Does anybody think you trade better when your account is underwater? I do. I had an account valued at 12k. Its value dropped to 9,000 on my first day of trading. I made it all back in a week. I was up +700 at one point. Then I had a series of draw downs back to 10,000. Then I made it back in a few days +800. Then I had series of draw downs back down to 10,500. That brings us to today. Anyway, I think I trade alot better when my account is down. When my account is up +800 for instance, I tend to think I have an $800 buffer so I make risky trades. Its getting to the point where I think I should just withdraw my money if I am positive on my account. It is frustrating to make money, lose it, make it back again and lose it again. There is something psychological about it I'm sure.
start reading page 73, and you just might see yourself inside those pages http://books.google.com/books?id=s8...ychology+of+trading&client=firefox-a#PPA73,M1
The "down in the trenches " mentallity is not want you want to bring to trading...trading should be boring.
Yes good trading is extremely boring, the most boring thing one can possibly do. During times when my profit factor or reward/risk ratio is the highest I usually find myself yawning and wanting to take a nap. If its exciting, its usually reckless gambling.
Given the figures you've supplied, you're not trading, you're gambling, because trading is a business and needs to be approached as such, if not, then you're just playing psychological games with yourself. Professional trader would never allow his/her account go down from 12K to 9K in a day, percentage wise you have huge equity swings, which is usually reflection of a lack of money management plan, probably you're selecting marginal trades when you have a buffer, and probably you're more selective and more disciplined when feeling the pain of losing. I don't know how you're trading, I'm just guessing, you must learn to work within your own mental environment. There could be number of psychological reasons for it, but to keep the post short, you have to START WITH RISK CONTROL, and risk control is not only money management, but also understanding yourself. All the best
I think there is indeed something to it. When looking back I usually had best results when the very first trade of the day was a loser. Not to the extreme of your example but when I lost some it inspired to more focus and ambition. Additionally remarked I always switched to another market immediately to avoid revenge thinking. When I start with 2 or 3 winners I completely lose interest and usually switch off.