The purpose of this blog is to provide a comprehensive compilation of articles and posts which have been of great help to me in the past, or that I find very insightful, wise or containing a great deal of useful knowledge.
The original author of the text will be mentioned, so that those who are interested in the subject can explore it deeper.
The blog will consist out of several categories, some more theoretical, other containing charts and analysis.
Finally, this blog is, in a way, a continuation of the journal
I started in the public section on another site.
The original author of the text will be mentioned, so that those who are interested in the subject can explore it deeper.
The blog will consist out of several categories, some more theoretical, other containing charts and analysis.
Finally, this blog is, in a way, a continuation of the journal
I started in the public section on another site.
Focusing on the trade instead of the P/L
Posted 02-20-2009 at 04:58 AM by firewalker
This article describes a problem I'm often experiencing by focusing too much on the P/L rather then on the trade itself. For example: letting yourself be influenced by a previous loss by trading more prudently or letting yourself become overconfident after having a series of winning trades.
http://traderfeed.blogspot.com/2009/...ing-plans.html
Steenbarger put it poignantly:
"Performance anxiety occurs whenever our concerns over the outcome of a performance interfere with the process of performing. If our P/L focus exceeds our plan focus, we will tend to act impulsively to allay our P/L concerns, thereby violating trading rules and plans. Under conditions of frustration and anxiety, our perception becomes tunnel-visioned: we act to reduce our distress, rather than to maximize our opportunity."
http://traderfeed.blogspot.com/2009/...ing-plans.html
Steenbarger put it poignantly:
"Performance anxiety occurs whenever our concerns over the outcome of a performance interfere with the process of performing. If our P/L focus exceeds our plan focus, we will tend to act impulsively to allay our P/L concerns, thereby violating trading rules and plans. Under conditions of frustration and anxiety, our perception becomes tunnel-visioned: we act to reduce our distress, rather than to maximize our opportunity."
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