Friday, July 2, 2010
Violating Trading Rules
I have been day trading with small positions to prove to myself I can do it over the long term and some days make about $40 some days lose about $40. Today I made 2 mistakes. I traded against the trend and I moved my stop away from my standard 1% and lost $107. I heard a webinar with Larry Levin and remember one idea distinctly. He said he violated his day trading rules twice in the first 5 months of 2010. He said you must follow your rules. Today I violated 2 rules in a row and lost. In 2010, I must have violated good trading rules hundreds of times and my account is smaller because of it. Every day I find it difficult not to chase prices and buy at a high and wind up selling lower. This is my Achillies heel, my weakness. Unless I can stop myself from chasing I may may have to go back to work.
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Hey BJ139
ReplyDeleteMay I know how you have been trading the dow jones? through cfd, futures or something else?
I am actually trading it in Singapore, through CFD. Day trading here is difficult because the charges here had been so expensive, commission + spread + tax, making about $11 from 1 lot. This means i actually have to get 11 points onwards to start making profit.
Now they are having this Q3 promotion with all the charges 50% off. They should've started this promotion earlier! =/
How are the charges like in the UK?
As for your price-chasing issue and my stop issue. I assume that you are trading alone like i always do. i think we can actually remind each other and discuss while we are day trading.
May be on MSN? Wouldnt this be a good idea?
Bchung3000 from T2W
I have been using Interactive Brokers. I was paying $7 a trade with my old broker and now pay about $1 to $2. I am located in the US not UK.
ReplyDeleteDay trading seems to be more about trend following while trying to keep from getting whipsawed and losing more than the small amount you are gaining with each trade. I cannot day trade and leave comments about day trading at the same time because it demands my full attention. Comments about swing trading are easier since the time frame is much longer.