Moron! Learning About Yourself Through Trading.

[TheNegotiator 13]

Trading is a microcosm of life. It often exposes our biggest weaknesses and then slaps us silly with a rather large halibut just to really rub it in. But for those who are willing to listen it doesn't have to all be bad. Traders who are able to accept their own mortal failings and adapt, not only become better off financially for it but usually become better people too. If you deal with things quickly, maturely and comprehensively by planning and self-awareness, you stand a much better chance of mastering your weaknesses and adapting to future (not futures) markets. If you don't, making the same mistake over and over can be pretty darn costly not only to your account but to your emotions too.

 

:doh: :crap: :puke: :bang head: :thumbs down: :coffee: :sleep:

 

is how the emotional roller-coaster goes if you don't address your weaknesses and that ain't great at the best of times.

 

Personally, I know I used to over trade. Not that I was necessarily trading too much, but too long. If I didn't make money early on, I would trade and trade through chop and nothing markets. But I was so engrossed in the markets that I never stopped to think what I was doing. What it did to me was drain me and leave me in a mesmerized state so that when the move did happen, I was usually late to get on it. Ultimately I just stopped trading when it was slow. I'm not sure what clicked exactly on that one though, but it did teach me that there's a time for everything and not to get too obsessed with trading when conditions aren't right. If only I'd known then what I know now, right? I wouldn't have wasted so much time.

 

But to know how to fix a problem you have to what you're doing of course. What does that come back to? Journalling. I didn't do this at that time, so it took me a while to really figure it out. I realise that it probably sounds like I should have noticed, but when you get locked into the market to try to make money (especially make money back), events become blurred in retrospect.

 

Anyway, I'd like anyone to share any of their personal failings so others might see something which helps them too. Kind of a trading AA maybe. If some of the TL vets want to pitch in I'm absolutely positive that seeing that all traders have weaknesses would be a great help to newer traders (and those who are still disinclined to journal).

[wmck6167 10]

Trading is a microcosm of life. It often exposes our biggest weaknesses and then slaps us silly with a rather large halibut just to really rub it in. But for those who are willing to listen it doesn't have to all be bad. Traders who are able to accept their own mortal failings and adapt, not only become better off financially for it but usually become better people too.........

 

Anyway, I'd like anyone to share any of their personal failings so others might see something which helps them too. Kind of a trading AA maybe. If some of the TL vets want to pitch in I'm absolutely positive that seeing that all traders have weaknesses would be a great help to newer traders (and those who are still disinclined to journal).

 

Hi, The Negotiator,

 

I am new to trader lab. Your points are so great. “Traders who are able to accept their own mortal failings and adapt, not only become better off financially for it but usually become better people too.” It's so wonderful for your statement. I believe that everything is connected. I believe the ability to change yourself is though repent your weakness, same time focus on the right thing will make you stand strong. Nice to hear from you. Cheers.

[TheNegotiator 13]

Hi, The Negotiator,

 

I am new to trader lab. Your points are so great. “Traders who are able to accept their own mortal failings and adapt, not only become better off financially for it but usually become better people too.” It's so wonderful for your statement. I believe that everything is connected. I believe the ability to change yourself is though repent your weakness, same time focus on the right thing will make you stand strong. Nice to hear from you. Cheers.

 

Thanks! Nice of you to say so. The market is a great humbler. Well, it's more like "be humble or be destroyed".

[SIUYA 11]

Ultimately I just stopped trading when it was slow. I'm not sure what clicked exactly on that one though, but it did teach me that there's a time for everything and not to get too obsessed with trading when conditions aren't right. If only I'd known then what I know now, right? I wouldn't have wasted so much time.

 

But to know how to fix a problem you have to what you're doing of course. What does that come back to? Journalling. I didn't do this at that time, so it took me a while to really figure it out. I realise that it probably sounds like I should have noticed, but when you get locked into the market to try to make money (especially make money back), events become blurred in retrospect.

 

Anyway, I'd like anyone to share any of their personal failings so others might see something which helps them too. Kind of a trading AA maybe. If some of the TL vets want to pitch in I'm absolutely positive that seeing that all traders have weaknesses would be a great help to newer traders (and those who are still disinclined to journal).

 

much the same - expecting too much from the markets sometimes, you cant see the forest for the trees.

Personal failing - there are many over different times in a trading career.

 

Major one for me has been - impulsiveness, trading too much.

 

solution - I find i often cannot stop it - its the nature of impulsiveness

so instead I learnt to recognize when it occurs (by reviewing trades), and then to adapt when it occurs. This adaption took the form of quickly changing stops to being close, or just deciding to take profits......remembering the mantra - get out reassess, as its easy to get back in again.

I know that i could not stop the impulsiveness, so instead i changed my reaction when it occurred.

[TheNegotiator 13]

Getting locked into an impulsive trade is certainly not a great idea!

[SIUYA 11]

Getting locked into an impulsive trade is certainly not a great idea!

 

only if its a looser

 

Sometimes the impulsiveness is ok - its the old debate about how much value is intuition worth. sometimes, the impulsiveness is 'good intuition' from experience working.

BUT - i also know that the trade management for me is best treated differently when the trade was initiated impulsively precisely so that you dont get locked in so to speak and think that it is the norm, and that luck and impulsiveness get mixed up.....there is nothing wrong with running with the impulsiveness when you might just have been lucky in the timing of entry.

The key for me is ensuring it does not turn into a looser and then messing with the mind for the rest of the day.

[TheNegotiator 13]

only if its a looser

 

Sometimes the impulsiveness is ok - its the old debate about how much value is intuition worth. sometimes, the impulsiveness is 'good intuition' from experience working.

BUT - i also know that the trade management for me is best treated differently when the trade was initiated impulsively precisely so that you dont get locked in so to speak and think that it is the norm, and that luck and impulsiveness get mixed up.....there is nothing wrong with running with the impulsiveness when you might just have been lucky in the timing of entry.

The key for me is ensuring it does not turn into a looser and then messing with the mind for the rest of the day.

 

Not sure I totally agree. Impulsiveness is by it's nature "taking action without pausing to think things through". It tends to occur not when you're in the flow of the market and trading intuitively, but when something just catches your eye. If you are in that kind of mood then even if you get lucky on your entry, you'll probably mess up your exit too.

[SIUYA 11]

i guess i should have clarified it a bit more then - I have an impulsive ENTRY problem

As the thread suggests its about knowing yourself.....I know I generally dont have a problem with exits, just entries - maybe this is the classic 'over trading' - but I also know that sometimes these trades are actually intuitive and hence if you get lucky in the timing, then let it ride....and manage the trade.

A wise old fella on the floor told me when i first started - if a mistake goes against you, exit immediately, if it starts to go your way then let it ride - but just remember the entry was as a result of a mistake and dont try to justify it otherwise.

[TheNegotiator 13]

i guess i should have clarified it a bit more then - I have an impulsive ENTRY problem

As the thread suggests its about knowing yourself.....I know I generally dont have a problem with exits, just entries - maybe this is the classic 'over trading' - but I also know that sometimes these trades are actually intuitive and hence if you get lucky in the timing, then let it ride....and manage the trade.

A wise old fella on the floor told me when i first started - if a mistake goes against you, exit immediately, if it starts to go your way then let it ride - but just remember the entry was as a result of a mistake and dont try to justify it otherwise.

 

Absolutely. When it happens to me I know that I have to be especially disciplined and get out if it isn't working.

[LaReindeer 10]

Part of the reason I got into trading was to learn more about myself. However I under estimated just how much work I had to do personally, to get my head in the right space to trade.

Most expensive therapy ever :rofl:

My entries and exits are ok now, as compared to a year ago. It is the over anaylizing that is stopping me from getting in, I know I am trying to make every trade a winner, but it is a battle of wills between me and myself.

We are currently working on a new strategy to get more co-operation and less fighting. I won't have anything to report on that for 2 months.

I have already fully accepted that I am crazy so having two of me at the table is...well normal.

I agree the thought journal is super important. Especially when you go back and read entries from 1 or 2 years back, it's amazing how much the thought process changes, and a little scary too, in a good way.

L