surviving the first weeks

Discussion in 'Journals' started by pterodacytl, Jan 18, 2020.

  1. gaussian

    gaussian


    Well let's start off with some basics:

    1. Day trading with $2450 is a mistake. I have no idea why you'd do this but it's a mistake regardless. I wouldn't day trade casually with less than $15,000 on single contract futures. For a living I wouldn't day trade without an account value of at least $75,000 with at least two years worth of expenses in the bank.
    2. Paper trading is worthless. It builds a false sense of confidence. It's better to trade small and learn than feel like a champ after punching a heavy bag for months and then get knocked out in your first fight.
    3. You have no risk management. Here are the rules I use: Each trade is limited to 5% risk of the account. If I lose 10% of my account value I stop trading for a month and watch the markets to try to understand what I did wrong and what I need to do to improve. Only after I have an idea on how to correct my problem do I return to the market.
    4. Stop thinking about entries and exits. They don't matter. Pay attention to what the market is telling you. Missing a decent fill but capturing 80% of the market's movement is better than getting a good fill and watching your money evaporate.
    5. If you're trading on candles only a useful method is to pay attention to consolidation. Watch the market. It will tell you where it may want to go. If you see a big drop and a sudden consolidation you should ask "has the market decided the price range it's in now is the lowest it will go? What could go wrong to keep the market going down?" You need to see the current movements in the context of the larger picture.
    6. Stop trading on 5 minute, 15 minute, 30 minute. It's just noise. Sure you can scalp your daily nut from ES catching a good break on the 5 minute but why? I'd rather let my winners run and cut my losers early.

    I am not a day trader. I hold my trades for a long time. My average hold time for a single contract is over a week (sometimes I gamble in MES/MNQ/etc but not so much anymore), for a futures spread (my bread and butter) I hold them 3 weeks to 3 months, and for options I trade exclusively in LEAPS (on companies I want to own in my retirement portfolio) these days. Some people are successful daytrading. I pulled in 28% last year just sitting on my hands. I don't expect to be featured in Market Wizards, but at least I can say I'm not struggling to be profitable. I know many more big shot day traders who have blown innumerable amounts of accounts than swing/investors who've done the same. Day traders keep the brokers employed. They don't keep accounts growing (generally).
     
    #11     Jan 19, 2020
  2. traider

    traider


    Are leaps just long term options? How do i find them in interactive brokers?
     
    #12     Jan 19, 2020
  3. tomorton

    tomorton


    The hard work is in the planning (including strategy research, backtesting, simulating, refining tactics, rules for optimising gains etc. etc.). The real trading is easy and boring.
     
    #13     Jan 19, 2020
    dennis86 and pterodacytl like this.
  4. traider

    traider

    Are you fully automated?
     
    #14     Jan 19, 2020
  5. tomorton

    tomorton

    No. Not even an ambition, I don't day-trade.
     
    #15     Jan 19, 2020
  6. maxinger

    maxinger

    I think you are far to ambitious.

    surviving the first years, or even decade


    is more appropriate.


    Who told you you can easily pick up day trading skills ?
     
    #16     Jan 19, 2020
    pterodacytl and qlai like this.
  7. traider

    traider

    Lots of financial "Gurus" claim you can make $500 in 10 minutes
    Don't even need a day
     
    #17     Jan 19, 2020
    pterodacytl likes this.
  8. Handle123

    Handle123

    I think this person is some one else's alias and just up to start a bs thread. If this beginner was real, they would have certainly read importance of most of what you written by using search.

    Many threads be saved if people used "Search".
     
    #18     Jan 19, 2020
    Nobert likes this.
  9. Day One: January 8

    Gross: 7

    Net: (43.04)

    Whew! I lost out on commissions but at least I treaded water.

    Day Two: January 9

    Gross: (589.00)

    Net: (726.60)

    Oh my fucking god! What the fuck just happened?!!!

    Day Three: January 10

    Gross: 31.07

    Net: 29.08

    I feel good. At least I redeemed myself.

    Day Four: January 13

    Gross: 113.05

    Net: 97.25

    Yeah baby.

    Day Five: January 14

    Gross: (135.15)

    Net: (163.05)

    Oh shit.

    Day Six: January 15

    Gross: 20.14

    Net: 12.66

    Okay, not bad.

    Day Seven: January 16

    Gross: 50.31

    Net: 40.51

    Lookin’ good.

    Day Eight: January 17

    Gross: (358.80)

    Net: (412.92)

    Motherfucking Market!
     
    Last edited: Jan 19, 2020
    #19     Jan 19, 2020
  10. Turveyd

    Turveyd


    Watched some of those, they average blindly into a position using massive 100k money, to be fair there 0retty good at taking losses when it starts to look bad.

    Move to Micro futures asap! Back to demo un til demo profitable first mind.
     
    #20     Jan 19, 2020
    pterodacytl likes this.