The problem of mine which is the topic of this thread had lately begun to manifest itself in other, more pernicious forms... consistently (4 out of 5 days) making a good amount of money in the morning and then giving it all back and going negative, worse revenge trading... to the point where it actually began to threaten my trading career. I'm not sure I've solved it yet, but I've definitely made some progress - I recently had my best trading day ever, made it all in the morning, and didn't give anything back in the afternoon. What has my solution been? Take breaks! If I'm up $150 and suddenly, after two quick trades, I'm up $68... I take a break. I get up, walk around, walk outside for a few minutes, then come back. If I'm up $42 and suddenly up $108, I get up, and refocus myself. Most of my losses/revenge trades/excitement-junkie type trades come in quick succession in a small period of time. Keeping myself away from the screen at times when I'm most prone to make such emotional trades - after rapid changes to my P/L - seems to do a good job of giving me a chance to re-center and focus. I also allow myself to be bored. I've kind of realized... part of daytrading is boring. The morning is usually always exciting, because there's opportunity endlessly to be searched for, and throughout the afternoon it's usually exciting... but sometimes the market is slow for a few hours, and sometimes there are just super sloooow days, where for two or three hours you sit and look for opportunity and don't find much. What I realize is that there's nothing wrong with being bored. Overall, trading is far more exciting than almost any other job I can imagine... and even if it weren't, boy can it pay the bills. If the only downside to working this awesome "job" if you will, which is effectively effortless once you put in the effort towards finding a method/system that works for you and learning about your self-destructive/impulsive tendancies, is that at times for a few hours you experience mild boredom - which can go away in an instant when you see a great setup - then I guess I'll suck it up. I'm sort of rambling, but the key lesson I've learned to anyone new to trading, especially high-frequency intraday scalping: take a break and then re-focus.
I have a similar view Will. I include mandatory breaks of varying durations after particular events. For me, staying in the right zone is the key to my performance and shaking myself up when I (might) slip into the wrong one is assisted by breaks.
Okay, NOW, read Denise Shull. At least find out: 1. What your problem is 2. How guys like Lo, Repin. Peterson and Goleman measured and diagnosed it. 3. What you have to do as therapy. You may also want to read something about how the trading day works. Search particularly "settlement".
What about try to explore the territory of systematic trading ? It takes more research but once you figure it out, it will be more effortless , and more boring , of course.
Trading will make you crazy (IMO). definition: Schizophrenia is a mental illness. The main symptoms are hallucinations (hearing voices), delusions (a firm belief in something that isnât true) and changes in outlook and personality. http://www.rcpsych.ac.uk/mentalhealthinformation/definitions/diagnosesorconditions.aspx#S As a trader I think it is important not to put too much weight on ourselves as being responsible for the success or loss. All we can really do is follow a system so our success depends on the quality of the system and our ability to follow it. But the market is random (the degree is arguable) and it is quite possible that making a mistake while following a system could just as easily result in profit as a loss. 1) a firm belief in something that isnât true We should just recognize that we are betting the way the market will go but it could go anyway and we are just gambling. 2) changes in outlook and personality The market is Long, now it is Short, now Long... again all just perceptions that aren't necessarily true, they're just guesses so don't be too disappointed if the trades don't go your way. My response isn't meant necessarily to be directed at you personally but I think it is important not to get down on yourself if your trades aren't falling. Just realize it's a job but you only get paid if you work hard, really, really hard. I personally cannot trade manually because it is too much for me. I don't know why it isn't talked about more but I feel certain that trading must have lead to the demise of many an individual's mental health.