[LuKOsro]

Hello all!

This is Lucian and I`ve been trading for the past 3 years with some modest success. I`ve had my heavy drawback periods and sometimes my portfolio seemed to go underwater. Luckily it didn't. I did all the rookie mistakes of doubling down, of closing down winning positions, of acting impulsively, of getting greedy and forgetting about my system and so, so many more.

Reading a lot of trading literature taught me the building blocks of trading, but only experience showed my that the biggest enemy in trading lies within. I considered money lost because of stupid and impulsive moves an expensive tuition fee, but it all paid out eventually.

I also recently started a financial commentary blog, but I`m not going to post it here because it would not be alright. I`m glad to be here and to start posting some insights, and if I may be of any help, I'd be glad to do so.


Cheers,
Lucian

[C4Warrior]

Hi Lucian,

I'm a rookie trader - just broke into the market during the recent slide after months of simulator training, reading, and testing models. All that preparation has taught me just how much I still don't know, and I'm constantly looking for additional perspectives so I'd love to read your blog commentary. If you could kindly pass along the address to me via private message, I'd be obliged.

Cheers,
- James

[Vaughn]

Greetings Lucian

Sounds like I am in the same boat you were. I too, am paying my "tuition," and hopefully, like you, will learn the psych lessons in time. I'm just over a year now, and true to form, the mechanics of trading are coming along ok, it's the pesky little "me" that gets in the way.
Hook me up, I'll follow your blog.
TIA, Vaughn

[steve46]

While the technical issues can be solved mechanically, the psychological issues are harder to deal with.

As mentioned in one of my early posts on this site I had the opportunity to work with Dr. Ari Kiev (since passed away) and that experience was a real turning point in my career. Not only did I learn to deal with my own issues but I also learned how this market can "work on you" in such a way as to make you distrust your judgement, even when you have a good system....For traders who have problems either executing or staying in a trade long enough to profit, I suggest starting by reading the work of Dr. Kiev and Mark Douglas...

Hope this helps
Steve

[jackb]

If you have only been trading 3 years, I suspect, unfortunately, you still have some tuition to pay.

[bakrob99]

I find my willingness to take trades and follow my rules is enhanced if I backtest and forward test my edge/strategy and really find out what the expected returns are.

For example:
I know that in my setup trading the ES if I use a 6 tick stop, it will get hit 37% of the time but the 63% reaches 12 ticks. So for me, it is easy to set my stop to 6 and target 12 which is a 2:1 RR ratio.

Knowing that I can still be a winner if I only get 40% of my trades winning helps take the trade and stay in it.

If I use a bigger stop and smaller target I will have a much higher win rate but then I must have a higher win rate just ti break eve\n. That makes me more "nervous" and I end up hesitating on entry or taking short profit both of which are account killers.

So - for me - the psychology of knowing my winners when they come will be bigger than my losers helps.

[laurus12]

Good start on a thread with a most important topic.

I can relate to what both Lucius and Steve wrote.

I've had to recognize which market situations my ego comes into play and what the specific ego-topic was in these situations. I say this because there are situations where I feel completely confident and there is no stress to mention of. In the ego reaction situations I liken them to how the shark research guys on National Geographic have learned to behave when they are in the water with the sharks. Meaning my ego is the shark or a wild animal where I have learned how to handle it in different situations. So when I now see a market situation which relate to this, which can be about both entering or exiting a trade, I am prepared with certain procedures.


Laurus

[laurus12]

Originally Posted by steve46 »

... how this market can "work on you" in such a way as to make you distrust your judgement, even when you have a good system....

Thanks for this one Steve.

I am wondering if this topic is specifically handled in Kiev's or Douglas' book?

Anyhow I am also wondering if there is a specific book you would recommend by Kiev? I did a search on amazon.com and found six by him I think.


Laurus