How can I fix this psychological problem?

Every time you make a profit, send me the money! Then you can trade without feeling like you have a cushion. We will both feel better.

You need to review why you are trading, what money represents to you at a base level and why you fear success etc. (There are many other questions along that line) Since you (presumably) know your exact problem, why not ask some of the questions to a completely quiet relaxed mind a few different times and days and write down the first thoughts you get back.

If you know the right question to ask, then you already know the answer as well. Good luck.
 
Ever play chess? There is a very nice rule these guys have: Once you touch a piece you move that piece. After losing enough times on a pre-emptively touched piece you learn not to act too hastily. Maybe you just have to lose enough money they way you are and eventually you'll have had enough of it and you'll stop.
 
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...



Off the top of my head;



Figure out traders are risk managers first, and foremost

Realize what stops are for – and use then (and don’t say you do, while also saying you act foolish with money)

Remove the profit from your account – so it’s not accessible to lose

Learn to appreciate what you’ve made – and hold on to it

Get fed up with giving money away – and stop

Gain some real discipline

===========================================================

Bottom line, do something different

Change only occurs when we actually DO something different - than what we've repeatedly done in the past

Simply thinking and/or talking about anything - won’t solve crap….

==========================================================


In the meantime I, and everyone like me, appreciates you giving us your money

Just don’t expect the same in return

RN
 
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...
Sounds like you don't have a plan. When you have a plan you know exactly what you are going to do when you close out a trade for profit or loss. In most cases you should already have another trade lined up.

If you're flat sweep the account and start over. Hard to blow a cusion if it's not there to blow.
 
The answer is extremely simple: Trailing stop on your equity. Put a stop on a trade if your equity curve dips below 20% of the high water mark on your equity curve. That is it! Works like a charm!
 
Quote from MAESTRO:

The answer is extremely simple: Trailing stop on your equity. Put a stop on a trade if your equity curve dips below 20% of the high water mark on your equity curve. That is it! Works like a charm!
More...

yes, you also need all that stop loss, Take profit Limit and Trailing Stop - stuff, on your trading money - not only on trades.
See it as your trading money is the biggest always on the line trade, you ve to manage all the time.

If you loose, reduze the risk, if you win, put on more risk.
in other words, play the game defensive and aggressive, depending on your success rate..... only you decide what you have in reward in the end, not the market....the market only gives entrys and exits...
your job is to manage the risk, to minimize risk and maximize profit...

control your risk
 
Quote from HATEtheRisk:

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....
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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
More...

Thanks. I am learning to get out on bad trades faster, and started using the cool off like you recommend.
I also do the cool off when I do good.
After all, I feel I am getting the mindset to do this.
It is happening slowly, which maybe is a good thing.
I'm starting to get rid of that sickening feeling when I buy.
You know, even though this is risky, think about if you start a business.
What if no buyers come to the store?
Then you can't just get out of the store. At least with the stocks, you can sell
at any time.
I don't know why people don't look at it as running a small business,
or a big business, depending on your size.
And, I have been doing better on my trades, than my ebay sales.
Guy at the brokerage laughed when I told him this.
 
Try to develop a set of rules and follow it with good discipline, no matter what your previous trade was. Every trade should be independent from the previous one and executed/managed according to rules, not according to anything else.
 
Kivd,

While some others have made so excellent points (Ghost especially) and have asked whether you really have a plan, I will address just the psychological side. I see a couple problems that you should think about.

Your first problem is treating money just earned in a profitable trade as anything other than YOUR money now. It isn’t house money; it is your money. Treat it with the respect is deserves. Every trade is an island and should be treated as such. What I mean is whether your last trade is a winner or a loser is irrelevant to your next trade. They are independent events. Each trade only means something as a single data point over the next 500 or 1000 trades (you are tracking your trade stats yes?). You have no idea whether a newly entered trade will be a winner or loser so they all should be treated the same. You enter the next trade ONLY because your rules tell you too, not for any other reason. The importance of this point cannot be over emphasized.

I can understand why others feel you don’t have plan as how soon your next trade occurs is based entirely on your trading rules and methodology. Entering a new trade before your rules tell you too because your last trade was highly profitable, makes you a GAMBLER and not a trader. If that is the case, sooner or later ruin is inevitable. Why shot yourself in the foot by not following your own rules because your last trade was a very profitable one? It makes no business sense at all and I just don’t understand why so many have this problem. Because this is a business and if you do not treat as such, those who do will quickly take advantage.

Try to think of it this way. Following your rules is your ONLY job. If you have a robust system and follow your rules, your chance of success is very high as it is simple mathematics.

To be successful long-term requires two skills. First to develop a plan that has a positive expectancy. This is the easy part (I say easier but not easy). Second, having the discipline and psychological makeup to follow your rules and let the math work for you instead of shooting yourself in the foot by giving money away (thank you by the way). This part is harder for most. My advice is get out of your own way and let your methodology make you money. Apply your edge as many times as possible. Let your edge work for you. The more times you can apply your edge, the closer to certainty (nothing is absolutely certain) your success becomes, IF you just let it happen. There is the rub. Most cannot do it.

You biggest obstacle to your success is you. Best of luck.

BM
 
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