Traders, How Do You Keep Yourself Grounded?
- Thread starter newtrader101
- Start date
i say small story, i forget name of prince 
this is real story
once there was a prince, he have anger issues he get very angry very quickly n many times become very egoistic then later on he become cool n calm n regret his behaviour he searching for some way to always remain calm n humble.... so he decide to take help from king's advisor.... he tell advisor that , once i become king, i dont want to take any decisions based on ego or anger... what should i do to always remain humble advisor say whenever u feel very proud or egoistic, go out n eat food with the poor, that will make u humble later on that prince become very big n great king i think he was some chinese king
this is real story
once there was a prince, he have anger issues
he get very angry very quickly n many times become very egoistic then later on he become cool n calm n regret his behaviour he searching for some way to always remain calm n humble.... so he decide to take help from king's advisor.... he tell advisor that , once i become king, i dont want to take any decisions based on ego or anger... what should i do to always remain humble advisor say whenever u feel very proud or egoistic, go out n eat food with the poor, that will make u humble later on that prince become very big n great king i think he was some chinese king 
Small mistakes can happen, but markets are usually efficient enough that good periods follow bad and vv and this should get ingrained in your brain. Once you have seen enough cycles, you know its going to happen. These cycles are frequent enough in intraday that i don't really forget it. I have seen 5-6 months of dd/flat and also month after month of profits - multiple times.
1) I think what might also help is to automate as much as possible, emotions become much more manageable and its much less likely that you will do something wrong based on those emotions. Maybe does not apply to all.
2) Keep risk under control. If risk is too high and you cannot bear short term ups and downs, then mistakes will happen.
3) Keep sane expectations. twitter screenshots are not reality, at least from what i have seen.
4) Must not depend on trading income for short term expenses. Also best to compound your capital, i think this is key as this allows us to survive even if returns get lower in future ( which they probably will with competition). And if they don't future income will be nice.
1) I think what might also help is to automate as much as possible, emotions become much more manageable and its much less likely that you will do something wrong based on those emotions. Maybe does not apply to all.
2) Keep risk under control. If risk is too high and you cannot bear short term ups and downs, then mistakes will happen.
3) Keep sane expectations. twitter screenshots are not reality, at least from what i have seen.
4) Must not depend on trading income for short term expenses. Also best to compound your capital, i think this is key as this allows us to survive even if returns get lower in future ( which they probably will with competition). And if they don't future income will be nice.
Drawdown - periods when a system loses money/time. Even after beating a DD, we can get another DD from new peak and so in tough phases, capital may go nowhere for months too. This might depend on system too, but i don't believe its possible to avoid it. People looking for holy grails generally want to have close to 0 DD with high returns.
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Another thing that can help in trading is to trade multiple systems that have less correlation - reduces risk very well. Makes much bigger impact vs trying to improve a decent system endlessly.
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Another thing that can help in trading is to trade multiple systems that have less correlation - reduces risk very well. Makes much bigger impact vs trying to improve a decent system endlessly.
I look for higher goals. For example, if I am making 100% returns in 2 years, I look at ways to shorten that to 1 yr. Each challenge I complete helps me stay on the ground.
Of course, this comes with my mindset. I know people are lulling me to complacency when they say they can make 5% per month or so, I know and have experienced the market potential - it is much more than 5% a month returns!
Of course, this comes with my mindset. I know people are lulling me to complacency when they say they can make 5% per month or so, I know and have experienced the market potential - it is much more than 5% a month returns!
It has been a while since I interact actively here. During these years (full time trader since Sep 2013) I have learnt to unlearn a lot of stuff you get for free. I have also tried to reduce the complexity involved in trading to as little as possible. What I have learnt I shall try to encapsulate in 2 sentences:
There are close to 150 stocks that one can actively trade, if one can trade consistently on 1/2 % price movement of any of these 150 stocks per day - you can possibly double your money in 1 year. The use of leverage can be to mitigate the trading costs involved in such pursuit.
This is what keeps me on terra firma!
There are close to 150 stocks that one can actively trade, if one can trade consistently on 1/2 % price movement of any of these 150 stocks per day - you can possibly double your money in 1 year. The use of leverage can be to mitigate the trading costs involved in such pursuit.
This is what keeps me on terra firma!
