The Invisible Hand That Limits Your Trading

Discussion in 'Psychology' started by Rande Howell, Feb 3, 2011.

  1. Roark

    Roark

    Jack Hershey is a nut-job. Eighty plus years of age, no house to his name, deep in debt from unpaid taxes, failed miserably at a trading contest and quit without completing it due to heavy losses, and living under the delusion that he is a master trader. As a mental health professional, I would think you would be able to spot a crazy person.
     
    #171     Feb 6, 2011
  2. Interesting thread I found it late at night will come back for a full read in the am.
     
    #172     Feb 6, 2011
  3. Redneck

    Redneck

    JD

    I need to correct an inaccuracy in the below post

    Truth is;

    I don’t suspect price will go up

    =============================================================================================

    Truthfully;

    I don’t know if the trapped longs will puke and exit – driving price further down… or if they will add more in an attempt to bring price back up

    I don’t know if shorts will pile on more – driving price down further… or begin covering and bring price up


    I have no clue – absolutely none……

    ===============================================================================================

    I lied when I said I suspect price would go up – truth is I don’t know….

    I am in a position to exploit it which ever way it goes..., but that in no way lessens the fact I lied.


    My sincerest apologies to you..., and everyone who read the below post….

    RN



     
    #173     Feb 7, 2011
  4. jjf

    jjf

    I completely agree with you.

    I know there are others who would respond by saying "one man's truth is another man's discourse" but this strays away from the sheer simplicity of your statement above.

    Without realizing it, we all are susceptible to applying judgments or conditions to simple statements and these conditions are apt to convert a positive utterance into a self limiting belief and bite us on the ass, no matter what our intentions were at the time.

    Straying every so slightly from the subject [or perhaps not as the Reader may perceive], I have recently viewed two great movies.... well I think they are great.

    "Secretariat" is the story of a Woman with an unshakable belief and a horse who did not know he had any limitations. Either someone forgot to tell him, or he went ahead and did the seemingly impossible anyway.

    "The King's Speech" is the story of two unlikely strangers who went on to forge an enduring friendship based upon complete unconditional trust.

    It is wonderful how positive people and positive situations rub off on us.
    The one commonality I have come to see and admire of positivity is the simplicity of it.
    Simple things are kept simple and complicated things are reduced to their simple basic parts.
     
    #174     Feb 7, 2011
  5. Good for you. I don't see so mucg evil and abusive people -- what I see is what I call adaptive mindlessness. People are born into, adapt to, and mindlessly continue the embedded script. Never knowing to question and recreate.

    Rande Howell
     
    #175     Feb 7, 2011
  6. NoDoji

    NoDoji

    Jack is not eighty plus years of age and he assured me he's not a nut job. :D
     
    #176     Feb 7, 2011
  7. ammo

    ammo

    cold,you're making great progress,you've limited your attacks to jack only,must be a big hurdle for you,keep at it, i've got faith in you
     
    #177     Feb 7, 2011
  8. Roark

    Roark

    He's in his nineties now?
     
    #178     Feb 7, 2011
  9. Redneck

    Redneck

    I respectfully submit this to newer traders


    In Summary……

    LVS gapped down overnight coming off earnings last Thursday night– I was long

    Friday morning at the open I added more in an attempt to work out of the position – it failed

    I sat in a losing position all morning Friday, till it broke out of a range to the downside and hit my stop


    Since then price has returned / rose above my stop price ($46.81) ~ five times…, but never returned to make this trade overall profitable… nor even break even….

    I would still be in a loser - had I not exited....

    AND expended a hellofa lot of psychological capital along the way...

    Holding a loser wears you down... it also handicaps you as a trader...

    You lose your agility..

    ===============================================================================================


    Moral of the story

    Set your stops and honor them

    Price may very well return at a later date – tough… forget it and move on

    Price could return to a point – that would give you hope your losing position is going to become a profitable – learn to let it go… and move on….


    Sometimes price will make your position profitable… but rest assured there are other times it won’t…

    This typically occurs when you can least afford to lose more - than what you already have..... I know


    =============================================================================================

    Bottom Line

    Trading will flat fuck with your mind – if you allow it…

    Don’t… It’s simply the way the game is designed (make the most lose)….

    Bounce price back and forth enough, surely all but the most resolute will fold – at a loss….

    And of course there are the traders who will hold onto a loser forever – because they are simply too scared to exit (deer in the headlights syndrome)…

    Or price has moved in their direction sufficiently to give them another shot of (H)opium – keeping their fantasy alive that this trade will turn profitable…….. ultimately they end up losing more

    SCREW THAT………………….


    =============================================================================================

    Trade what is directly in front of your face….ignore all else…, like a horse with blinders on

    Exit when it’s time

    Go look for the next trade…..

    Repeat…

    And never hold regrets… they only hold you back…..

    =================================================================================================

    I realize this is all way easier said than done…. But if you can get a handle on it… it will go a long way toward helping you make it as a trader


    Just some free food for thought…

    RN
     
    #179     Feb 8, 2011
  10. Redneck

    Redneck

    RH

    Throw me a bone for heaven sakes - Please

    I hate being a nag, or a beggar.....

    Thanks
    RN




     
    #180     Feb 8, 2011