Who makes me lose money?

[fibonelli]

Another method of learning, in addition to reading lots of books and websites, is to always have a selection of price charts open and just keep an eye on them.

In my case, I'm backtesting another strategy but I have 5 (30 min) charts open on the right side of my screen. It's amazing to see how many price patterns repeat themselves such as certain candlesticks and momentum indicator patterns.

The benefit of this is that you should be able to subconciously memorise what you see which would help you in your trading and of clearly defining your strategy(ies).

 

[shadowninja]

It's damned hard not trading when you know there is nothing worth trading. I do mainly TA but there's been nothing today that has really been worth trading in my trading plan. For instance, EUR/USD has been moving so slightly apart from one unexpected burst that to trade would just result in losses from the spread. Anyway, I am waiting for it to come back down to a trendline in the next couple of days.

 

[Tawe Trader]

......It's damned hard not trading when you know there is nothing worth trading

Exactly - this is one of the main reasons most people fail in this game. Sometimes doing nothing is worthwhile (to our trading account anyway). The mindset we bring from previous employment into trading causes us problems. We are conditioned to be productive (to be doing something) which is correct in a normal working environment, but if we are trading full-time, we should be sitting and patiently watching the screen for a desirable trading set-up, it could be 6 to 7 hours before this occurs. How many people are prepared to be patience and watch and wait all day for that one trade that conforms to our trading plan?

PATIENCE - DISCIPLINE - FOCUS

One winning trade at anytime during the day can give us a day's pay ! It could be in the first 1/2 hour of the trading day or the last 1/2 hour - nobody knows, all we can do is stick to our trading plan and wait. We have got to try and prevent ourselves from gambling in the mkts on any off-the-cuff trade because we are bored.

 

[nkruger]

All Newbies Read This.

Good post, Tawe Trader. Once the newbies on this site have found their trading strategy, and they know it works (by lots of back-testing) just follow the above post. Success will come their way.....

 

[fibonelli]

Good post, Tawe Trader. Once the newbies on this site have found their trading strategy, and they know it works (by lots of back-testing) just follow the above post. Success will come their way.....

Absolutely agree with Tawe Trader.

The morning session was sooooo boring that I went for my daily walk at midday instead of in late afternoon. At the mo', it seems that the *markets wake up around an hour before the US open.

*I'm watching EUR/USD, EStx50, Long Gilt and the Bund.

 

[rols]

Good post, Tawe Trader. Once the newbies on this site have found their trading strategy, and they know it works (by lots of back-testing) just follow the above post. Success will come their way.....

Forward testing is also to be encouraged.

I wish it was as simple as that. Unfortunately what works last month and for the next month may not work thereafter.

It's back to death and taxes and the proverbial toaster.

The subjectivity of the question, 'What makes me lose money?' provides its own answer.

Thought for the day;

I had a golf lesson with a new pro and he impressed me by being able to hit the driver perfectly, right handed and left handed. He was so in control of his mind and body that he could hit the ball in reverse to his normal shot. He suggested I practise sometimes with a left handed club too.

If the market is a mirror of ourselves and we are losing then why not trade in the mirror?

 

[shadowninja]

Do the opposite of what we would normally do?

 

[new_trader]

Good post, Tawe Trader. Once the newbies on this site have found their trading strategy, and they know it works (by lots of back-testing) just follow the above post. Success will come their way.....

You are saying that a trader should take every trade signal their strategy gives, without any hesitation? Is this exactly what you do?

 

[nkruger]

You are saying that a trader should take every trade signal their strategy gives, without any hesitation? Is this exactly what you do?

Yes. If you're confident with strat, of course you should. If you are not - keep testing.

 

[Tawe Trader]

Eagerness. It is an exciting hobby. Watching your profit increasing and decreasing, not knowing when to sell, or if this time, you're in for a massive profit. So I start trying to buy in thinking, "It's worth a punt." I might as well put money on the horses if I am doing that.

Yes I agree Shadowninja, it is a very exicting, especially when flicking thro' Forex charts. There is always seems to be a big move happening in one of the major currency pairs.

I think this is what appeals to new traders but over the longer term we need to try and keep trading as mundane and businesslike as possible and do something exciting after switching the pc off, base jumping on the weekend or something.........

I have found this old quote in my files last night from a Professional gambler (horse's I think). It seems very apt when thought of in the context of trading. I have added the words in brackets.

"I must manage my gambling (trading/speculation) like a businessman, calculate value (risk v's reward) like an accountant, manage funds (position size/money management) like a financial controller, be as disciplined as a solider and as optimistic as a salesman"