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Thoughts and questions from a beginner


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Thoughts and questions from a beginner

  #11 (permalink)
 Miesto 
Monte Carlo, Monaco
Legendary Market Wizard
 
Experience: Advanced
Platform: NinjaTrader 8
Broker: NinjaTrader Brokerage
Trading: Futures
Posts: 647 since May 2012
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snax View Post
Hey @hugoab!

I think this particular question can
a) Become a source of unrealistic expectations and frustration.
b) Obscure more subtle signs of progress.

Here's why:
I personally don't think you should equate your potential as a trader to how quickly you can say you became profitable. There are different levels of profitability, different personal quirks, and different trading schools of thought may have deeper learning curves than others but lead to better results for your particular psyche in the longer-term.

One of the best quotes I've read wasn't from a trader but from an entrepreneur who said something along the lines of "the first five years of owning your own business are a sh!t-show!". I like the mentality of treating trading as your business, and I especially like the mentality of designing the course of your path around longevity. Preservation of capital and risk-management will keep you in the game to give you time to find the answers to all these questions you are seeking.

There's a milestone I've experienced which is a sense of control over your survival, you're not quite profitable but you also feel that its within your power to not self-destruct. You've learned enough to have the discipline to survive and figure out the next segment of your path. I use this as a new baseline to latch onto and you kind of find the next foothold from there.

Hope you find what you're searching for!

Exactly my thoughts. This way the journey becomes less frustrating, more enjoyable and it gives more gratification.

One sentence stands out and should be highlighted:


snax View Post
Preservation of capital and risk-management will keep you in the game to give you time to find the answers to all these questions you are seeking.


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  #12 (permalink)
hugoab
Nepean
 
Posts: 11 since Apr 2020
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Thanks Mich and Snax for the suggestions and insight, definitely very wise words there...

so after blowing up my first account around 2 months ago, I am back at the game! Trying to do ES mini nowadays and taking it easy, thinking more and trying to not jump in at any setup...Just want to learn and preserve my capital!

One and a half day of trading so far:

First day: 3 trades --> $115 net profit after commissions
Today: clicked on "sell" without realizing that I had no "ATM strategy" selected (normally i have my stop and target setup)=> had to handle the position for the first time with no stop loss, waited too much to close (was winning 2points=$100 why would I not close there?!) and ended up losing 1.25=$62.50. After 10min I decide to do SIMulation and enter a setup there, power goes OUT and I am just glad that it was only SIM. Power comes back in 20min and I realized I lost ~1.5 points.

Yesterday was a very steady "up and down" day with steady and long trends, today IMO more of a consolidation day with sideways and I find it quite difficult to read and trade...will be just doing SIM for the rest of the day and only do any real if I see a very clear setup.

glad to be back!

happy trading everyone

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  #13 (permalink)
joemo16
Providence, Rhode Island
 
Posts: 2 since Oct 2019
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Hi Hugo

I trade ES and GC and every good trader I know started out in one of two ways:

A total shit show for a while or incredibly lucky for a while and THEN a total shit show.

I was the latter.

Not sure if this has been mentioned....1 thing you absolutely cannot trade successfully without is a thorough understanding of Support and Resistance. I'd argue that one could be profitable if they were excellent at defining S/R and just used common sense for everything else.

S/R is the backbone backbone. If you go long at support and sell at overhead resistance (or or stop out if the price cleanly drops below support) on any timeframe you should be right enough of the time to be consistently profitable.

Once I really got that hang of that I was able to introduce all the other things like risk reward, trade management, position size, pattern and trend recognition, etc.

hope this helps and good luck!

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Last Updated on August 29, 2020


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