Hey all….. since my last post things seem to be ticking over nicely, a few minor blips but im seeing it all in a different light now! I can see this is a multi-layered problem and is going to take a long time to get to the bottom of, although should I get there I believe its going to be well worth it.
So what have I learnt about myself?
I am deluded and have been for some time, the reason im not knocking out impressive days is not because I cant read the market, not because I don’t know what’s going on, not my analysis but purely in my execution and mindset. I fully believe I don’t even need to know any more about the markets and how they work and so im going to stop trying to learn… im just going to focus wholly on how im feeling and why im thinking what I am.
Getting out too early, getting in too late, not cutting losses fast enough, leaving money in the market and not being fast enough, entering correctly and not following through all seem to be problems of mine. I was wrong to assume that these were down to analysis of the market and that more research would set me in better stead in fact that in itself was adding more pressure to my mindset as I ‘should’ of not been making these mistakes!!
For the last few months definitely I have been trading far to defensively.. full of fear for what might happen as it may seem. So here are my area’s to work on…
The Edge – On forums there is much talk of edges and how people hide them, in my experience there is no ‘holy grail’ no ‘hidden edge’ just the ability to read a market and how it behaves (usually) I firmly believe I am quite good at this and am often right…. and so I don’t feel the need to work on this area, but more a case of needing to trust my edge.
Fear & Euphoria – This is a particular problem for me… it would seem starting out trading I was rather successful as I was ‘carefree’ the majority of the time, trading was a fun little game… it became more obsessive as I started to make money.. and so the driving force shifted changing my perception and attitude towards it all from ‘a bit of fun’ to ‘I need to make money’ this was the start of the downfall as I have developed a fear from the markets where by I often sit and watch only entering a position once or twice in a race. On the other hand when I have very good results it’s often followed by a loss.. why is this? Euphoria.. the opposite of the fear and in my opinion can be even more dangerous!! after a big win I have many times upped a stake resulting in a bigger loss… and more fear. From now on I am going to be consciously aware when trading and do my utmost to remind myself not to be fearful or over excited (probably easier said than done).
How am I going to combat the Fear/Euphoria? A difficult one to approach im sure although as yet the only real way I can see myself doing this as suggested by mark douglas in his books is to truly accept the outcome of each and every trade before I even enter it, this then in turn should also stop my perception of the market becoming warped while I have a position open (again probably easier said than done).
Consistency = Attitude – Seems so obvious doesnt it? If you have a bad attitude you will have poor money management and erratic entries/exits as you are negatively driven…. where as a good attitude produces optimism and the ability to stick to your mythology (maybe not completely, but more so)… it reminds me of Eckhart tolle’s book ‘the power of now’ positive thinking produces positive results in anything we do.
Have you ever felt paranoid or like the market is against you ? i have many times…. the reality of it is your just fighting yourself as the market is a blank canvas… ‘the market owes you nothing’ i’d say this comment is inexplicably linked with attitude.
So for me I cant stop looking at my total balance market in and out as I trade… a rather poor habit as im putting more pressure on myself etc as I go… as part of a mini challenge if you like, this week as of today I am going to set myself the challenge to not look at my balance for a whole 7 days!! my god that’s going to be tough, will be interesting to see if it has any kind of impact on my performance… so this week trading is purely about ticks alone viewable balance disabled and no logging into Betfair!
I’ve added a poll on the side bar…. please join in! Poll is now over