Day Trading Challenges and How to Overcome Them

Thursday, September 14, 2023

How Changing Things Up can Help

I hear it all the time: “I’m getting killed trading oil”, “I’m not consistent with the ES”, “I’ve been trading Binary Options and I keep losing money”; the list is endless. Day after day I have conversations with traders and hear about their day trading challenges. The tough part about many of these conversations is the fact that MANY continue to try to trade a market that they may not be right for them. You may be saying -“Who are you to tell me what I can and cannot do?” I’ll tell you who I am: I’m a guy who did the same stubborn stuff over and over again until I finally learned this day trading secret.

So, what is the secret? Is it that you must use an Indicator Warehouse trading system? – Sort of. Is it money management? – Sort of. Is it the thorough trading education you can get from anyone on the Indicator Warehouse Team? – Still, sort of. Good trading software, money management, and education are all part of a total day trading solution. But, the biggest piece of the puzzle is YOU! You need to learn, You need to gain experience, and most of all, and You need to use your common sense. Let’s face it, when a particular trading instrument is causing above average trading challenges, maybe it’s time to change things up a little.

Way back when I first got started in trading, I was a devoted E-mini S&P 500 (ES) trader and I figured I would trade the ES until I die. I did fairly well with the ES and for a long time. I felt I could do no wrong. Then the ES changed drastically. What was once a fast paced market became one that moved at a snail’s pace, and you guessed it, I started failing. But, I could not quit the ES. After all, I had invested so much time into “mastering” it.

Insanity: Doing the same thing over and over again and expecting different results. -Albert Einstein

Not only was I beating myself up, my trading account was also getting badly bruised. Was it my software or my trading method? No, not really.

After some serious soul-searching, I came to realize that my trading, at its core, was based on the price patterns and the overall speed of the market. This was fine when the ES behaved within the norm I had gotten used to. But, for whatever reason, the “character” of the ES had changed, and with it, it’s price patterns and speed.

So what did I do? Instead of sticking with something out of ego and pride, I switched to an instrument better suited not only my day trading style, but also to my money management and risk tolerances. In other words, if the CL is kicking your tail, why not try trading the NQ? If options are murdering your account, why not try trading Futures?

In trading, you must be honest with yourself. If you don’t want to sit in front of your screens for hours, that’s OK! If your account size is too small to trade the instrument you first chose, that’s OK. Choose another. We all have to start somewhere. My point is this: I’m not saying that hard trading challenges means giving up your trading profession. But, if the Russell 2000, CL, ES, or any other instrument is beating you up, maybe it’s time to try another instrument. It worked for me.