Unprofitable Trader Trying to Achieve Consistency

Hello everyone,

This is not the first time I share my story with you. I already did one week ago, but I had some issues with my previous account, and I had to delete it.

I’m 21 years old, and I live in Italy. I study political sciences. I have been following, studying, and trading the financial markets on and off since 2014.

:sleeping: Boring Trading Journey Story
Once upon a time… in 2014, a little boy named SpongePip watched a movie called “The Wolf of Wall Street”, and something immediately triggered in him and sparked a fire of interest in this wonderful magic field called financial markets. He was ready to become the first 15-year-old Wall Street billionaire trader :sunglasses:
The following day, with these brand new dreams floating in his head, he was buying and selling random stocks, eager to see his useless demo account balance growing to infinity and beyond. What he truly wanted was proving to the world that by only using his computer, he could turn a couple of bucks into Lamborghinis, luxurious mansions, and expensive holidays… and then convince his parents to open a live account for him (yo, slow down virg!)
Unfortunately, it didn’t happen, and he ended up blowing multiple demo accounts.
That’s where the fairy tale finished and the reality of trading killed my Wolf of Wall Street ambitions. I was heartbroken, but I knew that if I stuck to it, I could make it! That’s how my trading journey began and from this moment on, I started getting more in-depth into the financial markets ranging from stocks to technical analysis, from options to dividend capture, to arbitrage, and finally to commodities and Forex. Unfortunately, I’ve never really been consistent with learning and trading for more than 2 months in a row… I have the shiny object syndrome, and I’m always searching for that bright new idea that’s gonna finally make me rich. :man_facepalming:t3:
I’ve already started trading stocks, futures, and forex many times with a small live account of € 200, but I’ve never seen any results and ended up quitting with small losses or breakeven. Used many styles in different timeframes, scalping, trend trading, and swing trading.
The only results I’ve ever seen were always in demo accounts, but we all know that you can’t really take seriously demo trading, or maybe it’s just me.

And here I’m, 7 years later.
I’m not profitable.
I’m not consistent.

But during those 7 years, I’ve slowly learned a lot about the markets, about risk management, about trading psychology, and I know what is achievable and what is not.

My goal is to join a proprietary trading firm. I don’t have a job, and I don’t plan to get one until I finish my studies, so I can’t really add capital to a small account and grow it this way.

First of all, I need to build a full trading plan, backtest it, and start demo trading. I’d like to start getting positive results before 2021. I would even be satisfied with as little as 1% monthly return, but honestly, even breakeven sounds better than nothing.

If I can achieve it, in January, I will open a small live trading account and start tracking my trading results, hoping they get better and better with time. Eventually, I will get to a point where I can apply for a prop trading firm… at least that’s what I hope!

I’m here to share with you my journey towards joining that 10% of consistently profitable traders. I don’t know anyone who’s into financial markets and I think this community can help me with my consistency and hopefully, I can give you something back as well.

Thank you for your attention,
Best Regards,
:v:t3:

2 Likes

@SpongePip

Well the first thing I would say is if you are day trading then stop it now.

If you haven’t found consistency in 7 years intra day then it’s time to try a longer term approach.

In fact with your political science background I would even say thar double, the markets have many political themes constantly running through them, but rarely do they play out in one day.

It took me 8 years before I started making money, so you still have a year on me

If, you are not day trading or scalping though, forgive me for presuming so.

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Okay let’s see

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It is an interesting story that you are in fOrex for the last 7 years and still not profitable and consistent, I think you should rethink your strategy and plan and should renew them.

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Hi, and welcome. IMO, and I could be wrong, is that you’re not trading your live accounts like your demo accounts. Which means you need to make a detailed analysis of what worked well and what didn’t, then focus on doing more of what worked and less of what didn’t.

I also sense that the financial freedom offered by a large demo account capital has been offset by trying to emulate that on a small capital live account.

That is key, IMO. Having trading a $2,000 demo account for the last year as if it was a live account, I realised it’s the toughest method of becoming profitable when risk and money management is critical.

And, IMO, it’s practically impossible to trade a low capital live account successfully without excess risk because your S/L needs space to breathe, so that minor spikes won’t blow you out of what could be an otherwise profitable trade.

And that extra risk is a major factor that kills off low capital traders. My suggestion is that you open a $2,000 demo account, use between a 0.08 and 0.16 trading lot size, set your S/L at between 150-200 with a maximum loss risk of $19 per trade and your T/P at 275-300, and choose a simple strategy that you like.

With this money management, it’s feasible you could close a winning trade when reaching over $20 on the assumption that you can identify more winning trades than losers, or if the price movement is turning against you.

Then, as John suggested above, try and prefer using the higher time scales. If this works out well for you, do NOT open a live account until you have saved up $2,000 from your new part-time job, which will provide the motivation for you to achieve your future career.

Good luck.

2 Likes

Hi @Johnscott31
You are right, I always tried to do day trading because I was so impatient.
I learned the hard way it wasn’t the best choice for a newbie but still I didn’t want to move to slower timeframes.
I think now I have to if I wanna see some results in my trading journey.
Also, I agree with you on the political themes. I’m very passionate about them and I know more or less how do they move the market. I’d love to get more into the fundamental side of trading.

Thank you for your reply and best regards!

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Hi @Gove1971
For sure, I’m already working on a trading system.

Thank you for your kind reply and best wishes!

Hi @steve369
Thank you so much for your kind reply and your suggestions. I’ll implement them in my journey.

Hope to read more from you!
Good luck
:muscle:t3:

It’s still okay. You must never leave hope and keep learning. This is the only way to succeed.

Political and economic fundamentals have provided an overdose of input during 2020 and provided many opportunities for good moves. COVID, US elections, US-China trade war, EU-UK transition period to mention but a few.

Following such economic and political issues adds interest and depth to one’s trading but does not necessarily make it any easier. For one thing, unless you are trading baskets, trading forex means trading a pair of currencies, each with its own factors, and it is their relative strength/weakness that determines the direction of its price.

You will also often hear expressions like something is “already priced into the market” or “buy the rumour, sell the fact”. These highlight the difficulties in fundamental trading with determining at what level to enter a position and when and where to get out again.

So even when trading fundamentals it is still worth applying some form of technical analysis in order to identify some structure in price movements and to assist in making decisions about when and where to enter and exit (both target or stop levels).

Trading based on a fundamental dimension will surely function better on a longer term analysis with daily/4-hour analysis being the lowest that could be considered relevant. Anything shorter term is for daytrading/scalping which is an entirely different ball game.

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Thank you for your insight on fundamentals! In the last months I’ve studied more in depth the markets and what moves the prices and I’ve really enjoyed it.

Best wishes and happy 2021!
Cheers
:tada: