The Learning Curve

If you're not doing well then stepping back to analyze can be a positive step IMO. I started doing a daily journal of my trades 5 or 6 years ago when I was struggling a bit. And regarding your reference to papertrading ... you're 100% right. There's just not the same internal feeling when you're in a real trade and know money is being made (or lost) tick by tick. With the papertrades one can easily say "whew, glad that wasn't real money" or alternatively see a winner run and then they think "this is a piece of cake".

 

There is no learning curve just persistence, discipline , discipline hard work and study and discipline and passion.

Gekko is right quoting Bruce Lee . Got to believe in it and you'll make it . Sooner or later , but eventually .......

 

Thanks Harry, you've done well showing the second dimension to what I posted earlier.

I think athletics run many parallels to trading. The fine line between the absolute disdain for failure and realizing one must accept small failures at face value so as to learn from them, to be willing to change and try something different, etc., etc.

 

Great error: if a formula 1 champion was reasoning like you, he would go to championship without training. If you lack commitment you won't be able to papertrade. Doing papertrade is like an actor in a film: you can simulate well or badly. If badly of course don't expect too much from papertrade. But papertrade especially in futures trading cost much much less than real trading. According to futures truth, the average loss in futures for beginner is 50000$ before someone understands how not to lose (that is to say he doesn't still know how to win but it is a good path to winning ). Of course it is an average and because of leverage and chance it can vary enormously from person to person. Some guy completely novice in trading I met one day as a client lost 1 million after winning everyday for six months and he then prefered to stop, myself have made losses - although in special circumstances with many floor trader professionals when the future market closed the open cry and went all electronic.

 

I don't know if it applies to anyone else, but I learned the most when I took a break from trading. At times when I feel stagnant, i'll take a week or two off. No markets, no charts, sometimes I won't even turn my computer on.

When I decide to come back to trading my ideas are fresh and I've allowed myself to learn from the past trading experiences good and bad.

My learning curve accelerated after a much needed break.

 

Took two years to be profitable enough to support myself. Took about another 10 until I believed I could make a profit every day. I don't actually, but I'm close enough to that where I have lots of confidence.

Went broke twice. Quit three times, but always briefly. then right back in.

I find the greatest problem traders have is letting those profits run. Too tempting to lock em in. Overtrading would be a close second.

Its all just a #'s game. Gotta let em run (unless scalping with a high % system).

Jay

 

You guys talk about trading like it's an Eastern philosophy akin to finding your chi or something.

Correct me if I'm wrong, but doesn't profitable trading ultimately boil down to 1) either you do/don't have a positive expectancy strategy and 2) either you do/don't follow that strategy.

If someone isn't making money, isn't it 1 or 2? Where does all of this introspective philosophy come in the picture???

 

Macal,

I am in similar situation as you. I traded 3 months now and I have a net loss of $27 after commission.I never blow a stop loss, which helped a lot. I am with MB trading, where commission is higher than IB. I am not considering of switching to IB since lower commission is not the path to successful trading.

I would highly recommend you to find a job. I have a day job, which helps me to remain in a good mental state. If I am frustrated or in a losing streak I can afford to stop for a week to cool down and reflect.

I cannot imagine relying on trading as only source of income. It will have too much pressure on you and make you lose.

Frank

 

Its all about psychology and conquering greed/fear. You could have the best system in the world and still lose money if you give in to your emotions.