HI, I SPENT THE GREATER PART OF 2004 STUDYING TECH ANALYSIS AND DAYTRADING . IN MARCH I STARTED DAY TRADING LIVE, I TRADE 1000 SHARE BLOCKS , I TRADED EVERY DAY FOR ABOUT A MONTH AND DID VERY WELL . I HAVE A SEASONAL BUSSINESS AND COULDNT DEDICATE FULL TIME TO TRADING SO I STOPPED AND CONCENTATED ON MY BUSS. IN AUGUST I WENT TOO THE ON LINE TRADING ACADEMY FOR A WEEK TO REITTERATE WHAT I HAD LEARNED . NOVEMBER 1ST I WENT BACK TO DAY TRADING FULL TIME AND HAVE NOT BEEN ABLE TO GET ON THE RIGHT SIDE OF THE MARKET SINCE . I HAVE WHAT I BELIEVE IS DECENT KNOWLEDGE IN CANDLESTICK PATTERNS / WHEN I TRADE I SCREEN FOR INCREASED VOLUME AND TRY TO TRADE STOCKS THAT ARE MOVING FOR 1 REASON OR ANOTHER WHICH WORKED WELL IN THE PAST .I HAVE EXPEREMENTED WITH A LOT OF DIFFERNT STUDIES AND FEEL THAT CANDLESTICK PATTERNS AND PRICE MOVEMENT WORK BEST FOR ME , I USE MOVING AVERAGES AND SCHOCASTICS AS A SECONDARY STUDY . I WILL NOW TRY TO EXPLAIN WHAT I THINK MY PROBLEM IS AND WOULD LIKE SOME FEEDBACK I COME IN IN THE MORNING AND FIND WHAT I THINK IS A GOOD SET UP (POSS MOVER ) NORMALLY WAITING TILL AROUND 10;00 AM TO GET IN , I USE A MENTAL STOP AT 1ST BECAUSE I FELL IF MY STOP IS OUT THERE MARKET MAKERS SEE IT AND COME AFTER ME , ONCE I HAVE A 12 TO 15 CENT PROFIT I SET A MECH STOP AND MOVE THE STOP UP AS I TAKE THE RIDE . I USIALLY END UP MAKING MONEY , $100, $200 $500 $ 800 ECT. , ALOT OF THE TIME WITHIN MINUTES / ALL THESE NUMBERS SHOULD MAKE ME HAPPY FOR THE DAY BUT BECAUSE ITS SO EARLY IN THE TRADING DAY I WANT TO KEEP GOING / AT THIS POINT I FEEL LIKE IM TRADING WITH THERE MONEY AND I THINK I END UP WITH BIGGER NOOGIES AND NOT REALLY LOOKING FOR THE CORRECT ENTRY POINT , BY THE TIME THE MORNING IS OVER IM DOWN $200 , $500 , $100, $1800 , EVERY NIGHT I TRY TO GET MY HEAD RIGHT AND TELL MYSELF TO GO IN THE NEXT DAY ,LOOK FOR MY SETUP ,TRADE IT ,MAKE MY PROFIT , AND BE DONE , EVERY MORNING I COME IN FIND MY SET UP , TRADE IT, AND THEN CONTINUE TRADING AND GIVE IT BACK AND THEN SOME . CAN I PLEASE GET SOME FEEDBACK ON HOW TO TRY TO GET MYSELF SOME DISAPLINE IN DAY TRADING / GO AHEAD YELL AT ME TELL ME THAT 3 OR 4 HUNDRED DOLLARS ON 1000 SHARE BLOCKS SHOULD BE A SATISFACTORY PROFIT FOR A DAY , I THINK MY MIND IS SAYING SUBCONCIOUSLY THAT I M LOOKING FOR A 1000 A DAY BECAUSE I WAS DOING THAT WITHOUT MUCH EFFORT IN THE SPRING , I THINK IM FOCUSED IN THE EARLY DRAYING DAY AND GET SOPPY AS SOON AS I GET UP ON THE MARKET
Here is my message in an easier to read format. I hope that helps. Any insight would be greatly appreciated. Hi, I spent the greater part of 2004 studying tech analysis and daytrading. In March I started day trading live. I trade 1000 share blocks. I traded everyday for about a month and did very well. I have a seasonal business and couldn't dedicate full time to trading so I stopped and concentrated on my business. In August I went to the online trading academy for a week to reiterate what I had learned. November 1st I went back to day trading full time and have not been able to get on the right side of the market since. I have what I believe is a decent knowledge in candlestick patterns. When I trade I screen for increased volume and try to trade stocks that are moving for one reason of another which worked well in the past. I have experimented with a lot of different studies and feel that candlestick patterns and price movement work best for me. I use moving averages and Stochastics as a secondary study. I will now try to explain what I think my problem is and would like some feedback. I come in during the morning and find what I think is a good setup (poss mover). Normally I wait until around 10:00 AM to get in. I use a mental stop at first because I feel if my stop is out there market makers see it and come after me. Once I have a 12 to 15 cent profit I set a mechanical stop and move the stop up as I take the ride. I usually end up making money ($100, $200, $500, $800 etc) and a lot of the time within minutes. All these numbers should make me happy for the day but because it's so early in the trading day I want to keep going. At this point I feel like I'm trading with their money and I think I end up with bigger noogies and not really looking for the correct entry point. By the time the morning is over I'm down $200, $500, $100, $1800 by the end of the day.At night i think about my mistakes and try to get my head right and tell myself to go in the next day, look for my setup, trade it, make my profit, and be done. Every morning I find my setup, trade it, and then contunue trading and give it back and then some. Can I plase get some feedback on how to try to get myself some discipline in day trading. Go ahead and yell at me and tell me that 3 or 4 hundred dollars on 100 shares should be a satisfactory profit for a day. I think my mind is saying subconsciously that I'm looking for a 1000 a day because I was doing that without much effort in the spring. I think I'm focusing in the early trading day and the get sloppy as soon as I get up on the market.
Interesting. Once you've made some money, you throw out the plan that made the money and start trading without a plan until you lose it all. There could be all kinds of psychological reasons: greed, fear, subconsciously NOT wanting to make money etc. I don't think it's a matter of whether $300 or $400 is enough for the day. If you have a system that you believe can make more, then why not? In the end, you know the answer. You have to make a plan and stick to it rigidly. Easy to say but can be very hard to do. I supsect all traders have been through this.
Sounds to me like whatever "plan" you have, has a slight edge in the 1st hour of trading but beyond that, you're toast. So...unless you plan on holding positions for the next day, don't trade after 10:30 or 11:00 am?
Shoot yourself in the head immediately. Give God a chance to get it right next time. Oh, and thanks for the tremendously interesting story. Steve
I tried that myself but I think God rebuilt me on a Friday afternoon after a big lunch so I was an even worse trader the second time around
Must have been your punishment for lack of trading preparation. What God did on a Friday afternoon, you'll never able to accomplish. Keep working on your trading though. Give it another 10 years or so and you may be ready to go.
I'm curious, what did you do for a living before starting to trade fulltime? You're probably trading a volatility breakout system, these do well in the first 30min to hr. Have you tried picking up golf?