Hi everybody. So many interesting threads and excellent posts - really thought-provoking. I'm quite an inexperienced novice trader from Russia. I've been now for three months trading in stock and mostly index futures in the Moscow exchanges. My psychological problem, as I see it, is that I do not feel elated when obtaining a profit, even a considerable one, but any loss, however small, gets me really depressed. And on experiencing a drawdown I believe myself to be just a clueless, good-for-nothing moron - and feel that trading is just not my stuff, that I don't at all have what it essentially takes. Is this situation unique to me only, I wonder?
I feel sad, empty and incompetent sometimes. I sometimes feel that trading is just not my stuff, that I don't have what it takes also. I talk to people about the feelings. I get into the feelings and try to amplify them. Your sadness about losses and feelings that you don't have what it takes to be a profitable trader might be an inner voice telling you to be careful, keep alert, manage risk, continue working on trading systems and studying price behavior. I do not think that you are alone in feeling this way. Is your trading method good? Maybe your feelings are trying to alert you to some problem with your method.
Are you profitable overall or not? That totally changes the dynamic of the question youre asking and the appropriate interpretation of your feelings.
"My psychological problem, as I see it, is that I do not feel elated when obtaining a profit, even a considerable one, but any loss, however small, gets me really depressed." Classic case of right or wrong. Profit = right, ho hum. Loss = wrong (depressed). Entire trading psyche based on being right or wrong. Trading is a series of what works or doesn't work. Think of it as a trade worked rather than I made a trade and I was right. Somehow you have to eliminate the concept of right and wrong in this instance.
> My psychological problem, as I see it, is that I do not feel elated when obtaining a profit, even a considerable one, but any loss, however small, gets me really depressed. And on experiencing a drawdown I believe myself to be just a clueless, good-for-nothing moron - and feel that trading is just not my stuff, that I don't at all have what it essentially takes. > Is this situation unique to me only, I wonder? Basically, I think this problem can be seen even in other areas than trading. When you trade often, I do not think you can be so much depressed. In a way you are accustomed to winning or losing. You will be less emotional. In addition, if you diversify the ways of your trading, you may lose some from Strategy A, while you may make money from Strategy B.
Thanks for your very profound opinions and suggestions. The point is, I don't feel happy when I win. On several occasions I got sums equaling my three-month wages (trading is so far some sort of hobby, so to speak))), but I didn't experience ANY joy. My heart was void of any victorious feelings. At present I'm a bit in the red (due to quite a few stupid blunders I'd made at the start). But my accounts are growing step by step.
cuttiong your losses and leting your winners ride. CUT YOUR LOSSES is trading number 1 you'll be surprised how many don't cut their losses... likewise if you keep losing money in your trading you should QUIT and try something different..like get a real job or trade differently..
putting stops as market makers(computer) knows and and sees your stops..if you can't stop yourself or discipline to STOP LOSS makes sense in the trading business. mutual fund managers can afford to hold the bag or have paper losses cause it's not their money at stake...etc... traders need the cash