First, LONG TERM SERIOUS simulation trading DEFINITELY prepares one to make the correct decisions. DEFINITELY. Especially, if you track your performance in public because public failure is one of the biggest fears. Does it feel the same? I've placed real money trades, trades on my account where my subscribers are trading real money, and on the simulator with no money at risk. Each feels different. When I lose my own money, that's a certain kind of loss. When I lose on my record then that's a certain kind of loss. When I lose other peoples money then that's a certain kind of loss. Losing in public is worse is then losing a little money but not as bad as losing a lot of money. Losing other people money is the worst feeling. It is worse then even losing my own money. One thing is that if one is trained to make the proper decisions then it doesn't matter how you feel. If I'm excited and jumping up and down or scared to death is inconsequential provided my analysis is correct. I can give a great example. One of my subscriber just lost over 4k on me. It felt terrible but I was trading one of my most effective systems. Sure I could have go back and look and see how I maybe could have won on that trade or lost more too. But the point is that.. it wouldn't matter how I felt because I was trading a system signal. If I had been at my best maybe I could have avoided the loss.. maybe not. Problem is.. most people refer to paper trading as tracking results for a few days or starting over.. they don't treat it serious -- 1 record over a long term -- like I have. If you do then you really start to appreciate the seriousness of it and the value. Of course, you're not going to be confident by "paper trading" for a few days. Keep an audited track record for months then you can start to feel confident. I have place trades in my simulator and with real money at same time to evaluate the differences and how it felt. For me, there is very little difference in trading sim vs real money. If I have an unusual +5 or +6 losers in a row then I would get more concerned on real money.. I traded through 12 straight losers with real money. That was difficult but I did it. So, my lesson is it doesn't matter how you feel provided you make sound decisions. Better not to get stressed out though. One thing though,.... I always trade on simulator as I would with real money except I can be careless which can be a help or a hazard. I mean that I'd always put a certain dollar loss on a trade when trading real money because I don't have to be stuck in a bad way -- like I have been. However, I don't always put a stop on simulator. This can be a help because stops hurt performance but it can also be a risk of taking that 1 huge hit. I plan to eventually go to an automatic risk of 3% to 7% risk per trade and have C2 to automatically hold me to that. Within that amount of risk, I can choose to manage the risk using stops or not. I will say that if you trade more often and at a larger size then you are more prone to having gambling type problems. I mean I never had a motivation for a revenge trade when trading my normal 1 to 2 day trades. I've had it happen once when trading a more active day trading style. But really I doubt many professionals deal with things like "revenge trading" more then in a rare passing. This is more of a retailer notion. Most professionals are more concerned with placing the best trades possible -- like I am.
Good luck. If reason ruled, then the markets would not be such a great place to lose your money. Rande Howell
What can be learned from your loss that can help you to understand and change the psychology that traded? Rande Howell
There is a historial organization of the self that has to be changed so that there is an openness to change. Other wise the brain stays locked into the certainty of its learned ways. And failure continues. Rande Howell
What I know is this: there has to be a shift between the hardened pattern of certainty mandated by the brain and an opening to probability orientation which the brain is capable of doing with intentional guidence. Reworking fear is the door that opens to a new world of perception. Rande Howell
Doesn't matter. The moment that risk of capital loss is introduced, the game in the mind changes. Mind recognizes the difference between pretend loss and actual risk. Rande Howell
No. Just minds that attempt to act. And the ignorance that stops them from making progress. Rande Howell
Thank you for your thoughtful reply. This is the kind of dialogue that I seek to open. My only comment is that I encourage traders to risk only 1-2% of their capital on a trade. Your psychology apparently is open to more risk than most retail traders. Rande Howell Rande