Was taking small stops all day today in crude and got down a little bit, instead of stopping for the day or switching to sim, I thought it would be a great idea to 5x my size and a super tight stop, worst case I'd be down slightly more than I was and I'd quit for the day. Well I ended up taking a 3x my normal stop. Been doing this for over 5 years and I still do stupid shit on occasion. I'm sure other experience this dipshit decision making blackout from time to time, what do you do to be sure you are 100% surgical and always act in your own best interest?
I make sure that I dont get bored, watch porn and play Battlefield until I see a real good opportunity.
You're an emotional trader, I must imagine... -- you mix trading with sex and video games, Emotion is one of the trader's worst enemies -- it clouds your judgement, (as Gordon Gekko would kind of say)
Hey lawrence I would not say that I am an emotional trader, just like I am not a educational trader, or inspirational trader, or funny trader or spaghetti trader... just a trader. Thats it. But I am a thinking individual, and I know from experience that one of the worst things is to wait for something you want very much. Be it a girl, or a present, or a good trading setup. As a thinking human being I try to do something to improve my situation, in every context. To me it is better to spend the day having fun at the computer with videos, chatting, Skype, videogames and in the meantime wait for the few really great setups of the day than trying to see something that is not really there, trying to look for great trades every minute which is not possible in todays markets, at least not in the markets I trade with the style I trade. So I dont agree with you that emotion is one of the trader's worst enemies. Joy and happyness are also emotions. Being happy and satisfied makes my trading much more patient, better and enjoyable. This is crucial for long term success. You will not stick to something for years that you dont like or enjoy.
Interesting, never thought about playing games in between trading setups. I might try it, what is battlefield?
https://en.wikipedia.org/wiki/Battlefield_(video_game_series) I still like "Battlefield: Bad Company 2" the most
You aren't alone. It is very, very hard to stop out and not try to pick another bottom. I've learned to give myself just one more shot at it. Then I walk away. There is always another day.
To the person that started this thread .... All losses start from a lack of patience, if you understand this generalization Lack of patience to wait for what YOU know works but can't wait for it. That's the bulk of traders out there, which is why many don't make money. Me included, time to be honest. Looking back had I'd just been more patient in waiting for "what I know works" my PnL would be very different. My 2 cents for today
I do a lot of mental rehearsal. I expect the inevitable long losing streaks and drawdowns so when they come i am totally prepared. I also journal all my losing days here on ET. You must have faith in the long term outcome from your trading plan/system. And make sure you don't feel pressure to win in the short term. If short term results are important to you then its hard to perform with 100% flawless execution. I aim to take all my losses with minimum emotion, sometimes going several months without a new high water mark in my equity. I never try to force setups or force winners. That nearly always ends in even deeper losses. I learnt that the hard way many times. I think it was Ed Seykota who said when trading 'trying to play catch up is lethal'.