how key is seeing "green" $ on days end P&L for trading the next day?

I don't think anyone says that it's so easy to separate the idea of making/losing money from the actual method or means to do well in the mkts, only that it's pretty darn essential.

We all associate the things we need or want in life with the money needed to pay for those things so it's only natural to look at trading that way as well. The problem is, we are emotional creatures and have a tendency to ruin our own good planning by succumbing to these emotions. If you have a solid method, you need to trust in that method and follow it to a tee. Of course, try and improve the method over time, but following it each day without worrying about your P&L should greatly improve your trading.

Of course, this is all dependent on having a method that you've tested and has shown to be solid (or at the very least enough to cover costs)

Quote from learn&earn:

this is bad to admit but I'm with "inky" on this one. I still havent found out how to seperate my feelings from my P/L yet. When I have a bad drawdown day I feel awful for hours. If i have a great day I fell like opening a HF! lol. It's easier said than done for sure. I guess that's how people like John Arnold or Steve Cohen make six figures daily and are still mad cause they should have made more. Sign me up for that.
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Quote from volente_00:

No effect for me.


If anything a good previous day could lead to false confidence the next day.
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Yeah I find the same thing. I try just not to think about it. It's a bit easier for me as I don't hold any over night positions.

The one time I was forced to hold an overnight (stock stayed halted) I had the worst nights sleep ever and lost $20k on the open. However I was relatively happy about where I managed to get out and stayed on to trade the day making back about $3k of the loss.

The important thing is being able to be a good loser. Take your losses well and you won't have the fear of losing clouding your judgement
 
To me, if anything, it's all about the PnL momentum. I'd almost prefer a big red day that ends only slightly red to a big green day that ends only slightly green.

But either way, I believe the only thing that really should have any emotional affect on a trader, and therefore should be avoided at all times, is a BIG RED at day's end.
 
Quote from increasenow:

how key is seeing "green" $ on days end P&L for trading the next day?

I believe it is HUGE...even if you get a small "green" $ profit showing on the P&L for the day...get it! It will impact you better than "red" -$ on days end P&L for tomorrows trading...

agree, thoughts, comments?
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Beginner psychology. You either have an edge or you do not. If you do, then you have to let it operate.

Pouring on the gas and racing the clock to scratch your way to BE on the day is classic newbie behavior, and it's very important to break such habits.
 
I believe that attachment to a specific daily outcome may lead you to trade your P/L instead of the market. This may lead to both overtrading and undertrading and most certainly a lack of objective observation.

If anything, focus on having green weeks. Have a bigger picture :)

Yesterday is a perfect example of how a perfect loser traded his P/L instead of the market. I happen to know this guy since it was me :)

I could have taken a small natural loss among my distribution of winners and losers after two good winning days and still be well off equity lows.

Instead, I was hit by the irrational madness that still gets to me at times and had the ridiculous notion of wanting to "make it back" or at least "recover some". Needless to say, I gave back two days of profits and then some.

Those days are the one`s that really hurts your confidence and rhythm, not a small and normal losing day.
 
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