Discussion in 'Psychology' started by Kovacs, May 27, 2009.
Think about that...using money you dont have to make trades. Thats how you blow out.
And just because you dont hold overnight doesnt mean a stock wont go the wrong way severly in the middle of a session.
And ask any trader who daytrades if he ever held a position overnight. Most will say they have at least once because of a "sure" trade. (which of course turns out to not be so sure the next day)
But you know...maybe its just me. When i stopped using margin, i stopped losing money. (i mean i did other things too, but I feel like that was one of the things that was killing me.)
I dont care if people think I'm credible. I think there are alot of people on this board with better advice than me, but i think there are a hell of a lot more with worse advice. And since probably 90% of them leave after the first year or so on this board, it usually means they lost all their money. I'm the type who like to play odds in my favor. Odds are that someone who signed up a few months ago doesnt know what they are doing yet. Yes, its not a fact that EVERYONE whos registration date is 3 months old is a newbie trader, but the odds are that they are. Its like going to vegas and playing craps. I can tell you "dont bet the 12, its a 36 for 1 shot and its a bad bet." and you might say to me...That doesnt mean it wont hit (which is basically the same thing you just said to me about my logic) Over enough rolls ( or on elite trader, enough noob accounts) my logic will win in the end.
Sorry if i didnt explain myself to such an "Educated" trader so he could understand what i meant more easily.
Once I developed a solid strategy the hardest thing was to find the right instrument to trade.
How to take a loser......seems easy.....
There was no "last" thing. I was lucky and happened to get hooked up with good professionals willing to teach me how to get it done. In hindsight, what I learned was a few technical skills, how to organize myself and how to maintain a disciplined approach under stress.
First, I learned how to evaluate the premarket and establish a game plan for the open.
Second, I learned the importance of establishing a favorable postion on the open. I learned how to do that consistently.
Third, I learned how to monitor, evaluate and react (part of managing emotions) while managing my positions.
Once I learned to do this consistently I went from a losing game to B/E, and then to profitable in about a month.
finding a system that is profitable.
For me, it was learning to take a small loser. By that, I don't mean tight stops. Rather when I was in a trade that kept on oscillating between flat and two ticks in the money and wouldn't take off, I would close the trade.
But if I was in a trade that oscillated between flat and two ticks OUT of the money, I wouldn't close. Instead, I would sit and hope that it would either take off or let me out with one tick profit.
Of course, that trade would eventually break out the wrong way and instead of two ticks I would lose 2-3 points.
In other words, I was willing to risk ten dolllars to save one.
I mastered bating.
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