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?

  #38 (permalink)

Orlando Florida
Trading Experience: Intermediate
Platform: ThinkorSwim
Broker/Data: TD Ameritrade
Favorite Futures: Emini ES
Posts: 2 since May 2019
Thanks: 12 given, 1 received


muis2 View Post
I've had a couple of frustrating weeks resulting in a big drawdowns in my account.

I'm finding that I have spotted several good trades/trends over this period, but I get stopped out too early, then I chase overtrade and end up doing serious damage to my account.

What do you guys do to manage your emotions? How do you create a trading plan?

I have a serious tendency to focus on the markets and get an itchy trigger finger when the markets are open.


Whenever I talk with traders it inevitable becomes a conversation about how to deal with a bad situation. For me to get past the emotional hurdles of a bad trade was to become an expert on loosing trades. I put a lot of work into using a live demo account and even going back in history to put myself into bad trading scenarios. I knew that the more I could experience these bad encounters the better I would become at dealing with them, using more focused energy to plan contingencies and realized my confidence improved. Its like learning to jump over a six foot wide 1000 foot drop across to the other side knowing that one slip and you fall. But if you work out your legs over a 1 foot drop a 1000 times you build confidence knowing I can do this. What can go wrong. Fix your body and practice and the same thing with trading. You have to put enough effort into knowing all the right things and wrong things that can go wrong and how to fix. I don't believe there is a magic wand to do it. You have to work at it and then you will start to become an expert. For example, "Hey,,, I have seen this situation a thousand times,,, I know what to do." And your brain will become more structure, routine, and there's nothing more satisfying than looking at any situation and recognizing the possibilities. Either stop live trading or greatly reduce your exposure and get give yourself the opportunity to discover successful trading. I don't like to loose and I almost never do but it happens and guess what. Its no big deal because I know what to do. Sincerely,,, Dustydog

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