The stress of it all.....

Trading is by far the most stressful and at the same time most rewarding task I have ever undertaken.

Unfortunately, sometimes I want to shout and talk to everyone I know about the forex market trading but talking about the aspects of trading to a 'non-trader' does not make sense in my book for they can never truly understand what goes into trading on a day to day basis.

Sometimes I think it best to just keep to myself whether I have an extremely profitable day or I have lost a sizeable amount of my portfolio. It just doesn't make sense I would tell myself, keep it all to myself no matter how much I want to boast or sob depending on the scenario.

I'm from Trinidad not much people know about the forex market much less trade it. So I'm all alone. This is my attempt to vent and let off some steam. If anyone can relate holla back...

fxdimarion, some part of me understands, but not the other. If you find trading so stressful, maybe some modifications in your trading style can help more then some venting. What has helped me a lot in reducing the stress is making sure that I understand the risk of each trade and the potential drawdown of a series of losing trades. Your account shows huge variations, so this is of course a source of stress. I don't know your financial situation of course, nor do I know your system, but I do know that you should do yourself a favor and only trade a system that you can trade in an almost boring fashion. The job then becomes simulating your system in all kind of scenarios so you know the worst outcome. You can then adopt the proper money management techniques that the worst outcome is still something that you can live with. Anyway, it's easy to get carried away in the emotions of all this... Nice to see a post from somebody that is not just posting their pamm link.

growthera posted:
fxdimarion, some part of me understands, but not the other. If you find trading so stressful, maybe some modifications in your trading style can help more then some venting. What has helped me a lot in reducing the stress is making sure that I understand the risk of each trade and the potential drawdown of a series of losing trades. Your account shows huge variations, so this is of course a source of stress. I don't know your financial situation of course, nor do I know your system, but I do know that you should do yourself a favor and only trade a system that you can trade in an almost boring fashion. The job then becomes simulating your system in all kind of scenarios so you know the worst outcome. You can then adopt the proper money management techniques that the worst outcome is still something that you can live with. Anyway, it's easy to get carried away in the emotions of all this... Nice to see a post from somebody that is not just posting their pamm link.

Thanks for you insight, I don't particularly have an automated trading system, just a series of rules I try to follow. All my trades are manual. I think my main weekness is over trading and over leveraging. But I am working on those flaws. I need to be content with what I make and not wish that I had put more on the trade after it becomes profitable. I dont actively trade the two losing accounts. Im focusing more on 'Hiroshima'.

But win or lose I do feel the need to talk about what kind of day I had trading and with no one to personally talk to this becomes lonesome at times..

EDIT: Double post due to being stuck in moderation. See next post.

6 years. Trading and boatbuilding, lonely pastimes, so few around. Not even my wife to share it with.

fxdimarion posted:
I think my main weekness is over trading and over leveraging.

Hey fxdimarion,

I agree here. You are over-leveraging. An 'extremely profitable' day in my book would be something like a 5% account growth, while a very bad one would be close to 3% loss. I think this is the healthy way (psychological and financial) to do it for the long run. You should be able to sleep well and just see this as your daily job, if you aspire to be a professional.

Talking with others in the trading field is useful, just as you said. It's well known that trading is a lonely / isolating occupation so talking with others as well as having other hobbies helps.

I really miss those doubles you can only eat in Trinidad. :)


Take care!

8fold posted:

fxdimarion posted:
I think my main weekness is over trading and over leveraging.

Hey fxdimarion,

I really miss those doubles you can only eat in Trinidad. :)

Take care!

Thanks for all the advice guys. I for some reason have a mental block against making a small amount of money. On my trades I dont usually risk more than 35 pips and I trade the announcements, I'm usually out in a couple of hours. Which is why I usually put in 10-15 dollars a pips, which is about 2-5% risk on the account per trade, I try to lock in profits as well and add on lot sizes once my trades are profitable.

Then I usually sit and watch my trades till I exit. I think this is the part that is stressful .. watching and waiting. Where you from 8fold?

My point is that most successful traders - not to mention the other 95% - become too uncomfortable and their trading performance suffers, once they reach and go below 20-25% in DD. I am part of that category, and I believe you to be a part as well, especially based on what you said in this thread.

So If you agree to what I wrote above, you must also realize that it only takes 5-6 consecutive losing trades with 2-5% risk per trade in order to reach that DD threshold. Even the elite hit a 10 consecutive losing streak once in a while.

There is a lot more that can be said, but the important part is for the trader to be confident and relaxed. Not stressed. I've been trading for a few years now, this year I've turned pro and my DD tolerance is somewhere around 10-15%. And I manage that by doing mathematic simulation based on my trading stats, and manage my risk accordingly (95% of my losing trades are below 1% equity). I watch the markets from Europe opening hours until a couple of hours into the New York session, I'm from Europe.

Think about it, and all the best! :)

Great advice 8fold...

Great Advice