I'd like to become a better trader
- Thread starter PO
- Start date
Leave your performance expectations at the door. It seems like you fear losing A LOT. Trading involves losing OFTEN (at least for me it's around 50% of the time). Manage your risk and TRUST your rules. Try "expecting to win" when you take a trade instead of fearing a loss.
Expect to win. Expect to follow your rules. Expect to win and be sure to manage your risk. Focus on executing your process and quit worrying about the results. If your process is legit, your results will take care of themselves if you can remain process-oriented.
EXPECT to hear that fearful voice in your mind when you put a trade on. That voice that rambles fear of loss and blah blah blah. Expect to hear it BEFORE you take the trade. Create a plan for how you will deal with this voice or these unhelpful thoughts. When you hear the voice, focus on your process or your breathing or price action or whatever else. Don't be a slave to your thoughts. YOU choose your thoughts.
Here's an example: 2 pitchers in the major leagues give up back-to-back homeruns.
- Pitcher 1 - loses his composure & gets lit up by a few of the next batters and is then benched before the inning ends
- Pitcher 2 - regains himself and finishes the inning
- Which type of trader are you going to be?
It's difficult to do many of these things when you're accustomed to doing the opposite. If you want to succeed in this business you have to have a viable strategy, a strong psychology and adequate capital. The best setups in the world will fail if your mind is in the wrong place b/c you won't trade the setup as it should be traded. Books on trading psychology are great but you can't just read these books once and put them away. You have to take the content from these books and make it a real part of your life -- during trading hours and after-hours (the after-hours work is more important IMO). My $0.02.
PO,
Well crap
Glad to see youâre still at itâ¦, not so glad to see youâre struggling
Two aspects to trading â the toolsâ¦, and the trader
Appears you have the tools⦠also appears youâre missing the trader
The trader part;
Trading skills you have (you can read a chart fine, and identify setups)
But youâre not a trader (youâre missing the thinking like, and acting like a trader)
So whenâ¦, and how â will YOU do what I quoted above â specifically (meaning all bullshit aside) to recreate yourself into a trader.
Couple of rhetorical questions to get you going
How would PO the perfect trader think, and act â write it down
How is PO the trader thinking, and acting now â write that down
What is keeping PO from acting like that perfect trader â write it down
Fix it so there are no disparities
BTW
Perfect traders
Make money from the market (but then so can blind monkeys)
Have losing trades, but remain emotionally unaffected by them
Have learned to take all set ups, (never know which will work, and which will fail)
Have learned to cut losers â immediately once the setup has failed â then never look back
Have learned to move on to the next trade
Have learned to stay in profitable trades, till their target is reached
Have learned the importance of sitting on their hands â while either in, or out of a position
Have learned one tradeâs outcome means squat with respect to the next tradeâs outcome
Have learned to remain in a trade, even though price is coming back to their entry â because setup is still valid
Have learned to trust their eyes, and their self to take the appropriate action(s) â without second guessing or hesitation
Have learned to ignore their PnL, and trade price
Have learned they are human, and susceptible to the same human frailties as everyone else
Have learned to be their staunchest supporter, their harshest critic, and their most objective observer
Have learned they are far from perfect â and thatâs okay
PO
The above are just words written by a dumbass redneckâ¦.
YOU Sir must take themâ¦, give them meaningâ¦, then do the work to make them your own...
Ultimately to make them who you are⦠and how you trade
Paraphrasing Einstein
If you do what you've always done, to expect a different outcome is preposterous (insane)
RN
Way to go, PO
Yes, a steady rate of return with low drawdowns and increasing size is what you should aim for, IMO. Homeruns are just a bonus when you are lucky to get them.