How do you get rid of the "ego"

trade 2 accts,one sim,let your ego be the sim acct and the live one the account that takes small losses and lets winners run,this way you will have a graphic display of your folly playing out in real time,then decide which style is more profitable,ego massaged and ignored

 

Just so we are clear, do you mean that you stay in losing trades beyond what your strategy would dictate? If you were to exit those trades at the proper price, would you be profitable?

If the answer to the second question is "no", then it's not your ego that is the problem, it's your entire strategy.

If that isn't the case, and you are or would be profitable without these extra losses, the best cure for too much ego in trading is detailed data collection. And don't just collect whatever stats some program will give you, collect the data manually, so that you become one with it. It will show you more objectively what is happening in your trades and the market. You will eventually get so lost in the data that your ego won't be able to control you any more because the data will have the more powerful arguments when decisions need to be made.

But, long story short, getting rid of the ego takes a lot of work.

 

Clearly define your risk for every single trade. That way you will never 'stay' in a losing trade.

 

Interesting how ego makes us waffle. Kellogg may be on to something.

 

Right Thought, Right Action

 

Hard stops. Never touch them.

Re-enter if you got shaken out of a good move.

 

---------------
This.

peace

hedvig

 

Is it ego or narcissism?

 

Meditation... or find some spirituality. It takes a conscious effort to separate yourself from your 'ego'.

There are several books out there that could help. The author Ekhart Tolle has several books about 'self' and 'ego'. Also Jesse Livermore's books are must reads in regards to trading psychology. Below are the most important notes I took from Jesse Livermore.

* Cut your losses quickly; * Be sure to confirm your judgment before you take your full position; * Let your profits ride if there is no good reason to close out the position; *; *Cheap stocks often appear to be bargains after a large drop. They often continue to fall, or have little potential to rise in price. Leave them alone! * * Don’t fight the tape! “remember don’t buck the trend—don’t fight the tape
*The big money is made by ‘the sitting and the waitin’—not the thinking. Wait until all the factors are in your favor before making a trade—. Once a position is taken the next difficult task is to be patient and wait for the move to play out. The temptation is strong to take fast profits or cover your trade solely out of fear of losing the profit on a correction. Be sure you have a good clear reason to enter a trade and be sure you have good clear reasons to exit your position. *Play the market only when all factors are in your favor. No person can play the market all the time and win. There are times when you should be completely out of the market. *The only thing to do when a person is wrong is to be right, by ceasing to be wrong. Cover your losses quickly, without hesitation. Don’t waste time, when a stock moves below a mental-stop, sell it immediately. * *Failure to take the opportunity to get out of large illiquid positions when the opportunity presents itself can cost. DON’T ANTICIPATE! Wait for market confirmation! Never argue with the tape. Follow the line of least resistance. Follow the evidence. * If the stock you traded is going in the opposite direction than you expected-sell
Remember, go with the flow, bend with the trend, do not sail into a gale, and most of all...don’t argue with the tape! * GROUP ACTION IS A KEY TO TIMING—Stocks do not move alone when they move. If U.S. Steel climbs in price then sooner or later Bethlehem, Republic and Crucible will follow along. The premise is simple, if the basic reasons are sound why U.S. Steel’s business should come into favor in the stock market, then the rest of the steel group should also follow for the same reasons. *Trade the leading stocks in the leading groups. Buy the strongest market leader in an industry group. * Watch the market leaders, the stocks that have led the charge upward in a bull market.. * Confine your studies of stock market movements to the prominent issues of the day, the leaders. If you cannot make money out of the leading active issues, you are not going to make money out of the stock market. That is where the action is and where the money is to be made. It also keeps your universe of stocks limited, focused and more easily controlled. *Before you buy a stock, you should have a clear target where to sell if the stock moves against you, a firm stop. And you must obey your rules! *A successful market trader must only bet on the course of highest probabilities. Buy small positions, probe first, to test your judgement before you commit to a large position. Do not establish your full position all at one time—use probes to confirm your judgment and timing and to find the line of “least resistance. ”
ESTABLISH STOPS!—The speculator should have a clear target where to sell if the stock moves against you! Never sustain a loss of more than ten percent of your invested capital. NEVER SUSTAIN A LOSS OF MORE THAN 10% OF INVESTED CAPITAL *Never meet a margin call and never average down in your buying. *Turn paper profits into ‘real money’ periodically. Cash was, is, and always will be—king. Always have cash in reserve. Cash is the ammunition in your gun. PATIENCE—PATIENCE—PATIENCE WAS THE KEY TO SUCCESS—DON’T BE IN A HURRY. ” *Don’t be in a hurry. The successful investor is not invested in the market all the time—there are many times when you should be completely in cash. If you are unsure of the direction of the market then stay out and wait for a confirmation of the next move.
*Take fifty percent of your big winnings off the table *Don’t anticipate! Wait until the market gives you the clues, the signals, the hints, before you move. Move only after you have confirmation. Anticipation is the killer. It is the brother to greed and hope. Don’t make decisions based on anticipation. The market always gives you time. If you wait for the clues there will be plenty of time to execute your moves. NEVER ARGUE WITH THE TAPE. * A stock trader can be convinced to move away from his own convictions by listening to the advice of other traders, persuaded that his judgment may be faulty. Or in the least case, listening to others may cause indecision and bad judgment. This indecision may also cause a loss of confidence, which may well mean a loss of money. * Remember: ALL TIPS ARE DANGEROUS—TAKE NO TIPS! * Remove hope from your trading lexicon. Hoping a stock will do something is the true form of gambling. If you do not have good solid reasons for you to hold stock positions then move on to another more logical trade. Wishing a stock up, or down, has caused the downfall of many stock market speculators. *Always be aware of your emotions-don’t get too confident over your wins or too despondent over your losses. You must achieve “poise,” a balance in your actions. *NOTHING EVER CHANGES IN THE MARKET

 

This is one of the best posts on this topic I've read in a long while. Thanks a lot.

Right here is a one-page psychological roadmap for trading. Simple, yet deep at the same time.

For new traders you need little more. Realistic has just given you a cheat sheet and saved you about 1000 hours of work

PRINT IT OUT - READ IT EVERY MORNING (and maybe every evening as well)