Every time you make a profit, send me the money! Then you can trade without feeling like you have a cushion. We will both feel better. You need to review why you are trading, what money represents to you at a base level and why you fear success etc. (There are many other questions along that line) Since you (presumably) know your exact problem, why not ask some of the questions to a completely quiet relaxed mind a few different times and days and write down the first thoughts you get back. If you know the right question to ask, then you already know the answer as well. Good luck.
Ever play chess? There is a very nice rule these guys have: Once you touch a piece you move that piece. After losing enough times on a pre-emptively touched piece you learn not to act too hastily. Maybe you just have to lose enough money they way you are and eventually you'll have had enough of it and you'll stop.
Off the top of my head; Figure out traders are risk managers first, and foremost Realize what stops are for â and use then (and donât say you do, while also saying you act foolish with money) Remove the profit from your account â so itâs not accessible to lose Learn to appreciate what youâve made â and hold on to it Get fed up with giving money away â and stop Gain some real discipline =========================================================== Bottom line, do something different Change only occurs when we actually DO something different - than what we've repeatedly done in the past Simply thinking and/or talking about anything - wonât solve crapâ¦. ========================================================== In the meantime I, and everyone like me, appreciates you giving us your money Just donât expect the same in return RN
As Cutten mentioned, you don't have a psychological problem. You seem to be lacking a coherent trading methodology.
Sounds like you don't have a plan. When you have a plan you know exactly what you are going to do when you close out a trade for profit or loss. In most cases you should already have another trade lined up. If you're flat sweep the account and start over. Hard to blow a cusion if it's not there to blow.
The answer is extremely simple: Trailing stop on your equity. Put a stop on a trade if your equity curve dips below 20% of the high water mark on your equity curve. That is it! Works like a charm!
yes, you also need all that stop loss, Take profit Limit and Trailing Stop - stuff, on your trading money - not only on trades. See it as your trading money is the biggest always on the line trade, you ve to manage all the time. If you loose, reduze the risk, if you win, put on more risk. in other words, play the game defensive and aggressive, depending on your success rate..... only you decide what you have in reward in the end, not the market....the market only gives entrys and exits... your job is to manage the risk, to minimize risk and maximize profit... control your risk
Thanks. I am learning to get out on bad trades faster, and started using the cool off like you recommend. I also do the cool off when I do good. After all, I feel I am getting the mindset to do this. It is happening slowly, which maybe is a good thing. I'm starting to get rid of that sickening feeling when I buy. You know, even though this is risky, think about if you start a business. What if no buyers come to the store? Then you can't just get out of the store. At least with the stocks, you can sell at any time. I don't know why people don't look at it as running a small business, or a big business, depending on your size. And, I have been doing better on my trades, than my ebay sales. Guy at the brokerage laughed when I told him this.
Try to develop a set of rules and follow it with good discipline, no matter what your previous trade was. Every trade should be independent from the previous one and executed/managed according to rules, not according to anything else.
Kivd, While some others have made so excellent points (Ghost especially) and have asked whether you really have a plan, I will address just the psychological side. I see a couple problems that you should think about. Your first problem is treating money just earned in a profitable trade as anything other than YOUR money now. It isnât house money; it is your money. Treat it with the respect is deserves. Every trade is an island and should be treated as such. What I mean is whether your last trade is a winner or a loser is irrelevant to your next trade. They are independent events. Each trade only means something as a single data point over the next 500 or 1000 trades (you are tracking your trade stats yes?). You have no idea whether a newly entered trade will be a winner or loser so they all should be treated the same. You enter the next trade ONLY because your rules tell you too, not for any other reason. The importance of this point cannot be over emphasized. I can understand why others feel you donât have plan as how soon your next trade occurs is based entirely on your trading rules and methodology. Entering a new trade before your rules tell you too because your last trade was highly profitable, makes you a GAMBLER and not a trader. If that is the case, sooner or later ruin is inevitable. Why shot yourself in the foot by not following your own rules because your last trade was a very profitable one? It makes no business sense at all and I just donât understand why so many have this problem. Because this is a business and if you do not treat as such, those who do will quickly take advantage. Try to think of it this way. Following your rules is your ONLY job. If you have a robust system and follow your rules, your chance of success is very high as it is simple mathematics. To be successful long-term requires two skills. First to develop a plan that has a positive expectancy. This is the easy part (I say easier but not easy). Second, having the discipline and psychological makeup to follow your rules and let the math work for you instead of shooting yourself in the foot by giving money away (thank you by the way). This part is harder for most. My advice is get out of your own way and let your methodology make you money. Apply your edge as many times as possible. Let your edge work for you. The more times you can apply your edge, the closer to certainty (nothing is absolutely certain) your success becomes, IF you just let it happen. There is the rub. Most cannot do it. You biggest obstacle to your success is you. Best of luck. BM