Failure to pull the trigger!

Quote from ashantt:

I have been trading for a year and I still am nervous to enter a trade even when I see a signal. Does anyone else have this problem? How long does this fear of "maybe I'm wrong" last? Do I just need a string of wins for the fear to go away? And why do I want to trade large amounts when I know I should only be trading 2% of my capital on my trade. Am I showing tendencies of blowing out really soon?
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reconfigured, therefore self-explanatory .... :)


I have been fuckin for a year and I'm still nervous to enter a cave even when I see a signal. Does anyone else have this problem? How long does this fear of "maybe I'm wrong" last? Do I just need a string of wins for the fear to go away? And why do I want to whip the whole sausage out when I know I should only be finger testing my capital first. Am I showing tendencies of blowing out really soon?

YES! :D
 
Quote from ashantt:

I have been trading for a year and I still am nervous to enter a trade even when I see a signal. Does anyone else have this problem? How long does this fear of "maybe I'm wrong" last? Do I just need a string of wins for the fear to go away? And why do I want to trade large amounts when I know I should only be trading 2% of my capital on my trade. Am I showing tendencies of blowing out really soon?
More...

You can eliminate this the way you eliminate almost any problem - use rational analysis, and get a coach/mentor to work with you to get rid of it.

Rational analysis:

1. What is the problem
2. What triggers it?
3. What part of my response to the trigger is harmful?
4. What should I do instead?

Then simply avoid repeating the harmful response, and do the thing you should do instead, whenever a trigger occurs. Using a third party coach/mentor helps to identify and avoid lapses of observation or discipline, until it becomes a habit and you start doing the right thing subconsciously.
 
Quote from suriNotes:

Dr. Ned Gandevani addresses this topic "Why Can't You Pull The Trigger" in his book "How To Become A Successful Trader"... Also his SFO magazine article (not sure which month/year) with same title.

This book analyzes trader personality types/profiles while addressing key trading issues.

regards,
Suri

PS: I am not affiliated to Dr. Gandevani and never used or read his other products/services.
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Chapter 14 of his book is an expanded version of the original "Why Can't You Pull The Trigger" published by SFO.
 
Quote from Handle123:

What this statement tells me is you have not backtested your method far back enough.

Going back ten years or even five years, what is the largest drawdown if trading a one lot.

What is the "mean" average of losers in a row? What is the largest numbers of losers in a row? What are the largest number of winners in a row and "mean average" ?

If I have not backtested an idea back enough, I wouldn't want to
pull the trigger either.
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Agree with you 100,000,000%. Back test and see how many points you can gain
for each month - and see for the whole year. Do it at least 2 years.

If your back test works, then practice your mentallity.
 
Quote from fishtrader:

....
If your back test works, then practice your mentallity.
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Not totally true, real fills can kill tons of successful back tested strategies.

I would say that thick index futures yield pretty accurate results, other products will/might present execution "surprises".
 
http://www.iitm.com/articles/Stop-Worrying-Yourself-out-of-Profits.htm
This Tharp article underlines the point I do make occasionally at ET: that you choose to be a loser.

Losing and being a loser is not an accident. Its a result of who you are and what you need. Your most comfortable zone is your default character: a consistent mechanism for failing. Failure excuses you from responsibility. "Thank God I don't have to worry any more about making myself rich" is your sense of relief. Further effort and any ambition can be happily discarded, either now or soon.
:)
 
Quote from Cheese:

http://www.iitm.com/articles/Stop-Worrying-Yourself-out-of-Profits.htm
This Tharp article underlines the point I do make occasionally at ET: that you choose to be a loser.

Losing and being a loser is not an accident. Its a result of who you are and what you need. Your most comfortable zone is your default character: a consistent mechanism for failing. Failure excuses you from responsibility. "Thank God I don't have to worry any more about making myself rich" is your sense of relief. Further effort and any ambition can be happily discarded, either now or soon.
:)
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This a great mix between Ed Seykota and M. Maltz.
 
Some quite interesting research being done by a European group on how emotions affect trading decisions:


http://itunes.apple.com/WebObjects/MZStore.woa/wa/viewiTunesUCollection?id=393832734

How do emotions affect financial decisions? Is their impact always bad, or are emotions an important part of making good financial decisions? Can a better understanding of emotion help us avert future financial crises? These are some of the questions being asked by the xDelia project: a European Commission funded research programme being conducted by the Open University and other partners. The project is using leading edge physiological sensors and computer game technologies to explore the impact of emotions on financial decision-making and to develop new approaches to learning, which can support effective choices. In this podcast Professor Mark Fenton-O'Creevy of the Open University Business School looks at the work of this research programme and explores the ways in which emotions affect how we all (from investment bankers to the wider public) think and decide about money. xDelia is funded by the European Commission under the 7th Framework Programme.
 
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