why do I hesitate?

All day long I sit at my terminal calling market turns for entries and exits. Why do I NOT take 100% of my signals? I am sure I am not the only one who does this.

Is it not trusting my system yet, or not trusting myself? I know my system and method works. I have spent too much time watchimg it prove itself over 3 yrs.

I you have gone through this and gotten through this point, how did you get through it? I think I have a problem with trying to be perfect, instead of probabilistic.

Ps. I am not trading with scared money, capital is not an issue
thanks,
DTP

 

i think the answer is play small enough so you can pull the trigger and work your way back up.

 

Good advice vhehn. Sometimes I think the only way to win at this game is to trade size so inconsequential that the trade hardly matters one way or the other.

 

Agreed. Trading too big will make you gunshy.

 

I get the same feeling sometimes when I think about my initial string of losses when I first started out with the indices. Even though I have a totally different style of trading now, the brain doesn't want to lose. The inner dialogue goes like this "Brain, can't you see everything working great now? No, well too bad, cause we're in.. now watch for those exit signals..."

 

pete,

when trading a "demo" account with fictionalized capital, do you still have the execution issue ??

depending on the answer to this question, i can try to provide some guidance as to how to proceed.

best,

surfer

 

Daytraderpete:

You may know, i.e. are certain that your system and method works but are you really comfortable in carrying out and applying it to an environment (i.e. the market) that is inherently uncertain? What percentage of the signals do you actually end up taking or do you go though the day without taking any trades despite your signals?

I think trying to be “perfect” definitely will contribute to the issue of hesitation when dealing in the marketplace. I know I have; like always looking for that absolutely perfect setup where everything lines up flawlessly only to fail to take the trade because I wanted ONE MORE confirmation just to be sure…and then the opportunity slipped me by. I constantly wanted a high level of certainty that my trade will work out before pulling that trigger and hence, I hesitated…consistently. Ways that might help overcome that are to:

1. Take baby steps (and as vhehn alluded to, “play small”) so you don’t put so much importance (whether it be monetary importance or emotional importance) to that individual trade.

2. Relax. Set a goal of taking at least 1 valid signal (provided it occurs, of course) per day [again, I am not sure of the frequency of your signal occurrence] and gradually increase it until you are comfortable taking all of them as they come along during the session.

3. Flexibility. In the attempt to be perfect, is your system/method being too rigid? Remember, although the market is always right, it is not perfect. You may want to incorporate more flexibility in your system. The only thing that you should be perfect in when dealing with the market is the flawless execution of your system and rules.

4. Examine possible “fears” you might have that are veiled by this thing called “hesitation”. Are you afraid of being “wrong”? Are you afraid of breaking a “perfect” track record you’ve established thus far? Are you afraid of uncertainty? I don’t know, but whatever it (they) might be, only you can answer that for yourself as you look inward.

5. Condition yourself to associate that by “not taking a trade when your signal shows up”, you are actually losing money. Money that could have been yours, are now in someone else’s pockets.

Hope that can help.

Kermit

 

Some people just don't like the idea of taking risks.


As Linda Rashke would say..."Never fear the markets. Never fear
making a mistake."...The New Market Wizards, pg.309

I hope you can overcome this. Good luck!

 

I agree with the previous posts.... trade with smaller size positions. Also... a piece of knowledge I learned from a great mentor... "Forget the money." Trade your entry and your exit.

Best of luck.


SkinnyV

 

Hey Surfer,
When trading a demo, I don't have the problem, I also noticed that when trading a demo account, I have much more patience to let the trades "play themselves out"

What do you suggest?
DTP