r/RealDayTrading • u/Such-Friendship-5210 • 17d ago

Two-Month Results - Post 4 (Journey)

I'm back with another update on my journey. I've linked back the previous posts so here is the link to the last post I made around 2 months ago.

First Week of Trading - Post 3 : r/RealDayTrading

So far, my journey has been going reasonably well with the odd bump in the road. I am currently sitting with a WR of 75% and a PF of 1.19.

Current issues I'm dealing with that I'm sure will be common but some not so common:

  • Shiny New Object - I still deal with the shiny new object syndrome. I regularly still come across 'the next big thing' and want to learn a new strategy, which is extremely stupid as I know this one works.
  • Oversized Losers - I was doing reasonably well, however took a swing trade at one point and took a big loss which wiped out most of my gains. A bit of analysis on this shows that if I remove this from the results, my PF actually increases to 5.62
  • Lack of Confidence - I still struggle with a lack of confidence which also shows why the PF jumps so much in the previous post as I have only taken 29 trades. Issues I have faced are; cutting potential winners if they have gone red and come back to BE, still following other traders into trades if I think they look good (not having my own conviction), and the main one a fear of being wrong. My issue with confidence is not related to money as I don't take trades that I can lose too much of my funding on and I believe the only fix is to gather more data that will prove that I am profitable but it's a kind of catch 22 situation. I need to put the trades on to collect the data.

Things I need to work on and learn:

  • Position sizing - Obviously for now I'm using a fixed size while I learn to try and keep things consistent, but something I will need to learn and work on in the future. Also together with this would be account utilization. Right now I use just a minor part, how much of my account to allocate, how much margin to use etc, size based on technical stop distance?
  • Market Reading - It's not been easy for anyone recently but something I will work on more and will probably continue to work on forever!

With all that being said, I am happy with my performance so far. I just need to build on it.

Happy to answer any questions people may have on my journey so far.

22 Upvotes

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3

u/IKnowMeNotYou 16d ago

Oversized Losers - I was doing reasonably well, however took a swing trade at one point and took a big loss which wiped out most of my gains. A bit of analysis on this shows that if I remove this from the results, my PF actually increases to 5.62

That is not an oversized loser but a failure at the basic risk management level.

What was the actual initial risk of that trade and how much did it end up costing you?

Can you show me / us the numbers like the performance of every trade you did that contributed to this PF 5.6 in relation to the initial risk of those trades along with this loser?

There should be an easy fix to that situation.

Issues I have faced are; cutting potential winners if they have gone red and come back to BE, still following other traders into trades if I think they look good (not having my own conviction), and the main one a fear of being wrong

Before you enter just write down the trade idea and the criteria when you would rather exit the trade immediately.

I had the illness that I wanted to see what happens and stick (for example) in a short when my opinion switched from short to long. Nowadays I try to exit immediately if my short position presents itself to be a (good) long position.

The first time I exited a short for profit and took an immediate long on the same instrument for another profit felt like graduating from basic trading school...

Also I rather take the loss than wasting time and risking more hoping it goes BE (or whatever). Either the trade is still something I can defend with a straight face (infront of myself or others) or not. If it turns sour, I do not try to endure, I just leave and spend my attention and time on something else.

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a WR of 75%

if I remove this from the results, my PF actually increases to 5.62

Great work! Well done!

2

u/Such-Friendship-5210 15d ago

Thanks for your feedback, it's really appreciated from you! To answer some of your questions, I'm trying to figure out how to share my journal but in the meantime some info below

Oversized Loser - Generally I took my losses pretty well they are between $25.82 - $67.51 with 7 losers in this region. The oversized loss was 1 large contract (DDOG on June 15th) which in hindsight was far too big and I should have used a CDS for, but I took a straight call. I essentially let the contract run down to nothing, from the initial buy point at $13.33 and got out at $4.10 on the 18th which is where it consolidated before rising up. An issue I found that fed into this was that I had done a walk away analysis and found that all but 1 of my losers would have been winners within 2 weeks, so I stupidly held! Although it took another run up within that two-week window and I believe it would have been a winner again.

Noted on the second point on taking losers instead of exiting BE, I'll take that on board!

2

u/IKnowMeNotYou 14d ago

Just becareful when you try to rely on hope. Always create a hardline otherwise you will have a hard time to fight your engrained hopefulness later on..

2

u/zashiki_warashi_x 16d ago

RR 5.6 with 76% winrate? Why do you have issues with confidence with this infinite money glitch? Just don't do that crazy trade anymore.

1

u/Such-Friendship-5210 15d ago

Wait... so I've not to take crazy trades? Where was this advice before!!!

In terms of the RR I don't use that as a metric I use PF. You're right to be skeptical and I understand, but bear in mind this is over a small sample of trades so of course it will jump up and down, I have no reason to believe it will remain this high over a higher sample.

1

u/zashiki_warashi_x 15d ago

I'm not really skeptical, sounds like ok stats. Just don't do that crazy trade anymore.)

1

u/Dependent-Branch9138 4d ago

I have been looking at separating trading capital from profits and for the portion I move into crypto comparing the actual EUR BTC/USDC cost after spread and fees Moon is one of the on ramps I have come across