Continuously losing :(

[Attila the trader]

I opened my account in April and im already down 33 % , losses are pretty consistent, occasionally i will make 3 , 4 % profit , im consistent with my strategy and rarely trade emotionally , i observed that i hit the sl and lose the trade often but if i move it lower i will risk more than 3 %
per trade , how can i fix this ?

 

[timsk]

. . .how can i fix this ?

Hi attila low,
It's clear from your post that you don't have a properly tested trading plan. If you don't know what that is or how to create one - then check out the link in my signature. Note that a 'strategy' is not the same as a 'plan'. Your strategy might be to trade opening range breakouts, pullbacks or reversals to the mean - or any number of other things - any and all of which are fine in per se, but none of them will work if they're not part of a properly tested plan. So, what to do?

Firstly, stop trading. Now! Carry on as you are and you'll blow your entire account. As the balance goes down you'll be inclined to take bigger risks in a desperate bid to claw back your losses - with inevitable results. I know, I've been there! So, stop trading and go back to paper trading and don't even think about risking real money unless and until you can make consistent virtual profits. If your plan - when you have one - doesn't work paper trading, it sure as hell won't work with a live account.
Tim.

 

[tomorton]

Started trading in April. You started trading during an unprecedented pandemic emergency with a global financial crisis about to strike. Hard to think of a strategy that would work well right now.

 

[Pat494]

Listen and act on the wise words above.
Your pet system is obviously flawed. Change it or even bin it and start again.

 

[Attila the trader]

Hi attila low,
It's clear from your post that you don't have a properly tested trading plan. If you don't know what that is or how to create one - then check out the link in my signature. Note that a 'strategy' is not the same as a 'plan'. Your strategy might be to trade opening range breakouts, pullbacks or reversals to the mean - or any number of other things - any and all of which are fine in per se, but none of them will work if they're not part of a properly tested plan. So, what to do?

Firstly, stop trading. Now! Carry on as you are and you'll blow your entire account. As the balance goes down you'll be inclined to take bigger risks in a desperate bid to claw back your losses - with inevitable results. I know, I've been there! So, stop trading and go back to paper trading and don't even think about risking real money unless and until you can make consistent virtual profits. If your plan - when you have one - doesn't work paper trading, it sure as hell won't work with a live account.
Tim.

yeah i did stop trading (went down 39 %) continued paper where i had made about 19 % in bout 3 4 months , can you tell which strategy (break out , reversal ,momentum etc ) is statistically more profitable , i observed my previous trades majority of the losses are from early sl , i traded small cap (not penny) stocks, thanks .

 

[timsk]

yeah i did stop trading (went down 39 %) continued paper where i had made about 19 % in bout 3 4 months , can you tell which strategy (break out , reversal ,momentum etc ) is statistically more profitable , i observed my previous trades majority of the losses are from early sl , i traded small cap (not penny) stocks, thanks .

Hi atilla low,
In answer to your question highlighted - the strategy that will be most profitable is the one you have a properly tested trading plan for. Out of one hundred traders, if 99 of them are trading without a plan, I'll back the one trader that has a plan - regardless of the strategy employed. Your issue has nothing to do with whatever your strategy you're using and everything to do with the fact that you don't have a plan. The one piece of good news is that you've observed where and why losses are occurring which MAY mean (note emphasis) that the other aspects of your strategy are okay. So, your task now is to figure out a risk management strategy that provides you with a positive expectancy - as opposed to the negative expectancy you have at the moment. If you don't know what this means, check out this Sticky: Essentials Of 'Risk & Money Management'
Tim.

 

[thfrtht]

Started trading in April. You started trading during an unprecedented pandemic emergency with a global financial crisis about to strike. Hard to think of a strategy that would work well right now.

I don't quite understand? The markets have been fairly forgiving since April and overall bullish. Any solid strategy based on defined perimeters would of worked fine. The limit down days were rough for a new trader, but those didn't happen in April. The only other issue would be the increased movement, but that's a matter of trading smaller size, moving to a larger chart and expanding your ATR to deal with risk / emotional issues.

Him not being profitable has likely very little to do the situation given what he is saying and current / past market environment. Even if it did, if he's going to trade choosing when to stay out because of fundamentals just adds another layer of complication.

Bottom line is he needs to find an edge. Not trying to debate, but he asked a question and your answer doesn't really make a lot of sense.

 

[tomorton]

I don't quite understand? The markets have been fairly forgiving since April and overall bullish. Any solid strategy based on defined perimeters would of worked fine. The limit down days were rough for a new trader, but those didn't happen in April. The only other issue would be the increased movement, but that's a matter of trading smaller size, moving to a larger chart and expanding your ATR to deal with risk / emotional issues.

Him not being profitable has likely very little to do the situation given what he is saying and current / past market environment. Even if it did, if he's going to trade choosing when to stay out because of fundamentals just adds another layer of complication.

Bottom line is he needs to find an edge. Not trying to debate, but he asked a question and your answer doesn't really make a lot of sense.

Sorry, I tend to over-focus on forex.

 

[0007]

I opened my account in April and im already down 33 % , losses are pretty consistent, occasionally i will make 3 , 4 % profit , im consistent with my strategy and rarely trade emotionally , i observed that i hit the sl and lose the trade often but if i move it lower i will risk more than 3 %
per trade , how can i fix this ?

Without knowing your strategy it's impossible to say.

 

[Attila the trader]

I don't quite understand? The markets have been fairly forgiving since April and overall bullish. Any solid strategy based on defined perimeters would of worked fine. The limit down days were rough for a new trader, but those didn't happen in April. The only other issue would be the increased movement, but that's a matter of trading smaller size, moving to a larger chart and expanding your ATR to deal with risk / emotional issues.

Him not being profitable has likely very little to do the situation given what he is saying and current / past market environment. Even if it did, if he's going to trade choosing when to stay out because of fundamentals just adds another layer of complication.

Bottom line is he needs to find an edge. Not trying to debate, but he asked a question and your answer doesn't really make a lot of sense.

yeah i have not found an edge yet , i used a mechanical strategy which used indicators and tight 3 % stops but back testing showed a very low hit rate (even though profitable ) i changed into a swing strategy trying to get winners to run but didn't land any , now im trying to hold on for more than 10 days trying to catch mid size trends on large caps (testing on paper )

 

[mpups]

wow ! in 2000 i wasn't even born ...

yeah i have not found an edge yet , i used a mechanical strategy which used indicators and tight 3 % stops but back testing showed a very low hit rate (even though profitable ) i changed into a swing strategy trying to get winners to run but didn't land any , now im trying to hold on for more than 10 days trying to catch mid size trends on large caps (testing on paper )

When I was your age I would have had no idea what you were talking about. I had no concept of trading or investing, and money was just something you spent. I wonder if that's a fortunate or unfortunate thing... . I sometimes wish I had been more interested in things that would have been more obviously useful to me now.

 

[Attila the trader]

When I was your age I would have had no idea what you were talking about. I had no concept of trading or investing, and money was just something you spent. I wonder if that's a fortunate or unfortunate thing... . I sometimes wish I had been more interested in things that would have been more obviously useful to me now.

yeah im planing fro the long run 15 year goals !

 

[john jackson III]

and you will continue to lose trying to game professional traders out their money.

its a losing game for retail, the edges are so thin.

i still try because i have a LOT or TIME invested there is no going back for me.

 

[mpups]

and you will continue to lose trying to game professional traders out their money.

its a losing game for retail, the edges are so thin.

i still try because i have a LOT or TIME invested there is no going back for me.

i'm not disputing the pessimism here regarding statistical chances of success (skewed by every clueless noob that has a go and gives up), but the performance of funds managed by professionals is not always good and sometimes dreadful as well

 

[john jackson III]

i'm not disputing the pessimism here regarding statistical chances of success (skewed by every clueless noob that has a go and gives up), but the performance of funds managed by professionals is not always good and sometimes dreadful as well

I've heard this, but is it true? if it is why would high net worth individuals place ANY money in their hedge fund hands if they are losing all this money?

 

[mpups]

I've heard this, but is it true? if it is why would high net worth individuals place ANY money in their hedge fund hands if they are losing all this money?

Yeah what I said is true to me... have a look into it decide for yourself
"why would high net worth individuals place any money in their hedge fund hands" is beside the point though, i am not saying nobody should use a hedge fund - l am not against them

 

[john jackson III]

Yeah what I said is true to me... have a look into it decide for yourself
"why would high net worth individuals place any money in their hedge fund hands" is beside the point though, i am not saying nobody should use a hedge fund - l am not against them

i think the point is taking money out of professionals mouths is very difficult

you aren't a professional, right?

why do you think you have a leg on up professionals? you are the quiet genius or smthg?

 

[Henow1969]

Started trading in April. You started trading during an unprecedented pandemic emergency with a global financial crisis about to strike. Hard to think of a strategy that would work well right now.

Right ,it was uncertain period outthere in the world and it also affeted Forex market and many traders lost their money in this pandemic period. Not favourite for new traders especially.

 

[Attila the trader]

and you will continue to lose trying to game professional traders out their money.

its a losing game for retail, the edges are so thin.

i still try because i have a LOT or TIME invested there is no going back for me.

so your telling that you have already spent a lot of time and still holding on because of it

 

[Attila the trader]

b

Right ,it was uncertain period outthere in the world and it also affeted Forex market and many traders lost their money in this pandemic period. Not favourite for new traders especially.

but there is good volatility