Trading Psychosis

masterm1ne said:
I am an extremely talented trader. Every day that passes, I usually have a position on that would make anywhere from $500-1k on the measly 1 lot I'm trading. I have 7 years of trading experience, and a couple years full time in terms of hours spent. I have had "success" day trading...

However, I have severe trading psychosis that started around 10 months ago with a couple heavy losing days. Back then, I was very ignorant and was a much more rigid trader. I can look back know and see something very obvious I needed to do, and these days it almost seems too easy for me to find great trades.

Code: 
psy·cho·sis
[sīˈkōsəs]
NOUN

[*]a severe mental disorder in which thought and emotions are so impaired that contact is lost with external reality.


I have tried everything; meditation, studying charts, CBT, talking with others, on top of the tons of practice. But I think I have some deep rooted psychological issues that probably go back to me having to work hard for everything as a child, or my parents being very strict on spending or allowance, or things of that nature. It in part has to do with the fear of losing obviously. I'm extremely afraid of losing what I have, even though I know there is a paradox, you have to lose sometimes to win, and you need to give yourself room (drawdown a lil) or you'll cancel all the good trades you take (me). I also want this very bad for myself, as I have been mentally tortured for the last 7 years of my life and need to prove to myself that I am successful, and that I am more "successful" than everyone who told me I was a failure in the past, on top of never working for someone that can tell me I'm in some way inadequate.

I could post at least 10 charts that look like this one in the last 4 weeks. I totaled up the trades last week that I took. If I had held them like an hour or so I would have made anywhere from 3-4k on the 1 lots I had.

Despite knowing what is right, I am unable to do it right now. What is stopping me?
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It's because you're an extremely talented trader! It's simply because of that !!
I feel lucky that I am just ordinary, hardworking academic researcher who don't need to go through something that extremely talented traders go through :)

You should watch this - beautiful mind ! A story on a genus mathematician!
 
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I think people are overlooking the psychosis description you use. So is trading making you mentally unhealthy? In the big scheme a 5 and 6 k loss day should not break you mentally, if you are up 500-1000 a day with one contract what is 5k?

So you let loser run and you cut profits short, that's pretty damn natural actually. It's so easy to just click that bottom and take that profit now and it becomes real. Also the losses become real too when you click that button. If it giving you "psychosis" it's probably time to give up the dream mate.
 
masterm1ne said:
I lost 5k and 6k roughly a week apart in Dec 2015. It was clear looking back what I did wrong. I was trading 5-10 lots on RLM back then.

No, I don't trade ES. No thank you. I'll stick to Russell or the Midcap SP, they have much better intraday volatility.

Why are you guys talking about sizing down. I said I am only trading 1 contract. You can see that from the chart I posted. You can make a few thousand a week with 1 contract. A full loss on 1 contract is less than .01% of my liquid cash.

Yes it is as if I don't have any confidence, though for no reason. I know when to get in clearly. I am always getting out too soon for fear of losing or uncertainty.

The mental torture I referred too is a long story... but essentially I was treated very badly by my superiors, discriminated against, not promoted, and fired from my job, even though I did the best I could.
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switch to equities. you're leveraged too high. and your brain knows it.
 
masterm1ne said:
Well yes, A good trader could make the sum of everything that I have lost in 6 years back in a month.

I honestly have no idea why I can't sit on a trade. That's why I posted here. I want to see what people have done to get around it. I have no trouble entering, which was something I had to get over as well. It's in holding, and the uncertainty and waiting I can't do at this time.
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masterm1ne,

I believe this will help you.

Your problem is you are starring at the DOM (money), rather then the chart while you are in a trade. Once you enter a trade, you thinking about 100 reasons to exit the trade and 99 of the reasons is related to losing money.

You have these problems because you do not trust your system or you have not fully tested yours system in sim (paper money) and you are afraid of losing money.

You should only be trading money you are comfortable losing, not money that will bring your overall cash flow to $0.00.

You may have told too many friend and family you are a trader and feel you have something prove. Don't tell noone you a trader until you make a consistent monthly income for 2-3 years.

However, think of this as a business and if you don't believe in your system, just trade sim until you believe in it.

Before you enter a trade, you need to know the following:

1. Price to enter
2. Price to exit for a loss
3. Price to exit for a target.

After you enter, set your stop loss and target exit and wait on the side lines.

You need to have a trade management plan after you enter a trade.

I hope this helps.
 
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SimpleMeLike said:
masterm1ne,

I believe this will help you.

Your problem is you are starring at the DOM (money), rather then the chart while you are in a trade. Once you enter a trade, you thinking about 100 reasons to exit the trade and 99 of the reasons is related to losing money.


I hope this helps.
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This problem applies to most traders , who stare at the screen.Sorry but the problem is with the emotional brain , when you are starring at the screen , the amyglada (fast emotional brain is seeing the charts /screen /dom and responding faster than the rational brain).

It does not help

The best thing is to find a mechanical strategy , without the need to watch screens , charts etc or employ a trade input person .The trader will then be able to use his rational brain and block the emotional brain.

https://www.google.co.uk/webhp?sour...F-8#q=rational brain emotional brain blocking


http://www.forbes.com/sites/christi...w-your-brain-blocks-performance/#7de2474d7923
 
masterm1ne said:
I am an extremely talented trader.
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I do not like to discuss personalities of fellow forum participants, but based on what you describing in this thread you probably confusing luck and talent. Luck eventually runs out... and talent sometimes is not enough either....

masterm1ne said:
I am always getting out too soon for fear of losing or uncertainty.
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that's something that does not sits well with the my definition of the very talented trader :)

masterm1ne said:
I honestly have no idea why I can't sit on a trade. That's why I posted here. I want to see what people have done to get around it. I have no trouble entering, which was something I had to get over as well. It's in holding, and the uncertainty and waiting I can't do at this time.
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At some point either your or your method (probably both of you) reached your limits... also, you may came to the point at which the method needs to be developed further.

Anyway, you just got scared...

Scared of your and your method inabilities to deal with the situation and the fear is paralyzing.

What you fear is telling you is that it's time to become humble again. We all are as good as out last series of trades. Like Bobby Fischer said about people calling him genius: "What is genius? Its just a word! If I win - I am genius, if I lose - I am not".

So forget about your talent for a while... :)

What to do?

Reevaluate your method , maybe it has to be changed... in this case - switch to paper trading. If you believe that the method is ok, then reduce the size of your position to the minimum just to cover the commissions.

See what happens.
 
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achilles28 said:
Listen to me son.

Enter a trade. Once stop is set to breakeven. Walk. The. Fuck away from the computer and don't look at that position until the next DAY

The only way us retailers make bank is by letting our winners run. Run forever if possible. Run for days and dAys. Swing all those day trades into swing trades. Trust me. You're no longer a day trader. U day trade entries but swing trade open positions. This is the only way you can "let your winners" run. This is how we all do it. We all just sit on our hands and wait. Wait and watch. You can't reinvent the wheel son. There's nothing to reinvent. You just pick to wait and watch like the rest of us or continue churning ur account into confetti
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Good comment. But a newer trader can not let a trade run forever. the trader has to know when to exit.

The OP is trading 1 contract which is hard. so letting that one contract run is emotional cause in back of head the trader has not made any money. Ideally the trader should use 2 or more contracts. take 1 off for confidence building or lunch money and manage the runner via proven trailing method or target profit level.
 
SimpleMeLike said:
Good comment. But a newer trader can not let a trade run forever. the trader has to know when to exit.

The OP is trading 1 contract which is hard. so letting that one contract run is emotional cause in back of head the trader has not made any money. Idally the trader should use 2 or more contracts. take 1 off for confidence building or lunch money and manage the runner via proven trailing methof or target profit level.
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Yes exactly. Which means he's too leveraged. In other words, his account is too small.

Moving to equities or forex is the only way to make it work. Or get really lucky.
 
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