What do you do to stop overtrading / manage trades? | Psychology and Money Management


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What do you do to stop overtrading / manage trades?

  #34 (permalink)

ancona+ marche italy
 
 
Posts: 1 since Apr 2019
Thanks: 0 given, 1 received

Forgive my english but it's not my motherlanguage it' going to sound strange ad filled with errors, I apologize about that.

Im my opinion the first thing you need to do is assess if your strategy is a winning one, meanig is it statistically sound. In a
paper trading lasted at least 3 months are you profitable? If not you need either to change it or to invest money in finding someone that can coach you, on eon one, on a profitable method that you can follow to the T. When you have not been a successfulll
trader for a long time, you NEED to have a repetitive method that you can have confidence with. In my esperience a TOL home trader at least in the beginning of is never ending learning curve, needs a lot of structure and repetitive almost boring methodology to follow, if not you'll always blow out you account and in the end never be profitable. But how can you be so disciplined. First you need to know how serious are you about this. Even if you have another job and this is a side activity, you have to treat it like a job even if it's whithouth a boss. Then you need to understand that money is a very powefull symbol that will dominate you, if you do not learn how to dominate yourself. If you do not have a strict discipline, you'll end up moving your stop loss all the time, when do you take profit, who knows, if it does retrace do I get what I can
or I keep going and risk it more. As you have lived trought this, I'm sure you can reconize that greed and fear will overwhelm you, simply because MONEY is a very powerfull symbol in your psyche as is for everyone. You can be making profit for 3 months in a row, feeling like a king and then boom, one bad day you'll wipe everything out. So if you do not learn how to control your emotional side, you'll wipe out, in the short/long run doens't matter, your account. The argument is vast, but I'll summarize it in:

-Find somedoy or by yourself a sound winning strategy. If you have somebody coach you, one on one let him show you his montlhy account and the successful trades he is able to do consistently. If it does not do that forget about it. Many will say It's my thing, it's private. Bullshit, if yor coach somebody who is paying you money you need to demonstate that you are able to do what you teach yourself otherwise...(p.s. it took me 2 years to find a good mentor, but I finally did).


-a repetitive and constant string of small gains goes a long way to build your account up.If you hope to build it whith great fat trades, good luck never met anybody having succes this way.

-at the beginning trade a very small amount of money, for each trade, if you do not want to paper trade, so you can apply easily you strategy without having to chage the SL or TP all the times, it's a way to learn subconsciously almost automatically that what you do is successfull. Do not be overconfident and just because you make 50 good trades you say now I can make money. Be patient and only after 100's of succesfull trades, your subconscious mind, will accet this way of trading without intervening when you trade with bigger summs at stacke and start to kick in to preserve you.
Meaning the secret is that you have to make your emotional mind quiet and let your everyday logical mind take over and be there when you do what you need to do,make it automatic, you set the trade and forget it, if it hits SL, move to the next trade and so on. If you have a winning strategy which for me means you are profitable in the worst case scenario at least 70% of the time, sitck with it it's the only way to succeed in this business of algotrades and big players.A trick cold be trade with ticks and not in money. If you loose 300$ ona trade your mind will say damm 300$, I need to recover them immediatly and make you trade until either you lost 3 times that or have recovered it. As I said money is a powerfull symbol, you need to depotentiate it's emotional side.

- do not trade more thaqt 3 -4 hrs max a day after that you attention span diminishes and beside few exceptions you lucidity it's gone.


Trading is not for everyone and it's veeery difficult to parsue, don't yourself. Very few succed because the industry behind it needs cows to milk and puts around the fake news that it's easy and dandy. It's not and never will be, better be honest about yourself and what you want to do.I wish you the best

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