francisrama wrote:Nikita wrote:Today FO session was really ok.
But i face a new problem - i m afraid of losing money. And i m speaking not about rents, this question i ve already answered.
I talking about melting profit..
Here is an example. Nice GU trade, wich i decided to stop : a) 1 reached my session target. b) i was afraid of looking at my profit wich start to melt.
Moreover, all my trades was already FT! That s the point.
If it s not time costly, can you share how you managed to solve this problem?
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And EU trade.. Same problem. Already a FT.
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Hi Nikita,
I sure don't have the universal answer...Yet I've been facing what you call "fear of melting profits..." To me the answer "TRUST THE RULES". I remember of my week 4 of trading, just exiting so quickly as soon as I got some profit. I realized that I did not master correctly the rules, the exit rules, the patterns when the trend comes to its end. So I spent 2 whole weeks just working on exits until I fully trust the rules. Once I trusted the rules, it's "easy" to follow them. What I mean by "trust" is "see by yourself how relevant they are". Don't just trust them as though it is a question of faith. Just try them, re try and you'll see how relevant they are.
That said, setting a target is also valid IF THAT IS YOUR EXIT RULE! The only point is STICK TO YOUR TRUSTED RULES!!!
Hope this helps a bit buddy!
KR
Oh what a question.
Firstly I appreciate your question. I appreciate that you brought up such an important issues. secondly I'd like to apologise for not answering when you asked me to look at your journal. Frankly, I forgot. So sorry about that. Thanks to Francisrama
he kindly has shed some light on it. Fully agreed Fran.
And i'd like to add a little bit but First of all, we must understand that we ought to get the science of trading right. That is the entry, exit, money and trade management rules. They have to be absolutely objectively defined. Once that is done, come the Art of trading. Entries and Exit techniques and rules are there as tools for you to use appropriately. We all agree that its science to create, measure, calibrate and maintain a tool but its an art to use those tools in a "scientific" manner. Its a science to cut a heart open and operate on it but its an art how nicely it is done to perfection. Trading is no different than any sport. There is science involved in any sport but the act of playing is ART.
A trader's mind (the ability to control it) is the most important bit of a trader's arsenal. It is the Mind-Set of a trader that differentiates highly successful, moderately successful, break even, slightly unsuccessful and very unsuccessful traders. The markets are there as a constant. No one can change or influence them, although it is true that the very act of "observing" or "participating" in the market changes the market but that the affect is so minute that its discounted as null effect.
A trader's mind holds the keys to the kingdom of the top 1% of traders. The proponents of chance theory would say that if a lot of people do something there will always be a certain very small percentage of people who will do exceptionally well as compared to the whole/majority but trading IMHO is not like that. After all time and time again, we have proof that people were trained as traders and they did very well as opposed to those who did not get any training from others or self training. One of the biggest example being Dennis' Turtles. They trained million dollar traders and they did very well and still doing very well.
Trading is skill. A mental skill more than physical. Its subtle very subtle at times. The shaping and honing of these skills are mostly intangible so its very hard to measure. I f you were going to a gym and lifting weights. After a few months, your friends might start staying ,hey you've got some muscles on your now, they will visually see that you've gained muscle mass and you have a better shape. And if you did not then you will know you're doing something wrong or not putting enough effort into it. Its tangible. Training the mind, and measuring performance of improvement is subtle.
Many successful traders lost millions over years and decades before they finally found IT, it took time before they GOT IT, it took time before "it finally clicked" for them and they became millionaires within very short times afterwards. I also thought that by the year 2014 I'll hit my first million, but I'm afraid I'm not there yet, i'm quite behind my actual target but I've done quite well as compared to when I started back in 2006. Its a business and it takes time. We have seen some traders become instantly successful and they never look back again but those are rare.
The problem that you face is just one of those problems. Its a good news. It means you're breaking barriers. It means you are breaking new grounds. IT means you are moving forward. There is a very simple rule that helps with all problems of the Mind. And that is learn to be in the NOW. To be in the now is very easy. Simply observe yourself from a different dimension. First take a deep slow breath in and out. 3 times. and then project yourself in your minds eye in the corner of the room and watch yourself what you're doing. Before you know it, you will know exactly what to do. And you'll feel completely alive and conscious and relaxed. Always focus on your breathing during trading. This technique is to be used as a quick remedy like asprin/ pain killer to get out of the immediate situation as well as for long term benefits.
Visualisation, of beautiful trades and following your rules, is a technique one can add to daily routine which will help you to stay calm and relaxed during trading but also your subconscious mind will know what you want in life and will access parts of your brain (universe) and bring forth information in to the conscious mind that will help you achieve those goals that you have already achieved during the visualisation process. To read more about visualisation please go to the Mind Section. I hope some of these meaningless lines that I wrote will help you in a small way. I wish you all the best and I congratulate you for your persistence.
cheers have a great weekend.
