How do you find your equilibrium in trading ?

[Leob]

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.

What I like about ET that you cand find real trader perspective not books writers or educators. Who really trade really now what he look for.

 

[Raheel Shaikh]

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?

Well exactly the same reason, there are many who leave with a good % and call it a month
the fear of losing the gains is what stops them from consistent trading

 

[Raheel Shaikh]

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.)

Well said BlueWaterSailor
People like to treat risk like traders and profits like investors, that keeps them far away form their trade plan
Unfortunately, a lot of trader call it a month after having a week of good profits
Refining your trade plan constantly keep you in steady and a step ahead in the market

 

[Raheel Shaikh]

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.

WORD.

 

[nickiewinters]

It’s true that most of the time when we talk about emotions we only focus on dealing with negative emotions and don't pay much attention to the emotions accompanied with consequent winning streaks. If not checked, such emotions can make a trader overconfident and increase the tendency to take random trades without proper analysis.
It’s hard but following your trading plan religiously at such times can be a great help. Trade only if it’s in your plan and don’t let your emotions drive you.

 

[Raheel Shaikh]

It’s true that most of the time when we talk about emotions we only focus on dealing with negative emotions and don't pay much attention to the emotions accompanied with consequent winning streaks. If not checked, such emotions can make a trader overconfident and increase the tendency to take random trades without proper analysis.
It’s hard but following your trading plan religiously at such times can be a great help. Trade only if it’s in your plan and don’t let your emotions drive you.

Exactly, it is very important to balance both sides on losing as well as winning streaks

 

[kroxobor]

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 ?

I think I value more that I stick to the plan than potential missed gains because deviating from trading plan turns on "emotional mode" when dumb trading decisions sneaks into your trading and it gets more and more out of control.

 

[dorcaslugo]

When you're in equilibrium, it's important not to take any risks and wait until the price goes beyond your level. This is the time when you can earn a new profit.

 

[kroxobor]

It’s true that most of the time when we talk about emotions we only focus on dealing with negative emotions and don't pay much attention to the emotions accompanied with consequent winning streaks. If not checked, such emotions can make a trader overconfident and increase the tendency to take random trades without proper analysis.
It’s hard but following your trading plan religiously at such times can be a great help. Trade only if it’s in your plan and don’t let your emotions drive you.

That's why profit should be also capped, i.e. when you reach your profit goal you have to stop trading and take stock of your gains to find the reasons of success.

 

[Raheel Shaikh]

That's why profit should be also capped, i.e. when you reach your profit goal you have to stop trading and take stock of your gains to find the reasons of success.

wouldn't that be limiting the profits ?