Hi Everybody, If some of you can really help as to how to overcome this psychological handicap of losing steam and behaving timid no sooner i book (incur) 50% of my (intraday) stop loss; most of my losses are because of unusual market movements and scares the hell out of me and gives me a jinxed feeling for the rest of the day and invariably takes me to the my 100% intra day stop loss limit and i book that too, PLSS HELP, m sure most of u can help me on this, thanx anyway, prospect
If you think you're too timid, just make smaller trades or paper trade until you get some confidence.
I was down almost $700 in the first 45 minutes of trading. I walked my dog, got a glass of cold water, and proceeded to eek out a $150 win for the day. I am not suggesting that you do this - some traders are better off calling it a day. Assumming I am not just trading badly, I am the kind of person that when I am knocked down, I double or redouble my efforts in concentration and push forward. A lesson well worth remembering is: it is possible to do nothing wrong and still lose. nitro
You have entry and exit rules other than this intraday loss rule, correct? You follow them no? Well your intraday loss rule is as much a part of your trading method as any entry/exit rule and so you must follow it with the same rigor. If this is not acceptable, then you must re-evaluate your system according to an intraday loss which would be the equivalent of 50% what your current intraday loss is. If this works then you've escaped your 'problem,' without facing the problem and that's okay. However, in my humble opinion, what is truly at issue here is a fear of loss. If you were truly comfortable with your system and the intraday loss amount, you would in fact look forward to the days when that loss amount was hit early in the day. WHOA! Sounds crazy, right? Well, if you have confidence your system will work in the long-term (or if you trade discretionarily, that you will make a proponderance of good decisions in the long-term) then you will not fear your losing days. Rather, you will expect losing days. And, as a result, when those losing days occur before 10:00 am you know you have got the rest of the day off, because by not taking the day off you are breaking your own rules. Why would anyone break their own rules...so that they can't take the day off?? Fear. So quit it man. Get your shit together and quit questioning what's working. Unless you wanna quit - and if so, be a man about it and do it don't bitch.
Prospect: That was a big problem of mine at one time until I was able to âdetachâ past trades from whatâs going on the in market at this moment. It boiled down to a matter of controlling my focus. If I kept my focus on previous losses, itâs just going to stir up a mental storm of doubt, fear and paralysis; not to mention missing out on what good opportunities the market is currently offering me and then feeling even worse afterwards for having missing it! Also, you may want to access your trading system to see if you have incorporated strategies to keep those losses to a minimum when they do occur but can also overcome those cumulative losses with maximum profits when you have trade wins. That will greatly assist your confidence in your system and your ability to implement it knowing that your wins will outstrip your losses in the long run. Good luck! Kermit
Folks have made some good points. For me, after a few years, it is the confidence in my trading systems that lets me not get too freaked out. For me, the difference is whether my losses are the result of good trades or bad trades. And, as has been said many times, a losing trade is NOT the same thing as a bad trade. If I have followed my systems and rules, I know that I will lose money a certain percentage of the time, and that's both OK and fully expected. That's a good trade that just didn't end up profitable. I also know that if I keep doing exactly what I am supposed to do, that I will eventually end up ahead. So, I really only get upset with myself and jumpy when I lose (or make) money on a BAD trade, which means that I didn't follow my plan, whatever the outcome. And those are the losses that I should get upset over. The other losses are as much a part of my trading system as the gains. I think it was Ed Seykota, who said that wanting to trade without experiencing losses is like trying to breathe without wanting to exhale. Jessie
Yep, losses are part of the business. It's just another business expense. It's a just bill that you have to pay. What separates the professionals from the armatures is that the professionals are willing to pay those bills, (on time).