And just a slight twinge of cockiness and that's when sumtin bad happens. Getting out too early is my biggest flaw and it's a hard thing to let those profits run but dumb entrees always come on the heels of success in some sort of covert/stealth fashion. A new rule is to follow the rules after the rules prove to work.
I don't "maintain" it per se - I simply do not know any other way to be? Maybe I am like that woman in the movie "Blade Runner" - she doesn't know she is a machine! nitro :eek:
I am thinking of getting slightly drunk while trading. This way I will be more relaxed and not think that much. My problem is I put in the right orders and then when the price gets close to it, I cancel it because I freak out that market will sharply move past it, etc. The drawback of this method is of course health problems caused by alcohol, but then, I may be less stressed out and actually do less damage to my health that way. Any similar ideas or experience will be greatly appreciated.
I had a lack of trading discipline for years, would always seem to break my own rules throughout the day. Here's what I did to fix it: I made a new trading rule for myself: If I break any rules, I will cut one of my fingers off. After 3 fingers, the problem went away. One suggestion though, make sure you choose you fingers wisely. I wish I could have my thumb back in place of the pinky.
Yep, Harry! I have a few pretty decent trading rules. But the problem sometimes is that I don't' follow them religiously. I divert from the plan. If I only took those trades and NOTHING else over time I think I would do fine. Initially, these other sidetracked trades costed me dearly. Now, I try to minimize them. But they still creep in. But at least now, I guess I play mind tricks. Like betting a very small amount on these other side trades. So, the losses are smaller. Much smaller than before. But how do I get rid of them all? The little small losses still cost $ and commission you know. It's not free. This is insidious. Human nature sucks! Why is it so hard for humans to follow their own simple rules? But I think the issue is more involved than that. It's because sometimes these sidetrades actually turned out to be OK and good trades. But on average that's a minority. That's their expectancy is actually negative, but in any random sample of these side trades they seemed to work. And I should be convinced by now to not place bets on them. oh well. trader99
Don't agree with the above ... a profit beats a loss any day of the week. And no one is smart enough to buy the bottom and sell the top. Personally I typically sell into strength as a stock starts to plateau and run out of gas.
"Greed, has us taking trades outside our rules because we want money dammit and we want it now." I just wrote this two days ago. So what did I do today? I went against my rules for the cost of $408. Why did I go against my rules? I actually thought the following: "Well going against my rules has cost me money the last six times that I ignored them, so this time it's bound to be a profitable rule break...........and I don't want to be left out of the move("I want the money NOW!)....... Like there will never be another trade setup. It also smacks of revenge trading. And my Ego not being able to suck up the prior rule break losses and admit to being wrong...stubbornness. I'm such an ass. Maybe we should start R.A. meetings .....Rulebreakers Anonymous. I'll start: My name is John and I am a rulebreaker. It is a disease I can't seem to rid myself of. It has caused me much suffering and personal loss. No matter what I do I still seem to engage in this self destructive behavior. I need help. Please don't ask me to cut off my fingers! ************************************************** There is no calamity greater than lavish desires. There is no greater guilt than discontentment. And there is not greater disaster than greed. Lao-tzu (604 BC - 531 BC), The Way of Lao-tzu
My name is Kevin, and I am a rulebreaker. At least that is what the judge said before he sent me away. Wait a minute? What board is this? Oh, sorry - wrong forum...
I keep a notepad beside me at all times and write raw notes of my thought processes through the day. Every trade whether taken or left on the table is noted, the entry, exit, and why and all the processes in between. Takes a moment to write it down. I even have a shorthand method of doing it and even then it can run to many pages during the day too. The notes run through the whole day, and get reviewed every day. I can see exactly how effective I've been that day (never mind the profit/loss). Instantly it is clear whether I am with my strategy or against it. I can see where I have been sloppy, or just plain blind. yeah - I know 20/20 hindsight is wonderful, but learning from every day that goes by is important. Natalie