Futuresnut
It's the same with all of us; we need only look in the mirror.
That person in the mirror is my biggest problem.
that much I am certain.
Futuresnut
Based on what I've learned from Mark Douglas' "Trading in the Zone", there's two aspects to consistent success. First there's the belief in a particular approach - which should have an edge per se. Then there's the mind-set of the trader.
Since trading is a pattern recognition numbers game it boils down to having a viable approach (and there are many) and being able to use it consistently in the face of the unknown on each and every trade outcome. The paradox is that the consistent application of a viable trading plan can generate money even when the outcome of each individual trade is unknown. The hard part is executing each trade not knowing how it will turn out. The successful trader accepts the risk each and every time without regrets afterwards. Even if mistakes are made (and they will be made!) the trader learns from them and moves on to the next trade accepting the risk all over again. This embracing of risk each and every time can be brutal to the mind that hasn't truly accepted the fact of "risk".
I saw for me, that my plan looks great on paper, simple trend retracements, low risk if you can catch the retracement near the peak, but huge rewards when the trend continues. BUT, my head has not really accepted the "risk" of when the trade is not correct. Even with my #1 rule of knowing I'm wrong until proven correct.
Embracing the risk each and every time can be brutal to the mind that hasn't truly acceptd the fact of 'risk".
Futuresnut
The mind acts (consciously or subconsciously) to protect us from pain and the threat of pain generates fear. If each trade presents an opportunity for us to inflict pain on ourselves by not wanting to take the loss then we set ourselves up to have fear cloud our judgement. As MD says, "The best traders aren't afraid." Unless the approach just isn't viable, the trader that can accept the risk on each and every opportunity that presents itself should find themselves in a profitable situation long-term.
I'm not sure if there is a difference between fear and greed with me. The fear I understand, as much as I understand. The fear of losing and blowing out the account, and having to get a job at McD's or something. If I don't make it in trading, what will I do?? I can't practice in NC, don't have a liscense in this state?? Will we have to move back to PA?? Pay the bills?? and on and on and on.
This is where my faith in God comes in. He is my provider, and sustainer. In Him is my trust, not me. His will for me, right now it to learn how to trade, so it is His bill (actually too long and too personal to explain this, it's not just some whim of mine that I am passing to Him, ie God I want to do this, so you have to bless it). If you believe this fine, if not, that's fine too.
The greed, I think for me is an offshoot of the fear. Having to get what I can to make sure the losses are covered. Holding on to that winner just a little too long, and it be cut in half, or a third, or even a scratch or loss. Poor trade management, as szubaak said to me last week, and I had to conccur. He was right. But I think that falls back to being inbetween, as discussed earlier.
Futuresnut
Step 1. Do what you need to do to determine the long-term viability of an approach so you can have confidence in it's profitability.
Step 2. Do what you need to do to trust yourself to consistently stick to what you've got in step 1 without any doubt, fear, or regret.
Step 1 iswhat I've been working on these last 6 weeks. Getting closer, I feel, not showing up in the P/L yet, but it will.
Futuresnut
When you're trying to "become" the trader that indicates inner struggle (growth) - and that's good!; when you "are" the trader - you're there.
True.
Futuresnut, thanks for letting me use your post to work out some stuff.
