress... as it is said below, it is hard to pull trigger when you have only 20 bullets. You can be out of ammo in no time. Company wants us to scalp, it is what I am doing. but need to make more on winning days to counter losing days. This is the direction I am working. The progress is that I have a lot more winning days now than losing and my winners often bigger or equal my losers.
It depends on the leverage. Unleveraged traders are generally unaffected, but 4:1 or higher traders are in danger of black swans. Black swans are rare, but that is the point. Things like 9/11, 10/19/87, Asian currency crisis, the 2008 meltdown, when they hit, can blowout traders. Black Monday, at the beginning of the Depression, bankrupted many. Capital preservation is #1. The may be rare, but when considering a career as a highly leveraged trader, getting blown out 4 times in 20 years is rare, but can push someone out of the profession every time. Bankruptcy is a real concern.
Well, there is a saying in Russian. The soldier is bad if he does not want to be a general.... I have had worse odds against me but happened to be in that 1-55, so, i think it is entirely possible. The most important, I do not see it as a get rich quick scheme but rather a long term business and I act accordingly. I already can trade 300 shares, but I am not in a hurry. i am making sure things work before trading bigger size and even then I will trade only 200 shares as daily limit will be only 30 ticks down.
Ok, today again good day. I am working on cutting and minimazing my losses as it was the reason of my lost day last week. Let losses get too big up to 9 ticks. Today should have been way more up but did not know that it is possible to cancel limit orders by clickking on cancel. I was entering mostly agressively but getting out passivley and when a coule of times my order was hanging but not getting filled I closed trades at market and then tried to cancel order with with mouse. But it was tooo slowly and i got twice filled against my bias. so closed 2 trades at loss. should have been more than 10 today if not these mistakes. Good that I know what to do now. I think that cutting losses short, being patient and disciplined is all we need to succeed. My winers all were at least equal to my losses or bigger. and I had more winners. I am looking to enter with as small risk as possible and if even few ticks more than I expect to lose I let trade pass or set limit order at lower risk price if situation permit. The moment price break my stop by 1 tick I am out.
Limit order can be closed by clicking on Escape on the upper left side of the key board. I used to close them by clicking wioth mouse on cancel in orders window. have lost a lot this way over few weeks.