Trading for living

[Livermore]

Thanks, but what is your strategy?

[peteuk]

Originally posted by csaunders
My only concern at this point is having to depend on my trading income to pay bills. This introduces a different mindset - I feel quite strongly that one of the reasons I am so successful is that I don't really care if I make a loss - the capital in my account I don't equate to paying my water & lights or paying off my car... Maybe Pete can give some input here or other full time traders. (I have to admit I really thought we had more on this forum...)


This Pete?

If so, my only comment would be that from a psychological point of view trading 'their' money (even though it's really your money) is a lot different than risking your own capital. Once you're in front you tend to view things differently, well that's been my experience anyway. The sinking feeling when a trade goes wrong seems to fade away until it makes no difference and can be shrugged off. Build up a decent reserve of equity elsewhere and the pressure is off, the desperate need to win no longer exists.
Another great plus for me has been the way I now view individual losses. Alone they can be quite disheartening, but view them as one trade in a series which overall produce profit and the losses are just something that happens. I have a look to see what I could have done any different, whether I strayed from my strategy, extract what I can by way of education, then move on and find the next trade, I don't dwell or beat myself up over something I can't change. That loss was alone, it didn't mean that much, and it won't affect my next trade.

Trading is a mind game as much as a strategy game, if not more so.

Pete

[peteuk]

....sorry, that sounded a bit patronising, it wasn't meant to.

Pete

[ShadeFx]

probably full time profitable traders dont read the beginner forum?

[Takada]

Good point Shade.

[csaunders]

Thanks for the input Pete.

I believe that a Trader that is free of "I have to make so much to cover these bills for this month..." is going to be a heckuva lot more successful.

Livermore - initially I traded announcements for quite a while (exclusively) - for me this worked quite well and provided my with the vehicle to amass capital that can successfully be used for longer term trades based on technical decisions.

Livermore - What has been your strategy up till now?

[pqdzung]

Thanks Cliff and all,

Luckily I catched your post on time.
Cliff, I know there are many successful traders and they share almost a set of rules (don't they? Not to mention losers for there are no reasons or unlimited number of reasons why they fail, I surely don't want to be one of them).
From the first post I read on this forum, always have the feeling that "successful = fulltime". Now I see you as the first (hope not only one) to be part time.

Yes, hunting for living is more than great. Till now I am just trading demo and you know, with no good results. Of course I am not disciplined enough but I 'd rather think of that later, now is time for a little-more-than-equal strategy (am struggling for breakeven).
I always get losses deeper after temporary recoveries.
Because it's just a demo account, then you can say not much emotion? No, actually some times that's correct when I am too occupied by other must-do things, but most of the time, I must admit unable to be indifferent (and this counts?).
I think the biggest reason for my losses is that my trades are stops frequently - even with different stop loss settings (max=50pips as I collected from someone on this forum).
Not much time for watching the markets, the only entry type for me is stop orders (first method as you stated). For that, the required factors are :
orders are to be executed and stops should not be hit too early. I just got the first half.
I draw trendlines, analyze even monthly charts (then weekly, daily...) to spot the correct levels to put SL but no help. The it leads to the feeling that you should be by the screen at the right time.
One more reason to support that is that you may miss the big move when you are away, then what will supply your energy for hunting except for rats or flys?
Indicators don't help because I could not catch up when they signal.
Well, I may have to practise 5 years in deed

[mikemc]

Being a new trader I'm seeing this clearer and clearer as I trade. The good thing is, if I don't have a "planned execution path" then I feel uneasy, and from experience in life I know that when I'm doing good but I'm feeling uneasy, I'm usually just being lucky.

Keep up the great thread, it's great to hear that others are part-timing it the same way I have to, and are being successful.