Need Help!

Might have to go back further in time... maybe its from her childhood, maybe she was SHORT as a kid and grew up physically but still keptthat SHORT mentality. Maybe she played with strawberrySHORTcake to long. Maybe shes and tomboy and only wore SHORTs. The problem might be she has a SHORT temperment. I'm no MD, but its fun to speculate what drives her along with you. :D

Quote from resinate:



I think Hawker nailed the practical piece which requires strict rules and discipline.

Now as to your psychology...... As some one who blew out my first trading account shorting in late 98, can I suggest looking at your psychology around authority and crowds.

Problems with your father?, distrust government? rebel against norms?, assume the mob is usually wrong?..... I have no idea what drives you, but what you describe sounds like an ongoing rebellion against something. Usually a smart stance IMHO but can be deadly trading as you have learned.

Whatever motivates it and should you continue to chose to indulge it, consider what someone said above about at least giving the mob its due respect and keeping very tight stops when you buck the trend.
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Quote from Pabst:



The art of trading vs. the mindset of traders is a paradox. In a field that attracts fiercely independent free thinkers, the reluctancy to follow trends is truly problematic.
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Pabst, that is so true and well spoke.
 
NeedHelp:
If you have trouble pulling the trigger long or short, it is probably because you don't have enough confidence in your decision. I feel like that periodically, and when I do, I ask myself a simple question, "what is missing from my pre-market preparation?". Usually, I haven't done enough homework. For me what that means is that I don't have a DETAILED trading plan for the day. Ordinarilly, I have a opening trade and at least one more PLANNED trade based on what I believe the market is going to do. After the market opens, if it moves the way I thought it would, I get the feedback that tells me my plan is correct. The trade is just the confirmation that I am right. If on the other hand the market moves different than I thought it would I have two choices. Either go to plan B, or stop trading for the day. Once again, I look for confirmation. For my system, confirmation comes from watching how price acts as it tests yesterdays close, high and low, as well as floor trader pivots. Sounds to me like you need find a way of preparing that inspires confidence, then trade small size with it until you get the confirmation you need to believe you can make it work. Good luck, Steve46
 
Quote from NeedHelp:



Yeah, I recently got a book called "NLP For Investors/Traders". I read it. It's very general advice. I guess one has to CHANGE INSIDE YOURSELF! I thought I was BEYOND THE PAIN THRESHOLD!!! BUt I keep doing the wrong thing. I must be feeding something so monstrous that it keep wanting to do the same thing over and over...

hmm...
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Make 10 copies. As day goes by fill them in.

Speaking aloud what you write like EMT's or CERT's do in emergencies is helpful too.
 

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NeedHelp,

It sounds as though you have a classic bad case of the one-sided bias. I have been there and stayed there for years after the '87 crash. My problem, back then, was that I almost constantly expected a sudden and dramatic move to the downside which would wipe out any long positions including profits. The option positions were all invariably over weeks\months and the expectation of semi-crash\crash never left me.

When I moved to futures in '92 I worked through the illogicality of a single sided bias by working through the swings of intraday charts to work out (1) what I was missing and (2) how stupid and dangerous I was being by taking contra-trend swings in strong up markets.

I eventually worked out my problem by isolating the reasons. They were not crash expectations but a desire to only be in the super-fast moves which provide an almost instant profit cushion which then allowed me to get out with a healthy reward. Down moves are generally faster than ups and it highlighted my desire for instant reward which on further introspection was concealing the true desire to get into a profit comfort zone quicker. I realized that the slower long moves were wearing on my patience and had to do some elementary work to overcome the problem. The elementary work was choosing a slow moving market and sitting in positions for hours. It eventually worked and two sided trading became totally natural, as it should.

I would suggest that you think through why you prefer shorts and write down the reasons. Do the same for longs but only write down the notes when you are confronted with a potential position as that is when the bias is working on it's raw state.

You mentioned an expectation over news and then went on to say that your expectation was correct. Two things wrong there, (1) you had formed a belief or expectation and were prepared or would have liked to back it with money.... I estimate that markets are set up for news with the correct directional bias about 85% of the time and it pays to go with the money and protect with a stop. (2) being correct is an irrelevance as the only thing that matters is a positive financial outcome. Going with the flow only gives two correct parameters and they are getting in and out according to your rules. I take a very expensive feed with my choice of no news as price is everything and news expectations can only mess with the mind.

I see that you increased position size to make up for losses. I am sure that you know that such a practice is the fast route to shorten a career very very quickly.

Traduk
 
Hi guys!

Here's my report for the day! Thanks for all your suggestions. But I think I hit the bottom yesterday in terms of "I had enough of it" kind of feeling! You know what I mean?!

Though I didn't use any of your suggestiosn directly, I think the process of writing out and baring my problems was the catalyst necessary to resolve these issues.

Well, this morning I put on a short automatically. Right at the open almost because of reflex. What saved me was I had a tight stop. That was one of my trading rules I went over in the morning before I traded. So, I got stopped out. 1 contract. Big freaking deal.

Then it started going up, I saw those old stupid mind traps of wanting to go short. But I said let's go long! Yay! I went long. But I got in a little late. Then I got out right away for a very very small profit. BUT the point of that exercise was to to GO LONG and NOT be down. It was therapeutic! Then throughout the day I went a little long then got out. Long then got out. Net net I wasn't really make any money, but I just want to be able to go long where I normally would(the good voice would tell me to go long).

But unfortunately, today there was no powerful rally. I was waiting for it all day. If there was then it would break my psychological block against going long and cement my feelings that I can do well with short and long!

Anyhow, then came the afternoon....

There was a little downward movement. I shorted. Made a little. Then short again THEN I didn't put a stop. Then that SPIKE happened! It was like the reversal pain that I've been experiencing. Then near the top I add another short, which is a bad rule- don't add to losers! Then when it came down a little I covered!

That SPIKE kinda wiped out my day of little longs all day. Now, I will ALWAYS use stops. And I'll NEVER let a winner no matter how small to become a loser and a big loser. Then the rest of the day I got chopped around!

So, what do you guys think?!! I made some PROGRESS HUH?! *HIGH FIVES TO THE BOYS AT ET*

But I need to more comfortable with long sand putting on more size and not getting out so soon. But this is Day 1 of unlearning BAD habits. At least now I see prices going up I don't automatically go short. I force myself to say, maybe long would work out. Well, today wasn't a really good long practice day. But it's a start. I really hope the market goes up tomorrow so I can practice more.

Also, I need to identify the start of upward trend a little EARLIER! Now, I know why I *might* be adverse to going long. Because I entered the trend a little late and was prone to pullback and reversals because I was chasing prices. And when I finally got in my long went against me right away! Even today I got in long, but still "late". But I got out as soon as I got in for a minimal profit. So, I need to get better at getting in earlier and holding it longer for the ride. Getting in earlier would reduce the risk of reverasl, but could get whipsawed earlier too.. What's the solution guys?


thanks!

-k
 
Hey Boys!

I need a game plan for tomorrow! Today, I was trading the indexes and nothing happened. I want to have a few good stock trades as well.

So, what's a good way to find some action?! No pun intended! :D

I noticed some people posted FNM. But by the time I saw that it was too late. I know some days it's good to play the futures because of the high octane it offers (like driving a fast car! *wink* )

But on slow market days, I'm sure there's stuff going on at the stock level. Is there a good RT scanner? Vendors, ET boys,etc. Give me some ideas etc!

If you can help this girl reverse her thinking and start making good money then you got one happy chick!

thanks!

-k
 
Quote from resinate:



I think Hawker nailed the practical piece which requires strict rules and discipline.

Now as to your psychology...... As some one who blew out my first trading account shorting in late 98, can I suggest looking at your psychology around authority and crowds.

Problems with your father?, distrust government? rebel against norms?, assume the mob is usually wrong?..... I have no idea what drives you, but what you describe sounds like an ongoing rebellion against something. Usually a smart stance IMHO but can be deadly trading as you have learned.

Whatever motivates it and should you continue to chose to indulge it, consider what someone said above about at least giving the mob its due respect and keeping very tight stops when you buck the trend.
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I do tend to REBEL AGAINST THE NORM! I assume the mob is wrong. A bit of arrogance. A bit of rebellion.

I have countertrend tendency for the longest time. Very insightful...
 
I don't know if you helped solve the lady's problem but I have the exact same contrarian attitude when I go to trade that she has and you may have just opened my eyes to the reason.

Sincere thanks

Quote from resinate:



Problems with your father?, distrust government? rebel against norms?, assume the mob is usually wrong?..... I have no idea what drives you, but what you describe sounds like an ongoing rebellion against something. Usually a smart stance IMHO but can be deadly trading as you have learned.

Whatever motivates it and should you continue to chose to indulge it, consider what someone said above about at least giving the mob its due respect and keeping very tight stops when you buck the trend.
More...
 
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