Got it j. If you are "more confident" and "enjoy" the second strategy more, and it helps you understand "much better the market and how it moves", then, by all means stick with it.
As you recognize, this needs to be fixed. Take a look at your winning percentage, the size of your average win, the size of your average loss, and other relevant metrics and determine, in advance, the maximum loss you can prudently accept with this trade strategy in the market you are trading. Once you know your maximum acceptable loss, make that your "drop dead loss" point. Never move that stop, always honor that stop. It can be a mental stop, but always honor it.
Now, with the protection of the 'drop dead stop' in place, manage the trade and take into consideration the stop your strategy recommends you take. Keep sufficient records so you can accurately determine whether not honoring the suggested strategy stop is actually making you more money. If it is not clearly making you more money over a number of trades, then you need to reconsider your proclivity to moving that stop arbitrarily. Taking losses is part of trading; it keeps you safe and enable you to continue trading. You need to build solid parameters around your trading that give you safety, security and confidence.
Consider placing very small real money trades, as previously suggested, until you build up this confidence.
Live trading with very limited back-up funds puts a lot of pressure on a trader. You shouldn't do that to yourself. If you can get a job for a few months, or even a year or two, and build up your capital you should do so. In the meantime, keep paper trading and building your confidence. Don't feel that you are being "unfocused" or lacking in commitment by getting a job. Deferring your full time cash trading by getting a job so that you may be properly capitalized is a sacrifice you will make to further your opportunity to be a successful trader. It is not a sign of a lack of focus, but rather a sign of dedication to what you are trying to accomplish.
Be patient and make wise decisions that will lay the ground work for you to eventually realize what you can be: a successful trader.
The following user says Thank You to Gedman for this post:
Thank you very much Ged. I really appreciate your wise and very helpful comments.
Do you have any excel or spreadsheet file where I can keep the statistics you recommend me to analyze in order to take the decission of the size of my stop loss?
I know my average win trade size is much more higher tha the average loss trade size. And Also my win percentage ratio is higher to the loss percentage ratio and it has become higher, because in some trades I move the stop loss giving more room.
However, I very well understand I need that drop dead loss limit, so that boundary will never be passed by any trade. That´s the only limit I need for my trading system to be complete.
I understand I can determine and define that limit with what you have suggested.