You need to develop a trading system. It looks like you do not have a concrete trading system that clearly specifies what to do in all of the possible scenarios that can happen during trading so when something unexpected happens during your trading, you get caught totally off-guard and just trade however your emotion dictates. We have all been there and done that. The results are disheartening but we all eventually learn from that and move on and you will too. What I would suggest you do is go back and review your trading performance (hope you kept a trading journal or remembered what you did or did not do during your trading)regardless of whether you made a profit or loss and see what worked and what didn't work and develop a trading plan/system based on that. Take that plan/system and backtest it and fine-tune it to ensure that it will work in all possible market scenarios. And then forward test it in demo trading to further ensure that it will be consistently profitable. And then finally take it to live trading and trade in small positions to work out its kinks and then finally trade in the desired trading sizes. You are going to be spending a very long time in demo trading and no trading profit coming in but you won't be losing any money either and preserving capital for future trading. Once you developed a solid trading plan/system, discipline will become second nature to you because you will have the confidence that it's a proven working system and all you have to do is follow it.
i too got trapped the same way doubled my money in 1month with the first share i bought made 95% return on my account in 2 months and then lost 90 % of it all in the next 3 months. now after day trading for 14 years and losing consistently, after seeing so many charts i am now able to scalp....... to know when to buy and sell........ maybe because i shifted to bitcoin from forex and bitcoin is more volatile than forex i am making some money. enjoying it now. btc is also legal in India till now so that is an added advantage i can trade and withdraw profits. not many can say this: i have 14 years experience of losing in day trading. but i stuck to it.
90 % of them can if they stay at it long enough. me it took me 14 years but i am impatient, arrogant , and greedy like hell...a good cocktail to blow yourself up in the markets
based on that it is true...but everyone quits......it is impossible to sustain continuous losses for the majority of common folk iam lucky
First, backtest your strategy. Second, come up with rules of engagement. These are "IF, THEN" scenarios. Third, the most important element of trading is risk management. Simply, how much of your capital are you willing to risk in order to make x%?
It's achievable. You can beat over trading and not taking your stops. I solved the stop issue a long time ago by setting hard stops and breathing when I get anxious. The over trading issue was more difficult (even in simulated trading). What worked for me was a simple trend/momo system and no longer attempting to switch from trend to mean reversion. I went live a few weeks ago and haven't had an issue. Simplifying my entry and exit criteria has worked wonders.
Paper trading can’t help the psychological problems you are facing. It’s not that your technique is wrong or you have insufficient knowledge but it’s about your emotions which you clearly aren’t able to control. Don’t take big positions and try to keep only one position open at a time and give it all your attention. You'd better be in control of your actions.
Over trading is caused when you don’t adhere to the limits of your trading strategy. To avoid this issue, you must have a comprehensive trading plan in place and you should stick to it no matter what. Working on risk management may also check the urge to over trade.