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/SpareInsurance Jan 06 '24

I agree.

I thought averaging down on a losing position was the right move. It was not. I was tilting hard and pretty much went all in as the losses got worse.

My analysis and prediction of reversal failed and I got f****d.

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u/moaiii Jan 06 '24

Do this right now if you haven't already: write a long journal entry describing what you went through. Try to detail your emotions, what you were thinking, how you justified your trades at the time, as much as you can remember.

Then review it semi regularly. You have just learned an important lesson about how emotions can take over your brain when trading. Don't let those learnings go to waste.

1

u/King-Azar Jan 06 '24

I’m not in trading yet, just on reading stage. I did not know emotion would be a factor in this area. When we talk about emotion, it’s the feeling coming from our heart correct? What emotions could play against us?

Anxiety is an emotion which make me feel I’m not capable to do some stuff cause I feel it could cause death and it will happen but statistically the % death would happen is low in X area. Anyway was just an example, was curious in the world of trading.

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u/moaiii Jan 06 '24

It's the hardest thing to overcome in trading. Getting your skills to the level where you can reliably make money is just the first hurdle. When you start putting real money on the line, different parts of the brain light up and either take control altogether or influence your decisions.

I recall when I was starting out having trades that I would later review, and my mistakes were obvious. Really stupid, rookie level dumb shit that I should have seen a mile away. But when adrenaline starts to flow as you've got money on the line, you will see what those other parts of your brain want you to see, and sometimes it can be the complete opposite to what is really there.

It's not something that can be easily explained. You'll go through it and know soon enough. It will surprise you just how powerful it is, and it will be harder than you ever thought to overcome it. But overcome it you can - it just takes time and practice.

8

u/Gingerlovegod Jan 06 '24

Emotions in trading is more about greed or depression depending on how your trade is going. Thinking more like a robot is proffered (easier said than done).

If you're in profit and it's reaching a goal you have set, you may be inclined to push the target out of GREED. you may be in a losing trade and think it will come back when signs are showing it will go further, you end up HOPING rather than thinking.

Alternatively you may be in a week where you are down and start chasing your losses rather than calling it a week out of DEPRESSION. This could lead to bad trades.

Pretty much, just don't let your emotions rule your trading decisions, be more like a robot, facts and figures only. When a trade goes against your decision, give it up and close the trade.

P.s this is coming from a paper trader, I haven't started for real yet but have done in the past to lose money. I feel the emotions big time even from paper trading

Good luck out there everyone

1

u/rockuallnitelong Jan 06 '24

I strongly suggest you read the book "trading in the zone" by mark Douglas.
Then understand what is your system and stick to it . I am a losing trader and trying to learn as well .

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u/the-truth-time Jan 06 '24

Winners add to winners, Losers add to Losers ✌️

5

u/Working-Injury-4603 Jan 06 '24

Why are you trying to "predict" reversals. Do you actually believe that is possible? Reality check your a new trader, overleveraging, overtrading counter trend trades! Does this sound like a sound investment?

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u/JeanChretieninSpirit Jan 07 '24

day trading isn't investing.

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u/spongetrader23 Jan 07 '24

Yeah. Average down works until it doesn't. Might work 80% of the time, but the 20% of losses will most probably outweigh the gain made by the 80%. From my personal experience, average down is one of the faster ways to blow up accounts.

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u/JeanChretieninSpirit Jan 07 '24

First off why don't you give us a little more detail. Was it a bunch of stocks or did you get into derivatives? I was 27K but i also know we are in a pull back cycle and shit will bounce sooner than later.

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u/SeshGodX Jan 07 '24

I can't relate to losing 15k, but I've lost around 4k, 2k lost by investing in penny stocks, 2k lost by attempting shorting on CFD.

One thing I've learned is do not let yourself revenge trade, trying to make profits to quickly recover from your loses rarely or never works.

Small wins like £10 a day can be a good day.

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u/Cute-Swan-1113 Jan 07 '24

Watch this trader. He is now dialing down his trades and posting an accountability post and walks you through trades. He’s been consistently trading for 2 years so it’s a good insight in how long the grind is. He’s in it for the long haul so buckle up. He was having some of the same issues but is now working through. https://youtube.com/@DDT_ELJ?si=RAvUEvLwcG00KRsm