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leilij

New Trader seeking advice

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Hi BBT community,

I am Leili and finished my first week of live trading. Ended the week red which is fine because live trading is nothing live simulator and I am learning new things every day.

My R is $10 so the losers are not giving me heart attacks and the winners are not giving me much either! lol! so just working on my strategies 🙂 

I have a couple of questions that would appreciate if the BBT members could help me out.

1- I have Kyles' hot key buttons that would go into trade with a fixed risk. The problem is that when I decide to get into the trade it would take a couple of seconds and therefore I miss the good entry and the stop is not tight and I normally don't get to 2R reward. I was thinking of going in and then setting the stop loss after I am in the trade but going in without a hard stop freaks me out. Any suggestions?

2- What is a realistic daily goal? (based on R) I don't want to set a goal that is hard to achieve but I don't have any common sense!

3- Another thing that I am lacking is identifying my bias for a stock. How come one stock that has gaped up keeps loosing it from the open and another goes higher and higher?! Any resources and books that I can read to get a sense of the market?

4- I live in Stockton, CA. Any traders close by?

Thank you and I appreciate you taking time and sharing your insight.

Best,

Leili 

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Hi Leili,

congrats on the right decision to trade with 10 dollar risk and sticking to it.

1. make sure you have some room (like 3 cents) on the orders and that you trade a stock which trades with high volumes and that you use the right route. btw what Broker do you use?

2. it depends on youur personality and stye of trading and it will evolve over the time for sure. If you have a limit on number of trades then make the R target the half of your max allowed trades like if you have 10 max trades set your target to 5R. Or if your max daily loss is $40 then make it $80. It all depends on how it plays with your statistics.

3. you just need to accept you have no control and it is always 50% chance it will go either direction. What you do is to look for familiar patterns and ride them. But the fact that a stock is gapping up does not mean that the whole herd will go there and buy more of it as there are bigger fish in the pool who can take profits coz hey reached targets etc.

 

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Thank you PeterB. I use IB for by borker.

First week was really bad, I broke every rule in my playbook, over traded, revenge traded, etc. I think I got that out of my system. This week I am mainly focusing on my rules and only trading with there is a pattern and will not focus on my P&L.

I am hoping that after a couple of days/week I will start getting more consistent winners. 5R daily would be amazing given my trading these days!!

 

 

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Posted (edited)

dont focus on P&L at all! focus on following trading plan.

you need to know

-these are my risks stop loss and max loss

-this is what i do as preparation

-this is how i enter

-this is how i partial or exit

-this is how i journal my trades

like you know it before it happens and repeat forever

Edited by peterB
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@leilijHey! Congrats on going live and keeping it small.

Handling losses is something traders never fully gain control of...so instead of trying to completely remove yourself from that emotion I focused on improving my accuracy. I found that being very picky on my setups helped me 'outweigh' my hulk days. For example last week I was up $800 then had a 2K unrealized, instead of wasting time sitting in the trade and potentially turning that loss into a 4k loss (which would be very hard to come back from), I took the loss and moved on. I was down $1200. I changed my approach to now work on smaller modest scalp trades and ended to the day green $800. Accuracy has helped me become profitable along with minimizing my losses. You reach a point where how much money is enough? Money became a less interesting driving force and it was more about 'can I trade well and win at the game'. I'll admit at the start it was all about the money lol. That's when I began to improve my trading.  

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I agree with Peter B. When you are starting out, you really are not going to know how you will trade and what your edge will be (or your specialty). It took me years of trying things to figure out what works for me and I also stopped trying to correct and change my style. I just created something that works around it. 

Focus on probability, and at least for me I don't use a daily goal. I use a weekly goal instead. I do this because I never know when the good days will be. On good trading days I can make my whole weekly goal in a day or even in minutes. I always push it and trade bigger on good days where there are lots of setups in the Nasdaq futures market. It's really important to not turn trading into a 9-5. The fact is you can make in a month what some do in a whole year. 

To better understand why a stock or commodity trends while others chop around, it is all about order flow and price action. Watch it and learn about it. You will get it over time but it takes a lot of screen time to read price action well. It's especially hard with stocks because all stocks trade differently.

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