How do you get rid of the "ego"

Quote from newwurldmn:

I'm not worried about someone writing a book about me. Im obly worried about sustainable long term alpha. I have noticed that my books pnl reverts. Your book might behave differently.

I appreciate your comment about math, but math isn't everything. If it were the markets would be dominated by PhDs and we've seen where that leads.
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hey man, I'm serious, my post was edited, so you aren't really replying to my post. I sent ET an email complaint. If you don't like my post, delete the whole thing, but don't edit it, otherwise, good guys like newwurldmn think they are carrying on a conversation with me

good luck, see you on another forum, but I am outta here
 
Quote from mastertrader456:

Meditation... or find some spirituality. It takes a conscious effort to separate yourself from your 'ego'.

There are several books out there that could help. The author Ekhart Tolle has several books about 'self' and 'ego'. Also Jesse Livermore's books are must reads in regards to trading psychology. Below are the most important notes I took from Jesse Livermore.

* Cut your losses quickly; * Be sure to confirm your judgment before you take your full position; * Let your profits ride if there is no good reason to close out the position; *; *Cheap stocks often appear to be bargains after a large drop. They often continue to fall, or have little potential to rise in price. Leave them alone! * * Don’t fight the tape! “remember don’t buck the trend—don’t fight the tape
*The big money is made by ‘the sitting and the waitin’—not the thinking. Wait until all the factors are in your favor before making a trade—. Once a position is taken the next difficult task is to be patient and wait for the move to play out. The temptation is strong to take fast profits or cover your trade solely out of fear of losing the profit on a correction. Be sure you have a good clear reason to enter a trade and be sure you have good clear reasons to exit your position. *Play the market only when all factors are in your favor. No person can play the market all the time and win. There are times when you should be completely out of the market. *The only thing to do when a person is wrong is to be right, by ceasing to be wrong. Cover your losses quickly, without hesitation. Don’t waste time, when a stock moves below a mental-stop, sell it immediately. * *Failure to take the opportunity to get out of large illiquid positions when the opportunity presents itself can cost. DON’T ANTICIPATE! Wait for market confirmation! Never argue with the tape. Follow the line of least resistance. Follow the evidence. * If the stock you traded is going in the opposite direction than you expected-sell
Remember, go with the flow, bend with the trend, do not sail into a gale, and most of all...don’t argue with the tape! * GROUP ACTION IS A KEY TO TIMING—Stocks do not move alone when they move. If U.S. Steel climbs in price then sooner or later Bethlehem, Republic and Crucible will follow along. The premise is simple, if the basic reasons are sound why U.S. Steel’s business should come into favor in the stock market, then the rest of the steel group should also follow for the same reasons. *Trade the leading stocks in the leading groups. Buy the strongest market leader in an industry group. * Watch the market leaders, the stocks that have led the charge upward in a bull market.. * Confine your studies of stock market movements to the prominent issues of the day, the leaders. If you cannot make money out of the leading active issues, you are not going to make money out of the stock market. That is where the action is and where the money is to be made. It also keeps your universe of stocks limited, focused and more easily controlled. *Before you buy a stock, you should have a clear target where to sell if the stock moves against you, a firm stop. And you must obey your rules! *A successful market trader must only bet on the course of highest probabilities. Buy small positions, probe first, to test your judgement before you commit to a large position. Do not establish your full position all at one time—use probes to confirm your judgment and timing and to find the line of “least resistance. ”
ESTABLISH STOPS!—The speculator should have a clear target where to sell if the stock moves against you! Never sustain a loss of more than ten percent of your invested capital. NEVER SUSTAIN A LOSS OF MORE THAN 10% OF INVESTED CAPITAL *Never meet a margin call and never average down in your buying. *Turn paper profits into ‘real money’ periodically. Cash was, is, and always will be—king. Always have cash in reserve. Cash is the ammunition in your gun. PATIENCE—PATIENCE—PATIENCE WAS THE KEY TO SUCCESS—DON’T BE IN A HURRY. ” *Don’t be in a hurry. The successful investor is not invested in the market all the time—there are many times when you should be completely in cash. If you are unsure of the direction of the market then stay out and wait for a confirmation of the next move.
*Take fifty percent of your big winnings off the table *Don’t anticipate! Wait until the market gives you the clues, the signals, the hints, before you move. Move only after you have confirmation. Anticipation is the killer. It is the brother to greed and hope. Don’t make decisions based on anticipation. The market always gives you time. If you wait for the clues there will be plenty of time to execute your moves. NEVER ARGUE WITH THE TAPE. * A stock trader can be convinced to move away from his own convictions by listening to the advice of other traders, persuaded that his judgment may be faulty. Or in the least case, listening to others may cause indecision and bad judgment. This indecision may also cause a loss of confidence, which may well mean a loss of money. * Remember: ALL TIPS ARE DANGEROUS—TAKE NO TIPS! * Remove hope from your trading lexicon. Hoping a stock will do something is the true form of gambling. If you do not have good solid reasons for you to hold stock positions then move on to another more logical trade. Wishing a stock up, or down, has caused the downfall of many stock market speculators. *Always be aware of your emotions-don’t get too confident over your wins or too despondent over your losses. You must achieve “poise,” a balance in your actions. *NOTHING EVER CHANGES IN THE MARKET
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Good stuff

I read this everyday

Thanks:)
 
Quote from bat1:

My ego is killing me!
Making me stay in losing trades.
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BatTrend 1;
another way to look at that same problem.

Its laziness;
study enough charts, enough years, you know even a high probability system [say 80%, not saying you can do that hi];
could be wrong 5 or 6 months in a row.

So stop being so kind to yourself by blamng it on a male ego;
laziness is much less cool than ego.Cool
Hope this helps.

Or put it another way-Benard Baruch said ''losses equals laziness'':cool:
 
I do not think confirmation is the right thing.

what I learned is:
do not try to make sure. make a judgement, and do it.

as for loss cutting, do not listen to some guys say you must cut loss. listen to yourself, jude whether you should or not. I do not cut loss. 99.99% time I am just the timing is a little bit early.

cut loss does not mean you are professional. just mean you are robotic. as a matter of fact, the market presents lots of loss cutting opportunities, think it just as traps or teasing.

if everyone cut loss, you do not, then you have an edge. I know those days lots of computer algo tradings there, they are the frequent loss cutters. never follow the computers, you can beat them easily. they are fast, you play slow. they are systematic, you play discreationary. you will have fun.

at the begging of my trading, i did quite well. then I want to trade more professionally, you knw what I stumble. so i back to what I am good at, pretty happy about my discretionary trading.

occasinally i do some averaging down trading, not exceed my risk limit. I do not use margin, so I do not need be afraid of margin calls. I trade OTM options. the strategy is the simplest, buy the cheapest options, either call/put at the moment. if I lose, I let it worthless.

buy low sell high, the secret most people forget











Quote from bat1:

Good stuff

I read this everyday

Thanks:)
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if you don't have inside info, you are an idiot on the tree of most wins, most losses,you can't get that info so except the idiot hat, ego gone,learn how to read outside info ,your still an idiot,just one of the smart ones, remember the mantra, i'm an idiot,the jaime dimones with the inside and still losng, they have the ego problem,you don't have enough info to have that problem
 
I totally agree. trading is an intelligent game. do not use brain, and use emotion, you will definitely lose.

emotion out is the easiest way. that is why most people blame emotion/psychology. bottom line is they are lazy.

they do not have a plan before they turn on their computer,
throw a dart anything is moving, hope wish catch a killing and never need do any work




Quote from murray t turtle:

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BatTrend 1;
another way to look at that same problem.

Its laziness;
study enough charts, enough years, you know even a high probability system [say 80%, not saying you can do that hi];
could be wrong 5 or 6 months in a row.

So stop being so kind to yourself by blamng it on a male ego;
laziness is much less cool than ego.Cool
Hope this helps.

Or put it another way-Benard Baruch said ''losses equals laziness'':cool:
More...
 
Quote from bat1:

My ego is killing me!
Making me stay in losing trades.
More...

Use stop loss orders and never change them.

Once you are in the trade, you are right or you are fucked, thats the game.

Just like poker.

Bet on high odds.

:confused: :confused: :confused:
 
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