I also wanted to publicly thank janko for asking this question and thank subsequent posters for for their many useful replies. I too have wondered "if trading is really right for me?" Those who read <a href="http://www.elitetrader.com/vb/showthread.php?s=&threadid=6994">Unattended Systems Trading?</a> will know that my proposed solution to my own stress over trading was to automate the whole process. If a mechanical trading system generates long-term performance, why be forced to see the minute-to-minute gyrations that create stress? I am in the process of researching the many technological alternatives, issues, and ideas proposed by posters on that other thread. But, many suggested that I deal with the psych issues head-on. Posters strongly recommended that I read "Trading in the Zone" by Douglas and "The 21 Irrefutable Rules of Trading" by Van Tharp. I'll do this too so that I do not fret over small drawdowns. Thanx everyone, -Traden4Alpha
AAwwhhh damn it, again today, had a buy limit on the dow contract at 7500, thinking good support for dow. well as dow started ticking down and my order getting closer and closer to fill i killed it thinking that dont buy it now, maybe i can get it lower, yeah it went a bit lower but still didnt buy. After that failure i just sat and decided to watch and paper trade the ES a bit. I got to be screwed up in the head somehow, is it greed that i always want to buy at the ultimate low price? is it cheapnes or what? im always trying to get the lowest price naturaly and end up missing the entire move. I think i'll take a break from this for a month, take a vacation or something. will update this problem of mine when i fix it. thnx for all your help guys. love this board!!!
yeah janko, you're screwed up in the head. Trading is 99% thinking right and 1% pushing the right button on the computer. But be encouraged, you can get your head straightened out. I've read Trading in the Zone, but for me a better one was "The Disciplined Trader" same author. When I changed my mind, my trading changed, and my whole life changed. (for the better)
I disagree. Trading is being right on as few as 20% of your trades, but riding the winners to the moon and always covering losers quickly.
the mind game comes in when you have to cut your losses and ride your winners. That is a mental struggle.
Janko, We all know that you cannot learn the play the piano over a week-end. After a year of practice you may play well but you're likely not able to put on a concert (and to get people to pay to hear you). Same thing for becoming an engineer, doctor, lawyer, athlete etc. ... it simple takes time & effort. Why do people think that trading has to be successful very quickly? I don't know. You will competing with the world-class players right on day one, which makes it very very difficult. There is no minor league to trade first. It's play against the best or don't play at all. Read Marty Schwartz's PitBull for his journey. So here is my recommendation (and what I did). If you are convinced you can do it; stick with it for as long as you can afford. Sometimes, however, a break with employment is not a bad idea. Gives you time to re-examine what went well and what needs improvement. You can always come back. I take on consulting jobs from time to time simply to make a bit of guaranteed money, get to know new people and broaden my horizon. Worth it imho. I live in CA, so I generally get to trade the first 2 hours before I have to go to work/consult (the times where that was the case).
One more thing: read the book "Fooled by Randomness". With the large number of people trading and/or day-trading, there are bound to be a significant number of highly profitable traders simply by luck. I'm not saying that there is no skill involved, but even if every trade was random some individual will make significant amounts of money simply by chance. So don't compare yourself to successful traders and what they (claim to) have done. The only thing that matters is how you trade and how much you enjoy it.
RE: "My order getting closer and closer to fill i killed it thinking that don't buy it now, maybe i can get it lower, yeah it went a bit lower but still didnt buy. After that failure i just sat and decided to watch and paper trade the ES a bit. I got to be screwed up in the head somehow". No, you're just a solo trader. You've most likely got the skills, but in your solo environment, you're free to roam around in your head when you should be entering orders. Pair up with another trader so that peer pressure and competition keeps you from wilting. After a few "you #@% pansy" from your fellow trader, you'll be focused and at the task with a vengeance. No navel-gazing required.