Hello all, and thank you for the help!
It’s been too long since I replied to my own thread, so apologies there. However, I have not abandoned it.
First off, you are all very kind to share your thoughts and opinions, they help a great deal. I think I’ve overcome that side of me, however, there are still times I want to go in a trade just for the sake of being in one. Controlling it though.
I think I owe it to you to explain a bit more, and maybe some other newbie trader like me will jump over and avoid my mistakes.
First off, a neglected side of me, I’m stuck in a 9-5 job I don’t really like too much, and as 90% of the people who get involved in trading, I want that to be my full-time career. The pink-tinted glasses don’t fall off as easy as one might think. The reason I always felt the need to be in a trade, is because I really really really wanted to quit my day job / get great fast. And that’s impossible - and I understand it now. “This game is a marathon, not a sprint” I see written everywhere. And it’s true.
Second, when you’re new, you learn a bunch of ways to analyze the markets. In retrospect, backtesting, they all work and you should be getting 50-100% growth per month (or more). That’s in retrospect. When you’re a newb, you develop a mindset (after you learn those ways) that it’s actually so easy to trade. You lost here because of chance, there because of bad luck, but look at this - my analysis is always so perfect! The other guys must be dumb, it’s so easy; I can make money any time I click “buy” or “sell”.
Of course, we all know this is not the case; however, with the above mindset, I was expecing to “nail it” all the time, so I wanted to be in 10. 50. 500 trades per day.
Well that didn’t work out for me well… Not in my first, 2nd, 3rd… 9th account. [B]That was the fastest way to blow those up.[/B]
And finally, I had the wrong strategy. I was a swing trader with active trade management. But as a person, I’m not a patient one. It was a setup for failure, managing an open trade going in profit for days, watching the swings; coming from a guy that wants to enter the market 10 times per day and lacks the patience to wait for the perfect setup to unfold.
[B]Now I’m trading two opposite strategies, that treat MY personality well.[/B] I’m scalping on the 1min chart, soothing my aggressiveness (~1RRR, 60ish% strike rate, 10-20 trades per day) , and swing trading a set&forget strategy (~6RRR, ~30-40% strike rate, 4 entries per month). I would not recommend working with 2 strategies for other newbies, but at least pick one that actually rolls well with you.
One final note I wish to make, and I really do hope this post (turning into an essay) is helpful for someone in the future.
Whatever you choose to do, this is a business like any other. When you study entrepreneurship, you will be taught how to first state your company’s mission and statement. And this seems to be neglected a lot in this business. What IS the reason why you trade? How much time will you wish to spend trading? What are your personal goals?
If you wish to have a side-income, would not suggest you try scalping. If you lack patience, like me, swing and position trading is not really for you, for most cases.
And so on, and so on, and so on…