ChimpMaster, I am shocked by some of those answers! From what you have said, you will blow your account and continue to blow many accounts until you are bankrupt.
You can trade the markets with a statistical set of results that give you confidence in your strategy or you can gamble with the markets by taking potshots, adding to losing positions, risking too much of your account, etc. You have chosen the second option.
You have already highlighted the mistakes in your post which you must correct, otherwise you will eventually fail:
Believe me, doing the wrong things and instilling bad habits soon turns trading into a gambling addiction. When I first started trading, I couldn't control my emotions for a few years. After taking many potshots, averaging down, watching every tick of price movement, etc., I had to literally "re-program" myself to do the right thing. This is the problem that all new retail traders have.
You can trade the markets with a statistical set of results that give you confidence in your strategy or you can gamble with the markets by taking potshots, adding to losing positions, risking too much of your account, etc. You have chosen the second option.
You have already highlighted the mistakes in your post which you must correct, otherwise you will eventually fail:
- No trade plan.
- Massive over-leveraging. You should be risking no more than 2% of your account in the market at any one time.
- Chasing losses/Revenge trading
- No confidence in your strategy (believing no retail traders have an edge). If you believe this, don't trade and go to a casino instead.
- Not being able to accept losers. This is what is killing your account - "I then get hit hard by a big losing trade".
- Not having a statistical sample of trades to tell you if aiming for high win/loss ratio vs high risk/reward will pay off.
- Reinforcing negative behaviour by winning "bad" trades or potshots paying out, as you have mentioned.
- Not learning from your mistakes or analysing your mistakes
- Not keeping records of your trading activites.
Believe me, doing the wrong things and instilling bad habits soon turns trading into a gambling addiction. When I first started trading, I couldn't control my emotions for a few years. After taking many potshots, averaging down, watching every tick of price movement, etc., I had to literally "re-program" myself to do the right thing. This is the problem that all new retail traders have.
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