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Showing content with the highest reputation on 06/09/2021 in all areas
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2 pointsFor high volatlity stocks the brokers increase margin requirements on that particular stocks.
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1 pointJplev, This is an extremely difficult situation that I very familiar with. I was forced to work 12- 15 hour nights for 2 and a half years with a 40 minute commute and had 2 hours of sleep maximum every morning before I was able to trade. I became 50k in debt when the stock market crashed with a job that only made 50k a year. I was discharged from the military only a 3 months after this happened, so now I didn't have a job either. My relationships were falling apart and I ended up quintupling down on trading an ended up getting out of it. However, to get there I built a 25k account from 3k in 3 weeks. Blew up. Then I took the only 1k dollars I had left and used CMEG to get the account 4.4k in 1.5 weeks. Then I blew up. Then I took it a little more carefully and used my next months paycheck to take another 3k account to 5k, then to 8k, then to 10k. I slowly built that until I was able to transfer my money into Interactive Brokers. Then I took that account to 37k and paid off the remainder of my debts. If you would like a similar result, I would recommend relying on day trading 0%. In other words, do investing, or something more hands off. Almost half of that amount I built in the final account was from investments. It's just easier if you find a company that is undervalued and you can hold. Practice sim on the side and let go of trying to make money with day trading. It is very, very difficult if you need the money. Those weren't the only accounts I have blown up before I became consistent. It felt like a black hole and so discouraging the entire time, to the point I thought that all of this might be a scam. Now I make money almost every single day. Seriously, trust me, the more testosterone and desperation you have in your body, the worse you will perform. You need to not want the money if you want to succeed easily. As for anyone saying not to trade meme stocks, yes they are 'difficult' in the sense that a lot of people don't have a trade book for them. I love them. Money printers if you understand them. The get extremely directional which is what we want. However, if you want consistency, I would recommend staying to environments that you will see the most often. This is exactly what I would do if I were you and what worked for me: First, state your plan to your significant other of how you are going to conquer this hurdle, and see if you can accommodate them in some way to make trading seem less stressful in your lives. Ask them for any suggestions on what they think might be the best way forward to build up a positive environment especially if this has been effecting your personal lives. Close your live DAS account and switch to sim if you aren't already and be thankful you haven't lost all your money. Next, look up stable investments that you can put your money into to grow. This decision doesn't have to be immediate, but it does need to be quality. I recommend taking a look at the channel "Financial Education" on YouTube. This guy is weird, but he gets the job done like a champ. Now that your money is safe and growing, you can learn with less pressure. Third, watch Aiman's live trading video: Pull out a pen and paper, and observe how he does things. This was one of the major keys for my success. This video. Not kidding. Fourth, and this is VERY important, figure out your risk management ratio. If you look at my journal and weekly recaps you'll see this: RISK MANAGEMENT Risk per trade (RPT): $50 Daily Goal: $250 Max Loss : $250 Ratio: 50 : 250 : 250 or 1 : 5 : 5 This is a representation of how many tries I have per day to make money before I stop out. Currently, it is five tries. Before I would risk $200 per trade and try to make $400 per day with $200 for max loss. This is idiotic. That's only 1 try! Even great strategies need multiple tries to work! The confidence loss from just starting a trading day and stopping out immediately is horrible. Reduce your risk per trade sure.... But WAY MORE IMPORTANTLY, increase the amount of trades you can get wrong before you stop out on the day. Fifth, REALLY REALLY REALLY IMPORTANT. Go to DAS > Account Window > right click on your account name > Open Risk Controls This page will prevent your from making further trades after you hit max loss, and it has other functions as well. These are my current configurations, so just modify them to fit yourself. Max Loss $240. Total Loss $250. Enable Auto Stop. Count in Commissions. Submit. Doing this was a major catalyst to my success. Now you can only lose as much as you specify per day, you are emulating a proven trader's strategy, you have a forgiving amount of trades you can take in a day, and you have less pressure on your finances/emotions. Subscribe to me on YouTube https://www.youtube.com/channel/UCkK2SWIsYGuWm1gtlbD2C4w and follow my trading Journal If you are having difficulties with hotbuttons, strategy, or configuration and can't get the personalized response you desire in the BBT chatroom, join my session live on YouTube or Twitch in the morning and I will point you in the right direction. However, I get off of the computer pretty much immediately after I hit goal amount, so it will probably help to catch me within +- 10 minutes of the open. I am not a trading genius or anything, but if you are having a really difficult time with seeing results and it is stressing you out to exhaustion, think about reaching out to me. I've been there. Bailey Nevener
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1 pointHaving talked to many traders, and in my own experience, taking a "trader circuit breaker" helps to interrupt bad habits. Sometimes traders are trapped in a vicious feedback loop of bad trading => bad results $ => bad mindset => bad trading and stopping trading helps to halt that pernicious loop. But you really need to take a step back, no trading even in sim. Is a detox therapy from trading. Then some clarity comes and you will see clearly what you were doing wrong. So take some days completely off trading, then use your time watching other traders recaps, watch / re-watch some success webinars, review your rules and your journals. Then come back to sim and follow up your discipline, make a daily checklist of your rules and follow up your rules compliance every single day. You will want to define a period of acceptable rules compliance and discipline, that could be a week, some weeks, a month, etc. before coming back to trade your account. Just be mindful that old bad habits don't disappear from overnight. The same is with good habits, it takes some time to get rid of bad habits and it takes some time to build good habits. Your goal here is to use your rules to govern your trading behaviours and practice those rules and behaviours until they become an automatic response, a second nature. Then, after your reach your goal of rules compliance for the period of time defined by you, go back to trade your account, starting small, and define rules to increase your risk/trade or share size. And don't believe those telling you that sim doesn't work. We build bad and good habits in sim and we need to come back to sim to get rid of the bad habits built in sim. If you are not able to be disciplined with your rules in sim you won't be disciplined trading your account.
