Mindset of a losing trader

[deaddog]

No I don't. it's in my head

I suggest you write your plan down.

There is something in the brain that makes you follow your plan more closely if you have it written down. I don't know how or why. My guess is writing it down is more of a commitment than if you just think about it.

Once your plan is on paper (or your screen) it much easier to assess its effectiveness.

 

[Vindago]

Been there, done that. The market is there to get you, all the time. It is true, not you personally, of course, you as the general trader.

Understand why that happens and you will be one step further in the direction of not losing money consistently (making money is the easy part).

 

[SimpleMeLike]

I suggest you write your plan down.

There is something in the brain that makes you follow your plan more closely if you have it written down. I don't know how or why. My guess is writing it down is more of a commitment than if you just think about it.

Once your plan is on paper (or your screen) it much easier to assess its effectiveness.

Hello deaddog,

You right sir. Would you add, to properly back and forward test the plan as well? Which is a lot of work, but a must.

 

[smallfil]

If you want to put the odds in your favor of succeeding in the stockmarket, make sure any trade you place is aligned with the major trend of that stock. That guarantees the wind is at your back as the big boys (hedge funds, banks, brokers, mutual funds) are the ones pushing those major trends with their huge positions in those stocks. So, hop aboard the trend and enjoy the ride.

 

[themickey]

Been there, done that. The market is there to get you, all the time. It is true, not you personally, of course, you as the general trader.

Understand why that happens and you will be one step further in the direction of not losing money consistently (making money is the easy part).

Yup. Strange as it may sound, it is out to 'get you'.
Hence imo, when trading, one always has to think, especially when the trade looks obvious, "where can I smell a rat?"

 

[CharlesS]

Yup. Strange as it may sound, it is out to 'get you'.
Hence imo, when trading, one always has to think, especially when the trade looks obvious, "where can I smell a rat?"

not to mention a mouse

 

[deaddog]

Hello deaddog,

You right sir. Would you add, to properly back and forward test the plan as well? Which is a lot of work, but a must.

Absolutely. That's a given.

TripleJs problem seems to be not following his own well thought out plan. For whatever reason writing down a process seems to magnify the likelihood that you will follow the process.

 

[TripleJs]

This makes sense to me. Not all traders need precise rules BUT I think ALL traders need a process / checklist of what's essential for them to review as well as to get them in the right mindset for trading. For instance, I have 5 key macro indicators that I have to review each day (there are more that I look at but these 5 are essential). Then, I have to identify my key levels for each market. Lastly, I have to review each market in 3 key time frames. I also have some mental prep that I do around mindset.

Again, it's a process / checklist but not precise rules. This fits with a lot of the mindset training I do with young athletes, in particular baseball players. What I want them to do is go through their processes and routines which will allow their subconscious mind to give them the best chance for success.

Hello deaddog,

You right sir. Would you add, to properly back and forward test the plan as well? Which is a lot of work, but a must.

some system it's easy to backtest like a moving average crossover but not all method can be quantify and backrest at least I am not good enough for that, I can just trust my experience, but when I am tilted I don't follow my experience anymore.

 

[TripleJs]

Absolutely. That's a given.

TripleJs problem seems to be not following his own well thought out plan. For whatever reason writing down a process seems to magnify the likelihood that you will follow the process.

I’ll do that sir. but things are messy, very hard to put it on paper.

 

[Vindago]

It is hard to follow a process that is not based on a clear understanding about what goes on, day in, day out on any market. there is no shortcut to trading: first come the understanding, then the process follow, smooth as oil