Give me some rain.
Give me another chance,
I wanna grow up once again.
- song from the movie 3 idiots
What's that got to do with trading? Well, most of us get into trading for the fun of it and probably experience some success initially -- just like beginners luck in gambling. And then we forget that it was just luck that made our first few trades winners. We think we've got something that can beat the market and there's just no stopping.
That's exactly where it all starts going downhill. The first few trades might have been taken very conservatively - less capital on the line, quick profit booking and even quicker cutting down on losers.
But then the arrogance manifests itself - taking bigger trades, keeping the losers and worse adding to the losing trades ... Once a string of failed trades blow in a reasonably sized hole in the trading capital, revenge trading starts creeping to the mind. I'll make all of it back in that ONE big trade.
(By now some market patterns, indicators, charts... will be understood because of the experience with the markets.)
The result? So some more bigger losing trades interleaved with a small number of winners. At this time even of there was a 50-50 share of winning & losing trades, the losers would be far bigger than the winners!
What the f**k is going on? Is there someone who has figured this out? Is there some magic formula/recipe/indicator that tells exactly how to trade?...
Next thoughts would be ...
May be I should go back and rethink the whole thing. Do I want to continue as an amateur or should I strive to become professional.
Give me some sunshine,
....
Give me another chance,
I wanna grow up once again
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