In life, we always have the opportunity to start fresh. When trading, if a position is not working we always have the luxury of cutting our losses. It does not make any sense to endure pain. Pain does not make us stronger, pain often leads to suffering, which leads to depression. You need to remove the negative influences from your life. If a strategy isn't working, you need to change it and adopt a more successful strategy.
I wanted to be a swing trader, to make money swinging a big line like my idol Jesse Livermore. Unfortunately I have not had much success with that strategy. I find the overnight risk shakes me, i am more tempted to abandon proper discipline. Swinging makes me take more chances, perhaps foolishly so. If I make money one day, I think to myself 'I'll make even more the next if I hold!' Only to end up turning a nice winner into a loser the next day as it torpedos my stop loss.
Risk Management is a big one. Too often I find myself putting on a daytrade amount of capital, then getting greedy swinging it and taking on more risk than I can handle.
I've had stocks gap down 60% overnight on me before. If I'm watching the market all day is taking on that much overnight risk really worth it?
Too many failures as a swingtrader. Yes that is how massive wins are made, but that is also how massive losses accrue.
I'm going to try the life of a true blooded day trader. It is still hard to pull change out of the market, on any timeframe. However, what I have learned about myself is I cannot predict what is going to happen a year,month, or a day from now, I can only speculate, but using technical analysis and measured moves I have a slightly better chance of predicting what will happen an hour from now, at least I have the luxury of using hard tight stops and realistic price targets. If I can just make a little bit of money every day, that will add up over time and I can sleep better at night knowing there isn't going to be some exogenous event that will wreck my account the next day.
I'm going to give daytrading a try. Swing trading has just not been working out for me as i had hoped.