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Psychology and Money Management

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New to Futures, but Hitting the Wall

  #9 (permalink)

Posts: 1 since Aug 2019
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Wizard3ootz View Post
So, itís probably my third week trading futures (day trading) and sadly, Iím not doing so well. Iíve gotten trapped a lot, with a great deal of false breakouts, making bad decisions, like chasing a breakout, and then putting in a limit order in way too high on the move, and then watching it pull back and getting f******. Mostly, though, itís perhaps overtrading, getting eaten up by commissions, and all of the tiny losses that are accumulating massively.

From you experienced/profitable traders out there, if you have any solid advice you might give, please feel free to pass it my way. I study/read about the market probably 25 hours a week, so I am in no way lacking dedication/motivation.

I'm new to this forum but I've had some headaches with breakouts like you did early on. In my experience there can never be a false breakout, its just that your analysis of the security is incomplete - pattern day traders make this mistake. You have to wait for the liquidity to exhaust itself out before a breakout happens, then the market will try to retest those exhaustion levels which will be your confirmation to enter the trade.

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