How can I fix this psychological problem?

K

kivd

I am a relatively conservative trader, so I will open a new trade maybe once per two weeks. There are times when I take in a big profit and then a new trade shows up, so I enter this new trade right after exiting an old one which was highly profitable.
Heres the problem:
In this new trade my psychology is completely altered, I feel like the big profit I just made is now a cushion. So I act foolishly with my money, kind of like it's not mine.
I've used psycho-cybernetics to get over other psychological trading problems, but I don't know how I'd do that here.
Does anyone have any ideas of how I could fix this?
 
Quote from kivd:

I am a relatively conservative trader, so I will open a new trade maybe once per two weeks. There are times when I take in a big profit and then a new trade shows up, so I enter this new trade right after exiting an old one which was highly profitable.
Heres the problem:
In this new trade my psychology is completely altered, I feel like the big profit I just made is now a cushion. So I act foolishly with my money, kind of like it's not mine.
I've used psycho-cybernetics to get over other psychological trading problems, but I don't know how I'd do that here.
Does anyone have any ideas of how I could fix this?
More...

The discipline after years of leaking money like you are now. Not saying that I do. Maybe you should change your tactics a bit by using options etc.

GL
 
Quote from kivd:

I am a relatively conservative trader, so I will open a new trade maybe once per two weeks. There are times when I take in a big profit and then a new trade shows up, so I enter this new trade right after exiting an old one which was highly profitable.
Heres the problem:
In this new trade my psychology is completely altered, I feel like the big profit I just made is now a cushion. So I act foolishly with my money, kind of like it's not mine.
I've used psycho-cybernetics to get over other psychological trading problems, but I don't know how I'd do that here.
Does anyone have any ideas of how I could fix this?
More...

Hi,

i know very very good what you are talking about.
I feel that every week.

My advice:
1. Make a break after the first trade and finish the week and calm down, probably withdraw a little of your good big profit.

or

2. Get yourself balls and be a man.
And make money how a pro trader should do - bcuz he calls himself pro.
Dont care about the $$$$ on your account/s, just control the risk for the day, so long you are not in a loss for the whole week, dont care much about your profits going up or down under week, just try to limit the risk and try to push the profit...thats how i do it...

good luck
 
besides that,
you will finally calm down,
if you make a loss after you made a profit,
this really fucks your brain....

i hate it too, but thats exactly how trading is....

after a loss, calm down, and concentrate, write down what you did wrong, check your rules, check your capital, check your risk
..... take a cold shower......and dont waste to much time....
and start back (like balboa in the rocky movies), making winning trades, over and over again...

stand up, when you fell....
-------
How you describe it, with close on good profit and right then go in to the next big trade, is also how i do it, i call it "Switching my positions in the time relation factor".
Important here is not too risk to much on the 2. trade. You really dont want to be able to loose all the good money, you just made before.
Besides that, you can always cut your positin smaller, if you are unsure about the current price situation and your position feels to big....its all about how you feel about it....i think its a kind of intuition that control your doings, while your mind know your rules how you should act....
---
Besides that, every week is different....
But in reality not, thats just how it is....control the risk....
so long you didnt loose money in the week, dont care how much money you made and lost under the week. It s a very risky business not a game where you have endless lifes to try again.

Wish you the best.
Keep motivated and never give up.

cheers:p
 
Try to look at trading as making business decisions. Trading is a business. Enter trades you feel have an edge. Exit when you lose your edge. Good risk management of your business will mandate your size. During times of "draw down", or losing money, get small. During time when your doing well, it's OK to allocate more money toward a new strategy. We are not talking about doubling down. These are percentage changes.

Good luck.

-----------------------------------
Robert L. Morse
Business Development
VICTOR SECURITIES
285 Grand Avenue,Englewood, NJ 07631
rmorse@victorsecurities.com
office: 646-545-3860
http://www.linkedin.com/pub/robert-morse/6/8a7/617
http://www.victorsecurities.com/
-----------------------------------
 
Quote from kivd:

I am a relatively conservative trader, so I will open a new trade maybe once per two weeks. There are times when I take in a big profit and then a new trade shows up, so I enter this new trade right after exiting an old one which was highly profitable.
Heres the problem:
In this new trade my psychology is completely altered, I feel like the big profit I just made is now a cushion. So I act foolishly with my money, kind of like it's not mine.
I've used psycho-cybernetics to get over other psychological trading problems, but I don't know how I'd do that here.
Does anyone have any ideas of how I could fix this?
More...

Your game is over. Have some Mojitos and think about if u want to pursue trading before u really get OUT OF CONTROL
 
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Quote from kivd:

I am a relatively conservative trader, so I will open a new trade maybe once per two weeks. There are times when I take in a big profit and then a new trade shows up, so I enter this new trade right after exiting an old one which was highly profitable.
Heres the problem:
In this new trade my psychology is completely altered, I feel like the big profit I just made is now a cushion. So I act foolishly with my money, kind of like it's not mine.
I've used psycho-cybernetics to get over other psychological trading problems, but I don't know how I'd do that here.
Does anyone have any ideas of how I could fix this?
More...


And, keep in mind.


More than 90% of small traders do crazy shit. They are just crazy!
 
Quote from kivd:

I am a relatively conservative trader, so I will open a new trade maybe once per two weeks. There are times when I take in a big profit and then a new trade shows up, so I enter this new trade right after exiting an old one which was highly profitable.
Heres the problem:
In this new trade my psychology is completely altered, I feel like the big profit I just made is now a cushion. So I act foolishly with my money, kind of like it's not mine.
I've used psycho-cybernetics to get over other psychological trading problems, but I don't know how I'd do that here.
Does anyone have any ideas of how I could fix this?
More...

Try focusing less on dollar amounts and think in terms of % risk. On each trade you enter, your current account capital is 100%, so you should be risking the same % amount for any given trade (assuming the same risk/reward odds), regardless of whether you are up or down big over the last few trades. What you are doing at the moment is allowing your emotions to govern your position size, when it should be pre-planned and well thought out rules that govern size.

So, if you judge that risking 1% per trade is appropriate risk for you, for a given trade, then bet 1% regardless of whether you just had a huge gain or not.

A second issue is systematic vs emotional trading. If you don't size your bets and your risk according to a system, and just rely on emotions, then you are making a mistake. A system can have emotional-driven inputs, but there must always be some rigour and rule-based boundaries to keep your risk taking with logical and rational limits.
 
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