How do I stop

[tomcattrader]

Hi Guys, I am new to the forum. I wonder if you have been through what I am going through. I achieve some decent profits and then I cant seem to accept it when I get losing trades. I add to them to try to break even, I sometimes wont accept a new up trend, or dont even see it until I am out of a down trend. I know I shouldnt do it and I am aware I am doing it but I just cant seem to stop doing it. Any ideas??? I am reading "In the zone" for the third time but still making these stupid mistakes. All your thoughts will be appreciated.

 

[meanreversion]

How long have you been trading, and what is your general trading strategy?

(Also, it's spelt "losing", not "loosing". Sorry to be pedantic, but that's one of my pet peeves)

 

[tomcattrader]

Mean reversion I will drive you crazy as I cant spell to save my life. I have been trading for about two years on and off. I trade the FTSE and ASX. I trade small always with a stop loss. I trade trends and paterns, Support, resistance.....

 

[tomcattrader]

I day trade

 

[meanreversion]

Has your equity curve moved steadily higher over the last two years or just oscillating around the start point?

 

[tomcattrader]

well it went up, I made 50% profit and now its oscillating

 

[episteme]

you need to get a grip - but if you really are uncontrolable then:

Only have enough money in the account for a few trades and talke the rest out and put the rest into an account that will take a few days to get it out of - that way you just can't do it.

 

[DionysusToast]

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.

 

[redart]

I guess its a matter of not having confidence in your trading. I'd assume that when you have a system that works and you know that it works, then taking stops wouldn't hurt at all and you'd have no problem in taking them.

Episteme - Dont you trade in a similar way to the OP though? (I see from your cool journal you dont tend to use stops and add to losers etc)
cheers

 

[barjon]

hi tc

I'm not sure how "I cant seem to accept it when I get losing trades. I add to them to try to break even" squares with "I trade small always with a stop loss"

If that means you ignore your stop loss when things go against you the you can counter that by entering hard orders.

If it means you revenge trade by promptly re-entering for a higher stake when your stop is hit then, if you can't discipline yourself, all you can do it make it difficult (be disconnected from trading platform for example). If you can't control yourself then at least hedge your new FTSE bet with a reverse direction one on the DOW 'til the dust clears.

good trading

jon

 

[tomcattrader]

Thanks guys. I will give you another example of how I am trading. Today I missed the down trade on the FTSE and now I am trying to get the up bet as there seems to be some resistance. But I am only trading this because I lost out on the big move. Its mental but I am being honest.

 

[episteme]

I guess its a matter of not having confidence in your trading. I'd assume that when you have a system that works and you know that it works, then taking stops wouldn't hurt at all and you'd have no problem in taking them.

Episteme - Dont you trade in a similar way to the OP though? (I see from your cool journal you dont tend to use stops and add to losers etc)
cheers

Yes - well clearly the other option is to not have losing trades.

 

[Masquerade]

But you're not trading trends. You're just picking directions and trading opposing ways each trade depending on if you missed out the previous. If you pick trend direction and trade in that way it can work for a very long time if you manage your size well.

 

[episteme]

Wel if you want a way to stop and you do only trade trends - then use an MA and and EA and have it close any trade that crosses a certain MA(50 - 100 probably). An average will always lag a trend and is an easy way to ensure you are on the right side of it.

 

[kimo'sabby]

Hi Guys, I am new to the forum. I wonder if you have been through what I am going through. I achieve some decent profits and then I cant seem to accept it when I get losing trades. I add to them to try to break even, I sometimes wont accept a new up trend, or dont even see it until I am out of a down trend. I know I shouldnt do it and I am aware I am doing it but I just cant seem to stop doing it. Any ideas??? I am reading "In the zone" for the third time but still making these stupid mistakes. All your thoughts will be appreciated.

If when you stick to your plan you make money....then just stick to your plan.

One set-up, one trade, right or wrong.

Don't try to fix a wrong trade with another trade, the second trade will most likely be out of your set-up and fuelled by emotion, which is a big no-no.

A good plan will deal with any losses, let the plan take the strain and not your nerves.

One trade, right or wrong, move onto the next. Basic stuff.

 

[Black Swan]

One set-up, one trade, right or wrong.

Disco...

 

[kimo'sabby]

Disco...

Cheers!

 

[pboyles]

Thanks guys. I will give you another example of how I am trading. Today I missed the down trade on the FTSE and now I am trying to get the up bet as there seems to be some resistance. But I am only trading this because I lost out on the big move. Its mental but I am being honest.

I did the same, I don't think there's any easy answers, you just have to eventually force yourself to stop doing it. I think it's just a process you have to go through, eventually it will work out, the main thing is to not lose all your money before you have it sorted so demo trade until you can do that without making revenge/stupid trades.

One thing that helps is that you should use support and resistance and dont even think about trading unless its at a level. That cuts out a lot of over trading. Try weekly pivots as support/resistance, they wont come into play too often but when they do they are usually good, set alarms at those levels and then dont even look at your platform unless an alarm goes off. You can get them from www.mypivots.com

 

[tomcattrader]

Thank Kimosapy very helpfull buddy:clap:

 

[tomcattrader]

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.