My advice is to keep some other 'streams of income' coming in during your transition to trading. Something that doesn't require a ton of mental or emotional drainage, but something that will pay your utilities, some food etc..
I would not advise what I did, because I basically cut off most of my business and went hard core. It worked out for a while, then when things got tough, I faltered and it probably slowed down my curve.
As a friend puts it, in today's economy, having a decent paying job "is an asset" much like a house, investment etc..
Good luck on your journey and I wish you the best of success.
Trading full-time is a great experience for learning what the markets do. Screen time is possibly the most important part of your education.
The fact that your profit target is 3x your stop is good mathematically. How do you choose where you will place the stop and profit target?
I discovered that I make much better trade decisions when I am not thinking about having to trade or making a certain amount of money. Relying on trading as your sole source of income can make some people feel pressured to make a profit on a regular basis.
The following user says Thank You to GaryD for this post:
Thoughts: Despite having increased my max risk per trade to 30 ticks earlier, no trades were taken as the high volatility in the market resulted in most trades having to risk beyond my max loss. Although it is hard to watch prices going down and down when my indicators tell me to sell, I have to watch the risk I am taking with each trade. If I am trading multiple lots, I can halve my position size to take on higher tick risks, but since I m only trading single lot until my account grows, I have to pass on these opportunities.
Thanks to those who offer me words of encouragement. At the moment, I am doing some part-time work during the weekends to put food on the table. As for my setups, its quite similiar to the multi-time frame trend trading thread. Nothing that is new, what is on my charts is only MAs.
I am currently working on developing another strategy that's mean reversion to be used in conjunction with my trend following strategy, will need to look through the charts and finetune the rules before implementing it. If two strategies not not correlated, trading multiple strategies will reduce volatility of earnings and allow more consistent growth in my account.
The following user says Thank You to LJYY for this post:
Overall trend was down but I had 2 losing trades out of 4. This might indicate that my stop loss and point where I enter trades might not be optimum, but before changing my strategy, I will need to have more trades before I consider revising.
I also noticed that there tend to be huge trend reversals at 8.30 and 9.30 which tend to hit my stops. This has happened several times before. Closing all open positions before then and not opening new positions just before those times might help to improve my results. To observe further.
Time based assessments can be spurious. If you're going to avoid those times, avoid them because the volume or the volitility isn't to your liking. Spotting trend reversals at a particular time each day can be a dangerous thing, because the next logical progression is for you to say "here it is again, I think I'll get in on this trend reversal."
Assessing the daily volume/price action patterns for each day based on what time of the day it is, that's fine. But be careful about noticing what appear to be daily, SPECIFIC price actions.
"A dumb man never learns. A smart man learns from his own failure and success. But a wise man learns from the failure and success of others."
The following user says Thank You to RM99 for this post:
Prices had moved down to my take profits target, missing it by a few ticks and prices started to reverse. There was an announcement at 2 pm when the liquidity in the market dried up. Prices hovered just before my take profits for a few bars and then after the announcement. Prices reversed up and hit my stop loss before going in the other direction to reach my take profit. As what RM99 had advised, fundamentals can negate any edge that technical analysis can. Going forward, I will take note of any major announcements and close off my positions before then.
My longer term MA had turned up so I was looking to go long but prices keep moving down coupled with the high volatility resulted in no trades taken yesterday. As mentioned previously, I am working on a mean reversion strategy at the moment, but have not been able to work out something that's workable. I came across the Perry's method in the forum and is currently forward testing it. Since its much shorter term, it might be able to smooth out my results and allow me to trade smaller trends which my method will normally pass on.
My long term MA were in selling mode so I was looking to sell. Although my losses are smaller than my wins, I find that I often end up taking a full loss and I did not get to trail my stop along to minimise them. This could mean that my entry points can be improved upon or my way of trailing the stop loss can be further improved. I will review the trades that I have and come up with some possible methods to improve on them. As I have been looking at Perry's system, I was wonder if it is possible to use range bars to help in my entry points too.
I have forward tested Perry's system on the ES for the past two days, the results are good, will definitely help to reduce volatility in my earnings, but will need to look at it for a longer period of time before I start trading it.