How to brake bad habit: Cut short on looser & let winner run - Psychology and Money Management | futures io social day trading
futures io futures trading


How to brake bad habit: Cut short on looser & let winner run
Updated: Views / Replies:1,388 / 10
Created: by arjfca Attachments:0

Welcome to futures io.

(If you already have an account, login at the top of the page)

futures io is the largest futures trading community on the planet, with over 90,000 members. At futures io, our goal has always been and always will be to create a friendly, positive, forward-thinking community where members can openly share and discuss everything the world of trading has to offer. The community is one of the friendliest you will find on any subject, with members going out of their way to help others. Some of the primary differences between futures io and other trading sites revolve around the standards of our community. Those standards include a code of conduct for our members, as well as extremely high standards that govern which partners we do business with, and which products or services we recommend to our members.

At futures io, our focus is on quality education. No hype, gimmicks, or secret sauce. The truth is: trading is hard. To succeed, you need to surround yourself with the right support system, educational content, and trading mentors – all of which you can find on futures io, utilizing our social trading environment.

With futures io, you can find honest trading reviews on brokers, trading rooms, indicator packages, trading strategies, and much more. Our trading review process is highly moderated to ensure that only genuine users are allowed, so you don’t need to worry about fake reviews.

We are fundamentally different than most other trading sites:
  • We are here to help. Just let us know what you need.
  • We work extremely hard to keep things positive in our community.
  • We do not tolerate rude behavior, trolling, or vendors advertising in posts.
  • We firmly believe in and encourage sharing. The holy grail is within you, we can help you find it.
  • We expect our members to participate and become a part of the community. Help yourself by helping others.

You'll need to register in order to view the content of the threads and start contributing to our community.  It's free and simple.

-- Big Mike, Site Administrator

Reply
 
Thread Tools Search this Thread
 

How to brake bad habit: Cut short on looser & let winner run

  #1 (permalink)
Elite Member
Montreal, Canada
 
Futures Experience: Intermediate
Platform: Multicharts
Broker/Data: Interactive Broker
Favorite Futures: Forex
 
Posts: 262 since Sep 2010
Thanks: 436 given, 86 received

How to brake bad habit: Cut short on looser & let winner run

How to brake bad habits

I'm just starting to be profitable ( at least for the last 2 weeks) but I still have bad habits that I need to resolve. One that is causing problem is my tendency to cut short on winning trade and let the looser reach the stop loss. As strange as it is, I will make sure that I don't loose my 25$ in profit, but I will let my full 100$ stop loss target to be reach

Today, I managed to be profitable ( +478$) but I may had triple that amount if did not had that miserable habit On my last trade, I manage to get mt stop loss at brake even, but soon after, price was cumming toward it, I close the trade with a tiny profit. Naturally, price did reach my profit target, but without me.

Any opinion, idea or comments appreciate

Martin

Reply With Quote
The following 2 users say Thank You to arjfca for this post:
 
  #2 (permalink)
Quick Summary
Quick Summary Post

Quick Summary is created and edited by users like you... Add FAQ's, Links and other Relevant Information by clicking the edit button in the lower right hand corner of this message.

 
  #3 (permalink)
User requested to be banned
Orlando, Florida
 
Futures Experience: None
Platform: shoes
Favorite Futures: happy
 
GaryD's Avatar
 
Posts: 6,462 since May 2011
Thanks: 2,090 given, 5,026 received



arjfca View Post
How to brake bad habits

I'm just starting to be profitable ( at least for the last 2 weeks) but I still have bad habits that I need to resolve. One that is causing problem is my tendency to cut short on winning trade and let the looser reach the stop loss. As strange as it is, I will make sure that I don't loose my 25$ in profit, but I will let my full 100$ stop loss target to be reach

Today, I managed to be profitable ( +478$) but I may had triple that amount if did not had that miserable habit On my last trade, I manage to get mt stop loss at brake even, but soon after, price was cumming toward it, I close the trade with a tiny profit. Naturally, price did reach my profit target, but without me.

Any opinion, idea or comments appreciate

Martin

Handcuffs

Reply With Quote
The following user says Thank You to GaryD for this post:
 
  #4 (permalink)
Elite Member
Quebec
 
Futures Experience: Intermediate
Platform: NinjaTrader wt Rancho Dinero's profiling tools
Broker/Data: Stage 5 trading/AMP/CQG
Favorite Futures: ES, NQ, YM
 
trendisyourfriend's Avatar
 
Posts: 3,697 since Oct 2009
Thanks: 3,041 given, 4,497 received

Answer
This post has been selected as an answer to the original posters question Answer

Martin have you considered using a bigger timeframe like a 30 minute chart to manage your trades? It helps tremendously. I use a faster interval to get in but to manage my trade i use a 30 minute interval. Check it out and see if it helps. Bonne chance camarade.

Reply With Quote
The following 2 users say Thank You to trendisyourfriend for this post:
 
  #5 (permalink)
Site Administrator
Manta, Ecuador
 
Futures Experience: Advanced
Platform: My own custom solution
Favorite Futures: E-mini ES S&P 500
 
Big Mike's Avatar
 
Posts: 46,240 since Jun 2009
Thanks: 29,353 given, 83,234 received

Don't move a stop to breakeven unless there is a reason to do so based on the chart.

Mike

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.

If you want
to support our community, become an Elite Member.

Reply With Quote
 
  #6 (permalink)
Elite Member
columbus OH/USA
 
Futures Experience: Advanced
Platform: TOS
Broker/Data: TOS
Favorite Futures: ES TF NQ, CL NG
 
marcopolo1's Avatar
 
Posts: 183 since Mar 2013
Thanks: 255 given, 238 received

Answer
This post has been selected as an answer to the original posters question Answer


arjfca View Post
How to brake bad habits

I'm just starting to be profitable ( at least for the last 2 weeks) but I still have bad habits that I need to resolve. One that is causing problem is my tendency to cut short on winning trade and let the looser reach the stop loss. As strange as it is, I will make sure that I don't loose my 25$ in profit, but I will let my full 100$ stop loss target to be reach

Today, I managed to be profitable ( +478$) but I may had triple that amount if did not had that miserable habit On my last trade, I manage to get mt stop loss at brake even, but soon after, price was cumming toward it, I close the trade with a tiny profit. Naturally, price did reach my profit target, but without me.

Any opinion, idea or comments appreciate

Martin

I don't think that looser reaching a stop is a bad habit. I think it's actually very good. You limit your loss to the amount you were ok with before entering the trade. Maybe the loss is too big emotionally to handle (need to reduce size)?

Regarding profit cut too short, maybe you could have 2 (or more) targets. One close and one further. Reaching the first one should make you feel good as some profits are locked and the trade at worst should now be break even...

Reply With Quote
The following user says Thank You to marcopolo1 for this post:
 
  #7 (permalink)
User requested to be banned
Orlando, Florida
 
Futures Experience: None
Platform: shoes
Favorite Futures: happy
 
GaryD's Avatar
 
Posts: 6,462 since May 2011
Thanks: 2,090 given, 5,026 received

For some, maybe many, that is a question that has the potential to linger. The "handcuffs" was silly, but also intended to be sarcastically correct. How do you stop moving your stop, or hitting "close" at a small profit? You just stop. No one forced your hand but you.

The psychology behind it I suspect is complex, survival instinct or "fight or flight". The base is fear. Fear of giving up what you have on the screen in the case of taking profits early.

You could try just setting a profit target and a stop loss and considering your job done. That was your best guess and roll with it. Pretend that is all you have control over. Trading will become a less active role and the pace will slow down considerably.

You could download a stop indicator, like Super Trend.

Or have a rule of a trailing 3-bar (or 2 or 1 or 4) stop and let the bars decide.

Use drawing tools to make wave projections and draw them on your charts, decide maximum distances you feel would make whatever pattern you were anticipating invalid, and set your stop there instead of using a vanilla "15 tick stop 30 tick profit" (or whatever numbers in that fill-in-the-blanks equation).

You could try meditation to calm your mind during trading. Or sound files that play certain wavelength sounds to put you in various brainwave states. (I have actually done both).

Ultimately it has to fit your beliefs, your risk tolerance, your psychology, your experience, your level of confidence in the trade, and the reason you put the trade on to start with.


Last edited by GaryD; April 16th, 2013 at 10:42 PM.
Reply With Quote
The following 3 users say Thank You to GaryD for this post:
 
  #8 (permalink)
Elite Member
Tracy, California, United Stat
 
Futures Experience: Intermediate
Platform: Various
Favorite Futures: EUR/USD
 
GoSlow's Avatar
 
Posts: 19 since Dec 2010
Thanks: 48 given, 8 received

Answer
This post has been selected as an answer to the original posters question Answer


arjfca View Post
How to brake bad habits

I'm just starting to be profitable ( at least for the last 2 weeks) but I still have bad habits that I need to resolve. One that is causing problem is my tendency to cut short on winning trade and let the looser reach the stop loss. As strange as it is, I will make sure that I don't loose my 25$ in profit, but I will let my full 100$ stop loss target to be reach

Today, I managed to be profitable ( +478$) but I may had triple that amount if did not had that miserable habit On my last trade, I manage to get mt stop loss at brake even, but soon after, price was cumming toward it, I close the trade with a tiny profit. Naturally, price did reach my profit target, but without me.

Any opinion, idea or comments appreciate

Martin

Don't beat yourself up over it. Trading is a performance art, as hard as mastering a foreign language or a musical instrument. Whatever you find yourself doing, it's done for a learned reason, whether or not you understand it later.

The solution is practice -- LOTS of it, with smaller $ amounts, varied timeframes and in simulator. Your goal is to have better instincts and reflexes than 51% of other market participants. (Why not just go for 80%.)

I can't say that your take-profits-and-run and give-trades-room-to-run combination is bad; that's an opinion some may have, but who knows for sure... There are no honest-to-god gurus in this business; that's part of its appeal.

Grow, over time, the set of experiential datapoints your mind has to work with.

P.S.: I read somewhere the advice that one should grow a simulator account three-fold, three times before going real. If you're in a rush to leave the simulator, you're probably going to make an avoidable mistake. Just my opinion.


Last edited by GoSlow; April 16th, 2013 at 11:16 PM. Reason: Add a P.S.
Reply With Quote
The following 3 users say Thank You to GoSlow for this post:
 
  #9 (permalink)
Elite Member
new york
 
Futures Experience: Advanced
Platform: NinjaTrader, tos
Favorite Futures: es
 
Posts: 111 since Nov 2011
Thanks: 26 given, 28 received

Years ago I heard the phrase "eat like a bird and shit like an elephant".
Have a pre-plan and stick by it. I do agree that taking a stop loss is a good thing. Often people loose more then they planed and then have a mountain to claim. Keep away from that and you will be good.

Reply With Quote
 
  #10 (permalink)
Elite Member
Corona, NY USA
 
Futures Experience: Intermediate
Platform: Ninjatrader
Favorite Futures: Futures
 
Posts: 1 since Nov 2012
Thanks: 0 given, 0 received

How to break a bad habit


I have found that price often retraces up and down, to take out trailing stops. You can try using multiple timeframes, and choose a higher timeframe to set your stop behind the previous bar's high or low. You do need to let the trade hit your target and give it wiggle room to move, sometimes this will take minutes to happen.

One other technique is not to enter on the first touch of the price, but to let it come back and then enter, this is called a test. Usually the price will not hit the same high or low. Watch the market you are in and notice how it behaves. Practice, practice and understand their will be both profits and losses. Overtime, as you develop this skill, you will filter out low probability trades, and have more winning trades.

Reply With Quote

Reply



futures io > > > How to brake bad habit: Cut short on looser & let winner run

Thread Tools Search this Thread
Search this Thread:

Advanced Search



Upcoming Webinars and Events (4:30PM ET unless noted)

Jigsaw Trading: TBA

Elite only

FuturesTrader71: TBA

Elite only

NinjaTrader: TBA

Jan 18

RandBots: TBA

Jan 23

GFF Brokers & CME Group: Futures & Bitcoin

Elite only

Adam Grimes: TBA

Elite only

Ran Aroussi: TBA

Elite only
     

Similar Threads
Thread Thread Starter Forum Replies Last Post
How do I break a bad habit samurai Psychology and Money Management 21 April 16th, 2016 05:43 PM
Bulls Gear Up for Another Run at 1500 on S&P Quick Summary News and Current Events 0 January 24th, 2013 11:10 PM
Obama May Cut Holiday Short as 'Fiscal Cliff' Looms Quick Summary News and Current Events 0 December 25th, 2012 10:30 PM
China Reforms Fail to End Stocks’ Bad Run Quick Summary News and Current Events 0 August 8th, 2012 12:40 AM
S&P says no cut planned in US credit rating kbit News and Current Events 0 November 21st, 2011 08:30 PM


All times are GMT -4. The time now is 06:00 PM.

Copyright © 2017 by futures io, s.a., Av Ricardo J. Alfaro, Century Tower, Panama, +507 833-9432, info@futures.io
All information is for educational use only and is not investment advice.
There is a substantial risk of loss in trading commodity futures, stocks, options and foreign exchange products. Past performance is not indicative of future results.
no new posts
Page generated 2017-12-15 in 0.15 seconds with 37 queries on phoenix via your IP 54.145.16.43