Every single time a trader rushes into a trade without thinking there is usually a core physiological reason behind it. Ever heard the saying "If you have to make money in the market you can't!"? In my opinion this is directly to do with the degree of "lack" mindset vs "plenty" in the trader. If you have a mindset of "plenty", missing a trade will not bother you in the least. You will happily sit on your ass and wait for the next one. Not emotionally bothered in the VERY slightest. I use to chase trades in the past but nowadays I have around a 95% mindset of plenty. It has helped my trading tremendously. If I can't get a feel for the market and market conditions don't match my system I will step away from the market and just check back every little while until things look good again. Missing out totally on a big move doesn't bother me. There will always be another trade and another day. If you have a lack mindset you will be thinking thoughts like... "Oh crap I missed that trade... Nuuu" or "I can't miss another setup like that!!!" Those thoughts will influence your emotions increasing the odds of you making bad decisions. Watch yourself and keep your fingers away from the buy/sell buttons when you are having these thoughts. Or said much simpler... If you do give a sh*t you will most likely lose. If you don't give a sh*t you will mostly likely win. If you give a sh*t you need to fix that problem... Btw, is this a cussing allowed or disallowed forum? Not sure...
It's why they say having a secondary income makes trading much easier. Not having to make your "nut" every month reduces the pressure and makes trading less stressful.
Overall I agree that you need to wait for your setups. However, today I got in a little early on a long trade. Market was going against me, but I felt my overall read of price was correct, so I did add another contract at the price I would normally take a stop after I saw some ability of the market to try to go up. I then did take 1 contract off at BE and the other finally did hit my target. I wanted to try to reduce my fear of getting stopped out on both contracts, but in hindsight I would have made more if I let one contract make a little profit and the other contract more profit. I am glad to have made profit for the last 3 days, but would like to work to making more profit overall for each winning trade in the future.
Yep, that definitely helps some people a lot. Also, merely knowing they can make the money other ways helps lower their stress too.
Nonsense fear mongering... I detect a lack mindset!!! Markets have been here hundreds of years and they are still going up and down. Unless it's Armageddon(alien invasion or asteroid) and the end of the world is under way there will always be something to trade. If there is nothing to trade anywhere the market will be the VERY last thing your worrying about.
"Or said much simpler... If you do give a sh*t you will most likely lose. If you don't give a sh*t you will mostly likely win. " that may work with dating women. it does not work in the market.
Works in the market too. If you completely 100% don't give a sh*t and have zero knowledge of the market you have a 50-50 win rate and steadily lose money very slowly just from commissions and spread. If you have a 100% don't give a sh*t attitude and know a little about technicals and odds you will make money. You can trade as ugly as hell and still make consistent money if you have zero emotion. But, people like that are rarer than rare... Only a few exist in the world and I am not one of them. Not many people have zero emotion. There is not many people that can buy into hell and Armageddon with no qualms like warren buffet and a few others. He isn't emotionally influenced by the market in the least.
Lack Mindset > The main reason for compulsive trading. ------------ If you have a working strategy. Then, yes, absolutely. Self Discipline 100% is the only way to success. You can have the best plan in the world, if you dont follow it, you will lose. I just can say: If you have a plan, then why dont you follow it ? Another thing i must tell you is the fact that: Losing traders = gamblers, prefer rather to trade and lose, than not to trade at all. VS Winning traders = Business people, prefer to not trade at all, until everything is so perfect to taking money out of the market, like picking money up from the floor of your room. In other words, winners only go into a trade, when all odds are on their side, 100% perfect. While the idiots = losers, only want to play for the kick of excitement..........
I have to agree with the essence of the OP. Chasing is an effect of the "lack" mindset. I haven't gotten fully to the point of not saying damn I missed that or I should have held longer but what's important to realize is it's ok to see what could have been done differently, briefly for next time but never waste any energy feeling bad or regretting, it's a complete waste of time and energy. After a few moments just focus on the next set up. Oracle, sometimes I consider after a position goes negative there's a natural feeling (may depend on the person or is it human nature ?) of wanting to get out at a break even but I think if you have just risked whatever the amount and had it go negative it deserves a chance to go at least positive as much as it went negative. Does that make any sense, lol. Especially if I had a good sense of why I went into the trade to begin with.