Passing up successful trades

Discussion in 'Psychology' started by halfwaythere, Nov 13, 2012.

  1. "do not try to learn a lesson"??? This is flat out bad advice. One should always be looking to improve by analyzing a failed trade... the goal is to determine if the trade was truly a "bad" trade-- one that after being detached from it allows you to see where you potentially violated your setup/trade plan rules. The ideal outcome from analysis will be finding out that you traded the perfect setup... it simply did not work out.

    When you lose-- you want to lose on your best, highest probability setups. And you want to take those same setups as they arise over and over and over... with no regard for the losing trade.... for you realize trading is all about probabilities and if your setup is sound... more often than not the perfect setup will be a win... not a loss.

    what you DON'T want to do is continue to make "bad" trades... this is a recipe for failure. The only way to determine if the trade is truly "bad" is to analyze it... record it in a journal and the lesson learned from it.... with future review in mind.
    #41     Nov 15, 2012

  2. "Mark Douglas is a loser in trading". Ooooh really trader198? Pray tell -- what basis do you have for such a bold comment?
    #42     Nov 15, 2012
  3. First of all, congratulations on your aha moment after reading his book. I have read it more than once and completely agree with it.

    My response was initially directed to your specific comment:

    "And I say "immediately"... because if it doesn't... then trading isn't for you..."

    IMO, for most people it will not be immediate, they are going to need to work at it.

    I believe you had your epiphany because of the groundwork you did prior to reading his book, most people are like Dorothy who had to go see the Wizard and blah, blah, blah when all she/we had to do was click her/our heels 3 times....

    Most people have to go the long way around the barn, myself being one of them.
    #43     Nov 16, 2012
  4. Is the reverse true also?
    #44     Nov 16, 2012
  5. dealmaker


    trading is about managing risk thus traders who know how to take a loss win....
    #45     Nov 16, 2012
  6. so that's how they do it. I was always wondering how they buy those fancy cars.

    And it's all about managing risk you say?

    I'm going to remember that next time I put something on

    I could use a new fancy car
    #46     Nov 16, 2012
  7. #47     Nov 16, 2012
  8. Yeah I hear ya... I think up until the point I read the book I had exhausted all possible methods of overcoming the fear. But I really believe the contents of the book itself brought up some very objective and tangible points that I had never considered or been exposed to prior... as opposed to just simple "mind over matter" subjective psych stuff for lack of a better description. This distinction is truly what made my "immediate" reaction possible in my opinion. That is why I feel the eye opening effect it had for me with little/no lag time is very possible for others who had struggled just like I did. And I like your metaphor of going the long way around the barn... believe me... I went around more than a few times before I found where I was going LOL!
    #48     Nov 16, 2012
  9. Yep I agree with this loosely described comment...

    First you must determine what the risk amount is that you would be willing to lose.

    More importantly however is ACCEPTING the risk. Understanding that losses will occur... "business expenses" in essence. If one gets upset after a loss-- this proves it wasn't "accepted" from the beginning... and therefore will negatively impact future trade decisions. (in addition to being jaded by tying a future trade decision to a prior "failed" trade on the exact same setup).

    Being able to remain objective after a loss and completely open to the next setup is key... this in and of itself is a "win" right off the bat.
    #49     Nov 16, 2012
  10. ammo


    bingo, get over the fear because over half your trades will go against you the minute you are filled,accept ti as part of the game and roll with it,become good at losses,this is how one builds an acct, making money is easy, hanging on to it is hard,becomes easier as you get better at managing losses
    #50     Nov 16, 2012