Mental Breakdowns!

Begin when......

a) you believe there is a system made available to the general public that will beat the market on a regular basis.

b) you start trading based on what indicators say.

c) you have to pay someone to give you trade entries.

e) you pay to learn trading AND the only money the trainer is making is from "YOU".

f) you have no money management plan.

g) you cant describe in any detail why you took a trade.

h) your reasoning for taking trades change daily.

i) your making money every month your trading.

j) you have no idea what your trading coasts are.

k) your account is over leveraged.

l) your still trading on a demo account.

m) you don't treat trading as a business.



Feel free to add I have missed a lot...

I disagree with a few but for the most part, you're right on! A paid signal service may not be a bad idea. I believe that people can make money from paid services provided they stick to a good MM strategy. I personally don't use a paid (or free for that matter) service because it takes the fun out of trading. I enjoy analyzing the markets and I've done just as well if not better with my signals as anything I've seen out there.

Mental breakdowns occur when you're on a losing streak!

I'm currently in such a streak! It's a lot of fun. You get to the point where you start doubting your system. You start second guessing your signals and that's a terrible idea. Lucky for me, I learnt to not over-leverage, no matter how sure a trade looks. I did lose thousands in the past week, but that's OK. I'm still up significantly for the year. I read "Trading in the Zone" yet again over the weekend. I do that every single time i have a losing streak. Helps me regain my confidence and get back on track! There's nothing magical in the book. It's all common sense stuff but when you're having a mental breakdown, you lose common sense.

I add ::
you can not wait
you are not disciplined
you over-trading,,,,because too much setup,,,,
every movement you see is an opportunity,,and you think is good setup

I agree, never over-trade, never trade money you need, and always have discipline in your trading.

I add :

You need trading money to pay your bills.

I would like to add,

* Revenge trade failed ( when you lose a position and opened another position in other direction also failed )
* Adding positions to the losing side and cumulative losses increasing
* When you cannot monitor losing positions

When you get a margin call.