Wednesday, June 24, 2009

I'm getting to the point where I am going to need to get a job very soon if I can't make this work. I would be quitting temporarily, but until that point I need to decide what to focus on. I've proved that I'm no good at trading stocks, especially with the pressure of 3 day trades a week. I tried futures, lost big at first due to lack of preparation and lack of paper trading the theories I had come up with. I've also been trying forex lately with mixed results. I'm left to make a list of the pros and cons of stocks, forex, and futures.

Stocks:
Pros: You can choose how much you want to risk/Resources like Investors Underground chat and Timothy Sykes.
Cons: 3 day trades a week / $9.95 a trade makes a break even trade seem like a big loss to an account my size.
Forex:
Pros: Unlimited day trades
Cons: Slippage
Futures:
Pros: Unlimited day trades/ Seems to obey S/R points more so than forex.
Cons: A lot of risk per trade with 1 point in the NQ being $20 /Minimum balance at TOS is $3500. I'm barely over that.

Right now, I'm leaning towards stocks due to the fact that I've had the most experience with stocks. I've been attempting to trade stocks for almost a year with no success.

No matter what I try to do, I need to figure out when to throw in the towel. I'm thinking if my account goes below $3000 I will call it quits for a while. That gives me about $500 of no fear money. I need to focus on making trades with no fear and no thoughts about P/L amounts. If I can do that, I think I can stay above the $3000 level.

1 comment:

Soullfire said...

To be honest, ~$3500 is an incredible thin margin to be trading with. There's not really any buffer against losses and that will play on you psychologically to make trading that much more difficult.

I'd say first be sure you have a repeatable edge in your trading technique via simulated trades before proceeding to trade with real capital.

Try to make it feel serious as trading for real so you also get practice on handling your emotions.

Once you have proven to yourself that your methods work over a few weeks, then you know you're ready to try real cash.