Over-confidence & Euphoria - what are you doing?

K

karabugla

Hello,

after prolonged periods of consistency with no or only small losers the streak always ends with a big loss where I typically mind-freeze, trade too much size and completly freak out.

After it happened to me the last time I sat down, thought about it and remembered a chapter in Douglas´ book 'Trading in the Zone'. According to that I qualify as a Boomer & Buster - steadily rising equity curve with steep drops.

Douglas´says that this has something to do with over-confidence and euphoria which leads to self-sabotage where you are usually prone to trading to large positions, throwing your rules uber board, order entry errors and so on.

When I think about my last busts I´d say that this is exactly what happens to me on my bust days. The problem is that I have no clue how I can stop that from happening. It feels as if I am once trapped in this cycle, I cannot get out.

What do you do to realize that you are near a critical euphoria/confidence level and what do you to when you realized that you are close to one of those days?

Regards,

K
 
I had evens and ups, trade too much size and gave it back. What to do? Personally I don't see it as a crisis, I already started over (smaller size diversify, sell it all and put it all on red) and plan to do the same thing again. No biggie, 'cept for the time it takes.
 
I'm a grinder, I crank out small profits doing exactly the same thing every bar on the chart like the guy in Lost pushing the button peridically. There isn't any euphoria or depression to it, it's sort of fun but it doesn''t boost my ego, I'm just cutting little checks to myself all day... at the end of the day I can go play. If I had my brain fully in gear [that day never seems to arrive] I would have an options hedge against the black swan event, maybe next week I'll seriously think about that.
 
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