Observing emotions to trade well

RN thanks for this piece of info. this has also happened to me on several occasions. I quit the trade early only to find price reversing for a significant profit

 

Ghost,

I would agree with your thoughts here as well but my only caution is that the newer the trader you are, the less able you will be to tell the difference between the feelings that can help you and all the other feelings caused by anxiety over lack of trading plans, lack of setups, lack of discipline in following setups, etc.; all the things the newer trader has anxiety for but shouldn’t if they have all their ducks in a row so to speak.

I had considered breaking my first post into good emotions and how they can help and the bad side of emotions I talked about, but figured that would take too long. They are better off trying to take emotion out of it in the beginning IMHO. When they have enough experience and skill to understand the difference between the good emotions and how they can be beneficial (that you are referring too, which certainly exist) and the emotions which are just signs of other problems, then they have the skill to understand and use the tools you are referring too and won’t need much advice. They have to walk before they run.

Good trading all.

BM

 

Sumeet666,

It sounds like you are on the right track with your post going into more detail about your thinking and why you thinking that way. A few words of advice before going full time though: First, as a very discretionary trader, do you have written parameters about what constitutes an entry and what doesn’t? Have you tracked your trades to know your win/loss ratios, avg win size/avg loss size, avg hold time, expectancy, etc.? Did you follow your rules (preferably written) or did you adjust your thinking in a trade to give it “more room”? The more discretionary and the less defined your methods/setups, the MORE disciplined you need to be as you are only a couple “sunspots” away from being out of the game. Do you follow your trade rules without hesitation? Do you get out when you have been proven wrong without hesitation or do give it more room and hope?

Answer some of these questions honestly with yourself and whether you should go full time should be clear to you. When you have a positive expectancy system and follow your rules, you are ready. The problem with a very discretionary system is it harder being consistent and proving you have a positive expectancy. Time in profession is the least important criteria in my mind. What matters to me is if you have rules, do you follow them religiously, do you learn from and understand your mistakes (you will make them but must understand it was your fault) and more importantly, NOT repeat them? The first year was essentially a waste and was just entertainment in my eyes. I hope you see that (and learned something from it). The hardest part is the brutal honesty you have to be with yourself. You can’t hide the truth as the numbers at the end of the day are nonnegotiable.

Best of luck and keep us posted on your progress.

BM