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I've been following this post with great interest, many thanks to all who have contributed.
As I am not yet profitable, I'm not sure I am qualified to contribute further.
I've been trading ES for more than two years. Although I am not yet profitable, I have managed to avoid blowing my account. The techniques I use now are
- risk a max 0.25% of my account on each trade
- max daily loss of 1% of my account
- never lower/raise the stop (for long/short positions)
I have developed my own trading platform on top of Amibroker. Thanks to this, I have been able to implement these checks in my coded implementation. My biggest temptation is to change the code during the trading day to bypass these checks when I'm down on the day.
Like many here, still learning to avoid the issues of taking emotion-driven trades with bad positional location, and FOMO.
If you're a trader, have you noticed that some days your "method" works better than others?
Have you noticed that a nice smooth trending day is followed by a rough, choppy day?
Have you ever had a bad day, spent the night seeing what you should have done, then done exactly that the next day and lost money again, only to realize as you analyze your charts yet again that your original method would have worked perfectly that day again instead?
It's part of the mindgame in that what psychologists call 'recency' is our undoing.
The pain of the losing day is so ingrained, nay, etched into your soul that you think you'll never forget it...and you cling to it.
So what should you do?
A mindtrick that works for me is to understand and accept that no consecutive days have the same behaviour. Therefore, the method for the day needs tweaking. How? Change timeframe, up or down. Most beginners would do well to trade a higher timeframe.
Let me know your findings and thoughts.
The OP (and others) is likely to benefit from this discourse.
Trading: Daytrade Futures, Swing Stocks, crypto and forex
Posts: 12 since May 2020
Thanks Given: 36
Thanks Received: 10
This is such good advice, after a few blowups, I realised as well that my issue was not letting the trade play out causing my risk to reward to be below 1:1 meaning added stress to keep my win rate above 50%.
I blow my account many times and after 10 I stop counting how many times I blow account, all because I was not discipline, consistently, patience and moderate emotions.
Broker: Edgeclear and Rithmic. (Nordnet 1 year more for Norwegian stocks)
Trading: ES, NQ, GC, CL (Maybe Dax if I bother to get euro data, probably dont need more.) futures only
Posts: 21 since Jan 2020
Thanks Given: 108
Thanks Received: 27
I might not said it clear. This is an obvious fake account and atleast the owner of the original post was online may 1st and third. Logged in 3?times these days. Not saying that it isn't a subject to discuss. But I wouldn't give specific advice to the poster as it most likely is bull along with the accent. Look at the profile.
(i specially think of those believing that "the account" claimed it made his account double 3 (and a bit) times in a very short time (i don't remember, ridiculous short time).
I claim the result (if it had been real) proves "the account" is not capable of making money. To get your account to increase so much in so short time, you have no consistency, no risk management and no setup. The people saying this results proves "the account" can do it again, is like argue that if you won a powerball lottery once, you can do it again.
Just saying and not drawing in other stuff. The story is fake and so is the account. Why makes no sense. Bad joke maybe. But regarding my argument, the posts claiming OP has the skill is kinda funny regarding my lottery allegory (I think allegory is right, I only have English as 2nd/3rd language)
I checked the time. It all happened this year before may. So ALL THE HOURS AND WORK finding out what worked trading from 7k to 70 k to 0 was during 4 months. I imagine this must be maybe 100hr studies... (Most would be before trading so I probably is guess to much. (I f this were true, which I can easy pay 100 $ to actually see the account statement...not making it more so that it is believed. Actually I promise to make the account that posted this an elite account. And personally learn the person risk management.)
Adolpho911
"Faith does not always let you fix the tuition fee; she delivers the educational wallop and sets her own bill" Jesse Livermore
"I am not curious when I know everything" Adolpho911
Welcome to the club! If you have never blown up an account or allowed the auto margin to exit your account then you have never really learned about yourself. I hope your account wasn't large. I typically open very small accounts and even after making money always pay myself so I'm not tempted to trade too big.
DONT BE TOO HARD ON YOURSELF BUT DONT FORGET IT EITHER. MAKE CHANGES
Even if the OP story is fake, I started reading a book that I would like to recommend, which answers all OP questions (and answered all mine too). It´s the best trading psychology book I ´ve read so far, it actually explains why you make the trading mistakes, it´s spot on, and has a system to deal with them and correct them for good.
Book is called "The Mental Game of Trading" by Jared Tendler
Just did it again. Erased 2 weeks of work (50% of account) with one bad day. Seems to be a running theme. Every 2-4 weeks. Broke all my rules. Too many trades, too much size, moved stops, went right through daily loss limit etc…. Really frustrating. Feels like if I could only get a handle on these fairly infrequent, but brutal, days that I’d be ok. The day felt fine and as usual all of a sudden it felt like out of nowhere I went crazy and before I knew it I had huge size on and was in the hole. Then the rationalization started and that always ends well…. I need to implement a system that will stop me from myself on these days where I lose it. Some sort of hard circuit breaker. Any help would be appreciated. Thanks.
First, this is common to many. Not that it's any consolation.
Second, I have seen you posting a lot on one of Lance's journals. He has posted a lot of helpful resources that helped him when things went wrong. These resources include also videos. You could also reach out to him, he is very helpful.
Lastly, have you checked the Trading Psychology section? There are people sharing some frustration including what you are going through, but also how they deal with various aspects of revenge trading.