What do you do when you break your own rules?

[iceman1]

Quote from Yannis:

For me, breaking a rule that I have agreed to or established myself, is a sign that I don't trust it yet. It may be my fault and the solution may be better discipline, or it may be the rule's fault and it should be changed.

Therefore, the only thing that I have found to work in these circumstances, is backtest and/or papertrade the rule some more. Then, I either accept it deeper down and that helps my discipline - or develop a better argument how/why the rule should be changed or abolished.

My belief is that I am the best trader I can be, not while I'm developing methods to trade, but when I'm actually trading. That's when all my skills and abilities are being exercised. Not in the evening or during a quiet weekend when I feel like philosophizing and kicking some new ideas around. Theory is of no use if I cannot put it in practice or if my subconcious rejects it when things get real hot. A rule that I will discard in the heat of the "battle" is highly suspect - and that's why I always go back to investigate and see what's really happening here.

Excellent points you made...

I only have a few hard and fast rules... the remainder are pinciples and standards I seek to diligently apply to my trading thereby trusting my experience, instincts and trader intuition by allowing for some discretion. The 'few' rules I refer to are ones to deal with situations that have gotten me into the most trouble repeatedly... and thus a need to have some codification and a more mandatory edict on trading in given circumstances.

As you note trust is a large factor in honoring any trading code... and needs to be tweaked as a trader "grows" and perhaps even to suit different market conditions.

Iceman

 

[swoop[TR]]

If I break any rules I have set forth, I hit my shin into something really hard, it hurts like a bitch, I cry and then I know that next time I won't be breaking anymore rules. It's easy. Try it, hit your knee into something also, that works well

OR

you can ask someone to hit you as hard as he/she can. If it's a she, you're not allowed to wear protective gear on your parts. HEY, you broke the rules remember ?

Take it ez, and remember: breaking the rules will break your bank account.

 

[slapshot]

Quote from swoop[TR]:

If I break any rules I have set forth, I hit my shin into something really hard, it hurts like a bitch, I cry and then I know that next time I won't be breaking anymore rules. It's easy. Try it, hit your knee into something also, that works well

OR

you can ask someone to hit you as hard as he/she can. If it's a she, you're not allowed to wear protective gear on your parts. HEY, you broke the rules remember ?

Take it ez, and remember: breaking the rules will break your bank account.

LOL If it's all the same to you, I'll stick to my written Trade Logs, Daily Trading Inventory and Screenshots to track and weed out my mistakes - you are way to hardcore for me.

I flog myself mentally bad enough for the chronic mistakes without letting some chick kick my nuts over it.

Smiles,

Paul

 

[slapshot]

Quote from Yannis:

Slapshot:

Thanks for the kind words - and I agree with what you wrote, we think the same way.

Now, a psychologist would be using different arguments why we break rules (e.g, potty training and the like...) but I was trained as a physicist

Most of them are more F***ed up than we are

Paul

 

[lindq]

Kind of depends on whether you lost on the trade, won on the trade, or...failed to make the trade.

For me, failing to make the trade is the biggest killer, and the most frustrating. I missed four points today on 2 trades, because I let fear enter into my thinking. I trade sharp pullbacks, and know full well that generally my trades trigger at the maximum point of fear in the market.

But even with full knowledge of the situation, as humans the fear factor is so strong in our basic wiring, we still often flinch.

Then we sit on our hands while the chart prints five 60 minute up bars, like it is laughing right in our faces.

Now, that's frustrating.

 

[peg_leg_joe]

Quote from paulr:

You know when you have broken one of your own trading rules or when you feel yourself going on tilt.

What do you do to get back on track?

Chop off a finger every time you break your rules...eventually if you break your rules 10 times, you won't even be able to press the buy and sell buttons anymore.

Seriously, one of the best things you can do after breaking one of your rules is to step back from the market and re-assess yourself...are there underlying psychological issues you are going through, either in your trading or in your personal life?

If you have to, take a day or two off from trading...breaking your rules is often a sign of trader's fatigue. In other words, carelessness due to burnout. Take a break to "recharge your batteries".

PEG LEG JOE

 

[daniel_m]

peg leg joe,

you didn't get a peg leg by following this rule did you?

Quote from swoop[TR]:

If I break any rules I have set forth, I hit my shin into something really hard, it hurts like a bitch, I cry and then I know that next time I won't be breaking anymore rules. It's easy. Try it, hit your knee into something also, that works well

 

[prox]

Quote from paulr:

You know when you have broken one of your own trading rules or when you feel yourself going on tilt.

What do you do to get back on track?

You evaluate your rules and whether that system is even for you. If you keep finding yourself exiting early, then you're probably a scalper at heart. Anything else would be painful to trade.

 

[Jayford]

I tend to swear a lot.

 

[qdz2]

I surely curse a lot. curse the manipulators.

Quote from Jayford:

I tend to swear a lot.