Any day traders in the forum?

[callmepaul]

And to all of us. It is always easy to say it but not so easy to be disciplined all the time. With years of trading I learned that your first loss is always your smallest loss, I use a stop loss and if it is hit I am out no matter what, can always reevaluate and renter.

Do you use actual stops or a mental stops? I ask this because I know sometimes the market tends to go, run the stops and then go in the opposite direction. Market makers tend to like playing this game for what I could research. I tend not to put my stops in the "obvious" positions, but lately I been experimenting with 'mental stops' rather than physically placing the stop at a certain level.

What's you take on this if you can share?
Thanks!

[hvaces42]

"The key to trading success is emotional discipline.
If intelligence were the key, there would be a lot more people making money trading."

I have been very successful making money with my own strategies, my main problem is with discipline. Sometimes my strategies work for months and months without even 1 trade going against me. With time I learn that is a curse because when a real bad trade comes I tend not to stop it, thus losing months of profits.

Maybe I can find some inspiration in his books to solve that issue.

Let me share what my inspiration to stop day trading was...finding out that I had no control over my emotions. You havent seen a down market in 5 years other than the last few months of volatility. For those of us who lived (and traded) through 2007-2008 not having discipline only leads to disaster.

Reading this post I am reminded of myself in 2010. I thought I had a discipline problem. Then it was a patience problem. Then it was another problem. Too late, I finally realized I had a gambling problem. Over the years I had some huge wins. But overall they were just wiped out by bigger losses over the long term.

Gamblers Anonymous solved this for me. Havent placed a trade since December 2010 and I'm not stuck on that emotional rollercoaster (or carousel of insanity) because of my trading.   

[hvaces42]

Do you use actual stops or a mental stops? I ask this because I know sometimes the market tends to go, run the stops and then go in the opposite direction. Market makers tend to like playing this game for what I could research. I tend not to put my stops in the "obvious" positions, but lately I been experimenting with 'mental stops' rather than physically placing the stop at a certain level.

What's you take on this if you can share?
Thanks!

Oh man, another great post...

You bet with your money you lose your money. You bet with your mind, you lose your mind. Just my experience.

[callmepaul]

Oh man, another great post...

You bet with your money you lose your money. You bet with your mind, you lose your mind. Just my experience.

I don't see any business where you don't have to bet money. Unless you are an employee.

What is the difference between making a risk conscious bet in the market and opening a company, store, etc.

Unfortunately I haven't found a way to make money without risking money.

[hvaces42]

I don't see any business where you don't have to bet money. Unless you are an employee.

What is the difference between making a risk conscious bet in the market and opening a company, store, etc.

Unfortunately I haven't found a way to make money without risking money.

Well for one, professionals do not make a bet when they get an education and go out and start a practice, i.e. Doctors, Lawyers, Accountants. Secondly, if everything is viewed as a bet then you are correct. If its a prudent investment that requires diligent effort to grow your business, why is that the same as a dopamine hit from a 5 minute trading position. Lastly, does your risk consciousness factor in emotions? I'd venture to guess no.

Look, I lived your life over the last 15 years. Been there done that. For me the results were disastrous. Prison, insanity and thoughts of death. See https://forums.dansdeals.com/index.php?topic=86975.0 for more on that.

I cant tell you whether you are like me, a compulsive gambler, or just a bad luck investor who cant control his emotions and is trying to learn how. Just putting the info out there.   

[ludmila]

Do you use actual stops or a mental stops? I ask this because I know sometimes the market tends to go, run the stops and then go in the opposite direction. Market makers tend to like playing this game for what I could research. I tend not to put my stops in the "obvious" positions, but lately I been experimenting with 'mental stops' rather than physically placing the stop at a certain level.

What's you take on this if you can share?
Thanks!

Mental stops only .

[stv17]

Been daytrading for a few years..Number 1 rule - Discipline and cutting your losses fast.
In my experience, all the books and videos i've seen didn't help me, I learned the hard way..

[ludmila]

Been daytrading for a few years..Number 1 rule - Discipline and cutting your losses fast.
In my experience, all the books and videos i've seen didn't help me, I learned the hard way..

+1  cutting your losses fast
Also need to develop your own method or rules for entry and exit and stick to it no matter what.

[callmepaul]

Mental stops only .

Thanks

Been daytrading for a few years..Number 1 rule - Discipline and cutting your losses fast.
In my experience, all the books and videos i've seen didn't help me, I learned the hard way..

What do you trade @stv17 ? Futures too?

[callmepaul]

+1  cutting your losses fast
Also need to develop your own method or rules for entry and exit and stick to it no matter what.

Keywords: no matter what!

Also, you set closing orders for profitable trades or just set a trailing stop when it hits your goal if you don't mind sharing?

Thanks!

[stv17]

I trade stocks only..I'm a scalper,  so no technical analysis and no charts (besides the 1 and 15 min and daily). I just scalp the news.

[ludmila]

Keywords: no matter what!

Also, you set closing orders for profitable trades or just set a trailing stop when it hits your goal if you don't mind sharing?

Thanks!

Most of the time I exit 1/2 my position and set a trailing stop for the remaining half. In a futures palladium trade in August 2018, I bought 2 contracts at $840.10 and closed the first at $901.80 as a day trade and kept the other 1 with a trailing stop, ended up holding it for a month and exited at $1090.

[ludmila]

I trade stocks only..I'm a scalper,  so no technical analysis and no charts (besides the 1 and 15 min and daily). I just scalp the news.

If you do not use charts or any technical method, may I ask how do you decide when to enter and exit a trade? If you a scalper, what is the average time you stay in the trade?

[stv17]

I subscribe to Benzinga Pro and they have a squawk box feature that says news thru out the day (you can get it for free if you use TOS). I also have CNBC in background, usually whenever they have stories or interviews about specific stocks, they move the market.
I usually trade stocks under $20 so i go in with 2000-3000 shares so basically every penny it moves is $20-30.
I try to stay until i think that there'll be a pullback, if it goes against me than i exit when it goes down lower the previous 2 min candle.

[ludmila]

Thanks, everyone needs to find a method that works for him, looks like scalping ,trading the news works for you.

[callmepaul]

I subscribe to Benzinga Pro and they have a squawk box feature that says news thru out the day (you can get it for free if you use TOS). I also have CNBC in background, usually whenever they have stories or interviews about specific stocks, they move the market.
I usually trade stocks under $20 so i go in with 2000-3000 shares so basically every penny it moves is $20-30.
I try to stay until i think that there'll be a pullback, if it goes against me than i exit when it goes down lower the previous 2 min candle.

I didn't know I could get Benzinga for free with TOS, thanks for that. You have a very interesting approach. Do you have a daily goal or you operate like that for as long as the market is open?

[stv17]

I try not to over trade but i'd say that a goal is approx $500/day. I also trade after hours on earnings.

[callmepaul]

I try not to over trade but i'd say that a goal is approx $500/day. I also trade after hours on earnings.

Thanks

If you don't mind me asking, do you have a % max loss per day or more like a total max money loss when you say I stop for today?

[stv17]

Not really...but if i see that all my trades are going against me than i take a break for a few hours.

[S209]

Geez get a room