I'll be honest, for as much as I know and the length of time I've been trading, I am still very prone to mental mistakes.
John Carter said to me when I did the mentorship that my problem was coming up with a trading plan and I should be able to put in words and explain my entry set-ups. They also talk about thinking in terms of probabilities.
Here's my issue, most of the trades that I "glance" at, without putting too much thought into them, turn out to be some of my best trades or no-trades.
When I try to adhere to my so-called set-ups, I do very poorly, actually down right I just suck at it it. The hardest part is sitting arond and waiting for them to occur or not occur. Its my personality, I just want to get it over with so I can go on with a "normal" life, if there is such a thing when you are a trader or want to trade for a living as a profession. For poker I can sit there all night just waiting for the hands I like to play and consider if they are worth playing based on what other players do/bet.
A great example if a retracement of a move for a "conservative" entry for possible price continuation in that direct. Everyone knows this is the ideal "set-up" for an entry of high probabilities. Here's where I have my problems and mistakes. I don't know the exact probability other than 50/50. It's not like a hand in poker you are dealt with, there are 52 cards in a deck and depending on your hand and the flop, that is how you know your probabilities of making a hand.
These pullbacks can occur from many technical patterns, double bottoms, sideways channel break out, you name it.
The problem I have when it comes to trading is the way I think when these "set-ups" occur. I always think they will work out and when they don't or the price does something that its not "suppose" to, I get mentally messed up. But I am following a "plan" that is not working so hot at the moment.
I do admit, I spot dull and quiet markets quite will with my eyes and that may be my strength because I understand that "set-up". Its after the market has made its inital move that I get all messed up because the price may not continue in the same direction. (I just answered my own question here)
My issue has always been my way of thinking, maybe I do too much of it when I am about to trade or wanting to trade. I ask myself this sometimes, "maybe I should try playing poker instead?" I always know when to fold a hand that has low odds of winning or "outs" as they call it. When I lose a hand that has many outs, I accept it with grace and when it wins, I understand the odds of making a hand are x and don't get excited one bit when it hits.
Now if I can only transfer that mentality to trading, I am set for life.
They have this lottery here in Ontario, Canada called "Cash for Life" the winner gets $1000 per week for the rest of their life until a certain age or when they bite the dust. Having that same mindset would be my "Cash for Life."
Since I've never sat down at a poker table at a Casino, the thought of a "career" change is frightening because it is no home game that I am accustomed to. Also how much of a stake do I need to get started say at a 5/10 limit table?
I need to really zen out and not think too much when its time to trade. Have absolutely no inner or outer conflict.