I just wanted to write this post for the sake of transparency. Although my predictions verifiably have a high success rate when trading this isn't always the case. Although I don't lose money I also don't make much. My problem is consistency. And some others. Please comment if you have suggestions on ways to improve.
This post is to brainstorm what I feel are the biggest obstacles to consistent profitability and maybe learn something from you. What were your greatest challenges that when you overcame them allowed you to be more profitable?
My biggest nemesis I believe is got to be down to over trading. I also get jittery. Sell my winners to quickly and hold my losses too long. I know somewhere in here is the key to success. I also tend to focus almost exclusively on reversals vs continuation moves. (something else I'll be testing)
So you can see I've got several variables to work with as I constantly seek to improve as a trader. I have a good sense of the direction of the market. Managing my trades is it seems the problem. That and taking less than ideal entries.
So is it an issue of r&r being skewed? I easily win 70% of the time. The problem is I invarioubly take big losses that wipe out all the winning.
This could also be a function of leverage. Although that is no longer going to be a problem.
My solution is going to be to try to focus exclusively on reversals which are showing confirmation of a reversal. And maybe wave 3 breakouts. I need to get out of that state of thinking that says I always need to be in the market or that such a technique can be profitable. I'm beginning to verify for myself it's not.
Also looking at confirmations at longer timeframes, trading in the direction of the trend etc. might help. Overall just using more filters and being more selective when entering trades. Then testing different ideas for risk management including laddering and different stop levels.
These are the areas I'm focusing to improve my trading. What are yours? Let me know if you have any tips or if you have experience overcoming the problems or any others I forgot to mention.
Salud amigos
This post is to brainstorm what I feel are the biggest obstacles to consistent profitability and maybe learn something from you. What were your greatest challenges that when you overcame them allowed you to be more profitable?
My biggest nemesis I believe is got to be down to over trading. I also get jittery. Sell my winners to quickly and hold my losses too long. I know somewhere in here is the key to success. I also tend to focus almost exclusively on reversals vs continuation moves. (something else I'll be testing)
So you can see I've got several variables to work with as I constantly seek to improve as a trader. I have a good sense of the direction of the market. Managing my trades is it seems the problem. That and taking less than ideal entries.
So is it an issue of r&r being skewed? I easily win 70% of the time. The problem is I invarioubly take big losses that wipe out all the winning.
This could also be a function of leverage. Although that is no longer going to be a problem.
My solution is going to be to try to focus exclusively on reversals which are showing confirmation of a reversal. And maybe wave 3 breakouts. I need to get out of that state of thinking that says I always need to be in the market or that such a technique can be profitable. I'm beginning to verify for myself it's not.
Also looking at confirmations at longer timeframes, trading in the direction of the trend etc. might help. Overall just using more filters and being more selective when entering trades. Then testing different ideas for risk management including laddering and different stop levels.
These are the areas I'm focusing to improve my trading. What are yours? Let me know if you have any tips or if you have experience overcoming the problems or any others I forgot to mention.
Salud amigos