Manta, Ecuador
Site Administrator Developer Swing Trader
Experience: Advanced
Platform: Custom solution
Broker: IBKR
Trading: Stocks & Futures
Frequency: Every few days
Duration: Weeks
Posts: 50,322 since Jun 2009
Thanks Given: 33,143
Thanks Received: 101,476
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This is why you need a proven system that you've forward tested in a live market.
Then you can fall back on to your data, your recorded evidence of the method and its success, and simply analyze each trade by comparing it to your historical tested data.
If you find psychological mistakes in your order execution, like moving stops, exiting the trade too early, over trading, etc -- these will all show up in the comparison because they will appear to be out of the normal set of results, like if your normal result is a 2% stop, and you've got a trade that is a 5% stop, then clearly that is not normal.
These kinds of things will help gear you psychologically to do the right thing by building confidence in your system and teaching you to look at large groups of trades, 10, 100, 1000 trades and not go crazy about every single individual trade -- and more important every losing trade -- which has a tendency to negatively effect your psyche, and cause you to start making rash decisions or changes to your methodology.
Mike
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