Been studying for 2+ years and feel stuck

[Trader_Jai]

I’ve been learning everything I could get my hands on for the past 2+ years (courses, books, blogs, etc.).

Learnt about different theories, technical analysis, price action, indicators, risk management, trading strategies and so on.

Haven’t really traded much, maybe around 20 times (with real money) and mostly at the beginning of my journey, besides spending some time using the Replay option in TradingView (more recently).

Now I just feel confused and not able to open any position.
It seems like I’m going backwards.

By the way, I took a job and left for a while to take some time off the screens and clarify my thoughts.

I firmly believe I’m almost there, but need some guidance to make sense of it all as I just feel lost right now.

 

[Riddler]

"I firmly believe I’m almost there" where?

Have you written out your trading plan yet? This will help you to focus on the objective and method because after reading your post I have no idea what type of trader you intend to be. Do you know why you are pusruing trading instead of the other various activities you could engage in?

The fact that you've been studying more than 2 years, have only put on 20 trades (I assume you haven't made any simulated trades but correct me if I'm wrong) and then "left for a while to take some time off the screens" is telling me this isn't really what you want to do. Trading isn't for everyone and I wouldn't force the issue if I were you, all of that reading and studying is all well and good but the very best education is skin in the game over an extended period of time.

 

[Trader_Jai]

Thanks for getting back to me.

Where? Close to making it work.

I would like to be a day trader.

The reason why I haven't traded much was, in the beginning, because I'm not a gambler and wanted to develop a proper understanding of the markets, and now, as already stated because I feel stuck and when open the charts I just feel so much confusion.

I don't know if it counts as a simulator, but I've been using the Replay function on TradingView.

I left for a while to unwind and get a fresh perspective, sitting all day in front of a computer, by yourself, for 2 years, is a little alienating, so I don't see anything wrong with taking a break (I just got back), and during this time I kept on reading books on trading.

Moreover I made some money I will use to trade, so with all due respect I strongly disagree with your assumption that trading isn't what I want to do.

Please tell me, would have been any better if I had burnt 3 accounts in 2 months?

Obviously it's not easy to explain everything that brought me where I'm at in a thread, but after a while I met someone (a somewhat successful trader of 12 years) who told me he had lost a house plus 200k before understanding he had to seriously study, therefore, I chose to study first.

Probably I've been iper-cautious and lack self confidence, but in my opinion the fact that all I have done for the past 2 years rotated around trading is the demonstration that I'm taking it extremely seriously and that's what I want and I'm going to do.

Also, take into consideration that I didn't spend those 2 years studying TA and trading, I just wanted to invest at first.
I started with understanding the technology behind Crypto, wallets, cold storage, then moved into markets in general, the terminology, macroeconomics, etc.

I recognise I've been all over the place and that's exactly why I'm asking for help, which I believe is the goal of a forum like this.

You said "the very best education is skin in the game over an extended period of time" then please, if you can spare the time, advise me.

 

[Trader_Jai]

Let me add that I have bumped into many obstacles on my path, things I didn't understand and took me a while to find an answer to.

I also have a tendency to make things more complicated that they need to be.

I was swing trading in the beginning, and was going pretty good, but realised I didn't feel confident in increasing the position sizing as I wanted a bigger sample to see if I really had a statistical advantage.

By only swing trading it would took too long and also wanted to be more active than only taking one trade per week.

Moreover, we were in a bear market when I started.
Then market conditions changed, I went through an emotional rollercoaster and waited on the sidelines due to lack of confidence.

All in all, I've probably made every mistake possible (related to where I'm at, sure I'll make many more), nothing wrong with admitting it.

I believe what I’m struggling with at this point is choosing/developing a strategy and most importantly, execution.

So again, I'm open to constructive criticism, but I would love it and be forever grateful if somebody would also help me.

 

[ThaddeusFinch]

Use all the knowledge you have to write a trading strategy.
Your trading strategy should tell you how to find the best entry points, what amount of lot size you should have on that based on your balance or equirty and how far away(in pips) should your take-profit and stop-loss be.
Paper trade and use demo accounts to test your strategies.

 

[Riddler]

Please tell me, would have been any better if I had burnt 3 accounts in 2 months?

Yes, you would have, that's my point. You have to get in the water to feel the temperature although it's interesting you've chosen the negative outcome rather than ask "would I have been better off tripling my account in the first 2 months", if you think you're going to fail you probably will. Using strict risk management controls and correct position sizing should mean you are almost certainly never going to blow your account and if you're not holding overnight (which I do as I swing and position trade myself) I can't even see how your account could ever go to zero unless you don't have an edge and lack discipline.

Since you've been studying a while I take it you know who George Soros is. Well, he said "Invest first, investigate later", you must get on and overcome this block so to help (as per your request) I recommend reading Trading in the Zone by the late Mark Douglas. He explains how pointless it is over-thinking and excessively worrying about what could happen, once you have an egde and discipline the rest of what you need is time, flexibility and consistency, you lose valuable time sitting on your hands concerned with 'what if this happens', what will happen will happen you can't do anything about it but control and manage your risk. There are also videos on YT of Douglas' seminars which is just as good as reading the book if you can find the full 5-6 hours. I actually watched that years ago before I read his book and it's pretty much the same essential lecture.

Do get a trading plan drawn up if you haven't already, it is imperative and if you don't know where to start I'll come back.

 

[1nvest]

I was swing trading in the beginning, and was going pretty good, but realised I didn't feel confident in increasing the position sizing as I wanted a bigger sample to see if I really had a statistical advantage.

which I do as I swing and position trade myself

I'll add my opinion which is very similar as @Riddler.
I invariably only position trade these days, but using technical analysis. when i started, i started on the shortest time frames which didnt work for me. poor results and no time to manage them. i only became consistently profitable using longer time frames. I bolded out your comment about swing trading going pretty good...learn what works. and swing trading does and as i said, completely endorse what riddler has said. I would add to your book collection and read momentum investing by gary antonacci. longer timeframes, but by far the best strategies ive come across

 

[Trader_Jai]

Yes, you would have, that's my point. You have to get in the water to feel the temperature although it's interesting you've chosen the negative outcome rather than ask "would I have been better off tripling my account in the first 2 months", if you think you're going to fail you probably will. Using strict risk management controls and correct position sizing should mean you are almost certainly never going to blow your account and if you're not holding overnight (which I do as I swing and position trade myself) I can't even see how your account could ever go to zero unless you don't have an edge and lack discipline.

Since you've been studying a while I take it you know who George Soros is. Well, he said "Invest first, investigate later", you must get on and overcome this block so to help (as per your request) I recommend reading Trading in the Zone by the late Mark Douglas. He explains how pointless it is over-thinking and excessively worrying about what could happen, once you have an egde and discipline the rest of what you need is time, flexibility and consistency, you lose valuable time sitting on your hands concerned with 'what if this happens', what will happen will happen you can't do anything about it but control and manage your risk. There are also videos on YT of Douglas' seminars which is just as good as reading the book if you can find the full 5-6 hours. I actually watched that years ago before I read his book and it's pretty much the same essential lecture.

Do get a trading plan drawn up if you haven't already, it is imperative and if you don't know where to start I'll come back.

I am trying to get in the water now.

If you read my previous 2 replies, I was Swing Trading at first, which partially explains why I haven't traded many times, then tried to switch to Day Trading and bumped into several obstacles.

And in all honesty I may not be as much as an expert as you, but it does not seem common to triple your account in 2 months, unless by pure luck.

I have already read Trading in the Zone by Mark Douglas.

"Do get a trading plan drawn up if you haven't already, it is imperative and if you don't know where to start I'll come back."
I would love and appreciate some help with that.

 

[Trader_Jai]

I'll add my opinion which is very similar as @Riddler.
I invariably only position trade these days, but using technical analysis. when i started, i started on the shortest time frames which didnt work for me. poor results and no time to manage them. i only became consistently profitable using longer time frames. I bolded out your comment about swing trading going pretty good...learn what works. and swing trading does and as i said, completely endorse what riddler has said. I would add to your book collection and read momentum investing by gary antonacci. longer timeframes, but by far the best strategies ive come across

Thanks for recommending that book, I hadn't heard of it before.

 

[Riddler]

My trading plan is my trading bible. I read it from cover to cover on the first day of each month and also refer to it during the month when I need to jog my memory (because I modify/update it at the end of every 12 month trading period I cannot memorise it perfectly). During the course of a trading period I will usually think of something that needs to be added to or changed in my trading plan and I will jot it down somewhere so that I can be sure to review it when it's time for the trading plan rewrite. This something I refer to will be as a result of my current trading experience.

On page 1 of my trading plan I have the effective from date at the top followed below by a 3 sentence statement on the purpose of my having started as a trader in the first place (in different colour text so it stands out). Then I go on to list the aims of the trading plan, really it's like a contents list you'd find at the front of a book. The aims I list out are as follows;

- Explain what is the trading account and describe the purpose of it
- Describe the trading account capitalisation methods
- Set out which markets and instruments to trade
- Describe order types and also entry/exit methods to be used
- Set out permissable drawdown limit
- Discover strategy expectancy levels
- Record identified risks to the trading account and lay out procedures for capital preservation
- Define the rules of operation concerning the day to day running of the trading account
- Outline contingencies for unexpected and uncontrollable factors which put at risk the success of the trading account
- List my personal strengths and weaknesses in order to positively develop and reduce human errors
- Describe when and how evaluation methods will be applied
- Describe efforts towards continous personal development

Next there is a note highlighted in yellow reminding me that this document must be read prior to market open at the start of each month.

Next are two headings 'Description' and 'Objectives' and under each I have a few sentences, that concludes page 1.

On page 2 is the heading 'Governance' under which I have the lengthiest text of the 3 sections. After that I have a section titled 'Feedback' and this is my month by month review of each of the previous 12 months of trading (recorded at the time on my spreadsheet). I have the name of the month and in brackets next to it my +/-% followed by my streak count (i.e. LLLLLWLLLL), followed by the number of errors recorded, max drawdown level and benchmark performance as a %. Then I copy and paste my original observations as recorded at the time on my spreadsheet.

After that I have a heading 'Changes for next year following feedback/lessons from most recent period' this part I hope is self-explanatory but as an example, something I put here in my most recent update is need to focus on adding to winners more in favour of seeking new opportunities as "the failure to adequately profit from correct trades is a key profit-limiting factor" - New Market Wizards

Next heading is 'Personal Profile' and I have a 2 columned table one side headed strengths the other weaknesses and I proceed to write 4 things on each side based on my own assessment of my character and decision making over the previous period.

After that I have a paragraph reminding me to conduct monthly reviews then my annual report and how I will go about improving myself and my performance over the next 12 months.

Now we're onto the final page where I summarise the trading plan using a bullet point list of 9 line items, below that I have a basic chart highlighting the R-Multiples of the trading strategies utilised during the period covered and I finish with another table where I sign and date each month to say I have read my trading plan.

My current trading plan is printed and on a clipboard at my trading desk and the previous versions are in a folder by the desk also and of course electronic copies of all are maintained.

This is what works for me to keep me on track and is for my swing trading operations only as I have different methods and objectives for my position trading portfolio. I put it together myself with help from articles I read and YT videos but of course each year it evolves to suit me personally even moreso. I am not saying mine is the be all and end all but I am saying that having a version of your own with at least some of these things incorporated in it is really first on the agenda of any aspiring trader. As they say, failure to plan is a plan to failure. Good luck

 

[timsk]

Hi Trader_Jai,
Some good advice in the replies you've received here.

Regarding a trading plan which I agree is an absolute must - you might find the link in my signature a useful starting point. The template is quite old now, but the basics are all there and change little, if at all, over time.

 

[Trader_Jai]

My trading plan is my trading bible. I read it from cover to cover on the first day of each month and also refer to it during the month when I need to jog my memory (because I modify/update it at the end of every 12 month trading period I cannot memorise it perfectly). During the course of a trading period I will usually think of something that needs to be added to or changed in my trading plan and I will jot it down somewhere so that I can be sure to review it when it's time for the trading plan rewrite. This something I refer to will be as a result of my current trading experience.

On page 1 of my trading plan I have the effective from date at the top followed below by a 3 sentence statement on the purpose of my having started as a trader in the first place (in different colour text so it stands out). Then I go on to list the aims of the trading plan, really it's like a contents list you'd find at the front of a book. The aims I list out are as follows;

- Explain what is the trading account and describe the purpose of it
- Describe the trading account capitalisation methods
- Set out which markets and instruments to trade
- Describe order types and also entry/exit methods to be used
- Set out permissable drawdown limit
- Discover strategy expectancy levels
- Record identified risks to the trading account and lay out procedures for capital preservation
- Define the rules of operation concerning the day to day running of the trading account
- Outline contingencies for unexpected and uncontrollable factors which put at risk the success of the trading account
- List my personal strengths and weaknesses in order to positively develop and reduce human errors
- Describe when and how evaluation methods will be applied
- Describe efforts towards continous personal development

Next there is a note highlighted in yellow reminding me that this document must be read prior to market open at the start of each month.

Next are two headings 'Description' and 'Objectives' and under each I have a few sentences, that concludes page 1.

On page 2 is the heading 'Governance' under which I have the lengthiest text of the 3 sections. After that I have a section titled 'Feedback' and this is my month by month review of each of the previous 12 months of trading (recorded at the time on my spreadsheet). I have the name of the month and in brackets next to it my +/-% followed by my streak count (i.e. LLLLLWLLLL), followed by the number of errors recorded, max drawdown level and benchmark performance as a %. Then I copy and paste my original observations as recorded at the time on my spreadsheet.

After that I have a heading 'Changes for next year following feedback/lessons from most recent period' this part I hope is self-explanatory but as an example, something I put here in my most recent update is need to focus on adding to winners more in favour of seeking new opportunities as "the failure to adequately profit from correct trades is a key profit-limiting factor" - New Market Wizards

Next heading is 'Personal Profile' and I have a 2 columned table one side headed strengths the other weaknesses and I proceed to write 4 things on each side based on my own assessment of my character and decision making over the previous period.

After that I have a paragraph reminding me to conduct monthly reviews then my annual report and how I will go about improving myself and my performance over the next 12 months.

Now we're onto the final page where I summarise the trading plan using a bullet point list of 9 line items, below that I have a basic chart highlighting the R-Multiples of the trading strategies utilised during the period covered and I finish with another table where I sign and date each month to say I have read my trading plan.

My current trading plan is printed and on a clipboard at my trading desk and the previous versions are in a folder by the desk also and of course electronic copies of all are maintained.

This is what works for me to keep me on track and is for my swing trading operations only as I have different methods and objectives for my position trading portfolio. I put it together myself with help from articles I read and YT videos but of course each year it evolves to suit me personally even moreso. I am not saying mine is the be all and end all but I am saying that having a version of your own with at least some of these things incorporated in it is really first on the agenda of any aspiring trader. As they say, failure to plan is a plan to failure. Good luck

I appreciate the time it took for you to write this, thank you so much! I'm working on mine, I might ask you a question or two in the future...

 

[Trader_Jai]

Hi Trader_Jai,
Some good advice in the replies you've received here.

Regarding a trading plan which I agree is an absolute must - you might find the link in my signature a useful starting point. The template is quite old now, but the basics are all there and change little, if at all, over time.

Thank you, timsk! I've been using your template quite a bit as a reference to write my own plan.

 

[cara2]

For Day Trading, TraderTV Live (youtube) is worth looking at - or having on all day because they give news/results/imbalances feeds. It's a prop firm in Canada

There are 3 or 4 characters with different styles. I'll let you decide which you do/don't like! One is rather noisy.
Basically they use news "catalysts" and resistance/support levels. Not much else!
They also:

• produce a free daily premarket document which is very good, and
• usually show a "sticky note" with key levels and strategies.
• can use very large positions, and get out gradually, something not available to ordinary mortals like me.
• use a bespoke platform so can scalp with a razor.
• do lessons, mostly for the media payments, I imagine.
• have interesting visitors too, including Brian Shannon the author of "the book" on the anchored VWAP, which they use widely.

if you take the daily advice and apply your necessary modifications, you come out winning on average after some practice, though perhaps not as much as the noisy one implies.

 

[Opak]

For Day Trading, TraderTV Live (youtube) is worth looking at - or having on all day because they give news/results/imbalances feeds. It's a prop firm in Canada

There are 3 or 4 characters with different styles. I'll let you decide which you do/don't like! One is rather noisy.
Basically they use news "catalysts" and resistance/support levels. Not much else!
They also:

• produce a free daily premarket document which is very good, and
• usually show a "sticky note" with key levels and strategies.
• can use very large positions, and get out gradually, something not available to ordinary mortals like me.
• use a bespoke platform so can scalp with a razor.
• do lessons, mostly for the media payments, I imagine.
• have interesting visitors too, including Brian Shannon the author of "the book" on the anchored VWAP, which they use widely.

if you take the daily advice and apply your necessary modifications, you come out winning on average after some practice, though perhaps not as much as the noisy one implies.

tradertv Live sounds really interesting—especially the premarket document and sticky note strategy. Have you tried following their advice or using the anchored VWAP yourself?

 

[brettb]

See my trading diary for updates as I develop then test an interesting strategy.

I spent a lot of time on other strategies (with varying success). I've now decided to go all in on this strategy. I have absolute confidence that it works, because I've backtested it to destruction (going back to 1971) and it's working with real money. I also discovered somebody had invented the same system and written a book about it.

If you like YouTubes about trading ignore all the flashy videos and study the long and boring videos that's basically just a guy talking about charts. I found one last night that backtests buying the market on weekday mornings then selling it the next day. It's an odd strategy but it works. I've also found some very good probability videos because most noob traders need to spend less time on charts and more time on basic math. Why does this matter? By cutting out just 3 losing trades 2018-24 my bot made 43% more return.

Just watch a few then YouTube will start recommending the best ones. An ad blocker is useful for longer videos.