Even though as traders we all know the common pitfalls, because at some time or other we've all fallen into them, I nevertheless thought it might be useful with the weekend upon us to hear some of your own personal struggles as I think that having read a few replies, we will see a very common thread here which may well help people who are struggling to make it happen. It will also be especially helpful if there are people out there reading this thread who have overcome their own demons to become successful traders. Looking forward to some interesting posts.
- #6
- Nov 3, 2013 1:22pm Nov 3, 2013 1:22pm
- Joined Dec 2006 | Status: Backtest is meaningless (to me) | 2,176 Posts
- #9
- Nov 3, 2013 3:18pm Nov 3, 2013 3:18pm
- Joined Dec 2006 | Status: Backtest is meaningless (to me) | 2,176 Posts
- #16
- Jan 20, 2014 6:35am Jan 20, 2014 6:35am
{quote} This was the hardest thing for me to overcome, accepting that losses are inevitable. As long as one has a fear of losing, one cannot trade, period. I came to the juncture where I either came to grips with it or give up trading. By concentrating on the bigger picture, that is assessing my performance after 20 trades or more and not worrying about any individual trade, I have been able to pretty much eliminate this fear.
Exactly. In practice this boils down to moving your stop loss out of fear for losing money. If I could just move my stops back to where they were at the opening of the trades I've lost big time in this way, I'd probably be a profitable trader already :-)
Working on that now, but at the moment of writing, I did it again! It goes like this: you open a trade, say, near a psychological level (or any other point where you think price will continue/reverse its direction). Then, it moves towards your stop loss. You think: 'hey, it's probably just another 'fake move', the Big Boys are throwing in to hit your stop, after which they will push price back the 'right way'. So, you move your stop a bit. Price keeps going the wrong way and you move your stop just a little bit more (you look at fibs, higher time frames, your cat, whatever can justify you moving that stop) and pretty soon, instead of the planned 30-50 pips you were willing to risk on this trade (or, so you told yourself), you're now 150-200 pips in the red...
Of course, after you finally have to take your (big) loss, the next winner you cut short, out of fear 'they' might play these tricks on you again!
I used to blow accounts this way, but now I've evolved into being a better trader, meaning I manage to level the score after putting myself down like this. So I manage to stay in the game much longer than before. Of course, I realize that this demon has to be conquered, before steady profits are to be made. I will do this, though, the only thing that can stop me is me...
Hope this sheds some light on why YOU keep struggling too, my fellow traders.
Edit: to avoid well meant advice, I've read 'Trading in the Zone', know about treating this like a business (profit/expenses), being 'programmed' into believing that 'losing' is wrong and that one has to keep fighting, etc., etc... It's all true and this type of behavior is just you sabotaging you, most of the time without realizing it (subconscious), but that doesn't make it any a lesser challenge, although it's easier to fight a known enemy than an unknown one (keep using the word 'fight' - Geez!)
Cheers!
95% of the people don't believe 100% they can win, that's why they lose
- #17
- Jan 20, 2014 7:29am Jan 20, 2014 7:29am
- | Joined Aug 2011 | Status: Hm, interesting,,, | 324 Posts
I found the hardest thing while I was first learning (and of course I still am learning) was separating the BS from the facts, I'm still here after three years and it's looking better and better, the reason why? because I've learned that persistence, patience and more persistence and more patience are what's needed.
'Get rich quick' really isn't going to work, that was my initial intention and I've decided to get rich slowly instead.
I tried loads of systems and indicators before realising that there is no 'secret trick' and learning to read the price action on the charts was what I needed to do,
Price action, Support and resistance, occasionally an MA and maybe some confirmation from an indicator, get that right and you're well on the way.
The more I do this the more I'm inclined to think that a 'good' trader could make a profit with just about any set of indicators.
Oh yes, don't forget to enjoy what you're doing as well.
Have fun,
'Get rich quick' really isn't going to work, that was my initial intention and I've decided to get rich slowly instead.
I tried loads of systems and indicators before realising that there is no 'secret trick' and learning to read the price action on the charts was what I needed to do,
Price action, Support and resistance, occasionally an MA and maybe some confirmation from an indicator, get that right and you're well on the way.
The more I do this the more I'm inclined to think that a 'good' trader could make a profit with just about any set of indicators.
Oh yes, don't forget to enjoy what you're doing as well.
Have fun,
Don't ask me, I have no idea what's going on.
{quote} Exactly. In practice this boils down to moving your stop loss out of fear for losing money. If I could just move my stops back to where they were at the opening of the trades I've lost big time in this way, I'd probably be a profitable trader already :-) Working on that now, but at the moment of writing, I did it again! It goes like this: you open a trade, say, near a psychological level (or any other point where you think price will continue/reverse its direction). Then, it moves towards your stop loss. You think: 'hey, it's probably just...
When all conditions are met - Enter trade - sit back and FRET !!!