New to Futures, but Hitting the Wall | Psychology and Money Management


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Psychology and Money Management


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New to Futures, but Hitting the Wall

  #41 (permalink)

Houston, TX
 
 
Posts: 12 since Jul 2019
Thanks: 40 given, 61 received


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.

Iím feeling pretty defeated. I know I need to lower my position sizes. At this point, I had considered walking away, and taking my money off the table (Iím down about 1300)

Donít get me wrong. I have made some beautiful trades. I caught two gorgeous second entries this morning.

That being said, I really need to find some better direction. I was pretty damn successful in my stock trading, and I have never allowed myself to lose this much money in my life. However, Iím getting to the point where something has to change, otherwise, this is clearly a poor investment.

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.

We could give you all the advice like Yoda did to Luke, but until you start to see it for yourself, it's not going to sink in. Start a journal and get as much screen time as you can. You will start to see it come together with time.

My tip....

STOP trading breakouts. It is for a more experienced trader. I recommend learning to play the bounce off a demand or supply zone. Which is when price goes out of value and then comes back in. It's a high probability trade with low risk. Someone mentioned Sam Seiden, his supply and demand teaching is ridiculously valuable. You mix supply and demand with order flow (footprint and DOM/ladder) and you could build yourself a nice playbook. It just depends what you are comfortable with and how you interpret the market.

An example:

Open up a 30 minute chart and add a volume profile for each session with a high value area, low value area and poc line. You will start to see how price moves into and out of value. It happens almost everyday.


But it is best to trade what you understand that is why you need a journal and screen time. Happy trading!

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