taking heat

Discussion in 'Psychology' started by sporky, Jun 10, 2008.

  1. sporky

    sporky

    what do you do to sit through heat?
     
  2. Turn the AC on.
     
  3. Look at all backtests again and again, backtest some more and see if whatever drawdown I am in currently is within 'normal' parameters.
     
  4. So long as the conditions that setup the trade are still in effect, I take and make sure I breath deeply.

    As someone else mentioned, just seeing this trade as one in a series of trades helps a lot, as well as learning everything you can about good risk management, position sizing and the stats which are unique to your trading system.

    Watching a screen 24/5 for three years is one way to learn your system, keeping a really good diary is another.

    GL
     
  5. Watching a screen 24/5 for three years is one way to learn your system, keeping a really good diary is another.


    ------------------------

    I keep a diary also. I've tossed thousand of sheets in the trash. Question. In your opinion, do you think anyone would benefit from your diary?
     
  6. jmoo

    jmoo

    buy puts
     
  7. Put ice cubes down your pants. :cool:
     
  8. Porn
     
  9. If you feel "heat" then you are trading too big. Reduce size until it doesn't bug you as much.
     
  10. sporky

    sporky

    your point is well taken.

    But what is usually meant by heat is market action against your position. Everyone has to deal with that. whether or not you are showing a profit

    if i'm up 30 ticks and the market turns and I find myself up only 10 ticks I "feel that as heat"
     
    #10     Jun 10, 2008