There is a lot of great advice on this thread .... And everyone has their own way - I use a combination of many opinions here but I will highlight two (of a few more) points which help me. 1. Know your stats. If your computerized backtesting is crappy, then look at your trading history (therefore keep good trading records). Once you know your stats, you can be more committed to a trade, or know when not to get in. If you got a 50/50 win loss ratio then don't take the trade if the risk/reward is less than 1/1.5 or so. Remind yourself, "I am not going to take this trade if I am going to go broke doing this in the long run, goddammit!" Another way of visualizing this is to think of the future. Maybe you would like to trade for a client. How would you justify a revenge trade to your client? You couldn't - so don't do it. End of discussion. 2. Keep a trading plan handy which you did well with, and one where you really screwed up with. Keep it next to the computer. When you are in a trade, look at it. Ah, that is how it was last week on a good day. I am in the process of doing this again. Or, I really did myself in on this day, I will not do this again. Maybe you have a trading sheet where you stuck to your guns but it was a crappy market. Commend yourself for a trading well but with no profits to show. Make notes on the trading sheet and keep that one handy too. It is a better outcome than then the "let me try this trade again" and trippling up on the loss. Hope this helps.
try to understand the movement you see in various time frames and how it can affect whatever it is you trade www.youtube.com/watch?v=kCeEXGZ7v9g
I understand why you would attack an opinion that traders should develop their own methodology.. after all you are a failed Hershey follower that needed someone to do your thinking for you
Everyone faces some demons of some kind on their way to success, in everything. Your own first post stated exactly what you know you are doing wrong, stated some solutions and then you said you wanted and needed some advice. Your problem is mental more than anything. You have been trading off and on for a long time. You know the problem but just wonât address it. You already know you lack the discipline needed to be successful. You said you have to âfight backâ because you care more about showing yourself or âthe worldâ you are successful at trading and not wrong. Wanting to be right and wanting to make money do not necessarily go hand in hand in trading. Until you learn that following you plan and making money is more important than being right, you have no chance to be successful long term. You may consider a psychologist to help you understand why you wonât change what you know is a destructive behavior to your success. And realistically, if after 14 years you know your problem but wonât solve it, you may consider that trading is not for you. Until you are willing to make a real change in your mindset, you are fighting yourself (and losing) more so than the market. You canât be successful trading until you stop fighting yourself. Granted, much easier said than done. You have said you have a real system but either you donât and think you do or you donât trust it. If you know what your expectation is, then you have no reason to not be optimistic. Remember you donât know what any single trade will do (and really shouldnât care) so you must follow your rules, EVERY TIME. Because you know one trade doesnât matter because over the next 1000 trades or whatever, you will be up because you know what your real expectation is. If you have that knowledge and comfort level with your system (as you should) but still wonât follow your rules and revenge trade, then no one can help you. I will close with what I think you want to hear. You are not alone. Yes, you can overcome your demons. Many have before you and many will in the future. But it is up to you and you alone. Thinking your trading is like gambling as others have said is not the path to success and excellent advice. Good luck BM
This may sound simplistic, but it seems that a lot of traders that cannot quite seem to put it together(and this will include myself in years past), is that proficient chart reading has not been emphasized. Using support and resistance and trendlines are critical. Once that trendline is broken either back off or get in, setting reasonable stops and let the market make the decision for you. Other indicators are just supporting information and nothing more. It is all about price. But you need chart analysis to back it up. Also, learning chart formations is useful for some, although it is secondary for myself. Anything you can do to lessen the emotion is a step in the right direction. Learn to use charts adeptly and you will see improved results.
Just about the best advice you'll ever get. Good work, Jaytrade Do Not get Greedy, the market will cut your head off. Always know why you're placing a trade. If you're trading on gut feelings, you'll be better off in Vegas
I second this opinion. You don't have to trade everyday. It can be frustrating, but a wise trader is the trader who learns to back away. Please, DO NOT BE A HERO, and ALWAYS RESPECT PRICE ACTIONS. If you think the market is wrong for going in a certain direction, just wait till you find confirmation. Also make sure you're not missing a significant piece of information that may be driving the market.
Hi hangsengtrader, I read through your another thread of posts, and it seems that you are day trading HSI, which is not a "long-term" trade, isn't it?
So your losses reinforce what your subconscious has come to accept. You need to change your thinking There seem to be some quality posts, sorry I have not read them. http://www.elitetrader.com/vb/showthread.php?s=&postid=1706874&highlight=banjo#post1706874 http://www.bcx.net/hypnosis/self-hypnosis-start.html http://www.elitetrader.com/vb/showthread.php?s=&threadid=134710&perpage=40&pagenumber=1