Trading is very simple but far from being easy. I realized that because I've been in your situation. It took me around 3 years to make consistent profits (and not lose what I made).
The great thing is that you're still trading after 3 years. The average trader gives up after 4 months (National Futures Association).
If you are not profitable, it means you haven't put in place one of the things mentioned below...
Here are the parts to master:
1. Build a strategy and set your rules
It took me a long time to put together a trading plan but it is crucial. It should answer the following questions:
Why do I want to trade and/or make money trading?
What is my signal?
Where do I enter?
Where will I cut my loss?
Where will I take profit? (it's better to have several T/P in my opinion)
What amount will I risk? (should be a fixed % or $ number)
What maximum drawdown will I allow myself to get weekly/monthly? (the point at which you'll stop trading)
What timeframe do I trade?
When do I trade?
2. Build up your confidence
There's only one way to build up your confidence about yourself and your strategy.
It is practice.
If you want to save time, I recommend you backtest. Either use a backtesting software or any trading platform and track the trades you would have taken with your strategy.
When you backtest, make an effort to find the losers. This means it's better to take more losing trades that you would in real life. Don't take the trades that do not correspond to your strategy though.
When you've done your backtesting, evaluate whether you have a positive return. Also see what was your longest losing streak. That way you'll be less depressed if it ever happen again (it will at some point).
3. Get the structure you need to trade live
Most people never do step 1 and 2. Among those who do step 1 and 2, a lot of people screw up when they get to live trading. The main problem is that they do not put what they need in place to trade live.
A lot of people, including my best clients, see themselves as free when they trade. They feel too restricted by structure but it is essential.
Here's what you need:
A trading journal in which you put screenshots of your trades and comments
A set of routine (written down) that you execute every single day when you trade. It should include when you trade, what you look for, etc.
Get in the right mental/physical state to trade. Trading is hard when you spend too much time looking at the live market. Make sure you get what you need (off time) to recharge.
Support from other traders: this is very important because talking with other traders can boost your motivation and keep you accountable. I saw a huge difference when I surrounded myself with traders. I created a Facebook for traders. You can join here: Log into Facebook | Facebook
4. Understand trading psychology
This is the easy part because it mainly consists of reading. However, you'll definitely get some breakthrough ideas or ahah moments like I did.
Check out Market Wizards, Trading In The Zone, One Good Trade, and Millionaire Trader.
The main ideas:
You can't know in advance what will be the outcome of your trade. A trade, whatever the setup looks like, has 50% chances of being a loser.
Don't focus on profit, focus on exerting your trading strategy. "The key is making one good trade, one good trade, and then one good trade".
Every trader has a different way of doing things, don't get in the circle of switching your trading strategy once you'e made your trading plan.
Backtest everything
