Wait. Trading is hard?

Discussion in 'Trading' started by michael21, Mar 27, 2012.

  1. cornix

    cornix

    A set of rules one develops for him/herself before the actual trading begins. Correct trading should always be pre-defined in a form of "if, then" algorithm consisting of rules for all possible outcomes, I strongly believe in it.
     
    #11     Mar 27, 2012
  2. ocean5

    ocean5

    What do you mean by 'possible outcomes'?
     
    #12     Mar 27, 2012
  3. cornix

    cornix

    It depends on one's trading strategy and tactics. Every trading signal morphs into consequent market action and one have to be ready for anything, literally speaking. A rule for every of possible outcomes listed in his/her rule book. :)
     
    #13     Mar 27, 2012
  4. tobbe

    tobbe

    What do you mean by...

    Nah.

    lol

    :cool:
     
    #14     Mar 27, 2012
  5. Well the position sizing issue clearly shows your problem. It's very difficult to make money daytrading stocks because the volatility is not as great. I don't know what you're trading but if you've ever wondered why stock trading competitions aren't apples to apples comparisons with futures trading competitions, that's the essence of why.

    Do some backtesting, buy some data, and find something that'll win 75% of the time with 1:1 win loss ratios.
     
    #15     Mar 27, 2012
  6. the1

    the1

    Most people believe that anyone who wants to can learn the art of trading. Nothing could be farther from the truth because it requires the ability to see the market in a way that only a small percentage of the population can see it. Not everyone can score a 780 on the LSAT and get in Harvard Law School. The same is true with trading. Not everyone has the ability to untuitively read the markets, which is the primary requirement to success.
     
    #16     Mar 27, 2012

  7. fire in the belly?

    hehe.......



    I like your name.

    Michael row your boat ashore Hallelujah.... :D

    Let's sing together.....
     
    #17     Mar 27, 2012
  8. Handle123

    Handle123

    Breakeven is just another period of your development, then next stage will be slowly making consistent smaller profits. As far as increasing size, I wouldn't, I would find ways to get in a little better which in turn reduces risk and also increases profit. Once your ave per trade start increasing, after six months or so of increasing monthly profits, then you can start increasing size.

    As far as other issues OP have discussed, fear, trading plan, greed, or even intuition, don't fall backwards. A friend of mine is the best plus 2 tic trader I have ever known, he been at this amount for a year, he has a gift of knowing when to get out faster than I will ever know, but fear of taking the trade where the brain says "NO" is stopping him from acheiving a great deal more.

    Backtesting is where it is at, if you can't backtest 100 shares profitably and somehow increase ave profits, more shares is not the answer.

    Good luck.
     
    #18     Mar 27, 2012
  9. ELR

    ELR

    The majority of the problems with following a plan is one´s emotional state. It is like a football game. You have a plan, the opposing team scores two quick touchdowns, you throw the plan out the window and start doing insane things to catch up. Same with trading. Easy to jump off the plan.
     
    #19     Mar 27, 2012
  10. cornix

    cornix

    Have a book with answers on any questions. :D
     
    #20     Mar 28, 2012