What do you do when you lose your nerve?

[GSCO]

Me personally, I like to keep a chrome .45 in the top drawer. And when things get rough I debate cappin' this guy across the room, who seems to always cough just before I lose my shirt.

But if things really get rough I try to think long term. each trade is just one in a pool of thousands. If you're risk control is intact, then no trade will make or break you. Long term.

 

[harrytrader]

After ? too late to react it's before than you must prepare

See "Regret: A Powerful Emotion You Must Face "
http://www.elitetrader.com/vb/showthread.php?threadid=25998

Knowledge of Variation from Deming
A knowledge of variation includes knowledge that life is variation, knowledge of the difference between a stable state and an unstable state, knowledge of the difference between common and special causes of variation and knowledge of the effect of the system on the performance of people. It also includes a knowledge of the implications of all this for management.

The Theory of Knowledge
The theory of knowledge includes an understanding that management in any form is prediction. A statement, if it conveys knowledge, predicts a future outcome including the risk of being wrong. Prediction requires theory. Without theory, experience has no meaning and there is no learning. Copying examples without understanding the underlying theory may lead to disaster. Any number of examples cannot establish a theory.

Psychology
A Knowledge of Psychology includes a knowledge that people are different from one another and knowledge of how to use these differences to optimize everybody's abilities and inclinations. It includes the concepts of intrinsic and extrinsic motivation and the phenomenon of over justification.

Deming/Shewart's wheel: Plan Do Check Action
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Quote from mrsinister:

I was on a good roll for a few months, and then lost it. I know exactly what I am doing wrong: I lost the nerve to remain in a position, and have faith in my trade, when it goes against me even the slightest bit. I've become more impulsive and impatient.
Any advice on this?

 

[bobcathy1]

I did lose my nerve for about 6 months. Losing money time after time really can get to you deep down inside.

I just stopped trading and did a deep examination of my trades and what was wrong with them. I paper traded and watched successful and not so successful people trade all day in the chats. I got to the point where I was perfect on paper. Then I did live trading and it is not the same. I was losing once again. I realized I knew what I was doing but I was letting the fear of my previous losses get in the way of rational judgement.

I now can be just as perfect in a real trade as on paper. I have had streaks of 16 winning trades in a row in one day. I found if I scaled in and out, it really helped me get over my fear. Trading more size actually helped because I would scalp out one contract, let one ride with a stop at break even. Then sometimes if it went against me 10 points, but the lines were not broken, I would put on two more and ride it to a 50% pullback and come out with a real live profit.....

I am far better at scalping the bid to ask then anything else....so I play that to my advantage buy trading in the direction of the trend and take the scalp......with another contract out there in case it decides to run.

We all lose our nerve at one time or another. A system can work flawlessly for a month or a week and then it just does not at all. We wonder what happened. It is totally normal. That is when you stop, rethink, retool and get back in there.

 

[condorll]

Simple, it's Christmas...take a break...enjoy family and friends.
Get back at it in the New year.
You don't have to trade during the holidays. Most of us really do take a break.

Good luck
Good Holidays

Quote from mrsinister:

I was on a good roll for a few months, and then lost it. I know exactly what I am doing wrong: I lost the nerve to remain in a position, and have faith in my trade, when it goes against me even the slightest bit. I've become more impulsive and impatient.
Any advice on this?