After examining my failure to make money from trading; I came to realize that there were two primary reasons why I was losing. The first was always aiming to hit home runs and risking in excess of 5% and sometimes 10% of my account on individual trades so that back to back loses lead to crippling draw downs. The second was being afraid to follow my instincts at what I thought were major turning points in the markets.
Since identifying my weaknesses and re-funding my account; I am up over 17% on a $4,000 account from mid December 2009 to now. I have realized that going for broke makes no sense since I have been doing it for over two years and have lost money. i also came to understand that I can take any trade I wanted to as long as it (i) offers a probability of greater than 40 - 50% success rate with an accompanying risk/reward exceeding 3:1; (ii) I know how much I stand to lose and; (iii) I am not risking more than 1-2% of my account. You will see this truth manifest itself as I post the entries, exits and position size for my trades.