Wednesday, February 4, 2009
Practice against Anxiety
Since I have not been trading for to long I've found that whenever I place a trade, no matter how secure I am prior to placing the order, I start to freak out once I've place my order. There really is no reason to freak out as I have a stop loss and take profit set in for back up... but I still freak out. For the moment, I am testing a strategy where I place two orders at the same time,(long and short) and I drop one of them when I see a trend start forming. This way, I can leave my computer or turn it off and still feel safe. For the moment, I have not closed any and I understand that I'm paying my brokerage twice the amount of pips, but the security, and the fact that i only have to close on time, and not place my order on time so far has been a plus. I will update tomorrow after the trades are finished off to see if its really that effective. If anyone has any suggestions as to how you got over traders anxiety, I'd be happy to hear from you.
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Hey Jon,
ReplyDeleteHad fun reading your stuff.
About trader's angst - here's my take.
When I traded the stock market it was money that I wasn't extremely attached to. Basically, I knew my strategy and also knew that there was a worst case scenario, which I was 'ok' with. So I do my best to 'fire and forget', so to speak. It's like when I decide to lend money to a friend - it's money I basically forget about, because I know odds are it'll never come back and I don't need the drama. So yeah, key-word for me is 'indifference'.
Last word - I always feel butterflies and I'll never like losing money, but I let it go so that I can stay in the game.