Brandonf and xelite777 are preaching the truth here, and of course DbPheonix I have heard say the same thing, that he just doesn't care what price does. This is the proper state to be in. I'm surprised nobody has mentioned the books of Mark Douglas yet, but they are excellent, so to the original poster or anyone following, read his two books on trading psychology. I know I'm not there yet, but I know that the goal is to be able to put on a trade without hesitation, get out when its not working, and have this not affect you one bit when thinking about the next trade.
Agree, Douglas wrote excellent works on the matter. But I have witnessed few people seriously decided to commit his recommended steps to disciplined trading (20 trades exercise etc.) and still fail, this time to commit the drills. Looks like discipline issues are of more general nature and if a person is undisciplined in trading, she also is often undisciplined in the area of quasi-trading (simulated account exercises etc.).
Greetings, While I also feel it is true that very few people commit to the Douglas 20 Trade Exercise, I think one must also consider the fact that the Douglas exercise "assumes" that the trader is already in possession of a viable proven edge. From my experience, I believe that if one is bereft of this edge during the exercise, the door is thereby laid open to a number of "percolating" background psychological issues, most of which have little to do with the market per se, just looking for an emotionally laden avenue of expression. We don't trade the markets,...we trade from our individual knowledge base, whatever level that base is, and our beliefs about the market. Whether that knowledge base is useful, or whether the individual's beliefs are supported by the markets' truth, is part of what I believe to be the real issue. KDASFTG
Very good point, KDA. Indeed, many of those who try and fail in Douglas exercise are probably not confident in their own trading method yet. And that is of absolute priority over anything else.
"I must not fear. Fear is the mind-killer. Fear is the little-death that brings total obliteration. I will face my fear. I will permit it to pass over me and through me. And when it has gone past I will turn the inner eye to see its path. Where the fear has gone there will be nothing. Only I will remain." --- Frank Herbert, Dune - Bene Gesserit Litany Against Fear "Fear and anger are at the root of the most ill fated decisions" ras72 But of course I must have picked up the idea from somewhere.
This is true, all too often I think people are trying to control their emotions without being confident in their own trading method. If youâre confident in it, tested it, traded for a while, it becomes easier to be less emotional because you begin to have more faith it will work. The key is to not let fear dominate your trading and the way to do that is to have a good strategy.
confident in their own trading method. If youâre confident in it, tested it, traded for a while, true, just recognizing sheer repetition in the markets, eliminates a lot of fear and replaces it with expectancy that becomes easier when you can watch fewer things to get the same results, streamlining