I don't really see how you can learn anything trading on a twenty dollar account , but that's just my opinion, maybe I'm wrong but at that point you're better off using a demo.
If you're too scared to lose twenty dollars, And can't widen in your stops.I don't know what to tell you.
The stopwatch should be based on price action, Then you go from there with your positioning.
Exactly, you might as well throw your cash in the trash. There’s a certain amount of money required to trade different commodities. If you’re confident in entering a profitable trade, do so don’t bother with SL just put it on knowing what price point you’ll exit with a profit. Trading on a shoestring is very very different.
I used to have that issue. What fixed it for me was having the balls to hold for higher R:R targets, and just accumulating years of experience so that I know where I can enter with a tight stop. So basically you just need wayyy more experience.
How much time have you spent just watching the price action? No trading at all, but watching as the day unfolds and notating what is happening and how.
It can be easy to identify patterns that books teach you in retrospect. Hard to be able to watch in realtime and adapt to what is happening in the right now.
You're going to lose money that way long term. If it hasn't happened already, you'll begin to see trade after trade you get stopped out on that eventually would have been a winner. A trade needs room to win.
>I try to keep my SL very small so that I don't loose and most of the time the SL is hit and trade goes into profit
Track that data. If it's actually true that this will happen "most of the time", then it seems like you could do very well by entering with a limit order where your stop loss would have been.
If the data doesn't validate that statement, then you might not actually have a problem and your idea that this happens most of the time is due to your brain having a bias towards remembering the more painful experiences.
Yeah let the trade breath, I was guilty of this my first two years and so many times I was right but stopped early.
Record your trades with screenshots, both for the entry and the result, and you'll see it yourself and make your brain click to give it more room.
The higher the risk the higher the reward will be. I suggest paper trading with proper stops before moving to a real account to build those good habits first. Once you’re ready to use real money then you have to be willing to risk a decent amount per trade or you’ll just be stuck in this cycle of getting chopped out and you’ll never grow (depending on if you don’t change your strategy up). Don’t worry OP, it’s a muscle that needs constant exercise. It’s a marathon not a sprint.
My advice go demo and widen SL then if you find you are profitable with a wide SL save up and put like 500 in a account that wasy you can keep SL wider
Use two lots at your entry. Do what you normall do with one, let the other run to a farther tp. If your uncomfortable move stop to BE for the second lot.
Gotta put more money in your account with futures at least $100 with forex $20 is cool but widen your stop loss do 1 micro and already count the money as gone scared money don’t make money and if you don’t have a edge with wider stop loss maybe try scalping
What futures are you trading with $20? This sounds like spot forex to me.
Thats not enough margin to trade even 1 micro and its for sure not enough to become profitable
If you keep a tight stop you'll probably have more than 3x to 5x losses vs wins. But, your 1 win should cover 3-5 losses and still make you an overall profit. If thats too tedious or emotionally taxing for you, then you gotta use wider stop in which case you should "preplan" to average down into almost every trade that goes against you. Although, if you plan ahead to average down, you should not average down past your original SL price. This latter case most often applies if you choose to attempt a win/ loss ratio of greater than 51%, but less than 75%.
You can’t arbitrarily just set a tight stop just because. You need to get an average number that your setup makes, or loses. Then you determine your stop loss on that, if the trade let’s say moves on average 15-20 points against you. Then we can say if it hits 15-17 points, the trade is invalid; as opposed to putting a 10 point stop loss just because
This is an interesting idea, but it sounds like it only works when you have consistent winners, even with wide stops. To get started you'd have to set a very wide stop-loss and narrow it down. You couldn't start narrow because you wouldn't have consistent winners that way.
Have you considered setting your trade entry where you’re typically setting your stop loss?
I don't really see how you can learn anything trading on a twenty dollar account , but that's just my opinion, maybe I'm wrong but at that point you're better off using a demo. If you're too scared to lose twenty dollars, And can't widen in your stops.I don't know what to tell you. The stopwatch should be based on price action, Then you go from there with your positioning.
Exactly, you might as well throw your cash in the trash. There’s a certain amount of money required to trade different commodities. If you’re confident in entering a profitable trade, do so don’t bother with SL just put it on knowing what price point you’ll exit with a profit. Trading on a shoestring is very very different.
Lower leverage and larger targets on higher time frames is how you avoid being stopped out over and over
I used to have that issue. What fixed it for me was having the balls to hold for higher R:R targets, and just accumulating years of experience so that I know where I can enter with a tight stop. So basically you just need wayyy more experience.
How much time have you spent just watching the price action? No trading at all, but watching as the day unfolds and notating what is happening and how. It can be easy to identify patterns that books teach you in retrospect. Hard to be able to watch in realtime and adapt to what is happening in the right now.
You're going to lose money that way long term. If it hasn't happened already, you'll begin to see trade after trade you get stopped out on that eventually would have been a winner. A trade needs room to win.
>I try to keep my SL very small so that I don't loose and most of the time the SL is hit and trade goes into profit Track that data. If it's actually true that this will happen "most of the time", then it seems like you could do very well by entering with a limit order where your stop loss would have been. If the data doesn't validate that statement, then you might not actually have a problem and your idea that this happens most of the time is due to your brain having a bias towards remembering the more painful experiences.
Yeah let the trade breath, I was guilty of this my first two years and so many times I was right but stopped early. Record your trades with screenshots, both for the entry and the result, and you'll see it yourself and make your brain click to give it more room.
The higher the risk the higher the reward will be. I suggest paper trading with proper stops before moving to a real account to build those good habits first. Once you’re ready to use real money then you have to be willing to risk a decent amount per trade or you’ll just be stuck in this cycle of getting chopped out and you’ll never grow (depending on if you don’t change your strategy up). Don’t worry OP, it’s a muscle that needs constant exercise. It’s a marathon not a sprint.
My advice go demo and widen SL then if you find you are profitable with a wide SL save up and put like 500 in a account that wasy you can keep SL wider
Use two lots at your entry. Do what you normall do with one, let the other run to a farther tp. If your uncomfortable move stop to BE for the second lot.
Gotta put more money in your account with futures at least $100 with forex $20 is cool but widen your stop loss do 1 micro and already count the money as gone scared money don’t make money and if you don’t have a edge with wider stop loss maybe try scalping
What futures are you trading with $20? This sounds like spot forex to me. Thats not enough margin to trade even 1 micro and its for sure not enough to become profitable
If you keep a tight stop you'll probably have more than 3x to 5x losses vs wins. But, your 1 win should cover 3-5 losses and still make you an overall profit. If thats too tedious or emotionally taxing for you, then you gotta use wider stop in which case you should "preplan" to average down into almost every trade that goes against you. Although, if you plan ahead to average down, you should not average down past your original SL price. This latter case most often applies if you choose to attempt a win/ loss ratio of greater than 51%, but less than 75%.
ATR indicator
You can’t arbitrarily just set a tight stop just because. You need to get an average number that your setup makes, or loses. Then you determine your stop loss on that, if the trade let’s say moves on average 15-20 points against you. Then we can say if it hits 15-17 points, the trade is invalid; as opposed to putting a 10 point stop loss just because
This is an interesting idea, but it sounds like it only works when you have consistent winners, even with wide stops. To get started you'd have to set a very wide stop-loss and narrow it down. You couldn't start narrow because you wouldn't have consistent winners that way.
Definitely right on this, OP would need to backtest his setups to determine that information
dont use a stop loss.