Venting plus big loss

[Carlos G. 13]

I've been there, Fernando.  I know the pain of a big loss.  My first live day, I completely broke every rule imaginable.  I traded the entire day (something I never did in the sim) and ended up losing $3,400!  Yes, you read that correctly.  To add salt to the wound,  I was on track to get my account into the green, but held on to a loser and gave most of my winnings back.  It sucks, but I haven't thrown in the towel because I know I can do this.   Don't let it keep you down.  Now, most of my days are green.  As long as I keep my red days small, I'll be alright.   You will too. 

Edited April 4, 2019 by Carlos G.

[JonathanRivera 2]

Hey guys I am new here. I started trading live 5 days ago with a 3.5 K account and it's been tough. I lost about 250 dollars and I took a step back today to re-evaluate it all and try to make a smaller profit target. I was taking positions of 1000 shares each time I could and I kept trying to make a 1000 dollars on a 1 dollar move and I kept thinking to myself I am getting there if I just try again I will get it. I lost my 250 and now I want to make it more sustainable so I set new rules here they're and let me know what you think:

I can only take a max of 2 trades daily

Max loss per trade 40

Max loss per day 80

Profit targets 2:1 

Daily profit target 80

Trade my one setup I know: Booty Reversals

[KurtLoeblich 101]

Rules looks good!  Try not to risk more than 1 percent of your account per day until you're comfortable with your strategies and psychology/emotions. 

 

I may recommend trying to also find a strategy that doesnt necessarily rely on reversals. ABCDs on the 5 minute chart are fairly easy to identify and typically offer great reward to risk.  As always, before you start trading a strategy, make sure you learn it in SIM first. 

[JonathanRivera 2]

Yeah so maybe I can lower my max loss to 35 dollars since my account is 3.5K. 

But yeah it’s been a struggle so far, I been relying on this since I just quit my other job so this is my only income so I think that adds lots of stress and pressure to my trading. I need to find a way to let go but it’s tough since it’s what we are depending on currently. Due to my recent trading I think it’s time to find another part time job. So far it’s not working as planned lol. I am planning to give it another two weeks and if no improvements then I will have to dedicate more time to job hunting.

 

Any suggestions or comments are encouragement, I’m open to advice.(Side note: I been trading sim for four months)(5 days trading live)

[KurtLoeblich 101]

Couple of things:

1)  Never trade with scared money. If you're trading with money you cant afford to lose, it's going to have a negative impact on your overall trading because of how it will interfere with your emotions and psychology. I know it's likely not what you want to hear, but it's the honest truth. 

2) Andrew was a successful trader for years before he finally quit his day job. Theres nothing wrong with working while you're in the early stages of trading. With an account your size, its going to take time (and consistency) before you would likely be able to have a sufficient income solely from trading. 

3) If you decide to continue trading with real money, and you're sticking to the smaller size but still having issues, I highly recommend going back to SIM. You need to identify what your issues are and work them out in paper trading. Its VERY difficult to learn proper trading strategies and techniques when you're trading with real money (especially as a newer trader).

4)  You may want to connect with other members of the community to help you identify where you are struggling and what tools and tricks you can implement to help you overcome your problems.  BBT has a great community and I'm certain members here will offer assistance if you're willing to hear from them. 

 

[JonathanRivera 2]

Hey Kurt,

Thanks for the reply and advice. It’s something I didn’t want to hear but had to hear. I’ll begin to get to work on everything. I agree with everything you said and actually knew it myself but needed some validation. See you in the chat room tomorrow.

[KurtLoeblich 101]

Hey man -- we all face bumps in the road in our trading journey. I lost over 30,000 dollars before I decided to face the music and do things the right way. As long as you realize that day trading takes time, education, and practice, and you're willing to put in the effort, you're all that more likely to be part of the small group of traders who make it. 

If you need anything, feel free to reach out. I'm always available. 

[JonathanRivera 2]

I hope to be one day! Thanks for the help, I’ll try to post more often in the forums. 

[RTrader 20]

You may also consider trading micro futures (MES/S&P500 futures or MNQ/Nasdaq futures). An account your size would have a chance there. It's certainly much easier than trading stocks with a small account. You can check it out and practice for free using Ninjatrader https://ninjatrader.com/

To be in this business full time, you should really have more than 100K and have your living expenses taken care of elsewhere. Otherwise I think the emotional roller coaster will destroy you. It took me years to figure that out

 

J

[JonathanRivera 2]

How can I access e-mini futures I am using WEBULL and Suretrader but I can’t find those tickers. I would love to give that a shot.

[Abiel 474]

12 minutes ago, JonathanRivera said:

How can I access e-mini futures I am using WEBULL and Suretrader but I can’t find those tickers. I would love to give that a shot.

I got an email from IB about Micro E-mini Futures, check it out here: https://www.interactivebrokers.com/en/index.php?f=43700

[JonathanRivera 2]

Hey so I am back again....

I had to call my broker to implement risk controls to my account because I continue to have these big red days due to always getting caught up with FOMO and trying to trade the open. The good news is I got hired at a full time job and I should start next week. The bad news is I probably can't day trade as much as I want to now with this full time job. 

 

My question: Does anybody here do swing trading or trade options? And is it a good alternative to day trading? 

 

I am asking this because with my full time job I can only trade maybe one hour a day(the last hour before market close) and before my full time job I could trade the whole entire day so with my current losses of over 1,000USD and my small little account size I am thinking I may need to call it quits and try a different method of trading. 

 

Any advice is appreciated have a great day guys!!!!

[RTrader 20]

As I have mentioned in other posts, swing trade is a much better way to approach the markets. You should try it. It takes time out of the equation which for day traders is a real problem. So many times I have seen stocks make a high probability move or a gap the following day after a good trade set up with an edge appears (usually around the end of the day). If you swing trade, typically the close is the best time to get in. You will also not need to worry about PDT that way. You can trade smaller size and go for a larger move. Overall your stats should be much better with swing trading by taking smaller positions and getting more out of them. 

You have to trade a size that you are comfortable with. Something that you will not stress about having open overnight. PM me if you want some recent swing examples that I took.

 

Jason