Building confidence

[Dr. Zhivodka]

Dear Short One (5'7" rolls eyes)

As has been suggested.....and my thoughts to go.....

1) Reduce size until the money is no object.

2) Do the right thing and the money will follow (easy to say tough to do).

and finally the "Traders Paradox" which is a variation and compliment on rule 2

3) Don't worry about the money and the money will come.....iff (if and only if) you're doing the right thing in the markets and within your system be it discretionary....or systematic.

Quote from chicagoshorty:

I continually pick good trades, but have trouble getting the nads to put them on. Yesterday I picked a GREAT trade that would've doubled my money overnight, but lacked the confidence to put it on.

I've heard it all about cutting down size to build confidence, but then I think to myself "why bother having the stress of a trade if I'm not going to make some decent money on it?"

Any suggestions?

 

[ElectricSavant]

Try trading a safe system with a low max drawdown to cumulative profit of 1:4 for a year.

This will give you the confidence you need to pick and sit through those high probabiity, high yielding trades.

Michael B.

Quote from chicagoshorty:

I am driving myself absolutely insane...

I continually pick good trades, but have trouble getting the nads to put them on. Yesterday I picked a GREAT trade that would've doubled my money overnight, but lacked the confidence to put it on.

I've heard it all about cutting down size to build confidence, but then I think to myself "why bother having the stress of a trade if I'm not going to make some decent money on it?"

Any suggestions?

 

[trader_lon]

I've found the best way to build confidence is to use a scaling approach and only add to my winning positions. This way I can buy a small position of a home run stock and still sleep. If it's up in the morning, I can scale in some more.

Another book to read on confidence is Mark Douglas's "Trading in the Zone".

 

[jaronimo]

Quote from trader_lon:

Another book to read on confidence is Mark Douglas's "Trading in the Zone".

I just finished reading "The way of the warrior-trader" by McCall. Cheesy title, but I really liked the way he linked trading to Samaruai training. Entertaining read, it made a few things click for me that I had read other places.