When I was new to trading and in learning phase, I came across many diff strategies based on break outs, failures, candlesticks, indicators etc and almost tried all. Very soon I realized dt in order to be successful, I need to just stick wid 1-2 of the strategies.. follow them religiously. If there are trades based on them, take it else be patience.

Now, the methods (1-2 dt I trade) have been well back tested and I know they have positive expectancy and wil give me profit over a period (ie..all months profitable in last 2 years of back testing and continues to be on paper)

Here are my problems that keep haunting me on and off :

1. In my mind, I know I have to trade ONLY the methods A and B. Any other set ups that I see, I will ignore. But this doesn't happen everyday. Very often, I end up trading other methods unconsciously and realize only at EOD with deep hole in my ledger. How to get out of this mental practice ?

2. I understand that all trades can't be winners and we have to let go when some trades end up on losses. But unfortunately, the moment I see my ledger small red in the morning, my entire focus goes on to try to cover those losses. During this period, my entire focus gets lost. I forget dt I have to follow my rules and methods but I end up taking trade left right and center based on the next set up I see. needless to say I end up over trading on the day and the losses eat up probably the last 2-3 days profits as well. What is wrong with me.. I tell myself everyday that "I will not do this today". Some days goes fine with this mantra but most of days.. my over trading and trying to cover losses over take me. How can I control myself and be disciplined with my rules and trades ?

Just to add... when I see losses..I unconciously switch down to lower time frame and try to take (basically make up) a set up so that I can take a trade.. make it profitable and cover the losses... aahh (facepalm)

The only thing that has ever worked for me is going for a walk (often long ones..)

Sim trade until you can trade like "Spock" ... emotionless and disciplined.. track your trades and why you took them..usually patterns will appear to help you to "stick with what works" ...
Patience is critical to being a disciplined and profitable trader..
Let the market come to you, don't chase it, or try to "make up" a setup just for the action or to get money back..
Trading is a job, treat it with the respect that it deserves...or it will punish you..

Start a journal.
Post your trades in real time giving the reason for the trade and the planned exits.
You'll be surprised how being accountable to a bunch of strangers will change your behavior.

Brett Steenbarger's blog is hands down the best trading psychology blog and there is a lot of things related to your problems. Start reading this if you haven't already: Three Top Reasons Why Traders Fail to Trade Their Plans and this Why 90% of the Mental Game is Your Trading

Thank you very much guys ! Appreciate the responses !

Over this weekend, I have been going through a loads of articles and youtube videos and have noted down some really nice things. Gotta work on them over the next few days/weeks.

manishchan 

Here are my problems that keep haunting me on and off : 1. In my mind, I know I have to trade ONLY the methods A and B. Any other set ups that I see, I will ignore. But this doesn't happen everyday. Very often, I end up trading other methods unconsciously and realize only at EOD with deep hole in my ledger. How to get out of this mental practice ? 2. I understand that all trades can't be winners and we have to let go when some trades end up on losses. But unfortunately, the moment I see my ledger small red in the morning, my entire focus goes on to try to cover those losses. During this period, my entire focus gets lost. I forget dt I have to follow my rules and methods but I end up taking trade left right and center based on the next set up I see. needless to say I end up over trading on the day and the losses eat up probably the last 2-3 days profits as well. What is wrong with me.. I tell myself everyday that "I will not do this today". Some days goes fine with this mantra but most of days.. my over trading and trying to cover losses over take me. How can I control myself and be disciplined with my rules and trades ? (

How long have you had this trading plan and how much have you traded it in SIM or live?

Wolf

Traderwolf 

How long have you had this trading plan and how much have you traded it in SIM or live? Wolf

Hv been trying to trade this particular method since the last 3-4 months. 1 month of paper trading wid it but then I started live coz paper trading doesn't help me much. The real scenario comes in when we hv to the real money in the play.

Yes..I am playing with smaller contract size for now.. but profitwise, its like I move 2 steps forward and 1 backward.. sometimes 1 forward and 2 back.

manishchan 

Hv been trying to trade this particular method since the last 3-4 months. 1 month of paper trading wid it but then I started live coz paper trading doesn't help me much. The real scenario comes in when we hv to the real money in the play. Yes..I am playing with smaller contract size for now.. but profitwise, its like I move 2 steps forward and 1 backward.. sometimes 1 forward and 2 back.

Couple more questions .. How did you do in SIM? Did you follow your plan every day? Did you make consistent money? Did you demonstrate 2 main things:

1. The plan has an edge?
2. You can see the setups(edges) and trade the plan at the hard right edge at market speed?

Wolf

PS.. Only asking these question to see how much time and effort you have put into your trading plan and SIM testing it.. Many do not spend enough time in that phase of trading IMO.... Only you know the answer to that.