How do I stop

[DionysusToast]

If you trade directionally - e.g. you place a long trade and you win if the price goes up, then you are effectively gambling that someone else will pay a higher price for what you brought at this price. This is known as the 'greater fool theory'.

So - you are making a BET, yes GAMBLING, that someone else will buy what you brought at a higher price. At some point, there will be a final fool, the last person to buy at the top who's left holding the bag.

The way you are trading and chasing moves will mean that you are setting yourself up to be the final fool.

 

[lbranjord]

The problem is a common one. You don't actually know how to trade.

It is more than likely not a psychological issue, books about being in the zone won't help.

When you enter a trade - why is it you think the market will move your way ? What do you have as back up to give you a degree of confidence you are doing the right thing ? What market forces are at play and how do you know if they are no longer in play ? What underlying derivatives (if any) may be influencing the market you are in ?

If you have zero idea why a trade you are in SHOULD go your way, then you are bound to not know what to do when it moves against you.

As always, great advice from Toast. Everyone has experienced this. Keep studying, keep trying.

I think you need to go out and learn about everything. You're still a bachelor and not married to a style. Once you try them all and discredit most of them, you'll find what's right and stick to it, knowing you've had your way with every indicator and candle pattern out there. That's what it took for me, anyway.

I hope that helps. I know the frustration of constantly switching. I'm a smoker and I compare the addiction to micro-managing trades equal with trying to not have a smoke.

If you want an easier edge to work with right now that has a modest, yet consistent profit, PM me. My style is easy on the mind and very visual. I don't think your alter-ego Larry Switchalot will have a problem with it either

Either way, good luck dude! Keep your head up!

 

[lbranjord]

Black swan thanks buddy. It feels so much better to be able to talk to you all. Trading can be a lonely business and you feel your the only one going through stuff. Thank you very much.

Buy a dog, hold two kinds of treats, the 'buy' treat and the 'sell' treat. Have him bark out the stop loss in 10 pip increments.

No more loneliness. Unlimited profits.