why can't i stop after 3 losers?

Quote from frank01st:
again, please ignore the statements as i show it to proof no manipulations. attached is the tally after two days. in DEMO.
Day 1 challenge, +$603 demo.
Day 2 challenge, +$503 demo.
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i can't attach multiple files so i'll just upload the tally statistics. i did suffer a losing day on Day3 and analyzed the kind of market trend that is least suitable to my trading style. i was able to control the loss, not get into the mad state, and as soon as i noticed the "idiot"(myself) was doing the trading i halted and called out the "boss"(myself) and prevented myself from re-trying on losers. the "boss" looked at the first two trades and alerted that they were poor quality setups (what was the "idiot" thinking?) but then the next two trades didn't do well either so the kind of market on Day3 was affecting my methods.
Day 1 challenge +$604
Day 2 challenge +$503
Day 3 challenge -$337
Day 4 challenge +$184
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Day 5 challenge - Wednesday.
i'm confident i can fix my problems, i've always averaged 77% for past couple of years so i'm back in shape. i will go live next Monday.
 

Attachments

Quote from The Big D:

If your trading strategy actually worked (ie. had a backwards and forwards proven statistical edge), you would want to take as many trades that matched the strategy as possible regardless of what happened to the most recent previous trades.

The conclusion here is that you must not in fact have a strategy with a real edge, and instead are just guessing. I would quit trading until you are in possession of such a strategy if I were you - that could potentially include quitting for good if you're incapable of developing such a strategy.
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Just thought I'd chime in and say this post is very valuable. Beginners start off with plans thinking they'd stop after 3 or 5 or whatever, but it's an illogical thing to do if there's positive mathematical expectation on whatever you think a "setup" is.

Now, although The Big D is 100% right, we know that humans have a difficult time processing loss. It's ok to take breaks to avoid feeling down, but you need to resolve very quickly whether your technique is generally positive or not.
 
Quote from darktrader:
frank I see from ts statements that you trade with more than one lots, I'm trading my strategy with one lot and try to let the profit run, but it is very hard because you know you often give back good profits this way, starting from monday I will simulate with 2 lots, do you have any advice about multiple lots you can give me...
many thanks
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hi darktrader,
here are some trade examples using multiple lots which you can learn from, http://donotpostinET.com(click on the pictures to expand view). i never trade with single lot, one-entry-one-exit. unless you trade with a fixed mechanical style like 20pips stop for 60pips take profit, it is not logical to trade one single lot. multiple entries multiple exits offer much more flexibility and fun.
 
Quote from frank01st:

hi darktrader,
here are some trade examples using multiple lots which you can learn from, http://donotpostinET.com(click on the pictures to expand view). i never trade with single lot, one-entry-one-exit. unless you trade with a fixed mechanical style like 20pips stop for 60pips take profit, it is not logical to trade one single lot. multiple entries multiple exits offer much more flexibility and fun.
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Hi Frank,

thanks for your replay, could you please send me the link in a private message, I think the link has been disabled by the administrator, maybe we can't post external inks on ET.

many thanks
 
Quote from frank01st:

i have a written rule regarding money management. i traded well yesterday. but today i took 7 trades all losses (though 3 were half-sized "foot soldier"), even though my rules are to halt trading after 3 consecutive losers ..... and switch to demo account.

why can't i halt at 3 losers per plan? i do have a written plan that i looked at before each trading day. only 3 pages, not those 20 page comprehensive never-read-again plans.

i took some half-sized entries, stopped, but felt i had not yet reached my daily loss limit. so i continue on. the red P&L would have alarmed me if i had took 3 full sized stopped outs. as it is, i ignored the P&L to focus on what i should do the next trade. every new trade is independent by itself.

i averaged 77% winning percentage trading fulltime so i was confident my next trades would be good. i kept taking losers. by the time i finally caught myself, i had taken 7 trades all losers (3 half-sized and 4 full-sized). i surprised myself ...... how can i kept trying new entries with no concern for winning percentage. i would have stopped if i don't get 1 out of 3 or 1 out of 4 correct. but today i took 0 of 7. basically out of control. discipline lost. i am disappointed with myself as i'm not new to trading been trading since 1998 and fulltime since 2007 (and profitably paying bills). how can i suddenly lose the kind of discipline i worked so hard to develop? i kept trying next trade and next trade, making novice mistakes of getting it back. this is depressing .....

why can't i stop myself after 3 losers?
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Frankie, if you took three losses in a row you might need to re-eval your strat. If a HH fails, and a LL fails you are in consolidation, and you will be cut to pieces. Find a way to ascertain sentiment and trade with the sentiment. You should never take three losses back to back to back. You are trading noise, and you should fall back.
 
Quote from frank01st:

i have a written rule regarding money management. i traded well yesterday. but today i took 7 trades all losses (though 3 were half-sized "foot soldier"), even though my rules are to halt trading after 3 consecutive losers ..... and switch to demo account.

why can't i halt at 3 losers per plan? i do have a written plan that i looked at before each trading day. only 3 pages, not those 20 page comprehensive never-read-again plans.

i averaged 77% winning percentage trading fulltime so i was confident my next trades would be good....

why can't i stop myself after 3 losers?
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Frank, frankly ;
may want to get a hobby like mine-thrill ,chills , excitement-gambird /high volume gamebird shooting.

Keep breaking your trading plan/principles;
the market will solve that problem for you.Blowing up an account is fun when you're young, but maybe educational

:D :cool:
 
Quote from cornixforex:
This is pretty common psychological issue...
How do you think yourself: why do you keep trading despite your plan says stop trading? What is your own opinion about the cause of it?
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after this week of live trading i pretty much have an idea where my problem lies. i will start a journal documenting my live account trades in the Journal section soon. been thinking alot these days .....
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