Trading Psychology - consecutive losses and trading psychology spiral

Trading Psychology - consecutive losses and trading psychology spiral

Go long and the market immediately goes down - you go short and the market immediately goes up. That's 2 consecutive losses, and get a little "upset", so do not take "to" trade. Of course, this trade is the winner. Now to make the situation worse, then 'chase' on the move, and once you enter the trade it returns immediately, and it gives you another loss - this is now 3 in a row. Well another 'try' - that can not happen on every trade you this?

This time, however, would be real smart. You've noticed that the market in large numbers, and it is the low bounce / retrace from the high that it causes any problems. So this time, the next trade you take will be many extreme fade hell with your trading method. The market is in low range, and its new "on the fly" trading plan will go long. Instead of beating again, instantly breaks out of range defects. Not only will this give the loser in a row 4, but the loss came from trading against one of your 'best' method trade setups, and became a trade, which provides enough profit to pay for the previous 3 losers, and are net forward.

Now what are you supposed to do - quit? And to make sure there is more temptation - throw your computer out the window and dive out behind him. You're in a trading psychology spiral.

What is trading psychology spiral?

I think the trading psychology spiral as the transition from trading losses are accepted as part of your trading method, and as something that is inherent in trading in the rush of emotions that are constantly upgraded to the point where you can not accept anything more . How to end the "spiral" out of control - trading method becomes completely ignored, and then replaced with emotional responses and solutions for everything done. Even if quitting was really the only viable thing to do at that time, trading psychology spiral can cause an emotional response when it is not even considered, until the situation became so desperate that the trader can not and will not have quit.

This is not a discussion about emotions and commerce, and various fears and problems that keeps a trader from trading to begin with, as we know, emotions are an integral part of trading - will learn to control them or you can not trade. This is a discussion about emotions that are usually controlled well enough so that you 'can' trade, but then something happens where the trader that lost control, and their emotions spiral. A series of consecutive losing trades, particularly those caused by deviating from the plan for trading, are the main reason for this happening.

This also is not something that happens only the inexperienced and unprofitable traders. There will be those times when nothing trader will not work, and the result is going to be a series of consecutive losers. So the situation is the same, it is a reaction which may be different. For example, traderA can go into panic causing them to get out of control, losing self-confidence and self-confidence and ultimately more money than was planned. On the other hand, traderB can go into a period of trading with a vengeance, along with increasing their trading size, such as "sure" that any subsequent trade going back to even. Also, get out of control, and the losses continue - and also losing more money than was planned. What does traderC do?

Control of trading psychology spiral

Consider: Every time someone tpsych spiral is going to go out of control - the quicker the next spiral will happen, and sooner you get out of control when it happens. This is going to continue, until trading becomes too painful, and you will not be willing to trade any longer.

Consider: it is better to work through the emotions, instead of quitting. Quitting is too easy, and it provides no solution or help in preventing this from coming back and intensify each time you have a hard time. Also, you lost the ability to 'count' on yourself when you need to do it the most. To control tpsych spiral, before I go out of control, is a huge victory in and of itself. To do this, and get your trading back on track, and you will receive a value that can not imagine how you will know that you may have lost periods, but you can trust yourself to stay in control and increases the damage.

In light of this, what do you think should be your key trade issues, write them on index card and keep on your desk. The goal is realization and awareness of these issues are available to your conscious as a reminder, instead of only available to your subconscious as a problem. How to make your notes make sure you write short non-judgmental notes - Do not let the 'solution' a 'problem' worse.

For example, consider the combination of the construction of emotions that come from consecutive losses also occur during the delay - write notes like these on your card:

construction of emotions can come from a series of consecutive rapid losses
quick consecutive losses often come from inside the congestion trading
method to delay your losses "base" or trades are overtrading
There is nothing wrong with trading method "base" losses
Your trading results are fine when you 'base' method trade

Now consider the same situation but different notes:

Do not be stupid and idiot overtrade jams as they always do
you are going to lose your ass and end with the loss of another day as usual
The same would do this crap every day and it happens
No reason to even trade if this is all what you are going to do

Stay neutral

Stay neutral - another note on your index cards.

Another approach to be able to write notes that include the things I can remember doing or feeling like the transition from acceptable tpsych spiraling emotions, such as: shortness of breath - sweating - such as squirming in your chair - can not to sit. And spiraling becomes more intense: cussing - screaming - throwing things - breaking things. TO spiraling out of control: panic - despair. Clearly there is a whole list of unpleasant physical reactions to emotional situations, realizing them as they appear to be a step in controlling them before "taking" and lead to spiraling.

Be aware

Want to know the potential for spiraling situation. It is important to recognize that they have emotions, and not try to ignore or hide from them as a solution or because they are considered a sign of weakness. This fact will only make the situation worse. You are human - people have feelings - emotions become more intense in difficult situations. So, do I need to know how I am going to answer as I go out of control. I should know, and have something to remember and / or think about, you can keep this to happen - that can keep me as neutral as possible, in what will be more difficult trading periods - something that will "push" me back to tmethod and 'away' from tpsych.

What does traderC do?

traderC a trader who remains neutral in most wins and losses, the most neutral in all situations. It is this neutrality that it is essential for maintaining the emotions of becoming a trading psychology spiral as the trader may be 'true' estimate their losses in terms of the method. This will only merchant trading method setting their most "base" after any hard time if they lose, so be it, that possibility has already been accepted. Go to the next way trade - it will probably be the winner.




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