Great post- I modified it a little: Trading is a game of probabilities. I have a system that skews the probabilities dramatically in my favor. All I have to do is follow the rules of my system. I do not think or predict, I only execute the commands my system gives me. I know my system works. Every trade that I enter is just a profit or stop. My strategy is to wait for high-probability parabolic moves for optimum trade entry points to scalp 20-30 cents from the trade and exit. If in the event my stop is hit, I immediately will close out the ENTIRE position and exit the trade without hesitation or emotion. There will be more opportunities. Any given trade is not of significance and does not âhave to workâ, nor do I need to be right every time. A trade that hits a stop does not mean that I am a bad trader or that I am stupid. It simply means that the trade will not increase my P/L and the damage needs to be stopped by exiting it. I absolutely cannot sustain huge losses due to being stubborn or thinking that the price is too good to exit. I can always get back in later with a clear mind and patience for a great move. My focus is on being a profitable trader EVERY single day and on following the rules of my system. I know the rules of my system and what I will do in different situations. I will not make excuses, I will act, especially on stop losses. Not following the system and lacking discipline results in setbacks to building my account and reaching my goals. Trading within my proven system puts odds on my side. I just have to play to allow chances to realize. I know I can trade by rules and when I do, I make money. All I do is I react on signals, a signal to enter and a signal to exit that are generated by my system. They take me in and out with no hesitation. I can observe the market being emotionally detached from it. Any stock movement is just numbers that change by certain patterns, and I know how to read those patterns. I am totally focused on what the market is telling me. I can hear it and react on it. FOLLOW STOPS, BIZ PLAN, DISCIPLINE 100% = $$$$$
This happened to me when it occurred to me that what I was trying to do for a living is a form of gambling. I had doubts on wether my edge was valid. You need to make sure you have an edge and that you are 100% confident in it, otherwise the market will eat you up. Try trading on a simulator for a couple days and then add a real trade into the mix, then do a simulated trade, ... Worked for me.
if you are unable to cut your losses - just quit until you can - assuming you can cut your losses: get a good nights sleep. eat breakfast. prepare for the day... dont trade the first 30-minutes. pull-up the chart of your favorite stock, look it over and take a position within a couple of minutes - one way or the other - then manage the trade. if you dont like the position, close it and flip. dont just close it, close it and flip. its like going into a boxing match - too much nervous energy. the first punch either way releases most of it. the nickel or dime you lose is insignificant versus getting into the flow. just try not to get knocked out in the first round. good luck
I get the feeling your fear of losing is greater than your need to make a profit. So, how about this? Every time you fail to pull the trigger when your system gives a valid signal, you write a check to your favorite charity in an amount equal to your expected profit target. This way, failing to pull the trigger is definitely going to cost you money. Whereas, assuming you have a profitable system, pulling the trigger will more likely than not make you money. Thus, pulling the trigger becomes the lesser of two evils for you.
I thought about the same, but in a slightly different way. Namely, he needs to determine how much he is willing to pay for getting rid of this complex and then start paying for it by pulling the trigger. If he gets lucky he may even end up paying less than he was willing to.
Here's what I did. Trade one contract always in with mkt orders. I'm talking flip and reverse. About 7 or 8 rts back to back, then take a break.
ADX, think about it this way: 1. you are losing time (=money) by procrastinating, 2. screw this, go ahead and do it, the sooner you lose your money (perhaps) the sooner you will become free of this problem, 3. money is not everything, you are becoming a prisoner of your money by being unable to pull the trigger, that's not how you intended to use your money, right? You want to be free? Say: 'to hell with it, I am gonna do it!' and do it, just do it!
I can cut loss or cover a position easily. But I cannot put on a trade. I feel my subconscious doesn't want to take responsbility. Because when I cut loss or cover a position, I am going to finish a trade i.e. I don't have responsibility anymore. So I feel good. But when I enter a trade, I am going to take responsibility. Just opposite to many traders or gamblers, I am good at the 'finish' but not the 'start'. I remember the happiest days in my life were all those 'finishing' days. Leaving school, leaving works. May be I should find a job to cut losses for other people!