StockFetcher Forums · General Discussion · Recommended trading psychology books<< >>Post Follow-up
jackmack
333 posts
msg #112793
Ignore jackmack
4/16/2013 2:15:27 PM

I now have the ability to trade several mechanical systems with many very large THANK YOU's to Kevin_in_GA but over the past several opportunities to get into what would have been profitable trades I "thought" I knew better and as a result missed out.
I do not want to continue down this path since I have these wonderful filters and wanted to know if anyone has read and could recommend anything on the psychology of a trader that has helped them overcome this type of obstacle?
Thank you in advance
Cheers

Kevin_in_GA
4,548 posts
msg #112795
Ignore Kevin_in_GA
4/16/2013 2:23:38 PM

There are several auto trading systems that would eliminate your second guessing - I would suggest looking at either Prodigio or StrategyDesk. Also, Collective2 has an autotrader capability with many of the top brokerages.

miketranz
716 posts
msg #112799
Ignore miketranz
4/16/2013 10:36:52 PM

Jack,are we talking about "failure to execute a trade"?

jackmack
333 posts
msg #112800
Ignore jackmack
4/16/2013 10:48:08 PM

Correct
The filter says "buy" but I think I can do better and the market is set to fall off a cliff but it doesn't and now I missed another trade.
Called paralasis by analysis and I want to know if there are any good reads that can help one get beyond it.
I know one thing for certain and that is I need to stop looking at the charts and just go with the filter results but thought maybe someone else has experienced this - maybe came across something that helped them change their mental training - and moved beyond this type of dilemma
Thanks

miketranz
716 posts
msg #112812
Ignore miketranz
4/17/2013 12:19:45 PM

The market is controlled by the emotions of fear & greed.It's a confidence game,set up to extract maximum capitol from the majority who participate.If you base your trades on emotional triggers,you will lose your capitol.If you base your trades on logic,you will lose your capitol.However,if you separate your emotions from trading,you stand a chance.The first thing,is to have a plan that has a known statical edge.The next thing,is to execute it in a timely fashion.Failure to execute comes down to one basic thing,fear.It could be the fear of loss,fear of commitment,lack of conviction in ones system or approach to the markets.This mental deficiency is accentuated after a string of losses.My advice is to lower your position size 90% on entry.Yes that's right,90%.If you're trading 1000 shares,go to 100.You will feel less pressure executing and committing to a small share size.If the position moves in you favor,you can always go to a full share size,if it goes against you,you limited your losses. Another good tactic is to enter a "buy on stop" order above the market price.Let price move through your order to execute.You can also use "limit orders" depending on the system you're using.The key here is that you're actually placing an order "to be executed" at a particular place and time.It helps take the guess work & mental thinking process out of the equation.Executing trades mechanically should also help you commit to pulling the trigger.Hope that helps,good luck.Miketranz......

Kevin_in_GA
4,548 posts
msg #112816
Ignore Kevin_in_GA
4/17/2013 2:32:21 PM

Mike speaks the truth here. I paid a very large tuition when I first started trading to learn this. I still struggle with exactly the same issue you describe. That is why I am building purely mechanical systems that I can use in lieu of my "intelligence".

I remember a great quote I read - "The market gives you the test first, and teaches the lesson afterward."

Tripken
18 posts
msg #113098
Ignore Tripken
5/2/2013 9:38:31 PM

Mark Douglas is of course an obvious choice i've read his Trading in the Zone" several times. A new one i've just finished is "Market Mind Games" by Denise Shull, very good book will require a re-read and has some practical steps to making improvements in the fear of losing and fear of missing out departments.

My problem is just the opposite, i can get in fine but can't let it run!

Good Luck

StockFetcher Forums · General Discussion · Recommended trading psychology books<< >>Post Follow-up

*** Disclaimer *** StockFetcher.com does not endorse or suggest any of the securities which are returned in any of the searches or filters. They are provided purely for informational and research purposes. StockFetcher.com does not recommend particular securities. StockFetcher.com, Vestyl Software, L.L.C. and involved content providers shall not be liable for any errors or delays in the content, or for any actions taken based on the content.


Copyright 2016 - Vestyl Software L.L.C.Terms of Service | License | Questions or comments? Contact Us
EOD Data sources: DDFPlus & CSI Data Quotes delayed during active market hours. Delay times are at least 15 mins for NASDAQ, 20 mins for NYSE and Amex. Delayed intraday data provided by DDFPlus