Anyone Need Help?

[Sharp2Be 10]

sharp2be i am a prop. trader and my loss limits are imposed upon me so i have no choice but to follow them. and Abe regarding what you said about addiction i think you may be on to something. i have a plan although its not entirely rigid, but i am taking this weekend to rework some of it in a way that i think will help. i've also done a lot research into trading psychology and impulsive and compulsive trades. Im trying to incorporate what i learned into my new plan

 

Jcavalieri - you said you are a prop trader, can you please give me an idea of sort of limits (please use % or other neutral measurements) are imposed to you.... I'm using 2% of my trading capital per trade and my maximum loss in a day is set at 6%.... Thanks.

[jcavalieri 10]

sure, right now i have 50 thousand in trading capital and my daily loss limit is 30 dollars. when i hit that i stop trading the day and can't begin till the next. if i loose 3 times my daily limit at any point during the week i can not trade until next week. as i improve my trading my capital goes up as well as daily loss limits. when i move on to the next level my daily loss limit will be 60

[jcavalieri 10]

of course i should mention if i hit my loss limits a risk manager from my firm liquidates my position for me so it completely takes me out of the picture. i suggest making it just as automatic for yourself as it really improves discipline. i don't rigidly define my per trade amount either instead i use discretion, but that is how i was trained. i do have maximum lot limits though, but they just can't be exceeded on single transactions. currently my limit is 100 lots.

Edited September 14, 2008 by jcavalieri

[brownsfan019 17]

of course i should mention if i hit my loss limits a risk manager from my firm liquidates my position for me so it completely takes me out of the picture. i suggest making it just as automatic for yourself as it really improves discipline. i don't rigidly define my per trade amount either instead i use discretion, but that is how i was trained.

 

Most brokers, at least in futures, will do this for you - tell them when to 'shut off' your trading if a certain loss level is reached after your positions are liquidated.

[smwinc 20]

my daily loss limit is 30 dollars.

 

 

30 dollars? Did you mean 300 dollars?

 

What are you trading?

[jcavalieri 10]

nope i said 30. it does increase as i move on to each new level though.. i trade equities mostly nasdaq100 stocks. it was made very clear to me by my trainer that a lack of forced discipline will cut many traders journey short. along with a lack of professional training and sufficient trading capital. of course i know trading with out professional training can be done though

[Sharp2Be 10]

nope i said 30. it does increase as i move on to each new level though.. i trade equities mostly nasdaq100 stocks. it was made very clear to me by my trainer that a lack of forced discipline will cut many traders journey short. along with a lack of professional training and sufficient trading capital. of course i know trading with out professional training can be done though

 

j, I'm sorry but $30 doesn't sound possible if you are trading $50k capital... that's $0.30/share on a 100 share lot...??

[jcavalieri 10]

idk what to tell you then. i didnt say i was trading 100 lots i said that was my limit by the way. i agree it is kind of tight if that is what your saying but i did not come up with them and all the other 1000 traders that trade there make it through the levels. it seems possible for them and should be for me. 30 is also my weekly minimum target for the same period. so for two weeks if i can keep my profits above 30 then i move to the next level. if i run into 30 dollars of expense one day then i have to make it up before the week ends in order to keep my weekly profits above the weekly min. target if they aren't already.

Edited September 15, 2008 by jcavalieri

[jcavalieri 10]

its my guess the idea is forced tight stops while your learning to keep losses to a minimum so they can be easily made up once you get better and move to higher level with more capital and larger lot limits

[jaysmith124 10]

I could use help changing a conditioning, or programming, from my youth. I have an implicit belief, and financial mindset, of lacking. When young my parents could not afford to give us money for the ice cream truck, etc. I have struggled financially even when making 85,000 to 100,000 a year as a glazing subcontractor. Never spending to enjoy myself.

Now, I have the ability to make more money than I need with trading, but am not putting my money up to risk. I have narrowed my problem down to having a mindset of lack when what is needed is a mindset of abundance. If I were to tell somebody else who had my problem what to do, but I can not do it myself. Amazing! Not really, after understanding more and more of how the brain functions. (I have core beliefs that others will begrudge me, yet I see others who are not afraid of this at all, but still I have these worries)