1) Target for the day is to hit trades with 10 point loss.
This should give u a reinforcement that each stoploss hit = target met. Over a period of time, your subconsious mind will be confused and start accepting stoploss hit as a neutral outcome. It will also give u practice of taking small losses and accepting them as correct outcome of trade.
Lets not forget, that when we take a trade and enter target and stoploss order, then hit of any of them should be acceptable to us. It is just another trade. Our self image, ego, esteem does not depend on this single trade.
Not sure if this approach will work for you or not, but it did help me hence sharing it here. I have recorded his type of conversation on my mobile and listened to it many times to tune the subcons mind. .............aw10
..........................
7) Silly mistakes in placing orders and then praying if they go in loss
This is one of most famous discoveries and hope readers will use it not as a flaw but intentionally do it and benefit from the process. This is how it goes...
Practice makes man perfect - we all have read, heard this proverd hunderds of times in our lives, during our studying days, we have practices test, papers, in sports we keep on practising and so on...
In trading too, we need to practice. But practice what?? Yes apart from many things of tradings such as research, system / method, TF, MM, RM, etc, there is one focus area and to me it the most important area - cutting losses. While all other aspects of trading mentioned above, make attempt to reduce loss making trade, but reducing loss in the loss making trade can be 'praticed'. And I discovered it by the flaw highlighted in the bold above.
Few years ago, mistakenly, I entered a wrong trade, wrong in the sense, when I wanted to buy, I actually entered a sell trade. And I realised it only after 10 mins (end of my review period). The position was in loss. The moment was heartbreaking, one that I entered wrong and in loss and two, I lost opportunity to profit. Using my various 'unconventional tools', I simply exited at market price and shut down my computer for the next half day. This episode was very disheartening for me. But while I was sitting in front of my blank monitor. I just shouted ..Eureka...I have found it. I have found a system to practise how to cut my losses in a loss making trade.
In the remaining half day, I decided not to trade as per my trading method and strated entering trades at random with a minimum permissible quantity of ONE share. I entered, and hoped that the position goes in a loss, and then exited in loss. Since the trades were random, it either went into profit and sometimes in loss, I exited only my loss making trades immediately (and not the profitable ones, though they were random). At the end of the day, I would have successfully practised exiting 12 loss making trades. And I was quite satisfied. The amount of loss did not matter (as it was small due to One share position), but what I discovered was to practice how to take losses, when the trade goes wrong. And I discovered it only when I committed a silly mistake of wrongly puching a sell order instead of a buy order.
This activity (of practising loss making trades) became a regular feature of my daily activity. And when ever I was not trading i.e. my system was not giving me long or short opportunities, I used to practice 'loss taking' trades by buying or selling One share / One lot. And this really helped. Remember the proverb at the opening of this post. So effecitively for you too, you can use this as a practice sessions to cut you losses.
My entire focus has always been first, to cut losses and second, to try to undertake trades that go into profit..The point I mentioned in my last post is nothing but the topic 10) Practice defeat !
Never have extremities in life, be it trading (hence the need of portfolio allocations) or non-trading (adoring someone too much or cursing someone to the core). Be moderate and you will live a fuller and happier life.
Core philosophy of your life will dictate how you trade. And there is no doubt in my mind about that. You cannot have different values in life and different for trading. Syncronise both and there will be no one stopping you from succeeding
..................here we can see............the skill of a trader, the skill of a portfolio manager, the skill to trade different time frames, the skill to trade stock and F&O. The clarity of thought, use of shrewd adult mind and innocent childs thinking for trading profitably. You have the ability to drive people out of trading, you have ability to welcome people approach into systematic trading.
This should give u a reinforcement that each stoploss hit = target met. Over a period of time, your subconsious mind will be confused and start accepting stoploss hit as a neutral outcome. It will also give u practice of taking small losses and accepting them as correct outcome of trade.
Lets not forget, that when we take a trade and enter target and stoploss order, then hit of any of them should be acceptable to us. It is just another trade. Our self image, ego, esteem does not depend on this single trade.
Not sure if this approach will work for you or not, but it did help me hence sharing it here. I have recorded his type of conversation on my mobile and listened to it many times to tune the subcons mind. .............aw10
..........................
7) Silly mistakes in placing orders and then praying if they go in loss
This is one of most famous discoveries and hope readers will use it not as a flaw but intentionally do it and benefit from the process. This is how it goes...
Practice makes man perfect - we all have read, heard this proverd hunderds of times in our lives, during our studying days, we have practices test, papers, in sports we keep on practising and so on...
In trading too, we need to practice. But practice what?? Yes apart from many things of tradings such as research, system / method, TF, MM, RM, etc, there is one focus area and to me it the most important area - cutting losses. While all other aspects of trading mentioned above, make attempt to reduce loss making trade, but reducing loss in the loss making trade can be 'praticed'. And I discovered it by the flaw highlighted in the bold above.
Few years ago, mistakenly, I entered a wrong trade, wrong in the sense, when I wanted to buy, I actually entered a sell trade. And I realised it only after 10 mins (end of my review period). The position was in loss. The moment was heartbreaking, one that I entered wrong and in loss and two, I lost opportunity to profit. Using my various 'unconventional tools', I simply exited at market price and shut down my computer for the next half day. This episode was very disheartening for me. But while I was sitting in front of my blank monitor. I just shouted ..Eureka...I have found it. I have found a system to practise how to cut my losses in a loss making trade.
In the remaining half day, I decided not to trade as per my trading method and strated entering trades at random with a minimum permissible quantity of ONE share. I entered, and hoped that the position goes in a loss, and then exited in loss. Since the trades were random, it either went into profit and sometimes in loss, I exited only my loss making trades immediately (and not the profitable ones, though they were random). At the end of the day, I would have successfully practised exiting 12 loss making trades. And I was quite satisfied. The amount of loss did not matter (as it was small due to One share position), but what I discovered was to practice how to take losses, when the trade goes wrong. And I discovered it only when I committed a silly mistake of wrongly puching a sell order instead of a buy order.
This activity (of practising loss making trades) became a regular feature of my daily activity. And when ever I was not trading i.e. my system was not giving me long or short opportunities, I used to practice 'loss taking' trades by buying or selling One share / One lot. And this really helped. Remember the proverb at the opening of this post. So effecitively for you too, you can use this as a practice sessions to cut you losses.
My entire focus has always been first, to cut losses and second, to try to undertake trades that go into profit..The point I mentioned in my last post is nothing but the topic 10) Practice defeat !
Never have extremities in life, be it trading (hence the need of portfolio allocations) or non-trading (adoring someone too much or cursing someone to the core). Be moderate and you will live a fuller and happier life.
Core philosophy of your life will dictate how you trade. And there is no doubt in my mind about that. You cannot have different values in life and different for trading. Syncronise both and there will be no one stopping you from succeeding
..................here we can see............the skill of a trader, the skill of a portfolio manager, the skill to trade different time frames, the skill to trade stock and F&O. The clarity of thought, use of shrewd adult mind and innocent childs thinking for trading profitably. You have the ability to drive people out of trading, you have ability to welcome people approach into systematic trading.