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My best guess is that after constant wins, I go into a sort of euphoria and think I can get rick quick and start increase position size. I can't seem to overcome this mental handicap.
Another possibility is that when markets are ranging and there is not much action, I get bored and am looking for action.Please share.
How about changing your mindset, how about when you want to add to position you figure out how to hedge the extra risk? I don't want to become a great trader, but I do want to become a better risk management trader and have spent past 8 years studying and applying what I have learned. Take your 2 percent risk, figure out what it is going to take to get the risk to under 0.50%, by getting it this low or lower, you can then add size up to original 2%.
How many times have you increased size or risk and are all times been losses? The professionals do size rather inverse, as price goes up, their positions will often be reduced. If you check out extremes of stocks and futures, extremes show often light volume. So as you equity curve starts going up, at certain point of either dollar gain or percentage, at what point have you been increasing? If it is a certain dollar level or percentage, start reducing size and hedge.
You can spend years trying to find out why you think the way you are self sabotaging yourself and five times more years trying to change self, or you can add more rules based on money levels or percentages. I use parabolics on my equity curve, which means when it breaks it, need to add more risk adverse measures. To me it is not about never having losses, we all have them, but for me best to have very small drawdowns.
