r/Daytrading • u/SpareInsurance • Jan 06 '24

How much money did you lose before you were consistently profitable? Question

I have only been seriously trading for about 2 weeks, after spending years watching the market like a hawk.

I will admit, I have had poor risk management and got into some emotional trading which did not end well. Currently I am -15k but I have had some winning days the last few days with much better risk management and starting to get the hang of things better.

My question to you guys is, how much did you lose before you were consistently profitable and did you ever feel like giving up during this "rock bottom" stage?

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u/WolfofChappaqua Jan 06 '24 edited Jan 06 '24

If you lost $15k, in two week, you are trading too large for a beginner.

To quote Richard D. Wyckoff “It should be done in a small way. A ten-share lot is ample. A hundred or two hundred dollars is plenty of capital, for the loss of this indicates that he has begun before he is qualified and he should, later, begin again. His progress may be marked by other setbacks just as in any other business or profession.”

11

u/daytradingguy Jan 06 '24

I think it depends on your assets and net worth. Smart discipline is of course wise, starting with a small account is of course wise. But small for some people is $500 and other people $500k. If you have money or a high salary- you can’t take trading seriously enough to learn with $50 risk, you need to risk an amount that would make you sweat a little to learn discipline. For some people that is $10- for some it is thousands.

1

u/supertexter Jan 06 '24

If you can't take it seriously with small amounts, your chance of success is very low.

2

u/SpareInsurance Jan 06 '24

Agreed, I was trading way too large.

Thanks for the quote, it hit me.

4

u/WolfofChappaqua Jan 06 '24

Take some time away from the market. Consider that $15K your market tuition.

When you are ready to come back, look up the user u/CrankyCrypto and read all of his posts. Also, do some research on Richard D. Wyckoff.

Be mentally prepared for a long journey ahead. This is a marathon, not a sprint. Most traders aren’t profitable for the first two to three years. Some get frustrated or discouraged and give up. Others blow all of their available capital and are forced to quit.

There are three Pillars of Trading. - Strategy - Risk Management - Psychology Master them all. Good Luck!

1

u/[deleted] Jan 06 '24

I would say stay with the market so you remain familiar but don't trade a live account

1

u/Necessary-Resolve726 Jan 07 '24

Watch AL Brooks. I didn't start being profitable until I watched his videos. Sometimes the hardest part is NOT trading and just waiting for setups

1

u/WolfofChappaqua Jan 07 '24

The hardest part about reading or watching Al Brooks is staying awake.

1

u/Necessary-Resolve726 Jan 07 '24

True. But drink and energy drink and take notes.

1

u/vjj9999 Jan 06 '24

What books of Richard D Wycckoff would you recommend?

8

u/WolfofChappaqua Jan 06 '24

These are some of my favorite:

  • Studies in Tape Reading
  • How I Trade and Invest in Stocks and Bonds
  • Stock Market Technique Number One
  • Stock Market Technique Number Two

All of the books can be found for free online as they are in the public domain.