Tuesday, August 23, 2011

Update on my journey to 25K...

I have'nt posted on my progress since I started with $1.5K in late February of this year attempting to turn it into a $25K bank roll by the end of year, for some time now because I have been ashamed of my recent trading. However, I decided to give a quick update none the less.

I managed to get my account as high as $5K at the start of this month with a combination of savings and trading. At that time, I decided that since I had enough to go prop and do away with the horrid PDT rule to join the Bulls Pro Service/Lake Street Trading firm. However, thanks to my horrible efforts at prop trading my account went from $5K at the start of this month and now stands at $3.2K!

You might be saying WTF? How did he do that in only three weeks after growing nicely from $1.5K to $5K in 5 months. The answer is simply this: OVERTRADING! I literally lost control of myself once the PDT restriction was lifted and went on a scalping frenzy one day. Lets just say I lost over $1.3K including commissions from over 24 round trips on my third day of prop trading alone! So as you can see most of the losses came in one day of crazy trading and has nothing to with my plan failing or me bag holding something or any thing like that although most of the other days have been either small losses or slightly smaller gains.

I've been working hard to recover these losses and to be honest I feel like I have lost my trading abilities that I have acquired over the past 4 years. I've gotten impatient, forcing trades with out proper setups, taking random trades with too large size; aborting perfectly fine trades way too early and after starting off most days poorly and in the red with confidence low, I stop looking for set ups and miss out perfect ones. My confidence has really been shot and my account has been slowly bleeding. Maybe I need to take a break and just paper trade for a while. So with the way things are currently going it seems the $25K goal might be a bit further away than the end of this year but hopefully I get my touch back soon and resume the hunt!

Wish me best of luck and good luck in your own trading!

3 comments:

  1. I'm pulling for you pal - remarkable honesty!
    Yeah, it's not meant to be easy to make money just sitting at home pushing occasionally buttons on the keyboard - even if you are very smart guy.
    Most of the time market movement don't make sense and we need to make sense of them overcoming also things like commissions and spread among others
    I guess we need to work hard to find the things that give you an edge.
    Good luck.
    Ivan

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  2. Yeah, like your honesty. I'm rethinking approaches and strategies as well.

    You are not alone. And keep your day job -- for some home based traders it's not all sunshine and vacations.

    Good luck.

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