Some suggestions please

This is a discussion on Some suggestions please within the First Steps forums, part of the Reception category; I always been a long term trader in stocks, and recently started trading just daily spot gold against the USD ...

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Old Jan 20, 2011, 11:40pm   #1
Joined Jan 2011
Some suggestions please

I always been a long term trader in stocks, and recently started trading just daily spot gold against the USD index and for the past 14 days i had managed to increase my portfolio by 120% but this morning the market was so slow, and i lost the control,entered even it wasn't in a trend and lost all the hard for from the past 2 weeks
Just wondering how does any of you experienced guys manage to control your emotion so that you can maintained your profit thru hard trading days? and can control yourself to keep away from non profitable trades?? to maintain a positive profit balance til the end of the month?

Sorry that i am quite inexperienced so hopefully i am not asking a very stupid question.
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Old Jan 21, 2011, 1:11am   #2
Joined Dec 2004
Re: Some suggestions please

The first thing we experienced guys do is not trade as big as it sounds like you've been doing. A gain of 120% in two weeks screams too much risk (or extreme luck). If you cut back there is should make things less nervy.
John Forman, PhD
Author - Trading FAQs, The Essentials of Trading
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Old Jan 21, 2011, 1:30am   #3
Joined Jan 2011
Re: Some suggestions please

lightclark started this thread ok thanks for the advice i dont really know if my trades are that big but in terms of money i only use around £30 totally because i am learning and practicing. I am trading with IG index i don't know at all are there traders that can make a living out of trading on financial spread bet. I just use £2-£3 pounds per points and trying to fold it as many times as i can. I don't really know what is the average or rough gain for financial spread betting. But thanks for your advice i will go read some of the trading journals hope i can learn from everyone

Thanks again for the advice
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Old Jan 21, 2011, 1:44pm   #4
Joined Feb 2002
Re: Some suggestions please

I hope you're not deluged with the same advice now in different forms but for me the battle has been with discipline, not the unpredictable markets. You have to know 100% what you will do, even though you can only know 50% what the market will do.

I have had to discipline myself to very simple trades, one per day, with minimum of variables and plan them in detail. So -
1) I know what I need to see in Monday's market: if I don't see that picture, Monday will be a no-trade day, like today
2) I know what I will do regardless of what price does because I know where my two exits will be - the target and the stop
3) I know already how much I can win or lose on Monday in £ and therefore as a % of capital. Your % losses per trade should be kept under tight control so that event the worst conceivable run of losses will not prevent you from using the surviving capital to recoup the losses, based on statistics, not luck. In the end, you only give back to the market what you want to give back.

But overall don't be disheartened, keep at this game.
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Old Jan 21, 2011, 2:12pm   #5
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Joined Jan 2011
Re: Some suggestions please

lightclark, I think the emotions and discipline are hardest bit to learn.. I think tomortons advice is sound but the key is being able to stick to the rules you set. I know this from experience having lost £££££s. I believe I have a basic knowledge and fairly good understanding of when to and not to trade but i simply dont have the discipline. I am beginning to believe that this can't be learnt and that someone who has this discipline naturally and obviously some good experience could do well... good luck
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Old Jan 21, 2011, 5:00pm   #6
9 Posts
Joined Dec 2010
Re: Some suggestions please

I agree with the sentiments here. I think you need to be well informed as well. I read the morning commentary from Capital Spreads, that gives me quite a good insight on anything that i might have missed and helps me refocus on what is happening to stop my impulse taking control. You can subscribe to it here I think and then it's there when you need it.
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Old Jan 22, 2011, 11:01pm   #7
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Joined Feb 2010
Re: Some suggestions please

Hi Clark,

Fellow newbie here. I suffered similar issues when I started trading as well but I think my emotions are under check now. I have devised an Excel spreadsheet with all the rules I have developed which I complete before I place a trade. This practice has given me greater control over my executions and improved my results (mind you I am still losing small amounts each week but that is another matter!).

I also learnt some valuable tricks by reading the book 'High Performance Trading' by Steve Ward. According to him, your trading results are an outcome of how the markets trades and how you trade the markets. His formula is:

Market + Trader = Profit and Loss

Hope it helps.
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Old Jan 22, 2011, 11:15pm   #8
Joined Jul 2010
Re: Some suggestions please

Guys all I would say is this.


Keep it simple,stupid. lightclark, the 100%+ gain sounds like random success this off course is shown by the blow out you experienced.

If you are trading stocks successfully why not keep to them? If you want to move onto something with more volatility or more short term opportunities then I would consider staying away from spread betting. Look at Futures contracts and maybe FX but FX is still a scam.

On the issue of discipline, its a must. Don't trade again until you know your mentally capable of sticking to your pre-set rules. I tend to try and not mechanise things, because the market is not a logical entity. For your stop and target, you do not want to be using less than 1:1

I hope this was of some value.

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