Hot Streak

[wsam29]

What are some things you guys do when on a hot streak?

Psychologically, its normal to think what ever you touch turns to gold and that may and often does lead to disaster. I heard about it and witnessed it first hand.

Having a huge winning day from a trade often does that to one as well.

My definition of hot streak are consecutive winning days.

My numbers are hardly exciting but 12 trades, 9 winners, 3 losers.

There are many more factors and ratios I can post from Tradestation.

Each day, only 1 trade was made, win or lose, I called it quits, but traded funds that are under my management.

[brownsfan019]

Walter - I strike while the iron is hot. Hence the reason for my posts supporting trading all day, esp on days when you are creating money out of thin air.

[cooter]

	Quote:	brownsfan019
	Walter - I strike while the iron is hot. Hence the reason for my posts supporting trading all day, esp on days when you are creating money out of thin air.

Hi Winfred,

Didn't see Walter's response, but to answer your question ...

One good day does not necessarily lead to another. In fact, many traders over trade or "supersize" their positions during their next trading session, since they may think that they are "untouchable".

Personally, I like to walk away and smile. Take a day off, and enjoy the exhilaration of killing the market. Anything to bring myself back to an even keel after a day (or even a week) off.

[walterw]

	Quote:	brownsfan019
	Walter - I strike while the iron is hot. Hence the reason for my posts supporting trading all day, esp on days when you are creating money out of thin air.

The thread is from Winfred, not Walter... lol..

[weiwei]

Hot streaks, got too many of them. I am not talking about just a big winnnng day. I have had many 10+ winning days in a row.

End up give most of them back. Then have to sit down and re-exam myself on what is causes.

Many people will quickly point out why won't you do this and that to provent that. My answers to them is that I guess every one have different way of learning, and that was how I learned.

So for now, when it happen again. I take a few day off, extract some profits, try to forget that, and start over again.

I hope my experience will help some one to cool off, and not repeat what I did.

[wsam29]

	Quote:	weiwei
	Hot streaks, got too many of them. I am not talking about just a big winnnng day. I have had many 10+ winning days in a row. End up give most of them back. Then have to sit down and re-exam myself on what is causes. Many people will quickly point out why won't you do this and that to provent that. My answers to them is that I guess every one have different way of learning, and that was how I learned. So for now, when it happen again. I take a few day off, extract some profits, try to forget that, and start over again. I hope my experience will help some one to cool off, and not repeat what I did.

Been there done that!

I'm content pocketing 10 ticks and calling it quits. It just takes time to make a killing picking up nickels and dimes along the way.

[torero]

I think it was Marty Schwartz who admitted that he doesn't do well after a streak. He does one thing is on Jan 1, he starts at 0. I think this can be done week to week and extract money from the account to keep your feet on the ground. When I started doing this, the giving back become less habitual.

[cooter]

	Quote:	torero
	I think it was Marty Schwartz who admitted that he doesn't do well after a streak. He does one thing is on Jan 1, he starts at 0. I think this can be done week to week and extract money from the account to keep your feet on the ground. When I started doing this, the giving back become less habitual.

Did you find that you were over trading or oversizing your trades only because your P/L was larger? And was this affecting your trade style (i.e. the psychology of how you take / exit trades)?

[torero]

I think I get sloppy with the more wins than expected and started thinking every setup was a sure fire win. I started seeing setups where none existed. Basically I get out of my trading plan. The larger equity keeps telling me "it's ok... you still have so and so to PLAY with." That statements just kills my streak almost immediately and I've caught myself saying that. So when I start clearing out to 0, I have a better objective without the cocky cushion money to play with. Every trade could be my last trade with 0 so I stay attentive and defensive.

[brownsfan019]

	Quote:	torero
	I think it was Marty Schwartz who admitted that he doesn't do well after a streak. He does one thing is on Jan 1, he starts at 0. I think this can be done week to week and extract money from the account to keep your feet on the ground. When I started doing this, the giving back become less habitual.

Extracting money from your account is a great idea in my opinion. First, you see and feel the fruits of your labor. This is useful if you have a significant other, family, friends, etc. that may be doubting your new biz venture and you want to show them cold, hard cash. I know others will say ignore them, but if your wife/husband is questioning what you are doing, putting cash in their face should help for a bit. This also reinforces what you are doing each and every day for your psyche and mental well being. I've read that some traders copy their 'paychecks', print off bank wiring papers, etc. and have them ready when you need a boost.

Second, as tor said, you 'restart' your trading account and don't feel as if you are trading with 'house money' which is when many traders easily give money back. It's too easy to just say 'oh, that was just the house money, no biggie'.

I would suggest all traders do this, regardless of account size. I know it seems silly to request a check for a 100 bucks, but you NEED to get that check in your hand, esp in the beginning. You NEED to see and feel that by doing your job, you got paid.

This is another one of those psyche things that I think are more important than any other part of trading. I believe we are our own worst enemy in trading. Your brain is an incredible, complex thing that can really, really get in your way of being successful at times.