Ok, Feeling good about the market.
It's going my way -- Feeling upbeat
Bit retrace -still positive why not... it will come back
Wow -- what the hell just happened? Am I seeing this correct?
I've lost again - grrr...
How to maintain a positive attitude when trading?
Mike, I've searched the topic and I couldn't find similar thread. If I missed something please accept my apology and move the post to the appropriate thread. Thx
If you are having that emotion, it sounds like you are gambling. Trading involves making decisions, some of which are "gut feelings" but most of which are based on sound experience aka wisdom.
If you don't feel confident about your trading decisions, even those that lose, then you are just trading from the hip and without a well thought out plan.
If you don't have confidence in the plan you have, it's probably because the plan makes no sense, or has no true edge.
Due to time constraints, please do not PM me if your question can be resolved or answered on the forum.
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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The following user says Thank You to Big Mike for this post:
Definitely have a daily loss limit. I started just making one trade a day in the beginning. I still only make a few trades. I realized my losses were usually grouped together, so I'd just stop trading and wait for he market to give me a fresh new market state with a different day. So, I maintained a positive attitude because If I missed three trades in a day I'd just shut off the software. This is how I prevented a bad day from turning into a train-wreck. After that, It's just a matter of being comfortable with being slightly uncomfortable.
Every time I do this, the next trade that appears turns out to be a real good one.
But of course, if i carry on trading I carry on getting smashed to bits.
I've decided that a lot of it is down to the big players deliberately pushing the price to where people are likley to have placed stops for good risk/reward, it doesn't seem to matter what time frame you trade on.
this is a common psychological problem. If you get emotional about losses, you will begin to justify any number of trades, no matter how invalid they are. if you are having a bad day and you let it affect you emotionally, you will continue to make bad trades.
If you stop trading you will look back - in hindsight - and see the winning trades, because you can operate under the assumption that, "I would've taken that trade." The reality, though, is that you likely would not have taken the trade because you are scared following the losers. Instead, you would most likely have taken "panic trades" that you talked yourself into.
There is no one way to avoid emotion while trading, but I suggest A) reading trading psychology books, and B) spending at least as much (I think much more) time working on your mental game as you spend studying markets, trends, indicators, etc.
One thing that has helped me is to put emotion stoppers in my trading plan. I am far from mastering how to avoid emotion in trading, but my trading plan says explicitly that I will not trade if I am feeling emotional, that I will not celebrate winners or get angry over losers, and that I will not swear.
the first step in avoiding being emotional, is to step away from the market at the first feeling of it.
If emotions did not play a role, we would all be super successful traders. Understanding and then doing your best to control your emotions is the biggest issue that all traders must deal with before they can truly become successful.
Also, doing a memory wipe of all your winners and losers and the could've, would've, and should've trades will do wonders for everyone's trading.
It is very very hard to just simply follow your trading plan no matter what. The human nature in all us makes us want to win and fear losing. If somehow we can shut this part down, it would be easy to trade!