Few things to keep in mind while trading

there are many things which go into while trading. we need to keep few things in mind to trade successfull.

Few of them are...
Don't Fall for the Myths: speculations and rumours will make us go around. we shoud stop for a while and think and then act.
Trade with Discipline: We should trade with disciplined. Our mindset should be disciplined
Trade with a demo account: Demo accounts gives the real picture of real trading.
Restrict your losses: when you start making continuous losses, stop trading for a while and then go ahead again...but do not give up

I think these things would help you in a better way.

Absolutely agree except Demo accounts. Do not think it shows real picture coz it is just the game not real market, better to use small real accounts.

I agree TraAnAn,, there's a lot of difference in sim trading & having $ on the line. No matter how small the amout of money is you still experience the emotions of real trading. Trading is simple, its the emotional part of trading that cause most to fail. IMO

pt_emini and I discussed a while back how to simulate the "fear of losing money" without actually risking money. One of the ideas that we came up with was an electronic shocking mechanism that gave you a small (and safe) electric shock when you didn't follow your plan.

We decided that losing money wasn't the problem because that will always happen and you need to make sure that you win more than you lose to be profitable. We thought that not following a plan was the biggest problem that traders faced and if they moved outside of their plan boundaries that an electric shock would prevent them from doing so and train them to be profitable traders (assuming the plan is profitable).

I've no idea how you would setup a mechanism like that though...

Originally posted by day trading

pt_emini and I discussed a while back how to simulate the "fear of losing money" without actually risking money. One of the ideas that we came up with was an electronic shocking mechanism that gave you a small (and safe) electric shock when you didn't follow your plan.

We decided that losing money wasn't the problem because that will always happen and you need to make sure that you win more than you lose to be profitable. We thought that not following a plan was the biggest problem that traders faced and if they moved outside of their plan boundaries that an electric shock would prevent them from doing so and train them to be profitable traders (assuming the plan is profitable).

I've no idea how you would setup a mechanism like that though...

It is a good thing that you decided not to set up a physical punishment system for not adhering to ones plan using upon a stumulus-response-punishment system. Trying to extinguish a behavior (veering from the plan) using punishment can be effective, but also has limitations, particularly around trading. What your talking about is a classic behavior modification technique.....and the reason why such techniques are not widely used to solve many problematic behaviors is because of a concept in behavioral psychology called generalization. In a laboratory environment where you can control the stimulus it might work, but in trading, where each situation is a bit different (each time the market pattern or stimulus appears it is a bit different then last time) you can't control the stimulus. With a myriad of possible scenarios, there is no way to condition (or extinguish the problem behavior) your response to each possible situation you may face as a trader. There are other traditional behavior modification techniques that can be used with trading, such as exposure (as opposed to punishment).

But I like how you thought about it, that 'losing is not the problem'. That is very true. I would add that because losing is part of trading and unavoidable, the critical variable is how one responds to loss (loss averse, risk averse, need to be right, etc). Unfortunately, most traders will not deal with this on the level that it needs to be dealt with, the emotional level. In fact, some people even believe you can eliminate emotions (as a psychologist I would say as long as you have a pulse, you have emotions even if your not aware of them). Learning to adhere to one's plan and handle loss with poise requires increased ability to tolerate negative emotions. Working to expand the capacity to experience discomfort without without engaging in a corresponding maladaptive behavior or action should be the goal.

make sure you are always connected to the server ... LOL

The REAL POWER of money in markets is in EXCITING people and making them FEARFUL
Patience is one of the most important factor in trading. You need to have patience while entering a trade and while exiting a trade.

Who's board is this? I registered because I saw the #Daytraders 9/11 log- I'm in it- is whoever in charge here from #DT?

Slocum3a

Thread/Topic title: "A Few Things to Keep in Mind While Trading" ... just want to steer it back to the core subject and appropriate information and material.

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Tough gig out there! Good luck for trading Friday folks!

You're right On-The-Money Monkey...
Funny but so true...

“absolutely, discipline is very much required”