I made a firm commitment on saturday afternoon before trading that I would accept losses without emotion. On the whole I did manage to achieve that but I felt that I lost more races than I would like and certainly a higher percentage than normal. Having said that the day ended in profit overall so I have to be pleased with that. Small steps forward are all I am after.
I have re-read some of my notes on trading pschology and I intend to implement this principle in trading this week:
Before starting to trade, use the “Goal for the day” technique and write the goal down. It may be avoiding something you have done in trading the day before, lke taking a position in running. To each of the goals add an 'or-else' scenario. Then re-enact that scenario – re-live the results of not following your plan. You need to be emotionally connected to the danger of the ‘or else’ scenario. You are now making this goal motivational and far more effective. Also trading goals should reflect some strengths and not all be weakness based. This helps to reinforce what you are good at as well as improve on the things you are bad at.
I will report back later on this week how I get on.
Very interesting post. Myself, I have found that knowing some serious Wall street traders (I live in New York City) through out the years some of these men were real tough traders who had longterm success.
ReplyDelete(1) Write down on an index card before you start trading what you want to accomplish and what is your maximum stop loss.
(2) Stick to your rules to the exclusion of all else...otherwise you have no rules.
(#) after a days trading review your trades then push your mental ersae button and come back the next day fresh and ready to go!
The best to you!
Hi and many thanks for the post.
ReplyDeleteI really subscribe to the view that its not our ability to trade that will determine our success but it how we respond to the wins and the losses. understanding human psychology and regimental discipline are the two greatest assets we can use to help us be successful.
Happy trading..