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1 losing day kills me


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1 losing day kills me

  #11 (permalink)
jaytrades
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If you can duplicate the winning days, then your method may be sound as long as you have a plan and are consistent with it on the up days.

If you are looking at your pnl and feeling pride in having a winning streak, then you are investing emotional capital in your statistics.

If you work too hard to fix a day that begins with a loss, then you are not trading to accumulate the capital from your winning days, but you are trading to feel pride in your statistics of having a streak of up days in your pnl.

The fact is that you will have a bad day, so when you determine today is starting bad, then stop entering the market and do other trading work so you feel like a trader but you are saving your capital for a better trading day.

...and finally, analyze everything you can think of in your journal so you might find clues as to what is different about you on your good days vs your bad days.

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Tymbeline View Post
I don't trade every day, but take an average of 7-8 trades per day on the days I do trade, and the majority of my trades make very small profits, with occasional bigger wins of partial trades after locking in small profits, and very occasional losses, so I have few losing days, now. I sometimes wonder whether I'd do better, overall, with more losing days, actually, but it's hard to quantify.

Losing still bothers me, because I'm very risk-averse.

For what you say, I think that the problem you have is that you just scalp some 100USD here and there.... I went through that phase and it's a nonsense. In the best scenario you break even, or get eaten by commissions.

Focus on the analysis, put a bigger sto loss and only make operations that have some wide vision. You want see the wood not he trees. There are two ways to trade:

1) scalping: If you scalp you must have a high win rate and little losses.... but then you make money with size and precision. You work with 10 contract or more, if you go for a win of 5/8 ticks in the ES it's 600 USD per winning trade, and maybe you risk just a couple of ticks. This is doable, but you must be very technical, it's very very for experts.... usually people do it on Treasuries

2) day trading: you put on a position with smaller size and wider Stops, if you focus on strategy you can make some nice money. I had 5K days with just 3 contracts, it's doable. But.... you must focus on strategy. I don't know your level of understanding on the markets, but there are really asymetric oportunities.

I am always fighting to stay in the second option..... but sometime you see an oportunity to make some "easy" dollars with a quick scalp and it's irresistible.
Anyway....I always found that in 1) the trees don't let you see the wood.

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