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TinGull

From losing to breakeven to winning

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I would love to know your story on starting trading and mainly your struggle (or lack of) at the stage just after you realized what was going wrong and you couldn't stop losing and you were the "break even trader". If you're in that stage right now, I'd love to hear how you came about to getting there from consistently losing money. Was there an indicator you found that really made it work? A certain methodology? Maybe a book or 2 that sang to you?

 

Please PM me with your stories. I am compiling a bunch of stories from traders who are at that breakeven stage and seeing what things are in common with the stories.

 

Thanks all!!!!!!!

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I would love to know your story on starting trading and mainly your struggle (or lack of) at the stage just after you realized what was going wrong and you couldn't stop losing and you were the "break even trader". If you're in that stage right now, I'd love to hear how you came about to getting there from consistently losing money. Was there an indicator you found that really made it work? A certain methodology? Maybe a book or 2 that sang to you?

 

Please PM me with your stories. I am compiling a bunch of stories from traders who are at that breakeven stage and seeing what things are in common with the stories.

 

Thanks all!!!!!!!

 

One turning point for me was when I started looking harder at how I was using my risk against my reward not a ratio or a formula but looking as to what kind of risks I was taking to get the profits I sought.

 

Position sizing, I found the way I was positioning myself was just as important as where my stop was. Once again, this is not a % or calculation.

 

I developed a method that I trusted. I trusted it because I manually back tested it, and watched it closely in real time noting the subtle nature of it in different conditions.

 

As far as books that had the biggest impact:

 

The 21 irrefutable truths of trading

Zen in the markets

Think and grow rich (really helped when things looked bleak)

 

As far as indicators:

KISS, seriously, the BEST method of trading markets is the simplest one you can develop that works for you.

 

To wrap up, when I started listening and watching the markets, I did much better than when I held an opinion and ordered the markets to obey it:mad: . I think of it like this...The market will generate enough information for you to become wealthier than your wildest dreams. The only thing standing in your way is You.:D

 

All of these components blended together to help bring success to my trading.:cool:

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When I first started trading, I made a little money. It was the worst way to start off because it boosted up my ego. Within 6 months I blew out my first account.

 

I agree with Paul and the K.I.S.S. method. I am a strong advocate of keeping things extremely simple. The only thing that matters in price movement is supply vs demand. As long as you are able to read this you can capture short term movements in the market constantly. I dont use much indicators... but the ones I do use on my price chart are tools to help me gauge supply vs demand.

 

One of the most important thing that helped me turn my trading around was market knowledge. It wasnt money management at all. I realized that trading was not about being in the markets every 10 minutes. It was about being patient and identifying good opportunities. It was about having trading setups that you felt comfortable and would take 100% of the time. However, a newbie trader could take Step A,B, and C and still lose money. This is because they lack market knowledge of the market they trade. An intraday trader needs to be able to read what the market is trying to do. He needs to be able to combine the various pieces of market clues together and come up with one decision. Experienced traders are able to somewhat tell the short term direction of the markets looking at price, volume, and internals. New traders usually have no idea.

 

The other thing is to have a plan and to trade the plan. BUT.... also know when to break it. How many new traders build a trading plan or even know how to design one? I say this because for the first 10 months I did not know how to make a trading plan. I didnt even know how to come up with valid S&R levels that I can trust. This is the other important thing.... traders are researchers. Which is why I called the site Traders Laboratory.. because we are scientists in a way. Our premarket homework requires us to know the various price levels for the day. After the closing bell, its back to the lab.

 

Alot of new traders seek help through methodology and indicators. But what they do not realize is that the answer lies in front of the mirror.

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Here's a favorite quote of mine - It's not timing the business, it's time in the business.

 

That quote holds true with just about any business out there, esp trading.

 

As for getting to profit - I agree with the KISS principle. I do not necessarily trade like some of the other guys here, but that's ok. It's what works for you. There is no instant, perfect indicator or system. Losing is part of the game. You just have to get back in the ring and keep throwing punches and over time, you may be one of the ones that throw the most punches and gets the most knockouts. As long as you can take the punches thrown at you and not give up, you just might get that KO in the 10th.

 

And - this is big - consistency is key. Prove to yourself a methodology works and then work it every day, each day.

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Brown, how did you get to the place where you are now? You mention you don't trade like others. How did you find your stride and how did you know when you had found it? I'd love to hear that story :)

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Breaking even seems to be a matter of cutting losses short.

 

Winning seems to be a matter of nailing the setups as they happen without hesitation and managing the trade according to plan.

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GCB, I'd love to know your story of when and how you realized this along your path to success. Thats the main reason for this thread, to hear people;s "AH HA!" moments to compile them.

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TinGull,

 

I'm still working at getting from breakeven to profitable. But I'm pretty sure that it has been cutting losses short which has enabled me to stop losing. As for becoming profitable I can see the light ahead. I'm working with a mentor who is a very successful trader and he is always stressing with me to enter my setups without question. He likes to say, "If there is a valid setup I have to get in. If I don't, I'm just not doing my job." That's the way he looks at it. He says at the end of every day he asks himself (1) "Did I do my job well?" (Meaning did he follow his plan.). Only then does he ask himself (2) "Did I make money?" And if he follows his plan to a T and loses for an extended period, only then does he ask himself if his plan needs tweaking.

 

From my perspective I've been at breakeven for awhile and though my methods have gone through some adjustment I realize it is not getting in when I know I've got a valid setup along with getting out of some winning trades too quickly that is holding me back. My mentor told me in our last session "I wish I had some way to tell you how close you are to success." For me it really comes down to confidence in my method (because you have to KNOW you have an edge or you won't trust the probabilities and you won't trade it right) and not sweating losers and drawdowns.

 

As to my methods, they are very simple. Find the bias and find a good entry, taking into account S/R and internals.

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Thanks GCB. You hit the nail on the head with your last statements. Confidence in knowing you have an edge. That's the point I've recently turned and have full confidence in my strategy now that I've been able to see it actually work and be profitable. Confidence is key in this game. Thanks :)

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You are welcome. Another issue is learning not to think about the monetary amounts. When I'm risking per trade more than what I used to make per day at my previous career it's hard not to get dollar signs out of my head and hard not to be affected when my first trade of the day is a loss. But that's what I have to learn to deal with or it's all moot.

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Brown, how did you get to the place where you are now? You mention you don't trade like others. How did you find your stride and how did you know when you had found it? I'd love to hear that story :)

 

 

The reader's digest version - I was a stockbroker prior to trading. I loved the markets and wanted to tackle this beast on my own. I left my job after 4.5 years of building a book (not easy to do) and have been trading full-time since. I haven't (and can't) look back.

 

Here's why I think some guys make it and some don't:

  • Treat this as a full-time business.
  • Have cash reserves to get you thru the hard times.
  • Realize this will take time - probably much longer than most can stomach.

Like most new traders, I looked at everything and bought A LOT of stuff. Looking back, I laugh now, but I think it was necessary in the beginning. Since there was not a bullet proof method of trading (unlike being a broker), I had to prove to myself that I could do this.

 

I 'found' myself after looking at just about everything out there and deciding on what makes sense to me. Personally, I love candle formations. I think a candle can tell you so much about what is going on in the market than bar charts or other charts. And the beauty of it is - what I see as a 'hammer' you may not. I think intra-day trading requires flexibility and the ability to adapt.

 

It's not easy, we all know that, but for those that can do it, the rewards are incredible.

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