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Beginners - Kill your emotions

kieran (snapdragon1970)
Apr 05 2017 at 10:03
posts 1945
ReignFX posted:
As a somewhat new trader, the battle with emotions are fresh memories (or should I say scars). I completely blew one account being too stubborn to take a loss and took a 20% loss doing the same thing again. RISK MANAGEMENT, RISK MANAGEMENT, RISK MANAGEMENT. This lesson cost me about $300 but I give it to the world for free. Limit losses an let profits run. Simple stuff i know, but when emotion is involved, not so simple.

I had a plan, then I got hit. My plan wasn't ready for that.


Set your stop loss and stick to it, you'll never beat the system otherwise, you might have 5 losing trades at max 2% loss each, letting one trade run its course could make that back, if you get stopped out often at that level of risk ,improve your entry point and be more selective of trades, let the market come to you don't chase it.

"They mistook leverage with genius".
mlawson71
Apr 05 2017 at 12:17
posts 1487
togr posted:
It is easy to plan to cut losses and let profit grow
It is hard to execute it though :)


Tell me about it. It's very hard to find the balance between cutting your losses and constantly losing.

Jim (young4ever)
Apr 06 2017 at 10:13
posts 2
Isn't KILLING our emotions what robot/auto-trading is for? (and get us away from the screen where myopia takes over)?

I made +200pips in each of 2 mos. of demo trading & felt like that was enough to go live, only to lose 130pips the 1st month...add insult to injury, the trade team I was following made +800pips that same month, but I missed the +200pip trade notices due to being asleep or away from pc/phone when they cameout (4-5am my local time)😡

I'm adjusting my schedule, but doing that just to 'copy' trade seems to defeats the purpose (develop skills & have a less stressful lifestyle), so I'm looking into auto-trading. I see it as a way to take some of the stress/emotions off & focus on managing auto-traders just like you would a position (cut the losers, hold the winners for high reward). Is that the general idea? Seems just about everything under the sun has been tried by someone in forex so far......

The trend is your friend, but beware, friends change!
vontogr (togr)
Apr 06 2017 at 10:15
posts 4862
mlawson71 posted:
togr posted:
It is easy to plan to cut losses and let profit grow
It is hard to execute it though :)


Tell me about it. It's very hard to find the balance between cutting your losses and constantly losing.


well cutting your losses too often or too early does mean you are loosing constantly

David791 (david791)
Apr 06 2017 at 10:27
posts 44

Automated trading kill your emontions😄

kieran (snapdragon1970)
Apr 09 2017 at 12:11
posts 1945
david791 posted:

Automated trading kill your emontions😄


Can you model that on a gutsy manual trader with years of experience, what indicators are you going to use in the model, what risk factors, will it be an off the shelf or build from scratch?

"They mistook leverage with genius".
mlawson71
Apr 10 2017 at 10:36
posts 1487
togr posted:
mlawson71 posted:
togr posted:
It is easy to plan to cut losses and let profit grow
It is hard to execute it though :)


Tell me about it. It's very hard to find the balance between cutting your losses and constantly losing.


well cutting your losses too often or too early does mean you are loosing constantly


That was exactly my point. Learning how to cut my losses right on time is more difficult than it sounds, at least for me.

ema123
Apr 18 2017 at 07:47
posts 32
Restraining emotions is one tough task for beginners as emotions are directed by fear and greed. To avoid emotional trading to certain extent a newbie should set realistic goals first and adopt a tried-tested strategy with discipline. Demo trading is a good idea for the beginners to get to the nerve of forex and enhance their knowledge at first. I know demo misses the factor of real money which actually brings emotions with it but it gives an insight about the trading pattern one can follow.

mlawson71
Apr 18 2017 at 10:43
posts 1487
ema123 posted:
Restraining emotions is one tough task for beginners as emotions are directed by fear and greed. To avoid emotional trading to certain extent a newbie should set realistic goals first and adopt a tried-tested strategy with discipline. Demo trading is a good idea for the beginners to get to the nerve of forex and enhance their knowledge at first. I know demo misses the factor of real money which actually brings emotions with it but it gives an insight about the trading pattern one can follow.


I am not so sure about how helpful demo trading is in that particular regard. When you trade on a demo account you're not stressed out. You know you're not risking anything other than your time and your pride.

ema123
Apr 21 2017 at 06:44
posts 32
mlawson71 posted:
ema123 posted:
Restraining emotions is one tough task for beginners as emotions are directed by fear and greed. To avoid emotional trading to certain extent a newbie should set realistic goals first and adopt a tried-tested strategy with discipline. Demo trading is a good idea for the beginners to get to the nerve of forex and enhance their knowledge at first. I know demo misses the factor of real money which actually brings emotions with it but it gives an insight about the trading pattern one can follow.


I am not so sure about how helpful demo trading is in that particular regard. When you trade on a demo account you're not stressed out. You know you're not risking anything other than your time and your pride.


well I agree demo trading doesn’t directly help in fixing emotions as demo will not trigger any emotions as real money is not involved. . It’s just if a newbie rushes into live trading without learning the basics then he tend to be more emotional with his trading so demo helps to gain knowledge.

mlawson71
Apr 21 2017 at 10:46
posts 1487
In that case I agree. Obviously total newbies shouldn't invest real money, they'd just end up losing them and get scared off the market.

kieran (snapdragon1970)
Apr 21 2017 at 11:43
posts 1945
If one can form good habits in demo ,like protecting capital and understanding win/loss ratios etc.they have a better grounding for live, 6 months of repeating good habits in demo logs in our long term memory.

"They mistook leverage with genius".
mlawson71
Apr 22 2017 at 12:15
posts 1487
snapdragon1970 posted:
If one can form good habits in demo ,like protecting capital and understanding win/loss ratios etc.they have a better grounding for live, 6 months of repeating good habits in demo logs in our long term memory.


That's a good point. Some habits should be a second nature to a trader, and what better way to build them but from the safety of a demo account.

kieran (snapdragon1970)
Apr 22 2017 at 13:12
posts 1945
mlawson71 posted:
snapdragon1970 posted:
If one can form good habits in demo ,like protecting capital and understanding win/loss ratios etc.they have a better grounding for live, 6 months of repeating good habits in demo logs in our long term memory.


That's a good point. Some habits should be a second nature to a trader, and what better way to build them but from the safety of a demo account.


Anything less than this amount of time on demo forming good habits is a waste of time, because when things go wrong short term memory kicks in then emotions take over, risking more to get back what was lost, moving stops wider and setting unrealistic targets, were we should be cutting back on risk, stop trading till we are in a calm mode and start planning recovery.

"They mistook leverage with genius".
Tssh_Nguyen
Apr 23 2017 at 06:29
posts 5
PipAKazi posted:
Although this 5% stat is not entirely wrong, yet i will personally disagree to it. It just scares the new traders. If you plan on going to moon without any training, what are you expecting? but if you are trained then stats are just to scare you. This Forex is the biggest financial market, everyone can join in, everyone can earn their bread through it. But train well and you can own the whole bread factory if you know what i mean.


I think with a new trader profit is dangerous and make them delete plan, strategy. If you want success in FX market ' do everything follow plan and never think market so easy, please understood yourself before trading.

mlawson71
Apr 23 2017 at 10:54
posts 1487
snapdragon1970 posted:
mlawson71 posted:
snapdragon1970 posted:
If one can form good habits in demo ,like protecting capital and understanding win/loss ratios etc.they have a better grounding for live, 6 months of repeating good habits in demo logs in our long term memory.


That's a good point. Some habits should be a second nature to a trader, and what better way to build them but from the safety of a demo account.


Anything less than this amount of time on demo forming good habits is a waste of time, because when things go wrong short term memory kicks in then emotions take over, risking more to get back what was lost, moving stops wider and setting unrealistic targets, were we should be cutting back on risk, stop trading till we are in a calm mode and start planning recovery.


I agree. However, I also think that regardless of the amount of time one has spent on a demo account, when they first start using a live account they'd still be pretty emotion until they get used to it - but the training on the demo account can help them get used to it.

kieran (snapdragon1970)
Apr 23 2017 at 18:20
posts 1945
We can only keep our bets small so there is less emotional attachment until account starts growing, then move the size up but with this comes more swings, expect to lose more times than win as long as you are in control of those losses.

"They mistook leverage with genius".
kieran (snapdragon1970)
Apr 23 2017 at 18:59
posts 1945
Tssh_Nguyen posted:
PipAKazi posted:
Although this 5% stat is not entirely wrong, yet i will personally disagree to it. It just scares the new traders. If you plan on going to moon without any training, what are you expecting? but if you are trained then stats are just to scare you. This Forex is the biggest financial market, everyone can join in, everyone can earn their bread through it. But train well and you can own the whole bread factory if you know what i mean.


I think with a new trader profit is dangerous and make them delete plan, strategy. If you want success in FX market ' do everything follow plan and never think market so easy, please understood yourself before trading.


That why playing poker is common on trading desks, gets you used to risk.

"They mistook leverage with genius".
mlawson71
Apr 24 2017 at 11:22
posts 1487
I didn't know that was a thing, but I am not surprised. I guess it's a good way to train oneself to stay calm.

manolo82 (manolo82)
Apr 24 2017 at 13:49
posts 8
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