I have enjoyed TH's account of his winning CFD trading(and whole thread really), mine is less inspiring-but any comment appreciated!
Frustrated! I am just paper trading in my case!.. I started a month or so back with a view to use my charting knwledge () ...haha..to scalp a few points on a regular basis off a futures index or 2 on the 1 min chart. I am now suitably humbled as after several hundred trades I have confirmed that I have a negative expectancy, today I wiped out my maximum daily risk ($300) in less than an hour with a single contract on the ES.
What I have learned so far is;
I dont have the skill to trade in choppy markets
There is a huge potential to chew money up trying to get into breakout/down trades
I have fear of missing the start of a run-this keeps me in breakoutzones getting chewed
I have fear of losing a profit, difficult to let a winner run-this means I have to look for reentry if trend continues-many a run watched disappearing without a buy signal that is in my weaponry...I dont want to chase.
I am ok at exiting with a small loss, there is just too many of them.
Often, it seems as though my entries actually define a short term high or low, with immediated reversal and stop taken out...this has got to be telling me something, just not sure yet what that is
What actions do I now take?
Be discriminatory about what market conditions I trade-dont trade just because I can. I need a trending market.
I may move away from the 1 minute and try the 5 minute chart?
Learn to read the short term market emotion better, I currently trade off a chart with hotkeys and look only at volume and moving average or 2, and a glance at a longer term chart eveery so often.
MRC&co mentioned the phenomena of the market stalling and what happens next...I need to be able to read these moments and act with percentages in my favour. Might have to start using the DOM, which I have avoided as it seems so manic it can be unsettling.
Need more work on analysing patterns in the market(s) that I wish to trade.
Need to learn more about how global markets impact on each other,
Persevere! Persevere! More saddle time....
Oh and did I say dont trade choppy market periods!
The thing is I really love the challenge of this, and the active nature of it all, so wont be giving up.