The Trader in Prison

Quote from illiquid:

13 years and counting.

Controlling your emotions is part of the battle, you cannot avoid it. You either deal, or lose.

The tenets of a "successful" system include "trust" and "hands-off" -- and these terms just cannot be self-reinforcing over the long run. Not in these markets. ...
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... If emotions of gain/loss cloud your ability to make this judgement call in the heat of the moment, learn to FIX it, not avoid it. Think of it as emotional muscle that gets stronger the more you use it.
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Congrats on the longevity. 13 years is a long time. I suppose when you said "laziness" you were actually talking about not wanting to develop emotional control as opposed to not wanting to push the buttons. I agree completely in that repsect. Thought you were saying the opposite and that you were not familiar with the emotional battle.
The automated system is definitely a myth in my opinion, but still sought after by those who want to believe in free money. Like hopeful pirates following a useless treasure map in vain (I just pissed on the dreams of thousands of traders I think. sure to get hostile remarks :) )
 
Quote from OTCkrak:

trade smaller size and take more signals
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this is foolish because you got the best answer from the first guy. trade smaller size like 100 shares and don't trade for a living just a + p&l . if you do that for awhile than double your size to 200.

this is going to sound mean but there is no perfect system or style. you have crap for brains trading small when your in a groove and sizing up when your losing. you have 1 major edge though you don't need to trade for a living. that's the greatest edge in the world.
 
Automating is fine if you have a code-able, backtested system. They are great profit engines. Kind of like having a second job in addition to your manual, discretionary trading.

However, I feel that profits from these backtested strategies can be maximized by a well-train human being. Basic automated systems do not read the tape. They will take trades which will clearly become losers. They will hold positions that clearly should be sold.

You need experience to gain confidence in your decision making. Read up on trading psychology. There are ways to use emotions as indicators, and ways to use self-talk to your advantage.

It takes time, to find that ability to efficiently control yourself.
 
Quote from illiquid:



Controlling your emotions is part of the battle, you cannot avoid it. You either deal, or lose.
More...


Illiquid is correct. Nothing, including autotrading, will remove anxiety from trading.

It comes with the job.

The objective is not to run away from it, but to face it and deal with it.

"We have nothing to fear, but fear itself." - FDR
 
If you are scared to take a risk you will get no where trading or in life....no risk no reward. Trading like everything else is not for everyone. If it scares you then move on to something your more comfortable with.
 
Before you take the 1st trade, realize how much money you will lose if you are wrong. If you can not accept that loss, trade small or do sim till you can accept the loss. This means have a stop loss either mental or hard.

Next, on the same trade, you should have a min target and rules for reaching that target. It may mean that if the target is close to 90% hit, you bring up your stop. Or you even may trail the stop.

Once you accept the trade, determine how many trading signals you either plan or expect in a single day. It may be one, it may be 7. If you see you are exceeding the amount you planned for, stop trading.

Have also a criteria for the trade signal to make sure its valid.
 
About 7 years ago, I would have said something similar to lindq. Today I know for sure that one can trade large amounts without fear or anxiety or hope or any such emotions.

You don't need to deal with it, study it, control it, NLP it or anything else it. Best is to simply just not to experience it. (I don't mean hiding it either.)

20 years ago when I lost a large amount on one day, I would be unable to trade again for a few weeks. I would have trouble getting back in again. As I get better at not having emotions while trading the time gets shorter and shorter.

I was trading options recently (the day the Fed announced) and the volatility was so high with wild swings. My PL swings were like +500 to -2000 and I did get a bit upset and emotional that day when I thought about it later on. That surprised me since it has been sometime since I could even recall being emotional while trading.

The next day I went back in and made 3000 back and was in my normal state of extremely low emotion. I made some changes in my environment to help me during wild swing days because of that learning experience.

I think that you can learn do the same thing. The first step is to believe it is possible though.
 
Thanks everyone for the advice. Regarding automation, I am convinced it is not the way to go as price levels required human review for ranking as each level is unique. (I keep wondering why Richard Dennis needed people even though his system could be automated.. Absence of the Internet as we have today?)

Since this is at the very core of what separates success and failure in trading, it is appropriately HARD.. Though once overcome I am sure I will wonder what all the fear was about. So onward to approach a single day with the goal of taking signals only and nothing else and I may be pleasantly surprised.. Or not, as tomorrow could just be a bad day. Hopefully if I can string together a few days I may then be free.

Most importantly I MUST trivialize the monetary value of a stop.. Not to the point of being careless but to accept each stop as gone BEFORE each trade is taken. It is a deposit to sit at the table I MAY get back more often than not as long as I ALWAYS sit at the correct table... The one where others are are at their emotional high.

I will post back here at the end of each day this week and summarize the week at the end.
 
This Morning I read all the forums.. opinions and after the gap up (I know gaps are ups are NOT to be bought).. I get a short signal just after open and I ignore it so I can go long ASAP.. Signal has yielded 30 NQ points down so far while I am down 5 points fighting the trend.. signals be dammed.. Every Price Level I see as a buying opportunity..

Wooof...
 
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