Quoting ItalianSharpDislikedgood points.
nevertheless, keep in mind that being emotional is not bad. here is another myth about trading: those traders that are emotional, that get pissed off after losses or enthusiastic after wins are going to lose in the long run for lack of discipline. that is utter BS in my opinion. you can be emotional and disciplined at the same time.
Unfortunately you won't find many articles nor books that talk vastly about this issue.
Since it's christmas time and you decided to take time off the markets to enjoy some readings, here is a book that every trader should read:
Enhancing Trader Performance (Wiley, 2006) by Brett N. Steenbarger, Ph.D
This guy is awesome. I remember reading one of his articles about trading psychology and its 3 myths:
Myth #1: Emotions are at the root of trading problems.
Myth #2: Anyone, with dedicated effort, can get to the point of trading for a living.
Myth #3: The main cause of trading failure is a loss of discipline.
I agree with all of the above. There is one very successful trader I know personally that is VERY EMOTIONAL and at least once a month even loses his discipline and overtrades. I once saw him lose well over $7,000 in 2 hrs! He came back more disciplined after the weekend and made it all back by wednesday.
Myth #2 is also true. I dont think anyone can make it in trading. I think trading is like playing pro sports at the highest level. How many of us could possibily compete against Federer or Nadal in tennis? Or against the Bears defense in football? Or against Ronaldinho or Kaką in soccer? Just think about it. Trading is very difficult because when you start off as a newbie you must be able to play in the majors against the best traders in the world. There are no minor leagues were you can make some experience.
On a separate note, how are the books on candlesticks going?Ignored
But the more I read and the more I look at charts, the more I LOVE candlesticks. My idea as of now is to look at the weekly for a set up and switch to daily for the trigger to trade. It's so simple. I just need more experience to come up with clever money management techniques to go with each patterns nison described in the book.
Since he said some patterns are more 'potent' than others, I feel I should risk differently for each pattern...man I can't wait for this f'ckin month to end so I can get to trading again
Working towards CME membership