Beginners - Kill your emotions

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.

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......

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

Automated trading kill your emontions😄

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?

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

Only eas:)