Home > Beginner education > $What is a new trader to do when trades simply don’t work?

$What is a new trader to do when trades simply don’t work?

What is a new trader to do when trades simply don’t work?

August 19, 2009 by dbadawi1984

I have been day trading equities for one year now. I guess it is important to note that I came to day trading with zippo experience. Yes, it is true I had never seen a Level II box and candle sticks were something I used for their nice aroma or in the event of an electrical failure. To say that my struggles were long and hard is an understatement; however, my struggles have paid off in many ways.

I think its important to talk about what I am struggeling with now because it helps me, as a new trader, to process through my thoughts and find solutions and perhaps it will  help someone else as they continue their journey to becoming a professional trader. The one major struggle that I continue to fight and fight more these days as I am pushing to gain consistent profits, is the struggle to accept risk and loss so that I don’t trade my P/L.

Specifically, I have been guilty of managing risk so tightly that I make small gains but miss the big winning trades that I should be capitalizing on. Cognitively, I realize that I need to be able to take the losses in order to make enough trades so that my winning trades outnumber my losing trades. This means that I must, as a professional trader, take every set up that is obvious. How else will the law of probabilities ever work so that my winning trades outnumber my losing trades?

Now, I must not be wily nilly about my stop losses and I must not take on huge risks that I can’t recover from. What I must do, as an intraday trader who is looking to build an intraday trading position that makes money, is take trades when set ups and market internals are obvious and hold them with a logical stop loss (for ex. at the nearest support/resistance level or the bottom/top of the prior 15 min. candle stick).

So the answer to my original question: What is a new trader to do when trades simply don’t work or one takes a negative hit on the P/L for the day?  Answer: Go on to the next trade!

Last, I remind myself that I must always be honest with myself as I continue my development as a professional trader. So I remind myself…..Have I taken some hits? Yes! But, I also have been able to stop focusing on my P/L and build my confidence which has led me to better trading and better gains when I get them.

Debbie

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  1. Mike
    August 19, 2009 at 8:36 pm

    Hi Debbie;

    Just finished the e-book Pete sent us and I think your right, trade the trade not the P&L.

    Great Trading Wishes

  2. August 20, 2009 at 7:25 am

    your positive attitude Debbie will guarantee your success

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