What are your Trading Breakthroughs?

It is funny to hear you say this as I have a very similar experience. When I first started trading futures, I had no fear and did very well for a while but my experience/methodology wasn't good enuf to survive the market when it changed so I took a sizable drawdown. Then the fear came, I reduced to 1-3 lot trading and developed all the habits of a fearful trader. Couldn't seem to get past it. One day I realized that my trading methodology was actually quite sound but I just wasn't managing my trades correct because of fear so I said F@%& THIS... it's do or die time I have to deal with this as I trade for a living so my life is depending upon conquering this problem. I will not survive as a 1 lot trader, I have sufficient capital to trade size, my trading plan is sound so just F@%&ing do it. It seemed that when I started trading size again it forced me to deal with the fear. Was really the point that I turned things around.


Quote from AMT4SWA:

I was as scared as Bambi during hunting season, trading 1 lots in the ES. This fear really started to piss me off because I could feel how it was FILTERING my judgement. Every damn little tick against me had me trying to re-evaluate the whole reasoning for my trade entry...this went on for MONTHS. Then one morning just after the market open, thinking of all the fear I had from previous trade days, I said F@%& THIS! I then entered a 10 lot ES position (I had never done more then 1 lot before), set my target at 1.5 pts and a stop at 1.5 pts. I said to myself, "are you scared now...you better be!", and I forced myself to sit on my hands and let the trade play out one way or the other...I literally stood back from my PC so I could not mess with the keyboard and I forced myself to overcome the fear. I did this all day and I made +2.75 pts for 10 ES for the day after commissions. I was so amazed at the end of the day, but I was totally mentally wiped out. The PROCESS to manage my fears started that day, and I will always see that day as a major turning point in my trading. FEAR kills in trading, and you will NEVER become profitable without some way of removing your fears from your reasoned thoughts during trading activities. The best way I can describe what happens when FEAR rules your trading, is to think of your "reasoned thoughts" on one side of a long row of constantino wire. A pile of money is sitting on the other side of that constantino wire...FEAR is the constantino wire, and to get to the money your "reasoned thoughts" get ripped to shreds in their attempt. You must remove the FEAR (constantino wire) from your pathway to the MONEY, so that your "reasoned thoughts" have a chance.

Good Fortunes!

Chris

BTW, there are two ways to remove your FEAR in trading. You can do the daily snip-snip and remove small sections of that constantino wire until one day you have a clear path. The other way (the method I prefer), is to slide a "Bangalore" under the constantino wire (FEAR) and blow the $hit out of it.....your choice!
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During the time period I mentioned before, about 2 1/2 years ago, I removed my P&L window from my continuous view. I have stated this comment before that IMO watching your P&L window during a trade is like having a crack addiction. You should be watching price action and managing your trade...not fixating on the P&L window distracted from what the market is doing. A periodic review of the P&L window after each trade completion or portional scale out is more appropriate IMO.

Chris
 
In a similar manner, I found tracking my trade P&L, both in real time and historically, in terms of points instead of dollars to be helpful psychologically. For me, losing 20 points has a lot less sting than losing $1000 (when trading the ES).

-- M
 
Overcoming "hope" in my trading has helped me tremendously. I no longer "hope" for a trade to work out. I trade what I see and if the tape/chart disagrees with me, then I'm out.

On the flip side, "fear" has been getting in my way of making big money. I've found that since I no longer "hope" for my price targets, I "fear" and lock my profits quickly or take my losses faster than I should.

I prefer having fear in my trading than hope, but both can be harmful. Once those two are managed properly, then one has just turned the corner.
 
Quote from optionist:

Overcoming "hope" in my trading has helped me tremendously. I no longer "hope" for a trade to work out. I trade what I see and if the tape/chart disagrees with me, then I'm out.

On the flip side, "fear" has been getting in my way of making big money. I've found that since I no longer "hope" for my price targets, I "fear" and lock my profits quickly or take my losses faster than I should.

I prefer having fear in my trading than hope, but both can be harmful. Once those two are managed properly, then one has just turned the corner.
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You can have both hope and fear, but in the right situation.

Jesse Livermore states that we should have hope in a winning trade and fear in a losing trade. That way you are able to let winners run and cut losses short. The obstacle is the human mind which unfortunately works the other way round.
 
"..it would be reaching an understanding of the nature of probability.." dbphoenix

Well that is the zero sum dynamic (ie Dow). Do your research; set up your model.

After that, well, 'Piece of cake, Gordon' as Bud Fox might say to Gordon Gekko.
 
Since I am in over 20 positions at any one time I just focus on P/L only, I have a blotter that is sorted by P/L and this approach really helps identify losers and winners very quickly. The P/L does not lie it tells you exactly where you are.
 
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