There is considerably more gravy in longer term analysis and by that I mean anything over a 5 minute chart that a lot of people here use. If for no other reason than commissions .
I know it's a bold statement....and that's why I made it. While you might be interest in pulling out your old college texts and condcuting your analysis, I am not. I only need to look around the trading world to draw my conclusions. But don't take my word for it, look around and draw your own conclusions. I have met many traders who were very emotional about their losses when they happened and they were successful inspite of their emotional responses the Marty Schwartz's, and Jim Cramers of the trading world. I have met many traders who were cool under pressure and showed very little emotion, the Paul Tudor Jones of the trading world. One thing that Both of them have in common, was their ability to act under fire, and follow their trading plan. This takes discipline. Can you be an emotional person and have discipline? I should certainly think so. You only need to look around and see the Marty Schwartzes and Jim Cramers of the trading world. They are out there! Continued succes, Mike
they are out there , but may have other variables that aren't being considered--like a huge grubstake etc. Emotions and trading don't mix . Trading is about taking high probablity trades amongst other things. Emotional trading is generally low probability. Best to avoid it--Best regards
Thats fine Mike, but it doesn't help new traders. You see it is not the emotion itself that hurts new traders, but the feeling of being "OVERWHELMED" by them. So when I say that one has to control their feelings, what I am pointing out is that new traders have to learn to take a step back (from the feeling of being overwhelmed for instance) and become more of an observer. This allows them to act even though there is danger of loss. Make all the bold statements you want but know that it doesnt help some poor schmuck who is down a dozen points because he froze watching the market, hoping it would move up, and instead it just slides back and forth down and down and down. This is not a question of reviewing texts, but of practical strategy. One has to have an "internal dialogue" BEFORE THE TRADING DAY BEGINS. Here is an example; "If the market goes against me I will not let myself feel overwhelmed. I will take a step back, I WILL MONITOR AND CONTROL MY NEGATIVE FEELINGS, and then act at the right time to stop the bleeding. I will do the right thing at the right time" Thats what I'm talking about. Steve
This thread wasn't started by a new traders steve, by his own admission he has five years experience. My point was that emotion really plays no role in how a trader performs. As evidence, I highlighted cases on both sides of the emotional spectrum, of great traders. Then I went on to say that what I thought all great traders have in common is having a plan and discipline to follow that plan. That is what is required, IMO. If I have read your most recent post correctly, you are saying the same thing. Have a plan in place, and execute that plan when the trade goes against you. I think that means we are done here! Good trading, Mike
Problem is emotions are going to mess up with your plan and can cloud your mind, forcing u to make unwise decisions at the wrong time, therefore shredding to pieces the strategy u are meant to follow in the first place. This is a reality I've known and fight for ages, even though I already knew what I had to do: I was often surprised that something could get hold of me so strongly that I couldn't discern black from white. In the end, imo, discipline is the ability to control your emotions.
KC, after witnessing yet another one of your off-topic, diatribe filled, irrelevant posts, perhaps, you should attach the following advisory to each of your contributions to this web site ...... <img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=966068> Good Trading to you all. - Spydertrader
Well Mike: You were doing so well until just now. Your comment was interesting and as a result I was motivated to look into a subject I haven't thought about for a long time. I took the time to look into the citations on the subject and into my own experience. I am pretty sure we are not saying the same thing. I am clear about what I am saying. In your case, I hoped to have a discussion where I am respectful, because I view you as a decent person. I should point out however, that I don't like to be dismissed. When I am done sir, you will be the first to know. Thank you, Steve
Here is my opinion on this emotions thing when trading. As human beings, we would not be normal if we don't have emotions. I have it as everyone else. The problem is when a "lack of discipline" takes hold of us or we become too "stubborn" to accept mistakes. The smallest loss is the easiest to take and accept. When we do get hit by huge losses of our making then, it really affects us!!! I do maintain a trading journal which I feel is essential to one's trading. It shows you your mistakes including the very bad ones to learn from. I feel that is the key to trading. Minimize your mistakes and everything will fall into place.