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Post by Sol P on Feb 6, 2004 15:14:36 GMT -5
Lets begin looking at why we always enter the mkt seeking to win. We have the right attitude, but thats about all we have right.
We employ the wrong tools and we have the wrong goals.
Tools
we do not take time to study the markets or even understand the simple concept the trend is your friend
goals
we all want to make a fortune and so rather than go for slow but sure returns we all want to get those big huge spectacular wins we hear about and what happens we get ours heads handed on a platter
Attitude
the only thing right here is our attitudes when we first enter the markets. However after repeated failures, we actually assume we are going to loose and are suprised when we do win and then when we win instead of taking the profits and banking them we try to extract the maximum we can, we become pigs and once again we get slaughtered.
So why do we look forward to losing and do our best to prevent ourselves from even sniffing success
this is enough for our very smart and astute readers to build on
Sol
;D
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Post by zumabill on Feb 6, 2004 15:31:54 GMT -5
Sol:
I am a new subscriber. I agree with your assessment. Most people enter the market to win--many though never EXPECT to win...they are programmed to lose. For those that expect to win, if they don't use the right tools they will fail...if they do use the right tools, then they stand on the shoulders of giants,as Einstein used to say. However, that percentage of traders is less than 5%.
My GF and I are new to your service (in the last 3 weeks). We have lost value in all of the stocks we purchased on your list, yet we are learning a lesson...we are no longer addicted to day by day fluctuations. I will admit some days have been painful to watch beacuse before joining your service I have been daytrading indexes and was up 45% last year; however, we have faith and believe in what your team is doing.
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Post by Jack B on Feb 9, 2004 1:20:25 GMT -5
I was an option maniac. All I wanted to do was trade options because you can "get rich quick", and "turn $1,000 into $1,000,000". Yeah, but the last quote should be turn a million into a grand. Actually, I did make some huge percentage gains in some positions, but in the end I ended up with a fat loss. I thought, "That won’t happen to me because I'm smarter". I took a long break from options and just stuck with stocks, and since Jan of last year I have done very well.
With options, discipline is of most importance. An example is to trade with risk money only and don't put everything in one trade. Now everyone says, "Yeah, yeah I know." Well when you're trading with real money, your emotions (greed/fear) come in and try to take control. If your emotions win, you're assured a defeat. Maybe not in the trade presently, for you might make a killing on it, but this cannot be sustained. I've learned that whenever I get these emotions of greed/fear and others, I need to stop and take a break. I only need to look at my past record to help me become more aware and objective. This awareness and objectivity is the desired result of doing what Sol writes about when he says, "You have to learn how to do nothing." This really works and has prevented me from making stupid emotional plays.
We have bulls, bears, and pigs. What animal would represent positive characteristics that we would want? Bulls seem stubborn and won’t learn no matter what, bears seem always angry that the d**n thing won’t go down, and pigs are ugly.
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Post by Roy on Feb 9, 2004 19:56:24 GMT -5
How many of you have put on what you thought was an excellent trade when after some period of time the trade goes against you and you begin to stress and panic? I know I have. The best way I know of is to write out your trade and why you entered the trade to begin with. Next, write out your exit points, upside, downside, and time specific. Time is particularly important when trading options. All this simply means is to have a trading journal. So the next time you feel the stress from a trade. Refer back to your journal and see if the reason you got in the trade is still intact. Check your exit points. See if anything has changed beyond your set parameters that you set when you entered the trade. You can then make a logical and stress free decision to stay in or get out. So please start your trading journal if you haven't already. Comments?
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Post by Sol on Feb 10, 2004 23:11:51 GMT -5
well slowly but surely we are getting somewhere more people are viewing than writting, which is fine.
What roy suggest is very good, a trading journal is key, this way you get to re experience the thinking that took place while, during and after you made the trade.
as for Jacks question what animal should we use to represent the new state we seek. A dolphin sounds pretty good, they are smart, they like to play and they hate to get into trouble.
To bad no smart animal was chosen perhaps the creators of the market played the ultimate joke and are still laughing in their graves, That being anyone who choses to be a bear, bull or pig, will and must lose, in order to sustain the non biased individuals.
It is by writting about our trading experiences that we help ourselves but we also help others
when we write we get to relive the moment and sometimes reliving the moment is all that is necessary to prevent one from repeating the mistake again
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Post by Etrader on May 9, 2004 0:23:09 GMT -5
TEXT
There have been no responses since February and it was such a good thread! So I feel my turn is over due.
As someone who is starting with little risk capital. I have taken the approach that half the gain would be with the education. Which is just as well, because that has been the only reward as a result of the past 6 months or so.
So for my benifit (and perhaps others), I will attempt to psycho-analyse myself. By pretending this is an entry in my trading journal, summarising the last 6 months along the lines of Sol's comments- who, knows it could help, here goes;
Now that I have started this investing/trading journey I am determined to arrive at my chosen destination. That is, my..
Goal= trading for the maximum profit for a sustainable risk...by using,
Tools = support resistance levels, RSI, MACD among others.. with an,
Attitude = to win however, although at present, it does start to waver a bit when it comes to pulling the trigger
--------------------------------------------------------
Reviewing what has been written and knowing this patient. I make the following comments:
Goal: probably a more honest description, would be "to make a fortune",
Tools: attempting to master these tools would be a more apt description
Attitude: "to win" is a fair description despite the losses. However, the missing component might be discipline or diligence, for example to "learn to do nothing"as previously stated. Which, would have avoided the losses in the past 5 or 6 months and kept the previous 6 months of profits.
I can adjust my attitude and goals but I have to say. Finding the right sources to learn TA successfully in practice, instead of just ineffective theories and put all the pieces together for a successful trading system seems pretty difficult.
O.K. that is the result of reviewing the last 6 months in my fake journal. I will see if, improvement occurs in the following 6 months.
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