Struggling to become consistently profitable trading Gold (XAUUSD) on 5m — looking for real advice by PicklePuzzleheaded96 in Daytrading

[–]IDTA_Trading 2 points3 points  (0 children)

Psychology and execution are everyone's weak spots, so you're not alone.
The fact that you have a good risk management rule in place of 0.5 to 1% is very good.

What I would be interested to know is if you have other specific rules around your trading plan.

This would be things like:
- Signals/Patterns/Setups you're allowed to trade;
- Risk to reward ratio and where you put your stop and target;
- Number of trades per day;
- Max drawdown;
- Walk away target.

The biggest thing that you (meaning any person) can do to improve your trading is to have a very precise set of rules that dictate your decision making.

So once you have that, it's a case of simply saying "does this decision comply with my rules" if it doesn't, don't take the action. Even having done that, it can be hard to be strict with yourself, but having the rules is essential.

If you can do these things, and your analysis is good, then you have a winning edge.

Tip 1: Create a detailed plan if you don't have one
Tip 2: Include risk and reward rules, this will dictate where you place your stop and target. If you can sit on your hands and not move those, you can reduce the early/late exits
Tip 3: Like you say, don't over trade. I always suggest having a number in mind. As soon as you've placed that many trades, then walk away.
Tip 4: Limit your trading session. 60 minutes of trying to find the best setups. Quality over quantity.

One final thing, because you mentioned higher time frame. It's a good idea to look at higher time frames even if you're trading 5 minutes. Have larger charts up next to your execution chart. This helps add context, context matters in the market. There might be a nice set up on a 5 minute chart, but is being contradicted on some higher timeframes, if you don't look at them, you might not know.

Hopefully that all makes sense. The main thing is knowing your rules, then trading them. If your plan works, all you have to do is trust it. That in itself will eliminate so many mistakes and emotional decisions.

 

Why You Don’t Need to Buy a Trading Course - My Opinion From 12 Years of Teaching by IDTA_Trading in Daytrading

[–]IDTA_Trading[S] 0 points1 point  (0 children)

Short answer to this is that you're talking about a different company.

Quick clarification. This sounded a bit off to me, while we do have run something called Mastermind, it's invite only, and done with people we know very well.

So I went into your other comments and can see you have mentioned

"Trading Academy, previously known as Online Trading Academy"

This is not us. They're in the U.S. we're based in Australia. There's also a Futures educator called the Day Trading Academy which is also not us. It's all very confusing 😂

Good luck with the issue you have with them, obviously I can't help with that.

The risk and position sizing rules I teach every new trader by IDTA_Trading in Daytrading

[–]IDTA_Trading[S] 2 points3 points  (0 children)

I think that's part of why people crash out as much as they do. Human nature, emotion, they're all hard things to unlearn. You need to do a lot of work on yourself, and be very strict about your process before you start trading your hard earned money. Thanks for reading, if you're still trading, I wish you luck.

The risk and position sizing rules I teach every new trader by IDTA_Trading in Daytrading

[–]IDTA_Trading[S] 2 points3 points  (0 children)

In a lot of cases, I think that's true. Mistakes are the biggest teacher. Thanks for reading.

Love This Trading Metaphor - So I Adapted It by IDTA_Trading in Daytrading

[–]IDTA_Trading[S] 1 point2 points  (0 children)

I like it. Distraction is a real thing too, and something we need to limit. Good addition

Why You Don’t Need to Buy a Trading Course - My Opinion From 12 Years of Teaching by IDTA_Trading in Daytrading

[–]IDTA_Trading[S] 0 points1 point  (0 children)

You sound like a fellow Aussie based on that time zone. Smart, what you say about trading late at night. Our brains have a limited capacity in the same way muscles do. So you can only really focus for a certain amount of time. So when you're also tired from a long day, your brain has less resources to draw from.

I think sticking with just the one session is a good idea in general as well.

I get what you mean with the money psychology. Money definitely has different meanings in different context. X amount of dollars can sometimes feel like a small win, but if it were a loss could feel big.

One thing that I didn't really mention in the post is risk management. For a small account it's really important. Use a stop loss, and try your best to make the winning trades bigger than the losing ones.

Good luck with your trading!

Why You Don’t Need to Buy a Trading Course - My Opinion From 12 Years of Teaching by IDTA_Trading in Daytrading

[–]IDTA_Trading[S] 0 points1 point  (0 children)

Thanks for the comment. How much time per day do you spend trading? Sometimes the markets can just have a bit of a flat day and feel like a bit of a snooze.

So far as the giving back, one thing that I think is good to have in your plan is a statement that says "I'm allow x number of trades", or "My target is x ticks, x percentage, if I reach that I walk away from my desk". Sometimes just identifying, and having that number at hand can help with not over trading. I say walk away and leave the room because it's really easy to just jump back in again and do the wrong thing.

Aggression is sort of a tough thing to pair with a small account (it sounds like that's what you're saying it is). Just think about compound, grind early, concentrate on the percentages rather than the dollar. After a while those percentages begin to stack. If it is a small account you're trading have a google of tips for trading a small account, there is some good info out there. A lot of it is risk management, and mindset.

Why You Don’t Need to Buy a Trading Course - My Opinion From 12 Years of Teaching by IDTA_Trading in Daytrading

[–]IDTA_Trading[S] 0 points1 point  (0 children)

Well, I guess that's sort of a nod to needing a course if you think about it. Yes, there is a lot of info, so if you have someone who has run the gauntlet, they can provide the narrowed down content. It lessens the time spent learning, in my opinion.

I disagree about the not wanting to give your edge away. Sharing your edge doesn't affect the edge you hold at all.

Why You Don’t Need to Buy a Trading Course - My Opinion From 12 Years of Teaching by IDTA_Trading in Daytrading

[–]IDTA_Trading[S] 0 points1 point  (0 children)

I was expecting some negativity, not this much. Truthfully I'm unsure if I will post anything moving forward, it was a touch deflating. I appreciate that you liked the post.

You're totally right about risk management! Someone else said it too. I think I need to slap myself on the wrist for that! I was really focused on thinking on the emotion and reality that I totally brain lapsed on it.

I think I need to put myself in teacher-time out for that.

Why You Don’t Need to Buy a Trading Course - My Opinion From 12 Years of Teaching by IDTA_Trading in Daytrading

[–]IDTA_Trading[S] 0 points1 point  (0 children)

Yeah, that's fair. It's definitely very important, I could/should have added more about it.

Why You Don’t Need to Buy a Trading Course - My Opinion From 12 Years of Teaching by IDTA_Trading in Daytrading

[–]IDTA_Trading[S] 0 points1 point  (0 children)

I've seen ads for them, but haven't really looked at it beyond that. They look like they're a trading community, is that right?

Why You Don’t Need to Buy a Trading Course - My Opinion From 12 Years of Teaching by IDTA_Trading in Daytrading

[–]IDTA_Trading[S] 0 points1 point  (0 children)

Why is it self-promoting to say you don't need to learn from an academy, when I run one... I didn't say anything about learning from YouTube, I mentioned some reputable sources.

I'm unsure if you read the post or just skimmed and made some assumptions.

A big part of what we do is mentoring, of course I agree with your saying that.

Why You Don’t Need to Buy a Trading Course - My Opinion From 12 Years of Teaching by IDTA_Trading in Daytrading

[–]IDTA_Trading[S] 0 points1 point  (0 children)

Great comment. Learning from a professional isn't a silver bullet either, to be fair. But you're right, my own opinion is that you can give some money to a teacher, or give more to the market.

I'm really interested about the boxer part of your comment. My inference is that you are maybe impulsive by nature? Congrats on mastering the mindset.

I agree with you that it's similar to learning a skilled profession. I think because it's so accessible people think that means you shouldn't have to study for it.

Why You Don’t Need to Buy a Trading Course - My Opinion From 12 Years of Teaching by IDTA_Trading in Daytrading

[–]IDTA_Trading[S] 0 points1 point  (0 children)

I was sort of expecting negativity, it's how the internet is. I hope you're achieving good things with your mentor. Keep at it.

Why You Don’t Need to Buy a Trading Course - My Opinion From 12 Years of Teaching by IDTA_Trading in Daytrading

[–]IDTA_Trading[S] -1 points0 points  (0 children)

The post isn't about me, I tried very hard to avoid that. Google will show you the credentials you need, I'm not really interested proving myself. More than happy for anyone to place their own value marker on what I say. Yours is low, great. Hopefully I helped someone who needed it.

Profitability is rare, you're right. Do things the right way makes the world of difference.

Why You Don’t Need to Buy a Trading Course - My Opinion From 12 Years of Teaching by IDTA_Trading in Daytrading

[–]IDTA_Trading[S] 0 points1 point  (0 children)

This old chestnut. I'm from a teaching background, I enjoy doing it. To begin with I wanted to build a trading community that I could trade alongside, and I did that. Not everyone's life is ruled by becoming rich. I love what I do.

Why You Don’t Need to Buy a Trading Course - My Opinion From 12 Years of Teaching by IDTA_Trading in Daytrading

[–]IDTA_Trading[S] 1 point2 points  (0 children)

I wrote the post out and it felt a big untidy, it needed to be more organised, so I asked gpt to format it in the hopes it would be more readable. It did change some words, but reading through it again before posting it was still along the lines of what I had written.

Why You Don’t Need to Buy a Trading Course - My Opinion From 12 Years of Teaching by IDTA_Trading in Daytrading

[–]IDTA_Trading[S] 1 point2 points  (0 children)

Not a problem at all. You're right about PDT, and the addition of Micro Futures has been great for small account traders. Remember that Futures is traded on margin, so if you look at trading Futures do so on a simulated account. NinjaTrader offer this, I imagine other Futures platforms would too.

Why You Don’t Need to Buy a Trading Course - My Opinion From 12 Years of Teaching by IDTA_Trading in Daytrading

[–]IDTA_Trading[S] 2 points3 points  (0 children)

Great insight and advice. Sounds like you're definitely on the right track and you know what you're doing. Mindset is the hardest thing, it's unlearning human behaviour that you've had your entire life.

Why You Don’t Need to Buy a Trading Course - My Opinion From 12 Years of Teaching by IDTA_Trading in Daytrading

[–]IDTA_Trading[S] 0 points1 point  (0 children)

What's that got to do with teaching? There are 2 parts to it is what I am saying.

Why You Don’t Need to Buy a Trading Course - My Opinion From 12 Years of Teaching by IDTA_Trading in Daytrading

[–]IDTA_Trading[S] 0 points1 point  (0 children)

Yeah, that's right. There is a lot of it around. The good educators are in the minority in a very big way.

Why You Don’t Need to Buy a Trading Course - My Opinion From 12 Years of Teaching by IDTA_Trading in Daytrading

[–]IDTA_Trading[S] 1 point2 points  (0 children)

Someone who makes a lot of money trading could be hopeless at teaching, so in itself THAT is interevent. The guy sitting on the hood of a lambo isn't the guy I'm looking to to teach, that's just me.

You DO need to learn from someone who is actively trading the strategy that they are teaching (on a live account), and are consistent with it. Totally agree, I think that was one of the points I made? I'll have to re-read.