Moneydeep couple of solutions its upto you to follow them or not
- Whenever you made huge returns withdraw atleast 50% profit & put it in your saving bank account away from your trading a/c.
- Second problem I am seeing is you are not considering profits as your money. After profits you are risking big because you are considering you are loosing from your profits which is wrong . Suppose you grow your a/c from 500 to 1000 by risking 2% or 5% than keep that percent constant consider it your money now not markets money, don't think you are risking from your profits.
- You said average income is $150 in your area than why you are going for home runs when you can make singles doubles and live better life in $1000 & take the rest of the month off.
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I read Dr. Elders book (Come into my trading room) and he had a section about Alcoholics Anonymous. Actually a pretty good read.
Years back, he accompanied a friend to an AA meeting...i wont get into specifics but he said that understanding AA really helped him become a Disciplined Trader. Here is an exact quote from the book..."people at the AA meeting talked about how alcohol controlled their lives, and my trading in those days was driven by losses-fearing them and trying to trade my way out"
Lastly, he goes on to say a lot of alcoholics are in denial and they cannot change until they hit rock bottom. An alcoholic can self destruct or admit they have a problem and turn their life around. If you don't fix your problem soon...you will self destruct and hit rock bottom.
good luck!....1 day at a time.....
The Market is Smarter than You Are
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Watch Linda Raschke's last webinar on futures.io (formerly BMT), she also went into detail about AA and trading.
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Need help? 1) Stop changing things. No new indicators, charts, or methods. Be consistent with what is in front of you first. 2) Start a journal and post to it daily with the trades you made to show your strengths and weaknesses. 3) Set goals for yourself to reach daily. Make them about how you trade, not how much money you make. 4) Accept responsibility for your actions. Stop looking elsewhere to explain away poor performance. 5) Where to start as a trader? Watch this webinar and read this thread for hundreds of questions and answers. 6) Help using the forum? Watch this video to learn general tips on using the site.
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I think it happens with everyone. People don't talk about it enough about it in plains terms. They talk about risking more, adding more etc., calling it "levering", "martingaling" however myriad names it has. Basically it boils down to averaging down, or adding more to a loser. Suppose one is risking 2% initially. Then one doesn't follow the stop-out plan. , Then adds on to the loser, then the emotional control is lost, the "monkey" takes over and next thing you know as you mentioned, 80%+ of the account is risked on the next trade. So there was a plan initially to stop out on each trade. and yes, we all know there was money lost before. I would not even count your initial 1500 and 1000 loss as a "big" loss. There are those of us who lost more and even "invested" with "vendors" over 20k. So I would drop your initial first losses from your conscience. One way that I found worked to get over your losses is to not trade for a half-year or a year, until you forget about your slew of prior losses. Big Mike and others have had good advice. Please don't have in your mind your prior losses when you trade. If it's too soon since a major loss, then 3 months, 6 month or a longer hiatus however it takes to lose the sting and fog that memory.Also think about your daily loss limit, and your weekly loss limit. If one can't maintain their weekly loss limit, it's time to stop trading again. Learning to take the daily loss limit and/or the weekly loss limit is like "seppuku". "commit suicide" and stab that short sword in your gut ..for the day. i.e. Sacrifice the day's losses so you can keep the rest of your profits for the week. Another tip I heard was from someone saying a trading coach would say, everytime you don't follow your trade stop, then you burn a $20, or $100 bill with a lighter or match. And ironically usually that's less money lost than not following a stop and adding on to a loser.And if you lose for a week following stop losses. Well at least that's "just" a week of losses giving a valuable clue your tradeplan isn't working, the "edge" isn't working, and it's time to find another "holy grail" set of indicators or trading method. So that's why it's good to start small so the initial "pawns" sacrificed are small, they are like information gathering drones. They cost, but should be kept small in cost in relation to the overall account / funds available to trade.But I think the best advice for you other than the above is to research stop systems and "money management". I don't like trading psychology as much as finding a good stop system. There are also a few "stop and reverse" ideas out there. I think "martingale" i.e. adding to losers is better left to strategies and automated trading, the computer program will take the losses the mind can't handle.
Last edited by Cloudy; June 29th, 2014 at 08:16 AM.
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