If that doesn't work make a written check list. If you can't check all the boxes don't make the trade. If you still make trades that don't fit the criteria, then you need to go join the military for a few years and lean discipline.
That can be tough problem to beat. I had the same problem for years. In fact, about five years ago I had taught two friends my system, but they too were having the same problem. At one point we actually started a new account together, figuring that we would all stay in line since we were trading other people's money. That actually worked for awhile, but there was often bickering and we stopped before we killed our friendships. Anyway, the past few years I keep a journal on the computer, and outline what my next step are. I sometime use all caps and call myself names. Also, it is good to remember why you are trading, maybe have a pic of your kids, or the SI swimsuit models on your wall. Works for me.
Are you sure that you really trusted the "particular system that provides consistent returns", because otherwise that is why you are not following it. Anyway, the solution is the one I suggested in the other thread, so I will quote myself: "Do not switch to real trading until you have found a way to consistently make money, and then switch back to paper trading if you find out that you aren't able to consistently make money anymore. There will be no damage done, and a lot to gain in case you find a way. In order to learn how to juggle would you use three knives? If, instead, you aren't willing to paper trade (I had the same problem), it might mean that you are not actually trading to make money (or even not at all), but to get a thrill. That also explains why many people trade with real money despite not having a profitable tested and proven method. They don't care that much about losing money (this, too, applies to my own experience)."
I am still on sim much of the time, I set up 2 doms, sim on an old laptop and live a newer desktop. When I see a low risk hi reward trade, I do it both on my live on dom and on simulator. The rest of time, I run test on sim and see what happens. Some impulse trades too - but on simulator only. Incidentally, I found out the simulator gives me much better execution than live when a trade is taken both live and on sim.
Hippie, if I was you I'd ditch the sim. You never want fake trading to distract you from your real trades or even worse fake trades convincing you that you are ready to put on a real trade in a stock. Like I said in a similiar posting, if you're trading a goog type stock you are filled on sim at the bid, when in actuality you're probably paying 2 bucks thru the spread on a live platform. Where you get out on the sim to take a profit might be where you would have gotten into an initial position live, that's how bad the fills are on the sim. If the trade is too risky just watch it and don't put on the trade. But you really shouldn't be wasting time and talent looking away from the screen that you get your checks from.
This really works. I just started doing this. Imagine you're teaching a class on trading and talk out loud, not just thinking to yourself. Imagine all the students watching you intently as you describe the setup, the stop price, the expected target and why. You'll likely find yourself trading less, but in more productive trades.
Agree, I did both for a while as I was getting suspicious of the simulator. I did well scalping on sim - I got great fills. I didn't get the same fills live.
You are hitting the nail on the head. Why do people buy a lottery ticket, even if it loses them money? Why are people unwilling to papertrade, even if real-trading loses them money? Because people don't learn from their mistakes, people rather go for the action with the astronomically small chance that they will make money, even though statistically speaking it loses money. People like these never make it as a trader. They don't understand that to become a trader these hardwired "evolutional defects" like hope and false expectation need to be strictly controlled and indefinately, every day of your life until you die or stop trading.
Yeah, this is wise, college_trad3r. We all know about the regular people, those who play the lottery. But those people I would suspect trade very little, for about a year or two and then quit. Don't they? And yet there's another category of people, like me and so many others on this forum, who are way more motivated and intelligent, and we still fail, and fail for years and years, and keep trying and - most of all - losing real money, needlessly. I wouldn't put myself in the same category as the lottery players. And yet I lost money like an idiot for 12 straight years with discretionary trading. Now I advise everyone to paper trade, but did I do it? Nope. I am wondering why. Maybe I was so convinced that I was smarter, that I didn't realize I was doing the same thing as the lottery players. Thinking you are smart is the first step to being dumb. Now, little by little, I caught up with the smart people, and now I am just doing automated trading, which works and is profitable. But was I stupid, or maybe I just wasn't after money and I didn't know it. I still don't know if I am really after the money, or it's just a pastime. Maybe the idea of actually making money and changing my life makes me uncomfortable (I've been wondering this on and off for a few years). We'll see what stupid things I will now do to still fail, after finding something that works. I feel restless. I may come up with something to ruin everything again. Maybe I feel guilty for making money without working for it (like a gambler, or similar - that's how people think around me). Thank god we are in the psychology forum so I can see all this stuff and feel ok. Maybe it's like going to sleep early. Do we really do what we know is best for us? You go to work tired, you know it's because you went to sleep late, but then later that evening you still go to bed late. Why is that? Same in trading. You look for ways to lose money maybe. Right now, with automated trading, and no discretionary trading at all (as of a few weeks ago), I should have no excuses to lose money, but I am doubtful as to whether I will follow this easy path. It would be the first time. It seems just too easy for me to accept it. I'll stop here because I am just talking to myself at this point.