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Showing content with the highest reputation on 06/09/20 in all areas

  1. 3 points
    An active mind needs to pass through all the stages including the ones we consider negative. I always like to refer to this painting when I talk about this subject. https://en.wikipedia.org/wiki/The_Sleep_of_Reason_Produces_Monsters The one that we must control is anger because produces an effect in others, normally a negative one. But the ones you have described are perfectly fine if you understand them as part of your personality. A person cannot be forever happy neither sad. We inflict guilty to ourselves when we don't reach happiness because of those never ending marketing campaigns that are forcing us to look for it. Trading magnifies the adrenaline rush of regular emotions so either the peak of the decline of what would be a normal state of mind gets magnified as well. A person can get addicted to adrenaline and create a behaviour to produce it, hence here we are on Sunday night looking at the clock counting hours to have a go again.
  2. 3 points
    With your 1:1.5 or 1:2 ratio you will make money over the long term (i.e. over a large enough number of trades), so you need to make sure you can withstand a run of 10 - 20 losses and still have money left to keep going. Also be aware that you will be sitting on the side lines during large trending moves, because you got out at 1.5 times your risk, so you will have the excruciating pain of sitting watching the market continuing to go in your favour for days on end after you took your profits. Even worse, there will be days upon days upon days when you are sitting watching a sideways market, and it will test your patience to the absolute limit trying not to put on a trade. No wonder a lot of people say 'f8ck this' and just put their money in an S&P 500 tracker
  3. 1 point
    I find it now extremely important to be aware of your emotional state the moment you want to put on a trade. for example all types of feelings dmedin mentioned caused me to lose money (anger as well, of course). general lack of fulfillment makes you constantly try to achieve significant short-term profits, sadness increases your risk tolerance, because a corresponding larger gain seems more urgently needed, loneliness makes me wanna be able to travel more, buy people drinks... etc. maybe one should only trade when one's happy.. or at least not in states that likely come with increased risk tolerance I understand you guys are working with more clearly defined strategies, that likely mitigates the issue drastically, though
  4. 1 point
    Trade mechanically. Read 'Trading in the zone' by Mark Douglas and try some of the strategies used here www.tradingrush.net
  5. 1 point
    I disagree with people who base their decisions on 'fundamentals' and 'news'. Look at the chart. Is it in a downtrend? Sell the rally. Is it in an uptrend? Buy the dip. Don't listen to any of these c&nts who get paid by the word. And remember, by the time 'news' filters its way down to you, all the 'smart money' has already 'been there and done that'.
  6. 1 point
    It certainly seems like certain 'kinds' of people are more drawn to trading than others. Most of these kind seem to have issues with sadness, loneliness, lack of fulfilment, insecurity etc. I certainly do. Dunno what I'd do if I had $400,000 though. At some point I'd like to think I'd go abroad and spend money and have some fun (when Covid is over), but I suppose it's entirely possible that trading becomes your life and you are never happy even when you'd had some success.
  7. 1 point
    So you are following the advice to put stops just above resistance and just below support, and not at 'obvious' round numbers etc? In a strong uptrend, put a stop beneath a very bullish candle and vice versa.
  8. 1 point
    I started losing massively as well and what improved my situation was the ability to follow a system. If you don't have one that is clearly a flaw to fix. We discussed in this post our loses : https://community.ig.com/forums/topic/12368-whats-your-record-for-the-most-losing-trades-in-a-row if you want to laugh, we all have been there. What went wrong for me, I: ... didn't have a plan to exit before I entered, no risk management at all. ... executed my trades manually. ... revenge-traded chasing loses. ... used indicators. What went right for me, I: ... removed completely all indicators, I entered randomly. There is no way I can justify why I entered in a trade using indicators so I removed them, I also didn't look at charts at all. ... had a clear exit point that I never changed and executed with stoicism, specially when taking loses. This came out of a risk management plan. ... automated every single trade and set my trailing limits and stops loses in a separate database. This can be done with orders trough the web interface, it was just my preference to do it. ... never read the news, specially the ones specialized about stock markets.
  9. 1 point
    Nasdaq monthly 10 year trend channel Aggresive call buyers made it go "thru the roof" Will the parabolic move continue or is it back in the channel again? I would say back in the channel, but with all the stimulus and manipulation going on who knows? As long as the upper trendline holds (support) i suppose buy the dip continue?
  10. 1 point
    "Another aspect is because of your qualifications and work (I used to be a Financial Adviser) you'll think you know what the markets going to do and you'll be fighting that subconsciously with proving yourself right" Exactly! It's almost like education becoming counterproductive, just raising the pressure.. "One method for keeping yourself in check is to withdraw 50-70% of winnings shove them in another non-trading/Investment account and leave them, so you're growing an account slowly" Yes, I'll believe that will also be part of the solution to keep in the back of my mind for now Also the remainder of your response hits the nail on the head, I think. Thank you very much for your kind and encouraging feedback - wishing you all the best for your future too!
  11. 1 point
    It's great, introduced me to how you can backtest without having to program. Maybe we should all learn to program? People who can't program have no place in tomorrow's economy 😢
  12. 1 point
    I thought i summarize my experience so far day trading in case any newer folks are interested Day trading is much harder than swing trading and especially at those lower time frames. From 100+ day trades so far I am certainly no expert and I like being honest, I am on average losing but I learnt a lot. My thoughts so far are: 1. Forget 95% of youtube, it's full of turds just trying to market courses, **** out their channel. Same with forums, no matter what topic it is (fitness, languages), a lot of people lie their asses off and pretend they are experts but in fact know jackshit about it. Even the supposedly guru's are full of sh@t. For example the guy who wrote that best seller "Trading for a living", Dr Elder. He came up with his own "impulse system" and brags about it. It just MACD and Moving average, nothing more . Aslo on their own private forum (which I was on for $60 a month) the group consistently underperform the S&P and even their best Gold start traders barely out perform it. Everytime you asked a question you got told, "buy this extra course for $100's Its the same with Anton Kreil, $15k for a course? I have no idea if he is good or not but its seems to me that it's the easiest thing in the world to prove your validity. Publish your trading accounts, get them audited by an auditor, show tax statements, do live streaming etc If I was building a business as a trainer that's what I would do. 2. Having said that there is a lot of useful information that if you look at it objectively it can be great advice. Keep a word document and write down your own points. Ignore every cherry picked chart they show you (apart from the educational content), use your own, scroll back a 500/1000 bars and then start looking at the extreme right hand bar, moving forwards bar by bar and ask yourself "ok what will I do here", you will soon find out that even if you got the direction right, spreads, commissions, trend reversed too quickly, stops etc killed it . It will paint a very different picture than what youtube baseball-wearing-cap-on-backwards hipster is telling you. 3. Day trading is a job, not a hobby and a difficult one, you need to put in the hours, research, do your homework, keep a trade journal take notes and analyze what you have done etc 4. You are essentially trying to make cash like flipping a coin over the long run with one side weighted in your favour. 5. Forget working on hunches or "I think the stock price will go up / down" You are doomed to failure. A proper system is the only way 6. Risk Management is the most important concept by far in my view. The generally advice is never risk more that 1 - 2% on a trade. I personally think that is too much . I would keep it at 0.5% max until you work what you are doing. 8 losing trades in a row at 1-2% and it starts to hurt and self doubt really creeps in. 7. Demo always seems like a good idea but in reality it never worked for me. I put on trades forget about them, have no psychological connection to wins / losses. You need to use real money, even if it's just the bare minimum to see those losing ££ . I have put on 4 trades over last few days.All 4 were up 2 x Risk but because I am a total **** I didn't cash out and all hit stops resulting in 4 losses. It was only £80 between all 4 but the fact I got greedy (yet again!) annoys me 8. If your profitable with a year you're lucky. My aim is to just break even by christmas to see if I can sustain a modest living in this. I have income from other sources anyway. 9. The reality is that its a heck of a difficult job to make money day trading., Brokers like IG, and all the others make money by continual flow of clients coming in losing cash and eventually leave, hence the large marketing. I don't blame them, it's a business model, not a hippy self help group, but just be realistic. 10. Most news, ideas is **** and pointless. I worked in investment banking on the trading floor for 15+ years. Every Monday we had to come up with a trade idea for clients , Derivatives / inflation, bonds, 90% of them were sh@t, I know I wrote them, we just had to do something. It's the same with market news, broker webinars etc, trading channels / ideas etc, the staff are tasked to do something. More noise, more videos, more website hits, more trades = more commissions / sales. 11. Don't jump around from stock to stock, to FX, to crypto. I believe if you are not making money in two or three the problem is you, not the asset. They all have their own personalities, e.g. Coca cola barely moves, Tech stocks jittery as hell, respond to news, others hardly at all, so you need to spend sufficient time on see what influences what. 12. as above, don’t jump around with different trading strategies, 200 different indicators etc. You need to limit all the moving parts and focus 13. Best way I found to improve, (so far) , For every trade, I immediately write down why I entered the trade (note 5) , for example Long MA Strategy (a) Rising 200MA (b) Rising 20MA , (c) 20MA crosses over 200MA (d) price near 20MA seems like a winner on paper but I still kept getting stopped out. Then afterwards write down what happened, e.g. after the trade exit I put screen shots of 3 time frames (daily hourly / 15min) into a PowerPoint and detailed where I went wrong. Several things became clear such as - 2min charts was pointless, you would never make the spread back - The risk / reward (1:2) was to high, a 1:1.2 would have paid off > 50% of the time . - I was fannying around with stops, for no reason. etc - I'm putting on trades because I'm retarded, e.g. long trade, on a bearish trend in larger time frame The point being, you start to learn about your technique and they way you trade which no book can possibly know. Heck it's boring but I am starting to see patterns about the way I trade (= c@ck up). The best traders I saw in banks were the OCD ones. The wannabe Burberry wearing chavs all got pushed out or sent to Starbucks to pick up the coffee The million dollar question: can you make money? At this stage, I am still undecided. I think there is light at the end of the tunnel but its going to require work, a plan and mental commitment for sure. Anyway, long post but hope it's useful for some folks (apologies for the obscenities!)
  13. 1 point
    More than -17K in three days. It took me 2 years to recover it
  14. 0 points
    To make it short - I probably should have never started trading. Over the last 12 years I have accumulated total net losses that exceed my annual salary by a multiple. And I could have actually used that money quite well. To help my partner, my family, to feel more confident, more independent, to have more flexibility to enjoy life. I lived a relatively modest life, always focused on building wealth in the long term to be some day independent - free. And if it was not for my trading losses, I could have probably achieved that by now. But instead I not only lost massively, I also wasted an excessive amount of time trying to trade successfully. The fascination for markets I've had since childhood made me miss out on life. I made every mistake you can think of. And I made I made every mistake again, and again, and again, and again. Since I Iost my first 10 K when Lehman defaulted, I was never up. My losses grew to 40K, then 70K, then shrank to 40 K, and over the last two years rose to around 400K. In my best six months period I made 30K. So even if I would have only such periods from now on, it would take me almost seven years to break even. No need to mention that this affected my life in all areas. Depression, chain smoking, neglecting physical fitness, it all impacts on-the-job performance as well. Social contacts - don't get me started. What would have saved me, seems obvious: for one, setting strict loss limits, and adhering to them no matter what. Second, mentally preparing for losses. Having a clear plan what to do when you lose, like taking a break, waiting till you can be sure your head has cooled, and you're acting on the RIGHT emotions (intuition), not on the urge to mitigate your suffering. So why didn't I? More on that further below. With my track record, I guess 99.999% of you would tell me to stop and never start again. And I've tried that. And succeeded for periods exceeding a year at times. I also succeeded trading only small amounts for months. As well as following low risk strategies for a year or so. But positions suddenly moving against me, increasing market volatility, or also trades working out surprisingly well, all trigger "my other self" to take over - and suddenly I'm aggressively hunting for all the money I've lost - at times being extremely lucky and making nice short-term gains - just to loose them within a day, a few hours or even minutes. I am writing this, after seeing a youtube video by Denise Shull, who states that neurological research indicates that the better you can express your emotions, the better you will be able to handle them. And I believe my story may be useful as a warning for some of you, and maybe give hold to others of you, who may be suffering from a similarly disastrous experience. Such can take you to some very dark places - and I believe I can assure you I've been there - and I always found happiness again after. Time heals all wounds. You can change NOW. And yes, it's not only the money - it's the shame as well, being a loser. In my case, maybe it would have been easier if I was not working professionally in the investment industry, mostly in risk management, to complete the irony. I have a masters degree in finance with specialization in capital market research, am a certified financial risk manager, and a chartered alternative investment analyst. I've worked in the industry 15 years, been following markets for more than 30 years and have a Bloomberg screen in front of me for 40 hours a week. So if there's a loser of losers, the worst loser ever - it's most likely me and not you, so cheer up. But obviously I cannot tell you how to improve - if you're like me, then there's nothing I can say that has proven to work. There's a monster inside me, that keeps me coming back. I would name this monster "Hope". All you have to do is start with a thousand, double your capital 10 times (to 2, 4, 8...), and you're a millionaire, right? And how easy is it to double one's capital. We all can make 200 out of 100 within hours at some point (we may have lost a few thousands the hours before though). Finally back to above question: why did I not adhere to my limits and plans. I wish I knew. Maybe resisting urges is harder for some of us than it is for others - like those who have longer legs are likely to run faster - ceteris paribus. What do you think? I'm trying a new approach now. I changed my target: full focus is now on not losing more than 500 the coming week. As J Powell would phrase it: I'm not even thinking about thinking about thinking about profits.
  15. 0 points
    same. 400K doesn't seem that much anymore when you're mid-fourties, not feeling high job security (it took me two years to find a new job after being let go five years ago, guess that experience scarred me...), having to take care of your partner, calculating the numbers you might need for retirement. I more or less constantly felt that I could be let go again any moment, that it might be impossible to find any similarly paid role, and didn't expect an inheritance or anything, and had no significant pension entitlements etc. Trading seemed a way out of this constant fear (but made it much worse of course)
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