How to treat the 'cannot pull the trigger' symtome
- Thread starter ADX_trader
- Start date
Some traders said their systems only have 40% winning trades and still making money. I really want to know how they withstand the lossing period. I am serious!
Quote from ADX_trader:
Some traders said their systems only have 40% winning trades and still making money. I really want to know how they withstand the losing period. I am serious!
IMHO:
A good trading system does not need to produce 50% winning trades. As long as it can cut the losses fast and let the winners run their courses, the final result will be a lot of small losers, many small gains and a few home runs.
Of course, it is easier said than done.
Quote from ADX_trader:
Some traders said their systems only have 40% winning trades and still making money. I really want to know how they withstand the lossing period. I am serious!
What do you care, you are a different person. What is your's method win/loss ratio ? and you still have no confidence in it.
Walter
Quote from ADX_trader:
Some traders said their systems only have 40% winning trades and still making money. I really want to know how they withstand the lossing period. I am serious!
IMO, it is very important to KNOW your system.
For example, if I have a system that says I only need to be right 25% of the time, then I know that I can lose 3 out of 4 times and still break even, IF I ADHERE TO PREDEFINED STOPS AND PROFIT TARGETS.
Are you confident in the performance of your system?
How many times can you lose before you have to re-capitalize your account?
When you have a small profit, are you moving your stops to breakeven?
If you go back and look at most charts, you will see that most of your money will be made in the one or two BIG moves that a market makes every year. The rest of the time is just spent with your hook in the water, so to speak.
But to catch the fish, THE HOOK HAS TO BE IN THE WATER.
If somehow you lose all your bait, there is something wrong with the probabilities in your system. Make sure that you can comfortably loose all your bait.
So if you have 100,000 saved up, then trade 10,000 of that, and risk no more than a 1000 of the 10,000 per trade.
Good fishing.
To cure your problem is simple. Buy a handgun. I'm serious..
Go out to a target range and pop off a few rounds. Get the feel of a "real trigger" and that action/reaction feeling. You will start to get a rush every time you fire, human nature. Then use a simple Nero Linguistic Programing technique to anchor that feeling to say your index finger touching your thumb. Now when you are about to trade just copy the movement of your finger to your thumb and you will recall the feeling of the rush of pulling the trigger and you will actually want to pull the trigger.
You will have no problem pulling the trigger, the only problem is you now might pull the trigger to much because of the rush you get. This is aproblem because trading on emotion will kill you. If you just use it as a means to get you past your initial fear or lack of confidence, it will work. Then when you see your system start to show results you can rely less and less on the finger and more on your own built up confidence.
This is how I got over the pull the trigger syndrome. Maybe my Texan roots are comming out in me, but it will work.
Good Luck with your Trades...
Go out to a target range and pop off a few rounds. Get the feel of a "real trigger" and that action/reaction feeling. You will start to get a rush every time you fire, human nature. Then use a simple Nero Linguistic Programing technique to anchor that feeling to say your index finger touching your thumb. Now when you are about to trade just copy the movement of your finger to your thumb and you will recall the feeling of the rush of pulling the trigger and you will actually want to pull the trigger.
You will have no problem pulling the trigger, the only problem is you now might pull the trigger to much because of the rush you get. This is aproblem because trading on emotion will kill you. If you just use it as a means to get you past your initial fear or lack of confidence, it will work. Then when you see your system start to show results you can rely less and less on the finger and more on your own built up confidence.
This is how I got over the pull the trigger syndrome. Maybe my Texan roots are comming out in me, but it will work.
Good Luck with your Trades...