Are you totally losing it?
The day to day psychology of a trader
- Thread starter smallStops
- Start date
No: working on my money management.
Let's continue to document my day to day psychology.
* * *
I reach the profits with very tight money management approach. ( Step3).
I attempt to make a transfer of the profits, and - strangely - there is always something
that kicks in ( password problem, wrong card, wrong number, you name it).
I have time to think about the trading done.
I now see the profits, as I am back to attempt again a transfer.
When I see the profits, the thoughts that come in my mind are:
- I can make more
From there I develop the feelings of greed
- I can make more makes me feel good
- I start to feel that I desire more
- I start to think I want more
Then there is a jump somewhere that goes like this:
- to reach it, if this is a very high probability trade, I can up the position
sizing and get this amount and be done .
The actions that follow are:
- I put a big as I can position sizing , aka the tight money management
that get me to step3) goes out of the window.
Then the thoughts that happen are
- I think of how much I'd bank , and not of how much I could lose.
- If the trades does not work well, as one can feel it really quickly,
I refuse to get out at break-even or with a tiny profit compared to
what I desire.
The the mind totally blocks any thoughts of risk, losing
and the mind is totally submerged of calculations of the potential win size
Then the profits are wiped out
Then the thoughts that come are : that's a repeat.
* * *
As you can see that is a detailed analysis of what goes into the psychology.
You can only come to such analysis of your behaviour via meditation
and good coaching exercises ( you can get these actually in some books) .
The key in trading is getting to the core of the issue, and sorting it out.
I could here decide that when I do the bank transfer, I could use someone to do
it for me, but this does not sort the core issue, and worse I could lose
the beneft of my errors by getting the core issue to morph into another
manifestation, and have problems show up somewhere else.
One core issue could be revealed where my thoughts process are blurred/unclear.
This is what I am working on: what happens at step3.
Now, is your issue and question about what happens at step2)?
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Basically, you need to know where you are blocking, and be honest with where exactly you are blocking.
Some people can block in
step1) determining the right profit target.
I also did at one time blocked there, and I had to go through stages
step2) being able to reach a given profit target
I also did at one time blocked there, and I had to go through stages
step3) as where I am in.
Also, if you do not have self-honesty or seem to be evasive - as your posts seem to be suggesting - your
subconscious mind will develop unhealthy patterns that will also show up in your
trading. This is where one can say trading is a reflection of a trader's mind. May be this is
where "wheelbarrow trading guys in London" have an advantage : they are candid and actually
very honest and transparent, and that shows up by leading to very profitable trading.
Some people can block in
step1) determining the right profit target.
I also did at one time blocked there, and I had to go through stages
step2) being able to reach a given profit target
I also did at one time blocked there, and I had to go through stages
step3) as where I am in.
Also, if you do not have self-honesty or seem to be evasive - as your posts seem to be suggesting - your
subconscious mind will develop unhealthy patterns that will also show up in your
trading. This is where one can say trading is a reflection of a trader's mind. May be this is
where "wheelbarrow trading guys in London" have an advantage : they are candid and actually
very honest and transparent, and that shows up by leading to very profitable trading.
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That's the best you can come up with ?
Is that because you are still actually struggling at stage2): aka reaching whatever target you fixed yourself ?
Just stating what I see, and that is a load of rubbish about nothing that has absolutely nothing to do with trading for consistent profits. It is just more of the ridiculous and silly internet talk about trading.
Now, you are starting to be honest: stage2 is where you are at.
If you find "psychology/meditation/spirituality" it silly: fine.
If you find "psychology/meditation/spirituality" ridiculous : fine.
These are your opinions and perspectives.
Now people can have different opinions and perspectives : after all
their life history is different than yours or mine.
So let me ask you: if you divide your trading objectives, say to really make it look
silly by 100, can you achieve it consistently? Be honest. If not why?
To give a really silly example, on $100K, can you generate 10$ a week, every week?
What on earth are you rambling on about. You have been reading far too much psycho and religious mumbo jumbo. Trading is very simple. First, you must understand how the financial markets really work, then you must learn what risk control really means (which is the hard bit for most). When I trade I can make 10% return per month. I do not trade all the time as I do not have any reason to. Simple really.
Thank you for the very good advice:
- risk control
- not trade all the time.
Performance wise: I am at 30% per week when I follow my method and I am good mentally and spiritually ( aka 5 hrs daily meditation, prayers, and coaching exercises done, plus trading preparation obviously). This so you can start to really understand my problem, so as to give good insight and good questions.
Now what happens? I can follow all my methology one week. Agree that the following week, I will just tranfer funds and not trade. So all the trading notes, etc are put aside.
Now what? The following week, I am to make transfers. And I see the profits. Then some thoughts go into my mind. Then I open the trading platform and basically simply destroy the profits. Once I did it on 200,000$ of profits accumulated by being extremely disciplined ( waking up early, mental exercice one hour on public transports, etc). At the time I believed that it was because someone came in my office unexpectedly, but I realised that IIIIII yes MEEE , the I ) was also at fault.
As you can see:
- risk control
- not trading everytime
flows out of the window when I am in a "certain mental" state that is triggered by seeing trading profits.
This is really what I am working on, and for me it is really psychology
AND spirituality ( aka Religion).
I am precising because you completely disagree with it : this is normal as it is something you might have
never experienced or been aware of.
Now, I am back on the 5hrs daily on the meditation cushion.
I mean effectively 5hrs, and it is effectively making a difference on my perceptions, and make the coachin exercices easier.
I was also back studying my Bible to understand the issues related to the problem :
extreme self-confidence when trading
extreme pride when trading
ungratefulness when trading
( aka who do I think I owe it to when I score my trading objectives)
It took time to be able to identify these core issues, as these were clouded by some "bother" ( harassment) that were adding issues that I have now sorted, as well as clouded by other issues that are now also sorted.
All these issues do not show up in any other life areas. So tha's why I al grateful that trading revealed these, and I do want to sort it out here, instead of not dealing with these issues and them morphing into other behavioural patterns in life.
Let me point out to you that these were identified thanks to the Religious aspect of things. You can see that I am fine writing this on a public forum : good priests can really help you work on your issues, and have a humble(?) perspective on things. The problem obviously is coming across very good one, who can really get you to the heart of the matters. So just now, I am yes learning about extreme pride, ungratefulness and extreme-self-confidence so as to identify where it comes from, when it started and how it developed.
I am actually preparing ( mentally, etc) myself for a bit less than 200% trading profits return. This is an objectif I have agreed to with a coach as the next exercice, with the clear stipulation that I won't trade for 3 weeks after that. Obviously the challenge will be transfering the trading profits ( hopefully successfully !!!! ) , 3 full weeks dedicated solely to meditation, prayer, and coaching till eradication of the core problem.
I'll make a point to post here when I am attempting to transfer the profits, so that we can follow more in details how it goes. Posting my thoughts and sentiment then might reveal some stuff.
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