I would highly recommend the book, "Mindful Trading" by Rande Howell. This breaks down the psychological aspects of actual,real trading... In a way we can all relate to.
Steenbarger, Menaker, or Shull all have great points to make, but that ebook by Howell, opened up points I hadn't even considered. Such as biological fear...
As a trader I found it immensely helpful. It is now in my top 3 books, and I am immensely grateful for it!
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Set limits for yourself and stick to them, write them down and post them up on the PC if it helps, and develop your discipline. I'd say trading more is not necessarily a bad thing in principal, it's instead trading without a solid and verified premise base don an emotional response that hurts ones account.
So in the beginning its very helpful to say I'm only willing to risk x to earn y, and set daily trading limits and risk limits and reward limits for yourself. In a professional environment trading is approached like this - to know all your limits up front to maximize profit for a known risk level you set upfront.
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Good reco. The prevention of revenge trading is all about being self-aware of the state of mind and thoughts you are having. There is a limited tolerance to stress and then we, as humans, default back to our emotional mind to handle stressful situations. Therefore, your life situation, how you feel about yourself, other stressers in your life are all contributors to revenge trading for most people. The part of you that intellectualizes trading and behaves rationally gets weaker when you are tired and already have stress present.
The more you learn about yourself and are aware of your triggers, the more likely you will remain stable through the trading session. Meditation and regular exercise are key destressers and have always been a must for my prop shop.
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As a fellow revenge trader, I can't say there is a cure for it, other than time and experience, I do it MUCH MUCH less, if anything the fear of revenge trading keeps me out of a lot of good trades.
Try to keep it so your losses / stops are small, so when you take a hit it's not such a big deal.
Don't focus too much on your account value.
I have literally, given back months of good profit in a hour or 2, so many times, taking a hit, pulling the SL's, adding more positions, still going against me WTF!! then closing positions to stop a margin close all and pretty much wiping the account out.
Just checked my current account, been up for 2years and I've had 3 mini blow outs approx 20% losses, but been able to stop it at that level and walk away!!
If I can do it, you can do it!
I will add, my account where all really small spot Micro accounts, the bigger the account the more I really don't want to do that, when it's $200 it's hard to care really.
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