Thursday, June 9, 2011

Forget winning, remember not loosing

Hey there,
Well I abandoned my "plan" from the last post. Something was not working out correctly. In short I was "inconsistent" and undisciplined. Making profits with micro stakes, taking losses with all-in situations, and it over weights any knowledge about markets... I forgot very important thing, trading is not about making winning trades, but more importantly it is about not loosing. I forgot to be risk averse, I was over trading. And of course markets started to punish me for being greedy bastard. You must quit greed completely! This approach helped me to start scratch loosing trades as fast as possible, and of course to wait for right setup as long as it takes, no rush, no pressure. Think about your risk, not about taking as much profit as you can and your edge will take care about the money. So my plan changes, it comes a lot simpler, I will be taking what markets gives me, without any pressure to make "xx %" on my account in particular day. And I will not be growing my account balance for some time, I noticed that my account gets bigger I start to loose it :) 

Well I hate my "inconsistency" and my psyche problems... Why let's say 3 weeks of trading passes without a looser day (easy trading), and in the next one I am loosing everything? And more importantly I can't understand why these shifts in my head happens, what influence this change to my mindset? Greed, ego, fair, lack of knowledge or discipline ... ? 


I am gonna change few things in my trading, gonna be starting to be "consistent" with my staking, and my bank account balance. And I believe I will get a small salary in the end of the month, what of course is good thing to grow my confidence and a believe of being consistent winner.


That's it folks, wish you nice trading.

2 comments: