NexusFi: Find Your Edge


Home Menu

 





Psychology of going from Sim to Real money


Discussion in Psychology and Money Management

Updated
      Top Posters
    1. looks_one motowater with 8 posts (3 thanks)
    2. looks_two trendwaves with 3 posts (9 thanks)
    3. looks_3 tturner86 with 3 posts (2 thanks)
    4. looks_4 JFHughes with 2 posts (1 thanks)
      Best Posters
    1. looks_one Big Mike with 5 thanks per post
    2. looks_two trendwaves with 3 thanks per post
    3. looks_3 Yukoner with 3 thanks per post
    4. looks_4 motowater with 0.4 thanks per post
    1. trending_up 6,573 views
    2. thumb_up 35 thanks given
    3. group 14 followers
    1. forum 30 posts
    2. attach_file 0 attachments




 
Search this Thread

Psychology of going from Sim to Real money

  #1 (permalink)
 
motowater's Avatar
 motowater 
Chicago IL
 
Experience: Advanced
Platform: Ninja
Trading: RTY
Posts: 36 since Jul 2012
Thanks Given: 26
Thanks Received: 12

I recently have been having huge breakthroughs in my chart reading capabilities. For the past few weeks I have been hitting 70% accuracy in my trades. I am debating when how long to wait before I trade with real money. I'm thinking a minimum of two weeks.

The thing is the past 3 times I have tried trading with real money I have lost... and now I am fearful I will lose again. Its hard for me to get past that. Does anyone have any tips on how to psychologically make myself believe I can do it with real money?

Started this thread Reply With Quote

Can you help answer these questions
from other members on NexusFi?
ZombieSqueeze
Platforms and Indicators
Is there a way to simulate CONTINUOUS CONTRACT?
NinjaTrader
Zombie Indicator Help
NinjaTrader
What You Know vs How much you know about it
Traders Hideout
MC Advanced Simulated Trading.
MultiCharts
 
Best Threads (Most Thanked)
in the last 7 days on NexusFi
Vinny E-Mini & Algobox Review TRADE ROOM
73 thanks
GFIs1 1 DAX trade per day journal
17 thanks
ApexTraderFunding.com experience and review
12 thanks
jlabtrades apex prop firm and personal trading journal
9 thanks
Trading with Intuition
9 thanks
  #3 (permalink)
 RichardHK 
Hong Kong
 
Experience: Intermediate
Platform: NinjaTrader, TWS
Broker: IB/Kinetick
Trading: ES
Posts: 236 since Jan 2012
Thanks Given: 132
Thanks Received: 340



motowater View Post
I recently have been having huge breakthroughs in my chart reading capabilities. For the past few weeks I have been hitting 70% accuracy in my trades. I am debating when how long to wait before I trade with real money. I'm thinking a minimum of two weeks.

The thing is the past 3 times I have tried trading with real money I have lost... and now I am fearful I will lose again. Its hard for me to get past that. Does anyone have any tips on how to psychologically make myself believe I can do it with real money?

Why are you fearful of losing? We all must lose and your 70% accuracy on sim is good, but it also means 30% losers, right? And sometimes we can lose many times in a row just due to pure chance. Whatever we think about our edge and its great entries, most will succumb to simple chance.

The first step to overcome this fear is to trade small enough that you don't feel the pain. Al Brooks calls it the "I don't care" level. For the Emini that may mean one contract only, and possibly 1-2 point scalps only (with 1 point stops say). But a 1 point stop is very tight for the ES so you need to wait on high probability scalps only. (I assume you have learnt this already from your sim trading.)

Could say lots more on the psychology and money/risk management side but others will chime in with such valuable stuff. For now, trade like you don't care about the trade's monetary end result, accept losses, and go from there. If you are too scared to trade 1 ES contract, find another market that is cheap enough.

Richard
Hong Kong
Reply With Quote
Thanked by:
  #4 (permalink)
Eric B
Fort Worth, Texas
 
Posts: 49 since Jun 2013
Thanks Given: 2
Thanks Received: 15

I think this depends on the underlying reason why you're able to do so well. If it's indeed a reason that can 'stand the test of time' and not be invalidated by a change in the markets, you may be on to something

Reply With Quote
  #5 (permalink)
Cornix
Novosibirsk + Siberia/Russia
 
Posts: 21 since Oct 2012
Thanks Given: 1
Thanks Received: 22

I would say it's more relevant to number of trades than fixed time period. Probably at least 30-50 trades (significant statistical amount according to CLT) then go to minimal size possible live.

Reply With Quote
  #6 (permalink)
 
motowater's Avatar
 motowater 
Chicago IL
 
Experience: Advanced
Platform: Ninja
Trading: RTY
Posts: 36 since Jul 2012
Thanks Given: 26
Thanks Received: 12

Well guys, I had a very high win percentage on my paper trades for the past 6 months. 84% of my days were winners.

Last week I started with real money. The first two days were great and I had returns as expected. Then on the third day I got nervous halfway through the day as I was losing. Normally I would make a comeback but for some reason the feeling of trading with real money was much different. I lost everything I made that day and more. And then the day after that I was not in the state of mind to trade so I paper traded. Then this monday I traded and lost even more (using a different strategy).

Today in paper trading I lost again, although yesterday (tuesday) I gained.

The month of march in general was bad. More losers than I had in the past and I felt like I lost my edge. Is this a common thing for traders? Have I lost my original spark with the markets?

Started this thread Reply With Quote
  #7 (permalink)
 
ratfink's Avatar
 ratfink 
Birmingham UK
Market Wizard
 
Experience: Intermediate
Platform: NinjaTrader
Broker: TST/Rithmic
Trading: YM/Gold
Posts: 3,633 since Dec 2012
Thanks Given: 17,423
Thanks Received: 8,426


motowater View Post
The month of march in general was bad. More losers than I had in the past and I felt like I lost my edge. Is this a common thing for traders? Have I lost my original spark with the markets?

Not common. Compulsory. Stay cool.

Travel Well
Visit my NexusFi Trade Journal Reply With Quote
Thanked by:
  #8 (permalink)
 
motowater's Avatar
 motowater 
Chicago IL
 
Experience: Advanced
Platform: Ninja
Trading: RTY
Posts: 36 since Jul 2012
Thanks Given: 26
Thanks Received: 12

How do I make a losing day a winning day? It is hard to trade for so long.

Started this thread Reply With Quote
  #9 (permalink)
 
motowater's Avatar
 motowater 
Chicago IL
 
Experience: Advanced
Platform: Ninja
Trading: RTY
Posts: 36 since Jul 2012
Thanks Given: 26
Thanks Received: 12

Does anyone take a month or two off when they feel they are losing?

Started this thread Reply With Quote
  #10 (permalink)
 
bobwest's Avatar
 bobwest 
Western Florida
Site Moderator
 
Experience: Advanced
Platform: Sierra Chart
Trading: ES, YM
Frequency: Several times daily
Duration: Minutes
Posts: 8,175 since Jan 2013
Thanks Given: 57,588
Thanks Received: 26,305



motowater View Post
How do I make a losing day a winning day? It is hard to trade for so long.

I think that often, trying to make a losing day a winning day is a good way to lose more.

Something is not working well if you are hitting more losses than usual. Maybe today's market action is not what your method handles well. Or maybe something is a little off with you, psychologically or physically. Whatever it is, it may be good to stop and come back another day.

You could try something like this: have a rule that says, "If I lose more than x amount (not a real large amount), then I stop trading for the day. Or: "If I have x losing trades in a row (perhaps 3), I stop trading for the day."

Or maybe you just go for a walk to clear your head. But trying to make back losses will tempt you to make risky or just flat bad trades, at a time when things aren't working too well anyway.

So, it's like having a stop loss for the day....

Bob.

When one door closes, another opens.
-- Cervantes, Don Quixote
Reply With Quote
Thanked by:




Last Updated on April 16, 2014


© 2024 NexusFi™, s.a., All Rights Reserved.
Av Ricardo J. Alfaro, Century Tower, Panama City, Panama, Ph: +507 833-9432 (Panama and Intl), +1 888-312-3001 (USA and Canada)
All information is for educational use only and is not investment advice. There is a substantial risk of loss in trading commodity futures, stocks, options and foreign exchange products. Past performance is not indicative of future results.
About Us - Contact Us - Site Rules, Acceptable Use, and Terms and Conditions - Privacy Policy - Downloads - Top
no new posts