IB Trading Futures: Price + Volume - Page 41

you minimize your losses the profits will take care of themselves.. its that simple.

Takes some to learn longer than others. GL. Paper trading is a benefit..

Quote:

Originally Posted by IchibomB 

Originally Posted by Rock Sexton 

 

That makes a lot of sense. Been battling fear forever and didn't realize it.

Emotion is huge. 

Makes a whole helluv-a-lot of sense to me.  I myself never grew up around a lot of money.  

The reality of it is the money factor is the stimulus to an overwhelming amount of people trying to be successful at this.  Their pain or pleasure responses are derived from it and it's the wrong focal point because the market is IMO designed to punish that part of human nature.  

Sorry if I'm getting too philosophical .... LOL.  

Quote:

Originally Posted by mjoke 

you minimize your losses the profits will take care of themselves.. its that simple.

Takes some to learn longer than others. GL. Paper trading is a benefit..

Ya, risk management will always be crucial ...... but it goes beyond limiting losses.  They need to be keenly aware of what their risk to reward is.  Beyond that there comes a time when every trader must learn how to let the winners breathe.  Otherwise you end up in break-even mode all the time.  

yeah.. hence let the winners run and cut the losers short.
 

Quote:

Originally Posted by Rock Sexton 

Ya, risk management will always be crucial ...... but it goes beyond limiting losses.  They need to be keenly aware of what their risk to reward is.  Beyond that there comes a time when every trader must learn how to let the winners breathe.  Otherwise you end up in break-even mode all the time.  

 

Quote:

Originally Posted by mjoke 

yeah.. hence let the winners run and cut the losers short.

It comes with experience I guess.  The more experience you gain (if you're actually paying attention) the easier it probably gets to identify when a trade is working beyond what your initial modest target was.  I marvel at some of the guys who are able to identify true strength and add on the way up.  Truly awesome to watch.

85% .. cant get better than that. Always a margin of error associated.

ya learning is continuous and expensive.. taken me years to finally realize and use certain things.

Quote:

Originally Posted by Rock Sexton 

Prolly gonna look into it.  I've psychoanalyzed this profession quite a bit and much of one's trading psychology comes from their relationship to money.  People who grew up around money and have made a lot of money, don't tend to have the same fear-based mechanisms when trading that people do who never grew up around money or haven't had much of it in their lives.  It is very a very ingrained thought process.  

 

At any rate that video had a quote that I'm going to make a point of emphasis .... it went along the lines of "I'm not trading to make money.  I'm trading to make sound trades."

 

I like that quite a bit.  It really resonated with me.  As strange as it sounds, it cannot be about the money.  The money will come, if we focus on conducting sound trades and risk management.

 

Quite a post Rock! Very good, indeed! Great line.
 

I agree with much of what is being said.

I tend to be very unemotional, in life and in general even about money although I never had much growing up. I have a background (including advanced degrees) in science, stats and finance so that helps to look at things a bit more logically. My undergrad emphasis in psychology helps too.

However, one of the best things that has helped me with emotion vs logic is relating trading to playing poker. I played semi-professionally and still play often in vegas. There is a very good reason the casinos have you play with chips instead of stacks of 20's and 100's. You have to play the game and money is just ammunition. Therefore, bankroll management and risk management are huge factors in overall wins and losses (not for each game but when looked at on an annualized timeframe/returns). The same goes for trading but with an increased emphasis.  If you have too strong an emotion, then you might be risking too much of your capital (bankroll). Learn how to do it risking minimal amounts and move up only when the capital doesn't affect you. This is what is taught to poker players. You would never sit down at a table where an average bet is 20,000 dollars and you have a bankroll of 100K. I think you get the idea but if you want more details PM me. Always willing to help.

One needs to reset what successful is. Success is not 90-100% winning trades (that's really impossible). Success is minimizing losing trades.

Best of luck group,

Quote:

Originally Posted by mjoke 

85% .. cant get better than that. Always a margin of error associated.

ya learning is continuous and expensive.. taken me years to finally realize and use certain things.

Yepper, taken me many, many yrs to lrn and use certain things.