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The great loss mechanism - page 2

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Aleksey Vyazmikin:

If only to consider spreading the money over many different brokers so as not to promptly pour it into one account, then maybe. As a protection against yourself. Trading different instruments won't do anything here, because the account is with one broker.

But it's not like that. The thing is that any asset may move in the wrong direction for one ton of points due to somethingunforeseen (or not obviously predictable). Not according to the system so to speak. The probability that many underlying assets will also go down is lower, especially if they have different fundamentals.

Alexandr Andreev:

That's not really the case. The point is that any asset can, on the back of somethingunforeseen (or not obviously foreseen), go into the wrong direction by a ton of pips. Not according to the system so to speak. The probability that many underlying assets will also fly is already less, especially if they have different fundamentals.

In fact you are proposing to limit the volume of entry into a trade, at the expense of constantly being in other assets in parallel?

That may be an option, but I really have my brain sharpened to one Si instrument now, and trade it, except for the occasional speculation on gold and oil.

But then again, there will come a fixing point on the other assets, because trading introday, funds will be freed up and they will be absorbed by the uncovered position... Although, the position will not be so critical in monetary terms.

So we need to look for instruments for frequent trading, independent of Si, but what could it be globally on Moex?

[Deleted]
You should probably look at the statistics of leaking dc accounts rather than your emotions. You are looking in the wrong place
[Deleted]
I wonder if the guys making the recommendations have already solved their psychological emotional issue? Just curious.

Forum on trading, automated trading systems and trading strategy testing

The mechanism of large losses

Aleksey Vyazmikin, 2020.07.06 00:42


1. You may try to change your attitude to money, but it is unrealistic, because it is too deep in your mind;
2. Risk other people's money without responsibility for the outcome - it may help in theory, but how to do it realistically, and I'm not even talking about other people's money, but the emotional withdrawal of responsibility for them - you need a system of rewards not tied to the financial result, for example for compliance with the risks, but in the absence of motivation to profit - not sure that trading will be really effective. There should be a separation of roles, as in banks or trusts - strategy from the analyst and implementation (tactics) from the trader. The private trader is his own strategist and tactician.
3. Supervising - the external control of the risks and the emotional state of the trader - this should be very effective, and ensure protection from one-time large losses, going beyond the boundaries of reasonable risk. However, this is difficult to implement at home - who to trust to independently judge your failures? Again, professional traders in the form of legal entities have if not a psychologist on staff, then at least a risk manager who technically cuts losses.
4. Change the attitude towards your mistakes in trading - there is a big connection with mistakes in trading or anything else, but of course, with experience you get better and better at separating mistakes in trading and in your other activities, but sometimes, under the amplification of emotions, this control of separation collapses.

5. Any ideas other than not doing this activity? Or does it all stress you out too much - boring and uninteresting?

"

Hey bro! I also noticed, like you, that psychological state affects very much, and here's the way out, 1) you have to have a TS that generates often TVX, which have the following characteristics, risk/profit of trades should be 1 to 3 or higher, then it will already be easier, because you will just have to wait and search for these very TVX, and several losing trades will not be able to throw you into a depression. The important word is "often", because waiting for ТВх for a very long time is not kamilfo, and only waiting for a long time itself can make you depressed and sad. Exactly the depression may provoke MM breach (overestimate of volume), that is why TS should frequently give profitable ТBx. And then it will be easy to tolerate losing trades, and waiting for those ТВх.

A really big loss is if the broker allows the account to go into deficit)

And honest brokers simply have no other option.

Maxim Dmitrievsky:
Probably, we should refer to statistics of losing accounts of DTs rather than emotions. Looking for yourself in the wrong place

How can statistics help to identify the cause? I was thinking of doing such a thing for myself - writing a code in the order comment, which can be used to determine the conditions for closing a position, and then checking how well that condition is actually met.

Aleksey Vyazmikin:

How do statistics help identify the cause? ....

)))))) sorry, had a long laugh.))))
Реter Konow:
)))))) sorry, had a long laugh.))))

Peter, do you want the new starwars done?

Your ideas are way crazier.
awsomdino:

Peter, do you want the new starwars done?

Your ideas are way crazier.
Don't be nervous.) Of course they're crazier. )))
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