I opened an account in January with 10k to trade 0DTE SPX spreads. Iv gotten as high as 14k as low as 8k and sitting at 9.5k today. Discipline is what i lack. I have a trade plan but i tend to let my loses run and always exit to soon on my winners. I use fib extensions to pick my levels on where i want to set up my trade and im pretty accurate on the levels i choose but my timing on entry is weak. Thanks for the post
Omg. Thanks a lot. The below describes me. I am know the charting and execution of trading but the below gets me every single time. I will work on this. I promise.
“The fears have a lot to do with one´s ego, and are as follows: 1. Being wrong; 2. Losing; 3. Missing out (FOMO); 4. Leaving money on the table. And here are the common errors: hesitating, not pre-defining risk, not exiting at the pre-defined risk leading to bigger losses, entering a trade before the set-up/edge/system is perfectly formed, not letting profits run, and mind freeze (choking). People are focused on the fears and that is why they will create these same outcomes over and over again. In addition, by not having the right discipline, bad habits (impulsive behavior) can be formed over time, such as revenge trading or playing catch-up or the urge to be always in the market because of the rush or not being consistent with the process or having biases, which is thinking/feeling what the market will do next and the urge to enter the market instead of waiting patiently for the perfect set-up.”
You have to break those habits - first, must be aware & acknowledge your emotions/ego as they occur (don´t judge yourself, just let it be), then maybe do a 5 min breathing technique or do some push-ups or whatever works for you... Learn to be calm & don´t let your thoughts/feelings define you (non-attachment). Also, imagine yourself as a disciplined trader every day.
Thank you your reply. I think I need accountability too. Trading alone- u know myself- I am a proud person. Knowing that I need to explain my trades to someone of authority or I respect can help me choose my trades carefully. Maybe I can find a trading community where something like this exist.
Great insight...best article I have read in a long time based on trading psychology...keep up the good work!
You are very welcome, Sid!
I opened an account in January with 10k to trade 0DTE SPX spreads. Iv gotten as high as 14k as low as 8k and sitting at 9.5k today. Discipline is what i lack. I have a trade plan but i tend to let my loses run and always exit to soon on my winners. I use fib extensions to pick my levels on where i want to set up my trade and im pretty accurate on the levels i choose but my timing on entry is weak. Thanks for the post
Omg. Thanks a lot. The below describes me. I am know the charting and execution of trading but the below gets me every single time. I will work on this. I promise.
“The fears have a lot to do with one´s ego, and are as follows: 1. Being wrong; 2. Losing; 3. Missing out (FOMO); 4. Leaving money on the table. And here are the common errors: hesitating, not pre-defining risk, not exiting at the pre-defined risk leading to bigger losses, entering a trade before the set-up/edge/system is perfectly formed, not letting profits run, and mind freeze (choking). People are focused on the fears and that is why they will create these same outcomes over and over again. In addition, by not having the right discipline, bad habits (impulsive behavior) can be formed over time, such as revenge trading or playing catch-up or the urge to be always in the market because of the rush or not being consistent with the process or having biases, which is thinking/feeling what the market will do next and the urge to enter the market instead of waiting patiently for the perfect set-up.”
You are welcome Jose!
You have to break those habits - first, must be aware & acknowledge your emotions/ego as they occur (don´t judge yourself, just let it be), then maybe do a 5 min breathing technique or do some push-ups or whatever works for you... Learn to be calm & don´t let your thoughts/feelings define you (non-attachment). Also, imagine yourself as a disciplined trader every day.
Thank you your reply. I think I need accountability too. Trading alone- u know myself- I am a proud person. Knowing that I need to explain my trades to someone of authority or I respect can help me choose my trades carefully. Maybe I can find a trading community where something like this exist.
Very good read. This line sounds familiair:
thinking that their reason or methodology was wrong and start becoming hesitant the next time around.
It's all about the probabilities! This kind of mindset must be created with practice