Beg of April i started doing really good and climbed out of $600 hole and was in green. Then I stopped trading for like 2.5 weeks and was just focusing on studying as I had to write my finals. This summer i decided to trade full time and coming back this past Monday my whole trading psychology has been off and I've been..
A) over-trading (My thought process - full time trader = More trades during the day)
B) Not planning proper trades (Just jumping the gun without any solid plan or goal. I see something moving and I am like yup that's it)
C) Losing money (Back in a hole $100 - not counting commissions - and this is because of two mistakes above)
Basically I understand why 90% of the traders lose money is because they do exactly what i have been doing for past 3 days. I do not plan on being in the 90% and in order to get out of my 'losing streak' or to be blunt my "incompetent to control my emotions" I just need to get back to the basics. Look for big % winners, focus on the catalyst and trade them when solid opportunity is presented.
I need to stop assuming that i know the unknown and the stock MUST go up because of this or that. Just need to really zone in again on 1-3 top stocks and focus on them. And if nothing works out according to the plan Just stay cash and spend more time on research and/or learning something new. If i take speculative positions which sometimes you have to i should keep my risk and position very very small. Just because I am trading 'full-time' i can't pretend I am pro and know what I am doing.
I am sure a lot of other traders might be going or have gone through this. Leave a comment if this helps you understand what you might be doing wrong or any tips you wanna leave so perhaps I can do better. Thanks
Hi Yousaf, you sound like you've figured out how to improve. I did the same thing when I finally got past the PDT rule. I overtraded because I finally could and I blew thousands before I got my brain screwed on. Now I'm trying to focus on the absolute best setups and avoid trading if there are no great opportunities. Also, providing liquidity helps avoid impulsive trading and makes the trade come to you, which improves your odds since you have a plan. I made a video about how to trade like the 1
Thanks Yousaf for your comments... Its really helpful to have the right mindset ... Excellent !!!
..1% instead of the crowd if you're interested. Keep studying and it'll be worth it! Cheers.
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