How can one tolerate losses, or a life of waiting for profits?
I am psychologically uncomfortable with losing streaks - I get anxious and disappointed in myself. Now I trade with my hands, and every trade at a loss gets me down - I'm looking for new ideas for trend trading. Especially annoying are stops - I look at the history and realize that without them I would not have lost a third of my deposit in a couple of days - emotions - inadequate behaviour...
I'll be honest with you. It is believed that the lower the TF, the tougher the trader. The TS, if it works, should work on any TF. However, when a trader says that he trades on minutes, and even profitably, it is praiseworthy. I myself have always been sinning with 5 minutes and 5 minutes, but I have noticed that the less frequently I trade, the more profitable the trade is in general. This is why I've shifted to 15-minute trades and sometimes 10-20 trades a day, which is not good.
Sometimes I have traders who calculate the level of loss and set stoploss according to TP and completely forget about TP setting. Assuming that an arbitrary large TP is a guarantee of profit. However, lately I came to the conclusion that setting TP is as important as setting SL. Always be in the market, knowing how to successfully turn over, it is the lot of professionals. I would even say it is a rare case. But this approach to the market is more comfortable for me.
You see a signal, open a position, calculate the SL, set targets for TP and wait. Either the SL or TP will trigger. If TP is triggered, it does not matter how the market will behave further, whether it will continue to move or not. It is important on the principle: came, saw, took away. And then do not climb higher. You saw the next opportunity and after that you do it again.
Just some people think that once you close a buy, you have to open a sell.... that leads to unreasonable risks.... No
Came in, saw it, picked it up... and was so....
It's probably worth doing an experiment. As for me, trading without stops is the road to ruin. Stops tend to infinity... and profit(tp) tends to nonsense.
I wonder if I am just emotionally unable to tolerate losses - the fear is that I will not wait for a profitable series and I will spit and get a guaranteed loss. Yes, the plus side is that you cannot make a quick loss if you follow the MM, but how much of a deposit do you need to make a loss less than 0.5% a day and be able to live off the market?
I started working on counter-trend system in 2013 - I accumulated a lot of interesting developments, and, this system can live quite well, but if it is flooded with money at peak moments - such moments occur at every currency pair, about once a year... I.e., the economic sense, even with this clause, there is, another thing is that there are technical difficulties...
I wonder if I am just emotionally unable to tolerate losses - the fear is that I will not wait for a profitable series and I will spit and get a guaranteed loss. Yes, the plus side is that you cannot get a quick loss if you follow the MM, but how much of a deposit do you need to make a loss less than 0.5% a day and be able to live off the market?
I started working on counter-trend system in 2013 - I accumulated a lot of interesting developments, and, this system can live quite well, but if it is flooded with money at peak moments - such moments occur at every currency pair, about once a year... i.e. there is economic sense, even with this clause, it is another matter that there are technical difficulties...
By the way, I use counter-trend strategy, and more than once I got the following. I received 5-6 signals during a day, and I opened 20-30 trades. Emotions and stuff like that. So the only way to overcome emotions is to set SL and TP, and as they say, it's either PAN or PROPAN!!!!! Well, it is clear that when the next signal appears, then we act in accordance with this signal ..... But setting stops helps a lot to solve emotional problems. I also have a lot of them. You make money based on calculation, you lose money based on emotion :-(
I wonder if I am just emotionally unable to tolerate losses - the fear is that I will not wait for a profitable series and I will spit and get a guaranteed loss. Yes, the plus side is that you cannot get a quick loss if you follow the MM, but how much of a deposit do you need to make a loss less than 0.5% a day and be able to live off the market?
I started working on counter-trend system in 2013 - I accumulated a lot of interesting developments, and, this system can live quite well, but if it is flooded with money at peak moments - such moments occur at every currency pair, about once a year... I.e., the economic sense, even with this clause, is there, another thing is that there are technical difficulties...
You need to get over yourself and take a sober look at trading.
Or here's another way. Before you open a trade, imagine how you will feel if the trade closes with a loss. It's a bit sobering and you start to think rationally...
Or here's another way. Before you open a trade, imagine how you will feel if the trade closes with a loss. It's a bit sobering and you start to think rationally...
I used to have this problem all the time, and it was only because I didn't calculate stop and profit before opening a position. Then I created an indicator that allows me to use to check stops and profits, and the stop was no longer scary for me - I knew its size in advance, and if it was big, I simply did not enter the market, and waited for another signal.
I'll be honest with you. It is believed that the lower the TF, the tougher the trader. The TS, if it works, should work on any TF. However, when a trader says that he trades on minutes, and even profitably, it is praiseworthy. I myself have always been sinning with 5 minutes and 5 minutes, but I have noticed that the less frequently I trade, the more profitable the trade is in general. My aim was to trade on 15 min, but now I make 10-20 trades per day, which is not good.
I've only got M15 on forex, but on futures market... I`ve tried it with small spreads, stop loss is close to stop loss and market moves can be analyzed, which surprised me. On m1 Si the spread is about 23 pips with ATR(100) - try it.
It often happens that a trader calculates the level of loss and sets the stop loss according to the TS and completely forgets about TP. Assuming that an arbitrary large TP is a guarantee of profit. However, lately I came to the conclusion that setting TP is as important as setting SL. Always be in the market, knowing how to successfully turn over, it is the lot of professionals. I would even say it is a rare case. But this approach to the market is more comfortable for me.
You see a signal, open a position, calculate the SL, set targets for TP and wait. Either the SL or TP will trigger. If TP is triggered, it does not matter how the market will behave further, whether it will continue to move or not. It is important on the principle: came, saw, took away. And then do not climb higher. You see the next opportunity and do it again.
Just some people think that once you close a buy, you have to open a sell.... that leads to unreasonable risks.... No
Came in, saw it, picked it up... and was so....
In counter-trend trading I always put a TP, and it's dynamic - reviewed every 15 minutes.
And now, working on TS by trend, I did not see the point in TP, I exit by indicator - sometimes not reaching the end of the trend.
When trading manually, I have a problem - I defend my position, even if I am out of a position, I may reopen in the same direction, but with larger volume and I cannot place any stops.... I've done it 10 times, but with stops - I have only taken a part of losses during correction of a trend.
Another problem with manual trading is very difficult to tolerate profit - I start to look at fund information (even though I usually trade on the full screen) and at every rustle I try to close in profit.
It's also stupid when you raise big money in half a day and then lose it in the evening - feeling that you know the market, but then you want to take a loss - emotions again...
I do position reversals very rarely, but to be honest, sometimes I think I should do them more often - retrospectively.
Or here's another way. Before you open a trade, imagine how you will feel if the trade closes with a loss. It's a bit sobering and you start to think rationally...
If I start thinking about losses as a result of trading, I trade with the minimum lot...
By the way, the disadvantage of the exchange is that the stop is heavily skewed there, and if you planned a loss of 1000, you may end up with 1500 in a strong move.
If I start thinking about losses as a result of trading, I trade with the minimum lot...
By the way, the disadvantage of the exchange is that there is a strong stop pulling, and if you planned a loss of 1000, it may turn out 1500 with a strong movement.
Good afternoon! Thanks for the very interesting thoughts out loud!
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I am psychologically uncomfortable with losing streaks - I get anxious and disappointed in myself. Now I trade with my hands, and every trade at a loss gets me down - I'm looking for new ideas for trend trading. Stops especially annoy me - I look at the history and I understand that without them I could have lost third of the deposit in couple of days - emotions - inadequate behaviour...
Actually, there is a result of the loss - I have a simple ATS with stops, but without averaging(position opening is planned in two stages), works on a bar opening, TF M1. On Si futures the recovery factor for the year is about 3-8 (depends on depositing variant and other settings) - everything in MT4 so far.
The question is: how do I sit and wait for profits when I trade with the trend and then lose them in flat? For example, I have a couple of profitable waves and I am losing the rest of time - what thoughts or self-adjustments besides blind faith should help me not to worry while looking at trading results? When you trade against the trend, you get depressed once in a year when you lose, but here every day a bite is taken off....
Please share your thoughts on this topic.