NICE!!!!!!!!!!!!!!!!!!
Suggestions for Keeping Calm and Relaxed
- Thread starter lokkeilaw
- Start date
NICE!!!!!!!!!!!!!!!!!!
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Lockelaw;
As far a regular market hours ,AMD /reasonable SIZE wouldn't be classified as crazy movement for a swing trader; but something is obviously bothering you about your work. Honest question.
Most common mistake made [ did it also earlier];
trading too large a size, younger one is more they usually do it.
Experience helps & yet exits/entrances can be stressful ,but enjoyable. Sounds clear your stress isnt enjoyable.
Proper exercise helps, like ''stepping down''/walking 1 hour a day;
plan followed helps unless your plan permits trading to large ,
if latter is true,calmness will be impossible . Wish you well.
I have been trading for years on a part-time basis while keeping a regular job. But I didn't learn to trade profitably and consistently until about a year of full-time trading. There is something about watching stock movements day-in, day-out and making sense of technical trading indicators that is compatible with your personality and risk aversion.
Most of the excitement I get is finding trading candidates the night before! he-he Once the trade is in play, the trading parameters takes over with stop loss or profit targets. Which after awhile becomes routine and semi-boring. ha-ha If you are still getting excited about watching your trades, you may be suscestible to emotional swings that may affect your logic. A trading plan will take care of this. Extreme emotions are great in gauging sentiment and perceptions in the market but triggers need to be made without emotion.
Most of the excitement I get is finding trading candidates the night before! he-he Once the trade is in play, the trading parameters takes over with stop loss or profit targets. Which after awhile becomes routine and semi-boring. ha-ha If you are still getting excited about watching your trades, you may be suscestible to emotional swings that may affect your logic. A trading plan will take care of this. Extreme emotions are great in gauging sentiment and perceptions in the market but triggers need to be made without emotion.
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totally uncensored
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I experienced so many times in my short career that my trading candidates would behave exactly opposite to the plan implemented the night before. So there is always a plan B (best action is no action) because mixed signal leads to lower probability for profit. I totally agree that if a guy is emotional and chicken about hitting the trigger, it is best for that dude to get out of this game.
Read the Tom Basso chapter in "The New Market Wizards" by Schwager.
Basso goes into some detail about detachment and perspective. While I agree with such cliches (aka absolute truths) as having a plan and sticking to it; anxiety, fear and greed will always enter the mental framework no matter the failsafes and contingencies built into any trading plan. Its human nature to feel these emotions, they can even be useful in certain situations.
The bulk of the trading "mental game" is learning what NOT to do when these emotions enter your physiology. Stress is a physiological "fight or flight" response. Anxiety is usually a precursor to stress caused, in most cases, by fear. I believe that fear is the product of not knowing what you will do in a given situation.
I suggest that you prepare yourself mentally before every trade by telling yourself that this trade is one of many and that you will exit at this price below and this price above your entry if such and such happens. With practice you will establish a trust in (and a reputation with yourself) your ability to execute. With enough repetition, that trust in yourself will become a positive feedback loop and grow significantly over time. This will eventually cause the fear to go away.
Most of this stuff is pyscho-babble in Schwager's books, I'm just interpreting it in my own words because it works for me. Fear and greed are cliched terms because they are absolute truths, IMO the ideas above are ways to deal with them.
Mike
P.S. Some of my best trades are when I take an entry, set a stop, and just WALK AWAY until market close. There's a lot to be said for trades that just feel right from the start and require no supervision.
EDIT: Now that I think about it, I'm not sure if it is Tom Basso's chapter or not. I'll re-read and let you know if its another chapter.
Basso goes into some detail about detachment and perspective. While I agree with such cliches (aka absolute truths) as having a plan and sticking to it; anxiety, fear and greed will always enter the mental framework no matter the failsafes and contingencies built into any trading plan. Its human nature to feel these emotions, they can even be useful in certain situations.
The bulk of the trading "mental game" is learning what NOT to do when these emotions enter your physiology. Stress is a physiological "fight or flight" response. Anxiety is usually a precursor to stress caused, in most cases, by fear. I believe that fear is the product of not knowing what you will do in a given situation.
I suggest that you prepare yourself mentally before every trade by telling yourself that this trade is one of many and that you will exit at this price below and this price above your entry if such and such happens. With practice you will establish a trust in (and a reputation with yourself) your ability to execute. With enough repetition, that trust in yourself will become a positive feedback loop and grow significantly over time. This will eventually cause the fear to go away.
Most of this stuff is pyscho-babble in Schwager's books, I'm just interpreting it in my own words because it works for me. Fear and greed are cliched terms because they are absolute truths, IMO the ideas above are ways to deal with them.
Mike
P.S. Some of my best trades are when I take an entry, set a stop, and just WALK AWAY until market close. There's a lot to be said for trades that just feel right from the start and require no supervision.
EDIT: Now that I think about it, I'm not sure if it is Tom Basso's chapter or not. I'll re-read and let you know if its another chapter.
You are so right about not knowing what direction the candidate stock you picked the night before will actually go. I refrain from predicting the market movements. To predict is very dangerous in this profession. he-he While I check fundamentals and technicals, the market movements tell me what to do. Strong trending stocks have distinct characteristics that makes them natural for swing and/or position trades. But we wait until it makes a move- whether bouncing off supports or breaking down from overbought conditions-- while staying WITHIN the major trend. Then if you add options- whether long deep-in-the-calls or short out-the-money puts; the probability will be pretty much in your favor. This you can do month after month.
But you are so right- if the market is not moving in the direction of your planned trades, you simply do nothing!