Mindset of a losing trader

Discussion in 'Trading' started by TripleJs, May 28, 2021.

  1. Sounds like your "method" needs work.

    It should be... (1) You know exactly what you should do and why, and (2) do that and only that.
     
    #41     May 28, 2021
    SimpleMeLike and TripleJs like this.
  2. deaddog

    deaddog

    No I mean a written trading plan. An operators manual so to speak that you could give to someone else and they would be able to trade your system.
     
    #42     May 28, 2021
    SimpleMeLike likes this.
  3. comagnum

    comagnum

    All traders have this problem to some degree no matter how long they traded, or how much they have made. It's a lot easier to find ways to make $ in the market than it is to actually execute it through thick & thin.

    Marty Schwartz (pit bull) this legend went on full tilt a few years ago losing $25M in not time, nobody is immune from having destructive trading psychology at any time.
     
    Last edited: May 28, 2021
    #43     May 28, 2021
    TripleJs and virtusa like this.
  4. virtusa

    virtusa

    This is impossible for discretionary traders as they have situations where they have no "exact"rule for. That's why they call them "discretionary traders".
    I am sure that this is even the case for any trader that has a good performing system.
    I can make fix rules for the situations that I solve now in a "discretionary" way, but that will have a big negative impact on my returns. Discretionary can also mean that there are exceptional temporary extra rules to try to get the best outcome.
    If I would trade only with exact rules, I would leave big amounts of money on the table in many trades. The behavior of the markets cannot be controlled by a few exact rules. In best case you can control parts of each move.
     
    #44     May 29, 2021
    SimpleMeLike and TripleJs like this.
  5. This makes sense to me. Not all traders need precise rules BUT I think ALL traders need a process / checklist of what's essential for them to review as well as to get them in the right mindset for trading. For instance, I have 5 key macro indicators that I have to review each day (there are more that I look at but these 5 are essential). Then, I have to identify my key levels for each market. Lastly, I have to review each market in 3 key time frames. I also have some mental prep that I do around mindset.

    Again, it's a process / checklist but not precise rules. This fits with a lot of the mindset training I do with young athletes, in particular baseball players. What I want them to do is go through their processes and routines which will allow their subconscious mind to give them the best chance for success.


     
    #45     May 29, 2021
    TripleJs likes this.
  6. virtusa

    virtusa

    :thumbsup: :)
     
    #46     May 29, 2021
    formikatrading likes this.
  7. TripleJs

    TripleJs

    No I don't. it's in my head
     
    #47     May 29, 2021
    SimpleMeLike likes this.
  8. Very very very well stated.

    I am currently making the mistake of trading real time without a verified quantitative statistical analysis backtested Edge. I'm tracking real time trade results to seek edge statistical, but that's forward testing and I'm trading without an edge.

    You right sir, I need to get myself in backtest and prove it first and stop being lazy.
     
    #48     May 29, 2021
  9. CharlesS

    CharlesS

    I once suggested the same to the pre-eminent trading psychologist Brett Steenbarger -- he agreed.
     
    #49     May 29, 2021
  10. This is powerful statement.
     
    #50     May 29, 2021