My friend's trading problem

Discussion in 'Psychology' started by millionaire7, May 20, 2008.

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  1. #31     May 26, 2008
  2. I think both emotions & the platform you are using matters, for if either are missing, you are bound to fail. I feel that both are important for success. Others also add capital as another important criteria for success. Let us see what others have to say to this?
     
    #32     Jun 11, 2008
  3. NoDoji

    NoDoji

    I had this problem, great paper trading, but an irrational fear the act of actually trading would somehow jinx the strategy. However, it had to be done and the first time I finally pulled the trigger, I automatically entered my stop based on max loss per trade and watched the trade turn against me and stop me out at a loss of $1200 rather quickly.

    I said to myself, "Well, that was a bust", got some coffee, came back and watched the chart until it pivoted off the next support level and traded again. This time I made $3800.

    1. Choose the worst case scenario you're willing to accept on the trade

    2. Pull the trigger and lock in the trade at the worst case scenario

    3. Win/win situation results because you've emotionally accepted the possibility of a loss in advance and you know you'll live to trade another day.
     
    #34     Aug 4, 2008
  4. That was a long list and interesting one too, Derrick1983. Thanks for the links. :)
     
    #35     Aug 15, 2008
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