What's missing?

Discussion in 'Psychology' started by masterm1ne, Jun 23, 2017.

  1. Gotcha

    Gotcha

    This is now where I think its important to put up some stats. An 80% win rate on a really nice R:R would be insane, which is what I would assume by your "technical skill is insane". If your win rate is only 60% or less, which is still very respectable, especially with a nice ave. win vs. ave. loss, this means that on any one trade, you can either win or lose, and this now is harder on the emotions. The distribution of wins and losses when a win rate is 50% can be crazy. (ie. you can have very many losers in a row every now and then, and if you start skipping trades, then this totally messes up the profits).

    My gut feeling is that even though you know you can make money, if you hit a few losers in a row, you know you won't be able to trade exactly the same way as you should, and after a string of losses, you would skip a string of winners, and then you know you're shooting yourself in the foot.

    Nobody here has insane technical skills, or insane win rates. They have good win rates, but more importantly, they get out when they should, and they aren't scared to get back in. In your case, you're probably having trouble with one of these other things, so when you hit a bad patch, you know you will fuck yourself up. Only a highly skilled trader who has been around a long time can take 10 trades in a row and not care about the outcome because they judge their performance after 100 trades.

    You had a journal up with many losing days, and I bet that you still know that going forward, there will be days where everything goes wrong. You need to embrace those days because they will come, but you're scared of them because you know they will affect you, even if those losing days are completely expected within a winning system.
     
    #11     Jun 24, 2017
  2. monee

    monee

    In my experience not taking trades is usually the result of trading too large a position for your account size, financial problems in life ,personal distractions while trading or some type of problem in life that is bothering you.A journal is key.
     
    #12     Jun 24, 2017
  3. Xela

    Xela


    It's easy to see how all those things can lead to "not making profits".

    It's less clear why they would lead to "not taking trades". o_O
     
    #13     Jun 24, 2017
  4. speedo

    speedo

    I practice Chinese martial arts, not to be a bad ass, but as a personal challenge and discipline to operate at higher levels, physically, mentally and spiritually if that is ones bent. I approach trading with similar mind set and use a mantra which I adopted from the excellent Mihaly Czikszentmihalyi book, Flow, The Psychology of Optimal Experience....."I have rules and I am in control."
     
    Last edited: Jun 24, 2017
    #14     Jun 24, 2017
  5. speedo.jpg Your sign says it all speedo, no need to explain!:sneaky:
     
    Last edited: Jun 24, 2017
    #15     Jun 24, 2017
  6. speedo

    speedo

    No lack of Yin/Yang in trading :D
     
    #16     Jun 24, 2017
  7. Yes Sir, it is the duality of the market that makes us or some of us feel like as Mihaly Czikszentmihalyi put it "being completely involved in an activity for its own sake. The ego falls away. Time flies. Every action, movement, and thought follows inevitably from the previous one, like playing Jazz. Your whole being is involved, and you're using your skills to the utmost.":sneaky:
     
    #17     Jun 24, 2017
    Xela and speedo like this.
  8. I imagine it also helps with breakthroughs.

    [​IMG]
     
    #18     Jun 28, 2017
    murray t turtle and Stocktracker like this.
  9. Make sure that you play the hand you were dealt as best as you can: a good dietary regimen and meaningful exercise. Not the topic of this discussion, but worth pointing out.
     
    #19     Jun 28, 2017
  10. Not a bad list, except for No. 4.
     
    #20     Jun 28, 2017