Emotional reset after every trade?

Discussion in 'Trading' started by David's faith, Feb 27, 2024.

  1. TheDawn

    TheDawn

    Because every time when you try to get rich as fast as possible, you can also lose everything as fast as possible. The odds of losing everything you have is bigger than becoming a million-dollar trader.
     
    #21     Feb 27, 2024
  2. wxytrader

    wxytrader

    All this emotional bullshit. This is what happens with retail where you get under disciplined and over leveraged traders. If you guys are getting emotional then you need to scale down. Just calculate if a 1987 level drawdown would trigger a margin call, or if a bk would blow up your account and size accordingly. Take the (paper) loss, hold the shares, average down, and move on to another trade until it recovers... even sell options against it. That way you really don't care what the market does, and that is the only way to consistently make money in the long run.
     
    Last edited: Feb 27, 2024
    #22     Feb 27, 2024
    comagnum and SimpleMeLike like this.
  3. ironchef

    ironchef

    What you described is very similar to my situation in day trading. I am profitable live trade for three months, 4 out of 5 days profitable only because I put limits on the number of trades everyday.

    On days when I kept trading, most eventually resulted in losses. Starting this year, I have gone back to paper trade to see if it is real. It is, every time I kept trading it resulted in losses.

    Is it because the day trading method has no inherent edge or it is an emotional thing? I don't know but i suspect it is a combination of both.

    @Leob& @PPC are correct, perhaps I should stop day trading?

    I don't have this problem in longer time frame option trades (since 2013) or position trades (since 2010).
     
    Last edited: Feb 27, 2024
    #23     Feb 27, 2024
    David's faith likes this.
  4. ironchef

    ironchef

    :thumbsup:

    Me too.:banghead:
     
    #24     Feb 27, 2024
  5. ironchef

    ironchef

    It is easy to pontificate.
     
    #25     Feb 27, 2024
  6. ironchef

    ironchef

    Been there done that.

    One suggestion to take emotion out of the trade is to pre-determine both entry and exit and set it on autopilot. That is how I trade options but I have not found a way to do it with day trading.

    Day trading for me is different, I don't have pre-determine entry or exit, everything depends on the real time dynamics of the price action and I have to watch and determine in real time how to proceed and that is emotionally draining.

    For me it has nothing to do with size or experience. I made more money trading than when I had my day job.
     
    #26     Feb 27, 2024
  7. wxytrader

    wxytrader

    Ya but the point being you essentially still have a day job.
     
    #27     Feb 27, 2024
    ironchef and SimpleMeLike like this.
  8. So?
     
    #28     Feb 27, 2024
    ironchef likes this.
  9. ironchef

    ironchef

    No. I quit my day job in 2010. Don't need any more money from trading now, it is just for fun.
     
    #29     Feb 27, 2024
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  10. wxytrader

    wxytrader

    The idea is that you can make money trading and not be stuck in front of your computer hours a day.
     
    #30     Feb 27, 2024
    ironchef likes this.