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?

  #59 (permalink)

Chicago
 
Trading Experience: Beginner
Favorite Futures: MES
 
snax's Avatar
 
Posts: 666 since Feb 2019
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This has been helping me. I defined three outcomes to my live market analysis:

1. I do not understand the context of the current market-behavior - I stay out.
2. I believe I understand the context of the market-behavior but it does not fit my playbook - I stay out.
3. I believe I understand the context of the market-behavior and it fits one of my playbook entries - I may enter.

My playbook is a set of entries that have specific characteristics and need to kind of "fit" the current market behavior.

For the emotional side, it has just taken practice and making lots of mistakes to get away from re-entering right after losses, or on rare occasions, feeling invincible and jumping in impulsively. Trading the micros, and then Journaling my experiences, as well as going over other's journals here has helped a great deal in this regard.

Eventually good habits will stick, it just takes time to learn, and I'm never going to be 100% there.

Cheers!

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