How do you find your equilibrium in trading ?

[Raheel Shaikh]

Trading takes a lot of emotions to muscle up than just a solid trade plan
As much as losses can affect you psychologically, the winner can too.
How you find your equilibrium to balance both

Emotions factor in on both ends, winners as well as loser
Winning trade can make you feel confident, enhance your decision making to an extent and also help you keep a steady head
series of Losses day in day out can make you feel like quitting trading and getting a regular job

We've heard a lot about having a losing streak and how people deal with it
but, How do you deal when you're making the best % of your career

for example
consider a quarter of a year, your gains are -2%, 3% and then first week of the third month you're up 20%

Would you close your trading for that month and withdrawal the profits or you continue trading till the end of the month even if it is to lose the 20% and sit at breakeven ?

 

[MrMuppet]

my equilibirium is in the middle of the bid and offer

 

[traider]

You don't find equilibrium. YOLO it on TSLA and go big or go home.

 

[zdreg]

but, How do you deal when you're making the best % of your career

There is no such thing as equilibrium. It is a moving target. You keep going with your system until the greatest cooler in the universe, the stock market, gives you a dose of reality. Then you tweak your system or take time off.

 

[RedSun]

Trading is an addiction. Traders not only trade for $$, they also want to prove that they are always right and are winners. This is why a lot people do not stop when they get $10MM in the bank. For the losers, they always want to get the $$ back.....

Probably even Billy Hwang has not totally given up yet. Does his God bring the equilibrium?

 

[murray t turtle]

Trading takes a lot of emotions to muscle up than just a solid trade plan
As much as losses can affect you psychologically, the winner can too.
How you find your equilibrium to balance both

Emotions factor in on both ends, winners as well as loser
Winning trade can make you feel confident, enhance your decision making to an extent and also help you keep a steady head
series of Losses day in day out can make you feel like quitting trading and getting a regular job

We've heard a lot about having a losing streak and how people deal with it
but, How do you deal when you're making the best % of your career

for example
consider a quarter of a year, your gains are -2%, 3% and then first week of the third month you're up 20%

Would you close your trading for that month and withdrawal the profits or you continue trading till the end of the month even if it is to lose the 20% and sit at breakeven ?

%%
NO;
but with that kind of gain i may watch it closer/LOL
I dont know hat i would do if its TNA/ i never traded that one yet= i did look @ it today................................. MY stuff hardly ever gaps that much over nite\even though single stocks i allowed 50% gap up or down

 

[BlueWaterSailor]

for example
consider a quarter of a year, your gains are -2%, 3% and then first week of the third month you're up 20%

Would you close your trading for that month and withdrawal the profits or you continue trading till the end of the month even if it is to lose the 20% and sit at breakeven ?

Are you familiar with the gambler's fallacy? That's exactly what you're engaging in with this kind of thinking. The market doesn't know that you made 20%, or 3%, or whatever; it doesn't know, and it doesn't care. If you have a trading edge and do the right thing, you'll win over time; if you don't, you'll lose. Superstitious nonsense like "I won, but if I keep trading, I'll lose it all!" is a loser belief; it has nothing to do with reality.

If you start overtrading or taking inappropriate risks, that's got nothing to do with your P&L; it's just you deciding to overtrade or take inappropriate risks - so you shouldn't do that. If you get overexcited due to your winnings and need to calm down, then take the time to calm down.

But if your edge is specific to the current state of the market - and since no trading system is perfect for all types of market, it's not an unlikely situation - then it would be stupid to stop trading, because your system is working now, and may not work later (when the market changes again.)

 

[sebking1986]

It doesn't exist. You mention the feelings of winning and losing but humans are predisposed to take losers harder than they take winners. It's the very nature of loss aversion and is a relic of survivalism.
You are personalising the markets as well. They don't see you. Variance means that even in a good strategy you will have a series of losers and a series of winners. Having a edge means that when accounting for natural variance, you are in profit.

 

[DepthTrade]

Philosophy aside, equilibrium only exits in position management using volatility and volume to do so. Even then, your positioning is biased do to not being able to equalize all positioning - as far as I know. But, one can do better than being all in with one pair.

 

[themickey]

Remove your emotions, think like a machine, think you are playing a game, never look at profits or losses, just look-what is the market going to do next - then position yourself so you are on the same side of the market.

What's hot, what's cold? Trade whats hot, you should long be out of what's cold.