A year in. Lessons Learnt, Fingers Burnt

This is a discussion on A year in. Lessons Learnt, Fingers Burnt within the First Steps forums, part of the Reception category; Originally Posted by tomorton Could be as near the Holy Grail as we get: the implication being that there is ...

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Old Jul 24, 2012, 3:38pm   #21
Joined Apr 2009
Re: A year in. Lessons Learnt, Fingers Burnt

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Originally Posted by tomorton View Post
Could be as near the Holy Grail as we get: the implication being that there is no Holy Grail. If there was a Holy Grail, it would effectively give the user artificial power within / over the market, when maybe what we need less force used, to bend with the market more readily, to embvrace the riskl, not try to eliminate it with layered indicators, not to fight against the market, but to surf its power.
I must say that you have put it beautifully. On lord flash heart thread I just posted a live trade that illustrates what I am talking about. Chart images are included. It seriously is such a liberating feeling when you genuinely have no need to decide if you think markets are going up or down. either way is perfectly acceptable.
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Old Aug 3, 2012, 4:47pm   #22
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Re: A year in. Lessons Learnt, Fingers Burnt

actually it's not too bad to have some loss experience.
Will you consider forex trading.
I failed in the stock market and finally found my confidence in the forex market.

you had a good background and you can be successful
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Old Aug 5, 2012, 9:00am   #23
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Re: A year in. Lessons Learnt, Fingers Burnt

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Don't lose heart its only a year. While you are out, take the time to learn more, practice more. then come back with a bang if you want
very good point. one year is nothing.
try it for at least about two to ten years.
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Old Nov 4, 2012, 3:47am   #24
 
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Re: A year in. Lessons Learnt, Fingers Burnt

Although I have dabbled on the stock market for years, I have recently started full time day trading and feel entries like yours are a massive help. I look forward to hearing more from you. Thanks Sweatyslouch.
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Old Nov 7, 2012, 1:53pm   #25
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Re: A year in. Lessons Learnt, Fingers Burnt

Thanks for sharing Medic was an interesting read.
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Old Nov 8, 2012, 2:17pm   #26
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Re: A year in. Lessons Learnt, Fingers Burnt

I think you overeacted with the stops . What do you think now ?? Would you put them in the system as a stop order or have them mentally ???

{quote]I finally entered a trade that I was convinced about which went against me for 5 months. I'd decided to stay long in the stock regardless as I was that sure.[/quote]

Ok you were carried away by strong emotions , you're only human

Anyway 15% was a nice loss - If you opened a small business you could lose all 100K in 6 months .

Stay away for a while but keep an eye on the market an paper trade and see how you react with zero motions .

ps thanks for sharing
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Old Nov 9, 2012, 1:21am   #27
 
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Re: A year in. Lessons Learnt, Fingers Burnt

A great little story and not too different I imagine form most traders here. As has been said -15% is pretty impressive management for a directional trader over a year. All the important lessons come from your losers, not from the winners.

My first Options account (small test account) was blown wide open in 3 months thanks to AAPL and BP, trading directionally and having no real idea about the extent and effects of trading psychology. Many more small accounts fell in the years after that as I found my feet both in system and mental toughness and made the change over from Virtual to Live. Maybe step back into Virtual trading and try trading non-directional trades. I would highly suggest Options over shares any day of the week.

I hope you don't give up on it just yet at 1 year you're still a newbie.
Enjoy the ride.


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I've been live trading a year now and though it worth sharing some of the highs and lows of my journey.

I got into trading after my daughter was born. I'd taken 3 months off work and decided I could solely focus on day/swing trading with the 100K I had in savings.
Being in a technical profession (also have a PhD in math) my style was indicator/rule based and to that end I watched every trading seminar, read every blog and learned about all the technical tools I could over the first month.
I went live placing 10K-50K trades on stocks I'd researched and charts I or others had liked. Sometimes I'd stay in the trade a long time (I still hold my first stock bought), but mostly I'd be out before the close not wanted to suffer opening bell shock.

I entered stops until i got level 2 access when on too many occasions saw the action move right in to take my stop before rebounding away. After that paranoia had me write my stops down and then manually exit trades that reached them.

I kept a trading journal and kept account of my P/L, plus did a nightly debrief on how (and why) the day had gone.

On a good day I'd make 500 bucks, on a bad day I'd lose 1000. The nightly tally showed I was slowly getting poorer and over time was not getting better.

It got to a point where I'd spend couple hours researching my picks then enter trades in the opposite direction as I came to understand the market was not behaving to any of the indicators or patterns I'd learned from any of the hundreds of Guru trainings I'd been through.

About 6 months in I came to realize that even with my account size intra-day was too hard to play, so my time frames move to weeks then months. I finally entered a trade that I was convinced about which went against me for 5 months. I'd decided to stay long in the stock regardless as I was that sure. The stock blew through any rational limit I would have set and I decided to wait for it to recover. I eventually sold for a 40% loss through fear that the company would go bankrupt.

At one point in the year I was 15% up. I'm out now (apart from my first stock) for a total loss of 15%.

I've never really failed at anything and have been very humbled by the experience. Learning so much in a short time about trading and then failing to make it work has left me with the feeling that knowledge, a strict trading plan, and the willingness to put in full time hours really offer no guarantee of preserving capital let alone make a healthy living.

Respect to those that make it work. For a time I was one of you but for now I'm poorer and out.
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Old Nov 9, 2012, 1:24am   #28
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Re: A year in. Lessons Learnt, Fingers Burnt

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I would highly suggest Options over shares any day of the week.
Why would you suggest something that you keep losing at ? Wouldn't it be better to suggest something that you win at ?
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Old Nov 9, 2012, 4:53am   #29
 
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Re: A year in. Lessons Learnt, Fingers Burnt

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Originally Posted by lloydbee View Post
All the important lessons come from your losers, not from the winners.
Yeah, that's true. And after all the losers you can finally find out that after a couple of years you're still not a professional.. I mean the whole pack of knowledge and tiny shades just confuses me a lot... like yours blowing up on options...
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Old Nov 9, 2012, 6:00am   #30
 
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Re: A year in. Lessons Learnt, Fingers Burnt

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Why would you suggest something that you keep losing at ? Wouldn't it be better to suggest something that you win at ?
That was the early days of my journey, was that not understandable?
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