i have been trading for about 8 months and am still down overall. Recently, I have had some success, I'll have three or four solid days, then will lose a large chunk of it in a matter of hours. I know this usual for newer traders, I was wondering what people did to get through this barrier. I know losses are a part of trading, but I dont' think this is what that means. Any advice or thoughts would be greatly appreciated. thanks, r
Sounds to me like you have a non-existent or poor risk management plan. Losses are inevitable and will happen for various reasons. You need to make sure they don't take that big a bite out of your account. More importantly, they shouldn't do that much damage to your emotional capital and confidence. Cheers, FT71 / TheRock71
Your post makes me wonder (not directed at you) but in general. Before you work on the psychology of oneself does one need a trading plan? What came first, the psychology or the trading plan?
def the trading plan i feel like for most (including myself). I doubr many people realize the importance of a trading plan before then start trading.
For me there were/are a couple distinct phases. 1. learning to use disaster stops and sticking to them 2. learning to go to cash when the market looks uncertain or behaves in a manner I don't understand (went through a stage of learning that going short when your long's aren't working isn't always (ever?) a good idea) 3. learning to wait to get back in after I go to cash. (this one is a hard one, and i'm still working on it) 4. sort of the same as #4, but just staying out of the market entirely, for days, weeks, months, whatever it takes for things to sync back up and look good for whatever system you are working. Hope that helps. TNG PS, FT71, good to see you around here again, I hope things are going well
LOL.... I was given that name in a chat room and a bunch of members from there are members here, so I'm trying to connect those to aliases. Actually, I AM in Hollywood. I'm the cause of all of Lindsay Lohan's troubles. No, the coke isn't mine either. ROFL
Many wins make you feel confident, invincible, proud and less nimble. When you feel these emotions you should know a humble lesson is just around the corner. The win streak prevents you from taking the loss quickly. There is no cure just always be on guard, always ask yourself, do I hope market going my way or do I see market going my way. If yes on first or no on second hit that flat button.