I agree completely and many (most) people that are suffering from trading losses would be well served to take a couple weeks off with absolutely no trading, no charts, just to regroup and clear their head. I see too many examples on the forum in the journals of people just plowing ahead aimlessly because they believe that more work = better result, but sometimes you simply need to work smarter, which includes taking well needed breaks.
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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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The following 7 users say Thank You to Big Mike for this post:
Very true. You can get in a lockdown mode mentally after a period of misfortune and remain there. I too myself took breaks several months long after hit the wall and it helped, as I returned with a clear mind and new ideas. This is how it has to be: if you have no idea hot to fix - take a long break, only return when you get a good idea and energy for another round.
I'm really glad that I was able to come up with a plan after my first big loss. I cut down on trying to trade heavily as well and took a different approach. I didn't have the time back then to do proper research either but it worked out for me luckily. I still need to make a journal/blog but I think I'll go with an actual blog to keep track of things (and to play around with the layouts ).
Now that I've got a second wind, I'm going to follow the plan I made still but also do more research on the other stuff I eventually want to trade. I've learned a lot on my losses and while I don't think I'll ever truly give up on trading, I'll at least have better ideas of when to stop ^_^
Maybe I am missing an important point. Maybe I cannot get the complete message, because English is not my native language ...
Nevertheless I spent the time to read the complete thread and I guess the discussion is a very valueable one. But according to my way of thinking it seems simply not possible to give up trading completely. The only way seems to become a person without any capital.
But in case some money is still left, I am forced to take decisions. Even in case I hold only cash I have taken an decision that could be a wrong one. For example inflation can harm the value of my capital.
So are you pronouncing here the difference between investment and trading? From my point of view, both are similar (maybe within different time frames).
My point is to harmonise knowledge, money management, risk management and time frames. But we are all forced to stay in the game in some way.
The following 3 users say Thank You to Dogdancer for this post:
You give good reasons why we all should study and work hard in these areas, investment is simply long term trading - its just that most people will never know it.
It is also a general rule that most traders find it difficult to buy (they think the short side is more exciting) and most investors find it difficult to sell (they cannot bear to part with their decisions) - knowing both sides and also what is done to the general public in the name of 'financial advice' is important.
The following 2 users say Thank You to ratfink for this post:
Many floor traders cant make the transition to screen based traders simply because it is "different". Its like asking a 10 year veteran outfielder to make a transition to shortstop. Is it still baseball? Most definitely yes. Does it a totally different tool set to be successful? Again yes. Can some do it? Some, but not many. Trading is no different than any other "profession" that one needs to invest 1000's of hours into to succeed. Wish it were easier, but I dont know how it could be.