Please read the following and comment, advise, etc...as I really need to figure out some way to get over my emotion that was been stopping me As I sit here and type this, I reflect my trading day as if I was a ghost hovering the trading floor and zooms in to myself. I have noticed that I have the fear of pulling the trigger. First off, I am scalping with conversions and the only stock I look into are the ones with conversions so I have a lot of advantage, and as I look back, when I see a good opportunity, I would wait to confirm it, but then either the price would not be worth the risk anymore or the move would be close to over...I keep thinking to myself, it's ok, there will be more, but this thought leads itself on and at the end of the day, I made a merely $11 while the guy next to me made $200+. With conversions in mind, one has great flexibility as if the price goes, it goes, and if it doesn't one will always have the tight stoploss. Moreover, the maximum risk one risks is only a cent if the spread is only a cent apart.... It's just that I've been maybe thinking it too much and I should take more risk, be fearless...I don't know, it seems like I've been thinking too hard and looking for a trade that is perfect when I know not setup can be that way...but keep in mind that I have had days just last week where I lost a good amount day after day, and when I see green these days, it just gives me a little more confidence back and it seems like it's comforting....but that in turn stops me from doing what I have to do.... what advice can you give me from reading this?
I grabbed this link off of ET a while back. I don't remember the thread, but the post went something like... If you can't find anything here to help you, quit trading and get a job. http://www.brettsteenbarger.com/articles.htm
Fear of pulling the trigger means that you are unprepared, and you have no edge, simple as that. You need to pull back for a while and fix that deficit. Ask yourself, what do I need to do, to give me the confidence necessary to look forward to trading, instead of being fearful? Do I need better system rules? Do I need to backtest more, or more thoroughly? Do I need to know my system better or in greater detail? Do I have enough money to afford the risks associated with trading? These are just a few of the issues that you need to resolve before you trade. Go put it into action. Once you have this taken care of you will be good to go. Steve
Sounds like you have no edge. No edge -> No confidence No confidence -> No trust No trust -> No way Of course all that is based on experience. How is a guy supposed to get experience trading? Just one way. Good link btw. Here is a quicker way to learn how your mind works. No magic here just insight that does work despite its simplicity. Not a one shot deal. Just like trading. Practice. http://elitetrader.com/vb/showthread.php?s=&postid=867110&highlight=four+and+stepper#post867110 Doc file in last post. Search forums for "EQ" and "four stepper"
From reading this your sexual orientation is questionable...be the man that you are and stick with your convictions...pull your trigger...
Go run with the bulls in Pamplona. Then take skydiving lessons. Then stroll through the ghetto with a hundred dollar bill taped to your forehead. Next, enlist in the military and fight for your country. After two or three tours in Iraq, baking in 120° heat while wearing full body armor, constantly ducking demented terrorist assholes whose biggest wish in life is to behead infidels on the internet... ...I think after all that, fear will cease to bother you. Just a hunch.
As long as you are managing your positions well, you should not fear entering a trade. Even if it does go against you, position sizing will prevent any significant mishaps in your trading and reduce or eliminate any hesitation to enter a trade. I learned that the hard way. Besides, you can't make money if you don't risk money. Be confident in your trading method, manage your position sizes, disconnect yourself emotionally and move forward. Yeah, and that tour in Iraq a la Rearden Metal will definitely help grow a set. Don't know about that sky-diving though. Guy packing the chute coulda had a bad day.