How to control ourself when we lose money?

Discussion in 'Risk Management' started by Volfixtrader, Jul 21, 2020.

  1. StatGuy

    StatGuy

    This is a good idea. I have told myself multiple times to just trade the micro contracts to get back on track. Usually that works for a little while and then I start thinking "why not scale up?". Probably the most destructive thing though is if I am down slightly (say $100 or so) I start to think "hey one quick scalp on ES/NQ could easily cover that loss". Sometimes it does just that, and then other times it makes it 2-5x worse. I think I either need to stick with a single micro contract until I can learn to control my impulses or swing trade. I tend to do better at longer term options trades anyway (SPY or SPX). These futures contracts are so choppy that I often get faked out and abandoned my position too early.
     
    #31     Jul 31, 2020
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  2. %%
    Wise idea/weekly idea/LOL
    I have a woman print out my chart, weekly...………………………………………………………………….I had to tell her one page per chart/never try to get revenge, since the chart printer gets paid for volume. Movies are a bigger risk/cost more than when we were kids!!
     
    #32     Aug 2, 2020
    Volfixtrader likes this.
  3. What I understand about my mind that it is weak. Mood, health, weariness, expectations, problems in family, previous losses and rewards and other sometimes not so important things have impact on my decisions during the trading. Try to drink some alcohol and to trade and you will receive so horrible lesson so you will remember it for a long time (That's why in casino all alkohol for free).

    On my opinion there are 2 ways how to handle it. 1 - to have very strict rules for following. 2 - in case of manual trading (using current analysis and current making decision) to have very clear filters which allow or forbid trading.

    The biggest illusion that we using our brain can make money on every market and every time analysing situation, the truth: if we don't use probability in making decisions we might lose money even if we make perfect analysis.
     
    #33     Aug 3, 2020
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  4. maxinger

    maxinger

    How to control ourself when we lose money?

    --->

    How to neutralise negative emotion effectively when we lose money or miss a good signal?

     
    #34     Aug 3, 2020
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  5. Dwayne

    Dwayne

    Better take a break and give yourself sometime.
     
    #35     Aug 3, 2020
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  6. And how? :)
     
    #36     Aug 3, 2020
  7. %%
    Good.
    Another way to look @ it. Sam Walton 's[WMT] wife said '' I'M NOT moving to a big city'' LOL/true, so don't move to a bigger city, just because many retail do.Trade smaller after losses; unless one has a real low hit rate...…………………………………………………………………………………….. And casinos sometimes serve free drinks + no clocks.
     
    #37     Aug 4, 2020
    Volfixtrader likes this.
  8. Although it is difficult to control our emotions when we face lose our money but having good discipline and money management we can control ourself and our emotions.
     
    #38     Aug 4, 2020
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  9. What alse I understood that we should not fight with our emotions. There are very good work on this topic in Kelly MacGonical: http://kellymcgonigal.com/books
     
    #39     Aug 5, 2020
  10. maxinger

    maxinger


    I tried many things.

    I don't find these effective ;
    meditation, tapping meridian points


    I prefer these:
    psycho cybernetics (before trading),
    get of of trading room and go running, and perhaps no trading for the next 1/2 day (when trading is really bad)
     
    #40     Aug 5, 2020
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