worst state of mind for trading?
- Thread starter nkhoi
- Start date
True, my lack of money does not have a positive influence on my trading, but since my immediate survival does not depend on the outcome of any particular trade, these issues take a back seat to more fundamental ones: When I doubt myself and my ability to be a profitable trader, that is when the losing really starts. But as I keep making more and more and losing less and less, I also gain more confidence. Not in any particular trade, but in my ability to make money trading and to increase the rate at which I make money. There is also another thing that is very important to me and my state of mind for trading: I happen to be good with some instruments and strategies and suck at others. The way I deal with this is to keep in mind that I do have one strategy that makes me money, and if worse comes to worst, I can just give up on everything else and keep making money quite consistently. Of course, that is also just an illusion, because market conditions change, and that is why I keep experimenting with different instruments and approaches.
Also, I should add one more thing: Because I worry so much about money, I have more of it than the average guy, meaning I have no debt whatsoever. It kind of helps not having a monthly minimum payment of $2000 to pay off that overpriced car and all the big screen television sets and all terrain vehicles you just HAD to have before you could afford them...
Also, I should add one more thing: Because I worry so much about money, I have more of it than the average guy, meaning I have no debt whatsoever. It kind of helps not having a monthly minimum payment of $2000 to pay off that overpriced car and all the big screen television sets and all terrain vehicles you just HAD to have before you could afford them...
clinging to an idea is the worst state of mind in trading. Detachment from time to time is so very important.
For me, the worst state of mind is just starting off the week (or day) with a quick loss or stop out on the open on 1 or more trades. Sometimes I get upset and try to frantically find another setup to "pay" for that loss, almost invariably the pick turns out to be a dud and another loss ensues. lol. I am learning from this and don't do it as often as I once did. I would therefore say that the worst state of mind is an emotional one. When I get pissed off because of quick stops to start the day I try to change my mind immediately and look at my winners or squakbox, anything to prevent me to commit an emotional trade. One day I hope to be the consummate pro and have ice water flowing thru my veins and have zero emotion.
