Time to spare, direction to head?

[awg]

fantastic forum haha, seriously, hats off to you all.


I also am well disciplined and will never get emotion in the way.

I would'nt be too sure about the emotion.

As a new trader, am finding this part as hard as any other.

Was feeling completely gutted after Friday, got stopped out of nearly all my previously profitable positions AND picked a loser in a 2 horse race..my day trade stopped out, the alternative up 54%!

My hard built profits wiped down to almost nothing. Was'nt as though the market was really bad either, but my stocks got hammered, (then closed above my stops)


In respect of trading, there is so much info on this forum, online and in bookshops, is hard to digest. Will take months to get a handle, also 3 steps forward and 2 back sometimes

If you are serious, you will probably want some trade evaluation software such as Tradesim, so you can evaluate your intended methods.

I have a similar situation , in that I am involved in a business, but my activity is largely passive, so that I have time.

I will say that day-trading or very short term requires ABSOLUTE 100% concentration ( in my very limited experience ). ANY distraction whatsoever
can and probably will cost you. You are glued to the screen, and you must maintain your focus and concentration.

Everybody must start somewhere, and this is as good a place as any.

tony

 

[y0ud]

i have had a lot of hurdles with person/money management issues involved with getting this business up and running. Received some really valuable information about leaving emotion at the door, and has proved a pivotal step. i hope to apply it to trading and will no doubt be another hurdle in this instance.


I'm inclined to think that i will only be treating day trading as a hobby (a big hobby at that, taking up many hours of the day). i will only be putting money in that i will be willing to loose and in no way relying on money made/lost in day trading.

 

[Trembling Hand]

Received some really valuable information about leaving emotion at the door, and has proved a pivotal step. i hope to apply it to trading and will no doubt be another hurdle in this instance.

The old emotion gem

Can anyone out there site some evidence that emotion is the diff between winning and losing??

Its simply skill that is needed. Any emotions that are adverse are coming from lack of SKILL causing distress and irrationality. just because you are non-emotion doesn't stop you from sitting at your computer each day and giving away your capital. In fact I would say emotions are the only thing that does help you and motivate you.

 

[SGB]

The old emotion gem

Can anyone out there site some evidence that emotion is the diff between winning and losing??

Its simply skill that is needed. Any emotions that are adverse are coming from lack of SKILL causing distress and irrationality. just because you are non-emotion doesn't stop you from sitting at your computer each day and giving away your capital. In fact I would say emotions are the only thing that does help you and motivate you.

I hear what your saying TH

The problem with the word emotion is it is such a generalised word used in society today to explain a host of emotions.

But the real problem is; not taken any responsibility for that emotion and just calling it an emotional decision or reaction.
For example it’s a lot easier to say that I was emotional in that trade instead of the real cause, **** I was just getting plain greedy to not set my stoploss. Or, I sold out to soon because I was scared I would loose my profit. Or I was fearful to hit the mouse button because I didn’t have confidence in my decision.

Yes it is skill, but skill brings confidence which makes us Happy.

SGB

 

[y0ud]

its a line to be drawn

 

[MRC & Co]

Its simply skill that is needed. Any emotions that are adverse are coming from lack of SKILL causing distress and irrationality.

I sometimes make emotional trades and nearly everytime I do, I loose $$$

Despite having a robust trading methodology which has yielded positive results over hundreds of trades.

Sometimes I get over excited and take rediculous set-ups! Afterwards I am so pizzed, no idea why I took them in the first place, except for a sudden rush! Nearly ALWAYS loose when I make emotional trades and have made quiet a few over the past couple years.

I think that must be a bit of a gambling streak! Never knew I had it in me until I started trading! Slowly making fewer and fewer emotional trades, but occassionally it still comes over me! So frustrating because it wipes out some of the gains I made that month!

Trades this month, up nearly 3k, emotional trades this month, down 600! Not a happy camper considering I need to live off these profits for the time being!

 

[Trembling Hand]

Sometimes I get over excited and take rediculous set-ups! Afterwards I am so pizzed, no idea why I took them in the first place, except for a sudden rush! Nearly ALWAYS loose when I make emotional trades and have made quiet a few over the past couple years.

You may wish to put these in the "emotional trades bin" and work on being less emotional or control the RUSH. Joining the growing industry of trading Psychology. But go to a good Psychologist, Psychiatrist or Counselor about an emotional problem and mostly they will treat the cause of the emotion not the emotion.

Or put it this way. Is the only thing that you have improved on since you started trading as a newbie is being less emotional?? Has that been the main/only improvement? Or has it been that you have developed trading skills so you are not sitting around taking distressful trades?

 

[Sakk]

Trading should be just like a manufacturing production line.

See the setup, place the trade, manage the trade. Wait for next setup and repeat. However we're not robots.

Ed Seykota says something on the lines of "Acknowledge your emotions whilst trading. Feel them and let them pass. Stick to the system"

You need to trade without responding to your hopes, fears, expectations and other emotions. Operate your system invisibly, without seeing yourself.

 

[y0ud]

take the red pill?


i think a formula/strategy can be applied to most money concerns to free it from swaying emotions. should be risk, not fear.

 

[Trembling Hand]

take the red pill?

 

[MRC & Co]

You may wish to put these in the "emotional trades bin"

Or put it this way. Is the only thing that you have improved on since you started trading as a newbie is being less emotional??

Yes, they are going to the bin! I also find I generally take more emotional trades on intraday futures, probably due to the fact I know I can set a tight stop but can make a lot more if it does go my way. Just greed getting the better of me! I have just cut out watching futures constantly, only setting pre-determined parameters and trading them just like equities but on intraday timeframes.

No, definately have improved in many other aspects also, far less risk being taken now (hedging along with tighter stops and smaller position sizing) with even greater gains, not to mention, consistency!

 

[y0ud]

slightly off topic, but has anyone seen equilibrium? i wonder how they would go on asx