REVscene Automotive Forum - View Single Post

rx74life · 07-02-2010, 08:44 AM

Think of losing that money as tuition. Usually how much people lose goes hand in hand with their ego. Of course it doesn't have to be that way since you can paper trade developing strategies and engineering a sound plan that can be scaled for all market conditions. Which is another reason why it can take years to learn because markets are always changing character. Being able to adapt is what separates a Professional trader from a new guy on a hot streak. Paper trading is a great learning tool but obviously taking your edge live with real money is a whole new beast all together, which is why discipline and being adamant with your plan is so important.

There is NO excuse blowing your account in 1 day or several with proper money management. Size of trades should always correlate with bank roll and risk:reward. You don't make more money trading by trying to squeeze out more profits of daily ranges, but by sizing up accordingly as account increases with consistency , and decreasing size as draw down occurs with cash. Forcing things and trying to go above and beyond what the market offers you, will humble you in a matter of time.

Trading is so easy yet so difficult because its everything human emotions protect us from: uncertainty, fear, greed, revenge, the need to be right. If you don't surrender to letting those emotions go, you'll be blinded by what the market is showing you, and inevitably blow your account. You don't have to be +50% accurate in picking your trades, scaling charts (whether you use tick,vol, or min charts etc) to accommodate your risk, understanding supply and demand (sup and res levels), probing the market at these levels and letting the winners ride while Pyramiding into them can allow you to be only 25% accurate in picking winners, and still come out profitable in the end. And the days you are greater than 50% are just pure monsters.

There is always this need with new guys to start making money right away. Open a demo account, have some success with it, start trading live, blow the account getting sliced to death with small stops or averaging down as the trade goes against them. Blame the market is out for them because they cant take responsibility, leave the business and preach it's impossible to make it in this racket because they failed at it. There is NO rush to learn this stuff, the market isn't going to go anywhere, it takes a lot of time, patience and hard work. Having a successful mentor can fast forward the learning curve immensely, hard to come by though. Surely trading isn't for everyone, but those who have the drive and patience for a career that has no bearing on how much you can make, will one day have the light bulb go off.

07-02-2010, 08:44 AM	#88
rx74life NOOB, Not Quite a Regular! Join Date: Sep 2002 Location: Van City Posts: 26 Thanked 0 Times in 0 Posts Failed 0 Times in 0 Posts	Think of losing that money as tuition. Usually how much people lose goes hand in hand with their ego. Of course it doesn't have to be that way since you can paper trade developing strategies and engineering a sound plan that can be scaled for all market conditions. Which is another reason why it can take years to learn because markets are always changing character. Being able to adapt is what separates a Professional trader from a new guy on a hot streak. Paper trading is a great learning tool but obviously taking your edge live with real money is a whole new beast all together, which is why discipline and being adamant with your plan is so important. There is NO excuse blowing your account in 1 day or several with proper money management. Size of trades should always correlate with bank roll and risk:reward. You don't make more money trading by trying to squeeze out more profits of daily ranges, but by sizing up accordingly as account increases with consistency , and decreasing size as draw down occurs with cash. Forcing things and trying to go above and beyond what the market offers you, will humble you in a matter of time. Trading is so easy yet so difficult because its everything human emotions protect us from: uncertainty, fear, greed, revenge, the need to be right. If you don't surrender to letting those emotions go, you'll be blinded by what the market is showing you, and inevitably blow your account. You don't have to be +50% accurate in picking your trades, scaling charts (whether you use tick,vol, or min charts etc) to accommodate your risk, understanding supply and demand (sup and res levels), probing the market at these levels and letting the winners ride while Pyramiding into them can allow you to be only 25% accurate in picking winners, and still come out profitable in the end. And the days you are greater than 50% are just pure monsters. There is always this need with new guys to start making money right away. Open a demo account, have some success with it, start trading live, blow the account getting sliced to death with small stops or averaging down as the trade goes against them. Blame the market is out for them because they cant take responsibility, leave the business and preach it's impossible to make it in this racket because they failed at it. There is NO rush to learn this stuff, the market isn't going to go anywhere, it takes a lot of time, patience and hard work. Having a successful mentor can fast forward the learning curve immensely, hard to come by though. Surely trading isn't for everyone, but those who have the drive and patience for a career that has no bearing on how much you can make, will one day have the light bulb go off.