here is my troubled trades. I woke up around 3:50am (the time in chart is 1hr shifted), saw ZN hit resistance 128'200 (yesterday's low) and started to fall (tiny double top), shorted it at 128'155, planned to cover at 128'115 (support), then covered it at 128'180 the next two trades are seriously affected by this trade. I longed it at 128'180, I know it is a danger, write limit at 128'200 (subconciously I want my money back or try to fix the loser, my inner voice is I want my money back now, why I waaited a little bit and just shorted it at the resistance?), so hit bid at 128'195, but this trade is totally a revenge. then shorted it again at 128'155, first my target price is at 128'115, but somehow I changed to 128'125 ( I heard my inner voice, there you recouped your loss, you should be happy since you defeat the market).
I found the problem is not totally ego. I am mentally weak. yesterady I shorted gold at 1668, jun mini gold MGC (I can average up easily,plan to add ) with my stop at 1680, but when I woke up and saw it droped and covered with 20point gain, my plan is hold toward 1580. why I covered it, I saw several upticks (consolidation), those upticks tricked me into covering too early and changed my plan. the same happens in ZN, shorted it at 128'195, stop at 128'230, covered it at 128'110, but my plan is hold until friday closing. when I saw ZN is continuing its drop, feel pinched. so I need shut down, when i saw ZN at closing is around 127'300ish, I get to be mad about myself. why I changed my plan? ego problem? looks not really. those consolidation ticks easily make me abandon my plan, get victimized!
That seems like a discipline issue. What helped me with this type of problem was backtesting every idea I had, also live trading them over a couple years, and finally seeing through experience what I wanted to do. If you are not fully convinced that what you are doing puts the odds in your favor, you will have a hard life when a position is on.
I agree. I sometimes wait too long, then just at the end of the move, then I jump in. I find this kind of trade is the safest, also get easy burned hard. that is why I buy OTM options, I rarely trade ITM options. I made money on AAPL 620 call march 16 options, kind of funny, aapl still at 580~590. when you look at ZN today, they toke out 128'075(the recent low) to 128'030, I bought it again at the opening at 128'100, sold at closing 128'200. since 128'200 is the resistance (break down 128'180). I am mentally weak. I want to make sure the odd is there for me. I feel one way ZN will drop more when I saw it went through 128'075, I almost wanted to chase it and shorted it at 128'030, I put a stop sell at 128'30 all the opening. but it refused to go low, after it went back above 128'075, I feel it will go back to 128'200~128'190. but I did not buy it at 128'075, I bought it higher at 128'100. my plan today is buy morning drop in NQ and crude, since that is NQ and crude's pattern, but I abandoned the plan, bought ZN in the thrust bar, I am nervous to buy dip and also I get a weid feeling about friday, like " I do not want my profit go away", put myself in a very defensive mode. I am not comfortable to buy on the down tick,and sell on the uptick. even I know the morning drop low should be overnight's low 2700 ( I have a limit order there but immeadiately cancelled), but just do not have the nerve.
sometimes my ego is so strong. that messes me up. particularly if today I do chase ZN and shorted it at 128'030, and I was stopped out at 128'075, I may get mad, then sell every dip on ZN, that easily creates a mess. I do have this problem. it seems to me I must prove "sell on the dip" is my way but forget about "I come to market is trade for profit, not argue with the market". even i know sell on the dip in a up trend is suicidal. I rembered Martin schwartz shorted s&p 500 in a strong surge and get killed. even he know shorting in a surge is not wise. my methods do not stink, my ego stinks!
Then drop trading and go get life.You are not mature to do it so far.You are confused and lie to yourself. As for Self Ego,you should know that it works in auto mode,is very hard to deal with.It says:I want want want..me..me...mine...mine..mine....etc..All in auto mode and permanently. Go get some readings about The Sun and its Atma-Surya.The Sun is in charge to manage False Ego.Surya is able to melt it down.
Interesting topic. First I think simply trading will tend to diminish the ego over the years. Also, I try to view trading as simply finding the truth. A scientist for example generally accepts new knowledge and quickly moves forward - because they are trained to focus on data and not equate unexpected data with their sense of self/ego. They realize that all unexpected data and dead ends are simply a path towards learning the truth. Now sure you are going to be sad if your trading losses cause economic hardship - but again that is just new data telling you that you are risking too much money. If you make a fortune, again, it simply means you found the truth more efficiently than others. That's great but try to remember it is just a skillset you developed and it doesn't necessarily make you better person than someone who spent their time developing the skillset of basket weaving. Having said all that I still get bummed on a bad trade and slightly cocky on a good one - but again this problem fades over the years.