Can I ask where your cynicism is coming from, and do you reply to all posts in this way. Ifso you've already made me feel better, as it means your issues seem much greater than mine.
Thank you for that.
Can I ask where your cynicism is coming from, and do you reply to all posts in this way. Ifso you've already made me feel better, as it means your issues seem much greater than mine.
Thank you for that.
C
cablemonster
there are no guarantees in anything, nearly everyone who comes to the game has traits which are less than perfect. Part of the journey is overcoming them, the 1st stage is to acknowledge them, sounds as though you are at this stage. You are afraid to trade, that's it. You need to man up and place some small trades and get it out of your system, being afraid doesn't make you money.
PS why EXACTLY are you afraid to trade? is it because you hate losing money? is it because you hate being wrong? is it because you don't like uncertainty? how is your anxiety during other stressful situations? is it because someone will judge you?
I really don't know where this fear has come from, as before this trading was going like an absolute dream.
The only thing that I can think of is that since I have built a very large account I only really went in 0.5% risk, then one day I decided to go in 2% risk, and the trade failed, the very next trade I went in 2% again, but I didn't follow the rules, and was more of a revenge trade, that failed too(I knew afterwards right away why it failed, but my judgement was clouded, and didn't see this whilst placing it).
Then my mind got totally clouded, and all rationality left my mind. I then decided to call it a day, but later on that evening, did my usual back testing to see that all subsequent trades came home. The next day I had a failed trade with 1% risk, and again I called it a day, yet I when I checked later everything else came home.
Yes I know that failed trades are par for the course, but I had built up an invincible mindset, that every trade is going to be a winner, and every trade that came home, just enforced this invincible attitude, until I had 3 failed trades in a row. 2 on Monday, and 1 on tuesday, thus I was down 5% in a week, and felt the mountain to climb back to profitability for the week was gone, and the walls came crumbling down. Sure ive had failed trades before, but ive always had a healthy build up during the first few days, weeks etc, but had pulled out all of last months profit to pay for everything.
then instead of getting back on the horse I decided to go into back test mode again, just to avoid the fact that I didn't want to believe this strategy is not profitable, which I know it is, but every trade has to be taken in a day to off-set the loss trades. Thus if an hour is missed, or one positive trade, then I feel the probability of winners to losers has come down.
Does this make sense.
random12345
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Wait wait, you've built a 'very large account' trading the FTSE? I think you'd be the first...
L
Liquid validity
No but getting up when the alarm goes off will certainly help.
Its a miracle you've managed your account at all whilst
getting up late, missing days or even half a week...
P
postman
If you came looking for a frank response - it sounds like your in the wrong game.
I get up without an alarm and the first thing I do is check the markets. Its fun, still, after all these years.
Go and try something else for a while, it sounds (reads) like you'd make a great salesman.
I really do hope you find something you are good at and enjoy. It will make your life much better.
Good evening postman,
Thank you for your frank response, and maybe your right. Maybe I shall quit trading, and if I do, maybe I shall start in sales, as you seem to think I will excel at it. Now what would you like to buy.
Afterall from what you've written, I assume you've never had an off day, or got sick of trading, as its still fun for you after all these years. Well if this is true or not I for one shall not judge you, and I shall take your words at face value, and congratulate you. As for waking up without an alarm clock, well done you, and I shall post you a medal.
One thing I would add if I may is, if you've read what I've written and thought of it as a sales pitch, you are very wrong, but do you ever wonder how many other things you look at, that you think are one thing, and may be a totally different thing. Well I sincerely hope the latter isn't applied to your trading, or reading charts.
Best
John.
P
postman
...
Afterall from what you've written, I assume you've never had an off day, or got sick of trading, as its still fun for you after all these years. Well if this is true or not I for one shall not judge you, and I shall take your words at face value, and congratulate you. As for waking up without an alarm clock, well done you, and I shall post you a medal.
...
I think this could be the nub of your problem - you shouldn't assume things, it generally goes badly wrong.
Could I have a gold star instead of a medal please.
P
postman
Good evening postman,
...
Afterall from what you've written, I assume you've never had an off day, or got sick of trading, as its still fun for you after all these years. Well if this is true or not I for one shall not judge you, and I shall take your words at face value, and congratulate you. As for waking up without an alarm clock, well done you, and I shall post you a medal.
...
Best
John.
On a more practical note - I have posted about "performance anxiety" on this site.
http://www.trade2win.com/boards/f112/120172-anyone-scalping-ftse-futures-3037.html#post2146694
It came after a few days of losses as with you. I think Cablemonster had it right when he said "You need to man up and place some small trades and get it out of your system".
This site is great for reference texts also. The Emotional Dynamics of Trading
is a good start.
I think this could be the nub of your problem - you shouldn't assume things, it generally goes badly wrong.
Could I have a gold star instead of a medal please.
Hmm. How about I sell you one. Buy one Gold Star, and get one free.
Thank You postman. I shall most definitely have a read through the reference material now.
:cheers:
Best
John
M
malaguti
so the traders profit or loss is not the most influencing factor?
You are saying that a positive mindset and expectancy each and every day will influence your success regardless of a loss every day?
You blow your account, lose all your investment but its OK babyblush, as long as you are feeling positive..tripe
He is not saying positive. It might be negative. I have felt that the market is going sideways, even as recently as last week but, as soon as I have closed, the market went into relative orbit.
Most traders are influenced by "feelings" about the situation that they are in and when they are right they feel great. When they are wrong they feel lousy. These extremes can, and do, influence their future trades.
M
malaguti
if i am feeling negative and lose a trade, and I am feeling positive and lose a trade, what is the most influencing factor in your success? Your positivity/negativity, or the number of losing trades?
when you rock up to the screen tomorrow what is going to influence your balance then. Surely not your mood? What does your system care for your mental outlook?
barjon
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No arguing with that, of course. It is true, though, that if I'm feeling positive I'm much keener to search out potential trades than if I'm feeling negative. Whether that acts to my advantage or disadvantage I've no idea
The market does not give a fig for my mental outlook but I am sure that I am influenced by it and I am no exception.
Livermore shot himself and if that is not emotional, what is?
I can spend the weekend carefully analyising and coming to decisions about tomorrow's trading but, if it goes wrong, I will be influenced by it if I am just starting out. At my time of life, I tale it with a shrug and move on, but that attitude comes with time and, I might add, my stake size gets altered accordingly. My trading is quite modest because I'm careful. Why am I so careful? Because of my experience. My emotions have been battered into shape!
Shall we say that they are more more realistic than optimistic, but, certainly, not pessimistic or I would not be here.
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L
Liquid validity
Don't know if he was emotional as such himself,
its worth bearing in mind what Gann said about Livermore.
He learnt to make money, but not to keep it by trading conservatively.
Although to be fair his 3rd bankruptcy was actually caused by the voiding
of the coffee contract during WW1, mostly brought about by JL cornering the
market and certain individuals taking afront - govt. voided the contract.
In truth, he hadn't adapted well to the gradual roll off in volatility after
the '29 crash started to finally stabilise in the late '30's:
http://stockcharts.com/freecharts/historical/djia19201940.html
Most of the money he made came from the '29 crash and mid '30's.
The continued popularity of RoaSO speaks volumes.
Purple Brain
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That seems a genuinely fair assessment of JL. He was a one trick pony. He was the right man in the right place at the right time - until he wasn't.
There aren't too many traders that make the front page (of trading at any rate) and manage to hold onto either fame or fortune - then or now.
I'm not sure why the mystique around him exists as he clearly was a born loser. Perhaps it is more nostalgia for that golden age of market volatility and the cowboy chancers that JL rubbed shoulders with - he became famous more for his lifestyle than for his market longevity or long-term savvy.
Morgan, Rothschild, Rockefeller, Kennedy, Hughes, Getty - people who did 'dabble' [and often a bit of insider dabbling too], but whose primary means of acquiring and building fortunes were based in the real world of good, services and products - not just trading, are the ones that provide a sounder business model. But not really what most traders want. Which is a shame because there are insights from these people that can apply to any endeavour - including trading - which are alot more useful than anything you may glean from good old JL.
Speaking as a currently inexperienced and about as dumb as it gets trader myself of course.
Purple Brain
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splitlink in my post which you quote you attributed the sentence "Having to tell your wife that she is penniless is something that is likely to make anyone desperate and probably is the reason why I will never be rich at this." to my post by implication. I made no such statement.
