Trading properly is SATISFYING & RELAXING

Quote from funky:



yes. and i need to learn that as well. last week i had a horrible beginning as my discipline fell apart. i was down quite a bit, and then friday, by just deciding to follow my rules, i made last week breakeven. funny how that works, eh?
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Imagine that have you have a machine, that when you turn the handle, it prints a $10 bill and gives it to you. Proper ones, real ones, that you can just go out and spend on anything you want.

Pretty neat? - wouldn't we all want one of those?

Now imagine that in order to be allowed to turn the handle 5 times, you have to put $20 in the slot, so that the machine will allow you your next 5 turns of the handle.

OK - So we would say "Well - that is an acceptable cost. I spend (lose) $20 and get $50 back so I make a profit of $30" How many people would refuse/argue about putting the $20 in the machine - not many I would expect...

So now we have a machine that produces $50 per 5 turns and a running cost of $20 per 5 turns. I'd call that pretty good wouldn't you?

Wouldn't you keep putting in your $20 and turning the handle 5 times to get five $10 Bills? Wouldn't you do that all day? Even though it might be boring or whatever? Even though you might be tired? and keep on putting in your $20 to get five more $10 bills? And if the machine needed servicing wouldn't you pay the servicing cost, and spend time and effort maintaining that machine too?

That is what happens when you trade consistently with an edge, good risk management and discipline.


Best

Natalie :)
 
Quote from Girlpower:



Imagine that have you have a machine, that when you turn the handle, it prints a $10 bill and gives it to you. Proper ones, real ones, that you can just go out and spend on anything you want.

Pretty neat? - wouldn't we all want one of those?

Now imagine that in order to be allowed to turn the handle 5 times, you have to put $20 in the slot, so that the machine will allow you your next 5 turns of the handle.

OK - So we would say "Well - that is an acceptable cost. I spend (lose) $20 and get $50 back so I make a profit of $30" How many people would refuse/argue about putting the $20 in the machine - not many I would expect...

So now we have a machine that produces $50 per 5 turns and a running cost of $20 per 5 turns. I'd call that pretty good wouldn't you?

Wouldn't you keep putting in your $20 and turning the handle 5 times to get five $10 Bills? Wouldn't you do that all day? Even though it might be boring or whatever? Even though you might be tired? and keep on putting in your $20 to get five more $10 bills? And if the machine needed servicing wouldn't you pay the servicing cost, and spend time and effort maintaining that machine too?

That is what happens when you trade consistently with an edge, good risk management and discipline.


Best

Natalie :)
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That is a great analogy. I would add one thing. I think trading is like putting in $20 to be able to turn the handle five times and get $10 back each time. Now, over time each $20 you put in is in fact worth $50, but sometimes you spin and get $0. Sometimes you might even spin 5, 10, maybe even 15 times in a row and get zero. Pretty soon you think the machine is a piece of crap and give up. Nothing is broken, but you lost your edge. The only ones who can continue to play are those with absolute confidence. Even if you have an edge, if you dont have confidence, your edge is meaningless.

Brandon
 
I hope everyone took my post "is good trading boring" the way I meant it.

I meant good trading is simple (boring), but not easy.

I agree with you all, that when done correctly it is very inspiring.

Pete
 
Quote from funky:

when i am trading well, i feel very relaxed and satisfied. i know i'm getting close to mastering my emotions b/c yesterday i felt great at the end of the day, and i was not profitable. i'm starting to focus and judge myself by the way i trade, not the outcome.
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Sounds like you're learning the "secrete" of successful trading - congrats and stay with it!
 
Quote from Brandonf:



That is a great analogy. I would add one thing. I think trading is like putting in $20 to be able to turn the handle five times and get $10 back each time. Now, over time each $20 you put in is in fact worth $50, but sometimes you spin and get $0. Sometimes you might even spin 5, 10, maybe even 15 times in a row and get zero. Pretty soon you think the machine is a piece of crap and give up. Nothing is broken, but you lost your edge. The only ones who can continue to play are those with absolute confidence. Even if you have an edge, if you dont have confidence, your edge is meaningless.

Brandon
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Which is where maintenance and servicing your machine comes in so that it works constently...

best

Natalie
 
I have no idea what u guys are talking about..

trading is the most psychologically PAINFUL thing one can

experience, to trade well is to act against human instinsts and

there is NOTHING satisfying about that..that's completely BS..

and How relaxing can it be when your position is begin decimated

or when your equity curve is in steep downtrend and your

drawdown is near the 50% cutoff point..

you want a emotionally satisfying and relaxing job, become a

accountant or a pool attendent..

trading definitely not for you...
 
Quote from bone:

Vegas:

Ever take your posted "advice" to heart?
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.I ask myself why I trade everyday because there are times

when it really sucks..then I realized the only reason I don't stop

is because my pride won't let me..and that's where my motivation

comes from..
 
What do you define as trading?
Only intraday-trading with tight stops? Stocks or Futures?
Intraday with wide stops?
Or overnight trading?
Or even swing trading?
IMHO even some investors think they are doing some serious trading when they are doing their 10-30 trades per year.

I can tell you that there is a big difference for me regarding the level of comfort between intraday trading and swing trading. If you trade futures in and out on a intraday basis, this is the most difficult and unpleasant thing to do in a good way. All the time stops are hit and if you don't place stops you will get to know unlimited fear. Apart, some BSDs are able to push prices at any level they want at certain times, hopefully you are not on the wrong side in such a case.
 
Quote from vegasoul:

I have no idea what u guys are talking about..

trading is the most psychologically PAINFUL thing one can

experience, to trade well is to act against human instinsts and

there is NOTHING satisfying about that..that's completely BS..

and How relaxing can it be when your position is begin decimated

or when your equity curve is in steep downtrend and your

drawdown is near the 50% cutoff point..

you want a emotionally satisfying and relaxing job, become a

accountant or a pool attendent..

trading definitely not for you...
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It depends on what one associates their psychological pains to. If it is anchored to items like position decimation, draw-downs, pride, etc, then naturally that is what one will experience in the market. That is not to say that the above items aren’t “painful” when they do occur because they are symptoms rather than the cause. The cause is usually the violation of one or more tenets of trading that are much discussed on these boards.

On the other hand if one associates psychological pain to not following one’s set of well defined and tested rules, then the experience is quite different. So, to trade well is to have the ability to follows one’s own trading rules and to connect pride and satisfaction to that act. That, IMO is not going against human instincts, as we must follows rules in a ball game or an engineering construction or any other endeavor worthy of accomplishment.

Kermit
 
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