Trading Psychosis

Discussion in 'Psychology' started by masterm1ne, Oct 25, 2016.

  1. lindq

    lindq

    You are not wired to be a discretionary trader. You need to face that truth. Nothing to be ashamed of. Some have it, and most don't.

    So your ONLY choice if you're to continue is to have a system in which you have confidence.
     
    #21     Oct 25, 2016
    lawrence-lugar and lovethetrade like this.
  2. It's because you're an extremely talented trader! It's simply because of that !!
    I feel lucky that I am just ordinary, hardworking academic researcher who don't need to go through something that extremely talented traders go through :)

    You should watch this - beautiful mind ! A story on a genus mathematician!
     
    Last edited: Oct 25, 2016
    #22     Oct 25, 2016
  3. algofy

    algofy

    I think people are overlooking the psychosis description you use. So is trading making you mentally unhealthy? In the big scheme a 5 and 6 k loss day should not break you mentally, if you are up 500-1000 a day with one contract what is 5k?

    So you let loser run and you cut profits short, that's pretty damn natural actually. It's so easy to just click that bottom and take that profit now and it becomes real. Also the losses become real too when you click that button. If it giving you "psychosis" it's probably time to give up the dream mate.
     
    #23     Oct 25, 2016
  4. achilles28

    achilles28

    switch to equities. you're leveraged too high. and your brain knows it.
     
    #24     Oct 25, 2016
    comagnum likes this.
  5. masterm1ne,

    I believe this will help you.

    Your problem is you are starring at the DOM (money), rather then the chart while you are in a trade. Once you enter a trade, you thinking about 100 reasons to exit the trade and 99 of the reasons is related to losing money.

    You have these problems because you do not trust your system or you have not fully tested yours system in sim (paper money) and you are afraid of losing money.

    You should only be trading money you are comfortable losing, not money that will bring your overall cash flow to $0.00.

    You may have told too many friend and family you are a trader and feel you have something prove. Don't tell noone you a trader until you make a consistent monthly income for 2-3 years.

    However, think of this as a business and if you don't believe in your system, just trade sim until you believe in it.

    Before you enter a trade, you need to know the following:

    1. Price to enter
    2. Price to exit for a loss
    3. Price to exit for a target.

    After you enter, set your stop loss and target exit and wait on the side lines.

    You need to have a trade management plan after you enter a trade.

    I hope this helps.
     
    Last edited: Oct 26, 2016
    #25     Oct 26, 2016
    Simples and victorycountry like this.
  6. This problem applies to most traders , who stare at the screen.Sorry but the problem is with the emotional brain , when you are starring at the screen , the amyglada (fast emotional brain is seeing the charts /screen /dom and responding faster than the rational brain).

    It does not help

    The best thing is to find a mechanical strategy , without the need to watch screens , charts etc or employ a trade input person .The trader will then be able to use his rational brain and block the emotional brain.

    https://www.google.co.uk/webhp?sour...F-8#q=rational brain emotional brain blocking


    http://www.forbes.com/sites/christi...w-your-brain-blocks-performance/#7de2474d7923
     
    #26     Oct 26, 2016
  7. qxr1011

    qxr1011


    I do not like to discuss personalities of fellow forum participants, but based on what you describing in this thread you probably confusing luck and talent. Luck eventually runs out... and talent sometimes is not enough either....

    that's something that does not sits well with the my definition of the very talented trader :)

    At some point either your or your method (probably both of you) reached your limits... also, you may came to the point at which the method needs to be developed further.

    Anyway, you just got scared...

    Scared of your and your method inabilities to deal with the situation and the fear is paralyzing.

    What you fear is telling you is that it's time to become humble again. We all are as good as out last series of trades. Like Bobby Fischer said about people calling him genius: "What is genius? Its just a word! If I win - I am genius, if I lose - I am not".

    So forget about your talent for a while... :)

    What to do?

    Reevaluate your method , maybe it has to be changed... in this case - switch to paper trading. If you believe that the method is ok, then reduce the size of your position to the minimum just to cover the commissions.

    See what happens.
     
    Last edited: Oct 26, 2016
    #28     Oct 26, 2016
    victorycountry likes this.
  8. Good comment. But a newer trader can not let a trade run forever. the trader has to know when to exit.

    The OP is trading 1 contract which is hard. so letting that one contract run is emotional cause in back of head the trader has not made any money. Ideally the trader should use 2 or more contracts. take 1 off for confidence building or lunch money and manage the runner via proven trailing method or target profit level.
     
    #29     Oct 26, 2016
    Simples and victorycountry like this.
  9. achilles28

    achilles28

    Yes exactly. Which means he's too leveraged. In other words, his account is too small.

    Moving to equities or forex is the only way to make it work. Or get really lucky.
     
    #30     Oct 26, 2016