Controlling Jittery Emotions

[murray t turtle]

Quote from SaigonTed26:

Hi,

Like other people, I either panic when a stock is down and am tempted to sell or when I'm up I like to sell too early to ensure I will keep the profits I have. But in a nutshell, what? Thanks!

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Ted Trend;
Something else quite helpful;
study [for years]the strongest of the strong trends[100%, 200% gainers]AAPL...

And study the bear trenders/weakest of the weak stocks[For example C[Citigroup is a penny stock $3.46 now, but they simply did a reverse stock split ten times:So its selling for $34.63.LOL ]And how convenient, many chart services do not even disclose this

 

[Mr Super Trader]

Quote from Bear Trader:

Forget about the psycho babble. The reason you fee this way is because you dont have enough capital. If your risk was 1cent per basis point you wont panic. Reduce your size and just make wider stop losses.

I was going to say the same thing. I risk 2% max per trade in the forex market and use wide stops. Stops outside the range i'm trading and take profits inside the range.

Good entry, reasonable profit target, Stop outside range, take profit inside range, R:R 1:1 initially, 2% risk per trade. risk never being manipulated but can take profits early.

you will always be emotionally involved but trading small allows you a better chance to stick to the game plan. Obviously due to the losses not being so drastic. Which allows better future decision making and hedges a blown account.

 

[Brass]

Quote from Redneck:

...They termed it; The Big Four


Goal Setting

Mental Rehearsal (visualization)

Self Talk (People speak to their self 300 – 1000 words per minute, keep words positive.., replace bad thoughts with good thoughts)

Arousal Control (deliberate slow breathing – long exhales – to minimize the affect of stress/ being scared)...

Looks like a good list. However, as it relates to trading, I think that goal setting should be approached carefully and should probably not have a dollar component.

 

[Redneck]

Quote from Brass:

Looks like a good list. However, as it relates to trading, I think that goal setting should be approached carefully and should probably not have a dollar component.

Thank You

imo

Trading is one of the few pursuits where the process is everything.., and any one trade’s outcome is pfft

Having said this, for newer traders I believe it a good idea to have a set maximum loss per day… to work as check valve for shutting off the madness – some seasoned traders could/ do use this as well – I do because some days I simply suck


Some also believe in a profit target per day, that if attained – its time to go do something else…


I can see value in that…, even use it on occasion as a reason to go play


Really boils down to doing exactly what works for each of us – however we decide to quantify it

RN

 

[Brass]

Quote from Redneck:

Thank You

imo

Trading is one of the few pursuits where the process is everything.., and any one trade’s outcome is pfft

Having said this, for newer traders I believe it a good idea to have a set maximum loss per day… to work as check valve for shutting off the madness – some seasoned traders could/ do use this as well – I do because some days I simply suck


Some also believe in a profit target per day, that if attained – its time to go do something else…


I can see value in that…, even use it on occasion as a reason to go play


Really boils down to doing exactly what works for each of us – however we decide to quantify it

RN

Yes, I agree that maximum loss per day has some value. Maximum profit target per day, I'm not quite as sure about or comfortable with. But I think people might run into trouble if they plan on making a certain minimum amount of money a day. That's rather contrived goal seeing as how we don't know in advance what the market will offer. It can result in unwarranted trading. That's what I was getting at in my prior post. Personally, I think process goals are better, something you mentioned at the outset of your post. Following the rules, that sort of thing. And perhaps having benchmark goals such that once certain account balances are achieved to add to position size accordingly.

I found the video you referred to, and it is indeed worth watching:

<iframe width="560" height="315" src="http://www.youtube.com/embed/Ju4FojRkEKU" frameborder="0" allowfullscreen></iframe>

 

[Redneck]

Quote from Brass:

I found the video you referred to, and it is indeed worth watching:

This is similar... The one I was referring to is "The Brain"... it played on the History channel

I just searched and all I could find was the history channel selling it, no free downloads - bummer

But your link is along the same lines

RN