Over-trading versus Fear of Loss

Discussion in 'Psychology' started by SimpleMeLike, Nov 23, 2016.

  1. Hello,

    I need some help or advice.

    I have a system that I have been trading with decent (slightly over break-even) profits.

    My system have the ability to have more wins vs losses if I take all the setups.

    Here is my problem I notice lately: Once I make about $300-$400 on the first 1-2 setups, I stop trading. However, the system producing 2-3 more setups during the day that gives good setups. I do not take them cause in my mind I think I am over trading and I fear losing the money I already made.

    Those trades turn out to be winners and I could have made $500-$800.

    The next day or so, I take a loss and all the money made from yesterday is loss.

    I believe I should be taking all the setups and stop worrying about losing or overtrading.

    Please share your experience or advice please for me.

    Thanks
     
  2. CyJackX

    CyJackX

    If the charts were an endless stream of data and you had no concept of time, there's nothing saying you shouldn't take a good setup. There's nothing saying you have to categorize "today"s trades as a category. There's nothing saying the last trade should have anything to do with the next. If your system works, follow it.
     
    SimpleMeLike likes this.
  3. Ditto.

    Disagree about the notion of "overtrading".

    You either trade well or poorly.... frequency isn't a determinant of success.
     
    SimpleMeLike likes this.
  4. Read: 'The disciplined Trader' By Mark Douglas.
    It tackles what you described.
     
    SimpleMeLike likes this.
  5. java

    java

    If you lose 2 or 3 hundred on the first 2 trades do you keep trading?
     
    SimpleMeLike likes this.
  6. My daily limit loss limit is $450. If I hit that limit, I stop trading.
     
  7. qxr1011

    qxr1011

    but u do no believe that its good enough for you... :) you want to improve it, and knowing that after the series of wins will probably follow the series of loses u refuse to trade further

    effectively u do not believe in your method...

    happens

    what to do? stop trading, continue to improve you method until u want to trade it again,..... trade it again, until u find again that u do not want to take all the trades... stop again... and like that: iteraton after iteration

    u have to understand once and for all: if trader does n0t take his methods trades (all of them) that is clear indication that he does not believe in the method at hand
     
    d08 likes this.
  8. qxr1011

    qxr1011

    u should stop trading at all with the real money until u ill have a method in which u will believe

    probably the earliest in a few years, most probably never...
     
  9. java

    java

    No prob, if you have a feel for what a day can usually produce and you hit it I see no reason to keep taking risks. I have a rule, when I get flat, no more trading until everything shows zero, and all trades have successfully been imported to tradelog (usually after midnight.) I run the exact same system in my paper account and it never gets flat so I can switch over and watch it and see what would have happened. Why let psycho take it's toll if you are above water?
    Gamblers law:Quit while you are ahead. Anything else is just trading.
     
  10. speedo

    speedo

    If your system has a positive expectancy, you should take all defined signals. No one knows whether the next series of signals will result in wins, losses or any combination.
     
    #10     Nov 23, 2016