I am probably the biggest offender .. but I sure do make trading difficult on myself and I'm trying to find some answers as to why.. Still with paper trading I am looking for reversals.. I have a plan for reversals as well as a plan for trading with the trend.. but in the last two days all I do is look for places to sell instead of going with the trend.. Yesterday was trending nicely upwards till about 12:30 ..and I made 3 sells in the time frame.. same with today... looking to sell.. Why do we/I do this though??? Has anyone been through this before?? and found a way to minimize the mistakes..
When you don't have a conceptual framework for the way the market works, then the only thing left is where did it come from and it must go back there. When you develop your own framework for the way the market works, you have another frame of reference about what the next move in the market will be. Start looking at momentum and volume and it may give you a different perspective.
You need to have a sense of where the momentum is in the market. Look for stocks breaking highs/lows. Let your profit rise and cut your losses earlier. This will help you improve your trading.
Flash, You are in luck. Just go through these threads and note the similarities between them. You'll see a behavioral pattern, which you can choose to change, or not change. http://elitetrader.com/vb/showthread.php?s=&threadid=57627 http://elitetrader.com/vb/showthread.php?s=&threadid=50583 http://elitetrader.com/vb/showthread.php?s=&threadid=49906 http://elitetrader.com/vb/showthread.php?s=&threadid=48070 http://elitetrader.com/vb/showthread.php?s=&threadid=44213 http://elitetrader.com/vb/showthread.php?s=&threadid=37686 http://elitetrader.com/vb/showthread.php?s=&threadid=34781 http://elitetrader.com/vb/showthread.php?s=&threadid=32739 http://elitetrader.com/vb/showthread.php?s=&threadid=25293 http://elitetrader.com/vb/showthread.php?s=&threadid=23986 http://elitetrader.com/vb/showthread.php?s=&threadid=23344 http://elitetrader.com/vb/showthread.php?s=&threadid=20504 http://elitetrader.com/vb/showthread.php?s=&threadid=21339 http://elitetrader.com/vb/showthread.php?s=&threadid=21210 http://elitetrader.com/vb/showthread.php?s=&threadid=19436 http://elitetrader.com/vb/showthread.php?s=&threadid=19468 http://elitetrader.com/vb/showthread.php?s=&threadid=17821 http://elitetrader.com/vb/showthread.php?s=&threadid=16839
Its hard to say what will work because almost all are astray together. The thrust, push and construct of human activity is social. Therefore reversion to the mean is the overwhelming force .. to be normal that is, to be one of all others, to demonstrate you are part of all, to show you fit, to revert to the mean of being a general loser. It is an outward and inward force at the same time .. to be a loser. That is all you are doing. It is the masochism of reinforced mind habit, social and personal. You choose to want to 'sell' only or to look only for 'reversals'. You refuse to want to understand the whole market. Can you be helped? I can't see that anyone or most can be helped. It is too comforting to be other than an eternal loser. To borrow a phrase, 'the force is with you'.
Great call - all about feelings. Your feelings override your plan. Must incoporate feelings into your plan else they will override it. Cant 'squelch' them down. What are your values?
Wow Sulong, Forgot about most of those..... Amazing how the same pattern keeps repeating itself.. thanks for the eye opener...
Flash, You're fortunate that you ether intentionally or unintentionally created a record that goes back for a good amount of time. You'll learn a great deal by reviewing and noting behavioral patterns. If you do the leg work, you'll be that much ahead in disrupting the undesirable patterns you find, and reinforcing the desirable ones. (record keeping)
Sulong, It is very generous of you to take the time to post all of those threads for Flashboy. I haven't read them and don't have the time to go through each one. Can I ask you to kindly summarize your observations either here or through a PM on this subject? I am always interested in what to learn in the area of trader psychology. Thanks.