The probleme is not technical. When I trade, I have a list of trades "candidates" ( from preparation). All is well. Then , when I have finished, as I feel super confidente, I go on and put some trades that are not on my list. Now do you understand why psychology comes into play?
There can be no confidence when you gamble. When gambling, betting on anything is no worst than betting on something else. So your psychology is perfectly sound because it knows the odds are the same anyway.
OK: so it seems I have managed to verbalise the problem. so it is falling into gambling mode. no confidence when one gambles??? does not the person gambles because of over-confidence. I believe that when over-confident, I am in a thinking pattern where I do not think in terms of risk : I am feel like I am God, invincible, that I am 100% in tandem with the market. It is as if I am another person. Just say in passing, it is good for me to verbalise what happens so that the problem can be sorted.
People only gamble out of desperation. There are no other reasons. The trouble with gambling in the financial markets is that the banks need to make a profit. So the odds are significantly below that of a standard and fair roulette wheel, assuming that a fair wheel actually exists. The banks are legally allowed to do what is equivalent to picking up the ball and place it at a number of their choice at the moment of their choice. Something like that would be illegal at the casino if done overtly.
desperation : Thanks for the insight. Can you give some examples where the desperation is clearly illustrated. I am trying to link how looking to a healthy p&l leads to a subconscious state of desperation.
You need that PnL bad, dude. This is what causes you walk down that alley when you know full well what will happen. You even blind yourself that there's no one in that alley other than yourself and your psychology
In this case if you say the desperation is needing the PnL bad: why, for instance, if the target of the session is reached well above, why move into impulsive mode? why not move into impulsive mode when the PnL is just building up? Why only when the target is reached or surpassed?
Well, general incompetence and having no idea what trading is about. Follow the hedge fund steps and you might find salvation. Personally I see no problem in over-trading so long as you have a way to win. But you don't.
This is not over-trading man! This is moving to an unconscious mode, after one has seen a system working too well, to not follow one system of trading to make sure the profits are destroyed. May I assume you have never been a consistently profitable manual trader? I do not say that may be you have been a quant who was profitable sometimes in the past. But may I assume you do not know how to trade?
You don't have a system that works. Following it or not following it make no difference. I am OK in trading using my own metrics.