Second guessing your trades :help:

[SlowlyButSurely]

I posted this under psychology as I am currently struggling with a 'mental block'

I have a good system but it is not mechanical, and therefore some personal input is needed, especially when choosing entries.

A few weeks ago I had a 'eureka' moment where everything clicked into place. My trading has been going well up until the last 2 days, in which trades which made complete sense to me on monday, now have me feeling uneasy. So much so that I exited my positions and will let the trades play out to see whether I was correct in my analysis or not.

Now, obviously this is no good, so I was interested in knowing if any other more experienced traders have gone through this and if so, how did you get over it and stop second guessing yourself?

 

[malaguti]

I posted this under psychology as I am currently struggling with a 'mental block'

I have a good system but it is not mechanical, and therefore some personal input is needed, especially when choosing entries.

A few weeks ago I had a 'eureka' moment where everything clicked into place. My trading has been going well up until the last 2 days, in which trades which made complete sense to me on monday, now have me feeling uneasy. So much so that I exited my positions and will let the trades play out to see whether I was correct in my analysis or not.

Now, obviously this is no good, so I was interested in knowing if any other more experienced traders have gone through this and if so, how did you get over it and stop second guessing yourself?

My advice would be to be more explicit with your entries. if you cant describe your entry to somebody else, its unlikely you will be able to recreate those eureka moments again. At this stage, even if it means losing out on a few points, choose a less subjective method to enter. Then when this is more mechanical, then pulling the trigger will become easier in future.
Then, you need to learn to sit on your hands. It took me a long time to get over that. Have your rules in front of you, and then go through them 1 by 1. Can you exit based on your rules...no. Then sit the well alone!!
It takes time, though. But first I would say, make it more mechanical
good luck

 

[BeginnerJoe]

Reducing trade size fixes most maladies. Reduce size every time you feel uneasy. Eventually you will reach a point where you can say to yourself: I'm daddy of super man and he-man.

 

[brewski1984]

You shouldn't be letting emotions get involved. You should be confident in knowing that your system works, as well as having a plan and sticking to it.

 

[Brumby]

You shouldn't be letting emotions get involved. You should be confident in knowing that your system works, as well as having a plan and sticking to it.

Absolutely but unfortunately when one is going through that rite of passage it is easier said than done. It will come with time - just need to work on it.

 

[SlowlyButSurely]

Thanks for the responses gents,

I think all of you are right in some respects. After a lot of reflection and being honest with myself I think the main problem here is that I entered 2 trades too eagerly. I saw the play and jumped the gun too soon without waiting for the market to properly show it's hand. The result was that my position started going against me and I reckon subconsciously I knew I had entered the trade poorly, making me doubt myself.

I will aim to be more strict with my entries, and once in a trade let it play out as I intended without interference. I don't mind being wrong, I just hate being wrong for the wrong reasons (not sticking to my plan)

Anyway thanks again guys, it helps airing concerns and even just typing it out helps me to spot my own errors. Also some sound advice which is always appreciated

SBS

 

[traid]

I think trading also has a lot to do with self confidence... too much could be risky, but too little is always a rather bad sign. instincts are key, the more intuitive you are the better things will pan out in the end... and the only way you are able to listen to your instincts and intuition is if you have confidence in your self... so like the above posts said- start off small again until you regain that confidence!