It's both interesting and comforting to know that as you approach the struggle ahead that others already in the den are struggling to overcome the demons that are associated with trading on the betting exchanges.
They make a trade that goes against them, and then close their position for a loss, only to see the trend reverse and start to move the way they thought it would move. Damn - if only they had stayed with that trade! Then in the very next trade, they unfortunately enter on the wrong side again, and it starts to go against them again, only this time, they hold, no way will they make the same mistake twice. But this time, the trend holds, and goes further and further away from them, and now they are already 8-10 ticks to the bad.
Emotion takes hold. Why them? Why has it gone against them again? They then decide not to take the loss and to let this one go in play, to let it ride, surely fate wont be cruel and let this one now massive liability win. Surely it wont win? It wont will it?, It will, They know it will! But still they let it run and yes it wins, and now in the space of 5 mins, their mood changes dramatically, they are cursed, it's happened again, why oh why does it always happen to them? What harm did they ever do to anybody?
The computer screen clears as the race is settled, and then the depression sets in, a deep hurt, a real deep hurt, and one that holds for the rest of the day.
So why do I find this comforting? Do I revel in other traders pain? Do I enjoy seeing other traders fail? - No. I find it comforting because I remember the pain vividly from last time, and that what happened to me happens to many other traders at different times in their trading life, and they, like me have to learn to not emotionally react to a number of trades going bad.
Discipline, my friend, discipline.
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true my friend... been there...
ReplyDeletediscipline is number one, two and three in trading, then everything else...
Great description of the emotion. Plenty of us have been through it on a regular basis. Good Luck!
ReplyDeleteBeen in that position more times than i've had hot dinners!!!!.....,hard to take a big loss on a trade before you have even had a "run" for your money,so you gamble and let it ride,with the intention of trading out in play as soon as your "green",result,the green figure rises and rises,you wait thinking your in for a massive profit.....,then it all goes wrong,your mugged on the line!!,no bank left,mind in turmoil etc etc.
ReplyDeleteMario, the reminders are all over the wall. This I know will be my biggest hurdle, and so if I fail because of it, then I'll look in the mirror for the guilty party.
ReplyDeleteRob, cheers. Here's hoping that the roller-coaster ride I am about to embark on is at least a long one.
Anonymous, I know that we technically gamble on which way a trade will go when we trade pre-race, but letting a pre race loss go in play is to me a 100% gamble, everything has now slipped out of your hands, and Lady Luck now takes the stage.
(Cue the music to Human by the Killers)
Are we Traders, or are we Gamblers..............