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Reducing Losses - Help needed!


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Reducing Losses - Help needed!

  #11 (permalink)
 
sands's Avatar
 sands 
London + UK
 
Experience: Advanced
Platform: Proprietary Analytics
Broker: Multiple broker + Multiple feed
Trading: Currently European and US equities
Posts: 443 since Dec 2013
Thanks Given: 257
Thanks Received: 234

Constantly practice and use a demo account to hone your skills especially when you hit a patch where your methodology is failing and don't gamble your hard earned capital. I agree with some of the other comments, that its best to look at money management and not over trade.

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  #12 (permalink)
 
Seahn's Avatar
 Seahn 
New York, New Jersey/USA
 
Experience: Intermediate
Platform: NinjaTrader
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I had the same problem when I was starting out. I was expecting (hoping) every trade to be a 10 point winner (I trade the ES) so inevitably most trades would go into profit then proceed to reverse and take my stop out for a loss.

Since then I have learned that you need to take what the market will give you and most of the time its not the big winner. The key for me was learning to read the price action and placing my stop and profit target at appropriate locations, namely key support/resistance, swing highs/lows and measured moves. Sometimes its a 6 tick profit other times its a 10 point profit target. Unfortunately I don't think (at least for me) that a mechanical system will do the job. You need to learn how the market behaves and trade accordingly.

Good luck

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Last Updated on February 10, 2014


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