Personal trading weaknesses and how to cure them ?

alanb41252

1
264 0
I have been trading for some time now and with help from various sources ( including a 2 day 121 session with Nas ), I have developed my own methodology / system which seems to work a good percentage of the time. My system is unique to me and I like to think it gives me my own little personal edge.

I have identified my strengths and weaknesses in a trading context and I have concluded without doubt that my greatest weakness by far is my alarming tendency to grab profits before a move is even half over. I do this time and time again despite resolving not to.

I do adopt the method of selling half, moving my stop to entry level and running with the other half. However I never hold on long enough and miss out on the big moves.

I think this is something to do with an obsession to take something off the table every time which is ok - but I always end up kicking myself when the move continues and I miss out. This happens day in, day out and I really want to cure myself of this annoying trait.

If anyone can offer any remedies I would be most grateful.
 

moneyfool

Junior member
28 0
I found I suffered the same when monitoring charts in 1 minute periods as I was reacting to the 'noise'. However, things improved if, after taking a position, I used a 5 minute or even 15 minute charts. 1 minute chart for entry, 5 or 15 minute for judging the exit.

Trust this helps.
 

alanb41252

1
264 0
I use 5 minute charts to enter. Maybe I will use 15 minute charts to monitor the trade - see if it makes any difference anyway.
I am really p****d off because I am missing out on a pile of money here due to this.
 

oatman

Senior member
2,879 22
You're probably subconsciously afraid of losing, so reducing your opening position may take the pressure off and allow you to be more relaxed.ie you may see the market as points instead of ££$$.
 

alanb41252

1
264 0
I'm not really afraid of losing but I hate to give money away.

This is entirely a psychological problem which I need to work on I guess.

Or maybe I just need to work on my exit rules and stick to them rigidly. This works with entry so why not exit ??
 

Newtron Bomb

Experienced member
1,602 87
There are no weakness's in trading just lack of knowledge on how to use a particular tool.

The only tool people dont learn how to use is their brain.

Master this and you will be an absolute genius like me.

Happy trading
Newtron Bomb
 

moneyfool

Junior member
28 0
Depending on what you are trading, indices or shares, you may want to calculate the average range for the day so you can see the potential range after the market opens. I use the average of the past three days, from the high to low, to give an approx idea of the remaining move for today. This appears to work with indices such as the Dow, I have not tried it with shares.
 

oatman

Senior member
2,879 22
If it's not fear of losing then maybe lack of confidence. You've already said that more often than not the market carries on in your direction after you squared up.
Therefore you must convince yourself that your analysis is correct.
 

ChartMan

Legendary member
5,580 46
Ok . Just try this. Reduce your buy quantity in relation the the value of the stock I guess if you have been trained by Naz, then you're trading US stocks at, I guess 1000 lots. Maybe a switch to 500 lots and see if the frighteners are still pulling you out.... Clearly something is making you twitchy in your sub concious..... Is it the $$$ that you may lose? Perhaps bank 2/3 rds and let the rest run.... and move that back to 1/2 later....
I don't think there is a single correct solution. You'll have to try a few ideas and see how you react....
 

bonsai

Veteren member
4,106 10
alan,I know you didnt agree with him but oatman may have been right ?
follow the market, not the money.

worth a try surely ?.

then if you can get in the habit, it might stick ?
 

alanb41252

1
264 0
Oatman, I think you're near to the mark.

I think it probably is lack of confidence and a refusal to believe that I might just have hit on a winning system.

It does work time and time again and if I wasn't trigger happy with the mouse then I would be making handsome profits almost every day.

Maybe I should do the entry and hand over to my wife - who knows nothing about trading - to complete the exit with rigid instructions.

It might just work.
 

Newtron Bomb

Experienced member
1,602 87
alanb41252 said:
I'm not really afraid of losing but I hate to give money away.

This is entirely a psychological problem which I need to work on I guess.

Or maybe I just need to work on my exit rules and stick to them rigidly. This works with entry so why not exit ??

I'll be a bit more constructive.

Try sticking to your strategy rigidly to help with this reduce your lot size.

Fear Greed and hope may be you problem here in one form or another

As oatman said you need to have faith in your own ability

HTH
Newtron Bomb
 

neil

Legendary member
5,167 747
Newtron Bomb said:


I'll be a bit more constructive.

Try sticking to your strategy rigidly to help with this reduce your lot size.

Fear Greed and hope may be you problem here in one form or another

As oatman said you need to have faith in your own ability

HTH
Newtron Bomb

or....save up a bigger investing pot and practice whilst saving.
Thus, subconciously, you have built up a comfort zone where a series of losses will not take you out of the long term game.
 

alanb41252

1
264 0
I don't have a problem with the size of trading pot. It's pretty big as it is.

I am just a sore loser and hate to countenance losing at all.
 

alanb41252

1
264 0
I am taking up Tai Chi classes. Maybe that will help me to develop some patience.

Failing that a Shrink might help me to curb my money-grabbing attitude !!
 
 
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