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Old 06-02-2007, 03:24 PM
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walterw walterw is offline
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Re: How best to fight the mental game...

I dont want to intrude on this thread, thought the idea is to hear docs opinion... but reading your issue on exits Brown it really reminds me of a great crisis I went thru on my trading career some years ago...

I know each individual has their own method of thinking and what can be helpfull fore some may not be for others... any way hearing all the bells sometimes can bring some light at the end of the tunnel...

My experience with exits is similar to what Tin just mentioned, you can get frustrated for geting out early or frustrated for waiting and loosing what at some point was profit...

I came to the conclusion that there is an "average" exit method that will work from 0 to 100 % expectations... so triyng to find an exit method that will always give me a let say 90% of my expectations its totally imposible, because the market is so unpredictible on its output that exits come on the same cathegory of unprediction...

So to calm the traders mind and take out the burden and stress of triyng to exit the best posible, I came to the conclusion that a trader must KNOW his average exit... (technically speaking ) and simply trade it...

If the outcome could had been better than average, dont feel bad... you had the discipline to stay tunned with your average exit and you are in peace with yourself...

Now that sometimes demands a truce with yourself in terms of what are your monetary expectations on an X universe time period, say day, week, 15 days or month...

If you program your self to make (lets say) 1000 dollars per month contract... in 30 contracts thats 30 k month... nice mmm ok... so be in peace with that target

maaaaybe the market wanted to give you 50 k that month.... but you know, that maybe creates a great anxiety, you are depending emotionally on the market performance and frustration will be in there... on the other side you made 30 k ¡¡¡ whats the deal on been frustrated...??

I would like to conduce a poll here on TL and see how many traders are making 30 k on a monthly steady basis...

You see, having certain monetary objectives and asigning to them the 100% of success detaches you of reading the market to rate your success... wich is an evil machine that will turn you nuts...

You made your month target.... you had 100% success.... be Happy and enjoy life...

Now my other key.... Keep your $ targets LOW... if the target is low, the more great chances you have of making it real... if its to high chances are lower so there is a psicologicall pressure there that tells you I am triyng to do something not realistic...

When you combine all this with your trading, taking average exits... it may work like a charm...

Takes self programing, takes time, takes will.... it is posible, it makes you free...

If the market outperforms your targets, let him outperform, you made your monthly target, feel good with that, enjoy life....

Hope helps.... cheers Walter.

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