Times you couldn't take the trade and how you overcame it
Posted: Mon May 28, 2007 6:32 pm
Hello all, I have been browsing this forum for a while now as a guest user and decided to sign up since I enjoy the discussions and thoughtfulness here.
Some background: I have been trading stocks for ~10 years, though not with any clear direction or method until about a year ago when I came to know a rather successful trader who has been providing me with some great reading materials and overall knowledge of the markets. For the past year I have dabbled a bit in Forex too.
My dilemma, that I am hoping for some feedback on:
When it comes to stocks, I have zero qualms with getting into a trade with clearly defined exits. I end-of-day trade stocks (and deep-in-the-money options when suitable for leverage), and I use a systematic approach to screen them, pick the entry, stop and profit targets, and sometimes I let them go for days without paying attention to them. I do relatively well at this, but even with the small leverage DITM options afford me it's not enough to make a living off yet.
Now, here's the problem. I apply the same approach to Forex trading, and I can clearly see that it is applicable. The problem is, I keep second guessing myself and not pulling the trigger on the entries even when they do signal everything properly. I get in on a few trades, and do great, then have one or two small losses and lose confidence even though I know full well that is to be expected of the system I am using. So I go for weeks or months not touching it, then do the same thing over again.
What I can't for the life of me figure out is the mental block I have when it comes to Forex trading. I have a few theories:
1) I've always loved trading stocks, and feel like I really need to get to the point where I can do it for a living before doing anything else; like I can't let the stock market 'win' by myself not trading it well/profitably enough.
2) The Forex leverage is intimidating me. It's fun to gain big, but the losses can be pretty significant as well.
3) I am not allowing myself to become truly successful. Not to get off on too much of a tangent, but I suspect that my professional career while rather successful could be far better if I really allowed myself to do the things I know I am capable of.
...so there it is. I really don't know what is 'wrong' with me that I can have a really good systematic trading approach that I am sure can make me a lot of money and NOT USE IT.
If any of you have been in this position, how did you identify the root cause and more importantly, how did you get past it?
Thanks for listening, I know there are many brilliant traders on here so I am hoping for some help getting my head straight.
Some background: I have been trading stocks for ~10 years, though not with any clear direction or method until about a year ago when I came to know a rather successful trader who has been providing me with some great reading materials and overall knowledge of the markets. For the past year I have dabbled a bit in Forex too.
My dilemma, that I am hoping for some feedback on:
When it comes to stocks, I have zero qualms with getting into a trade with clearly defined exits. I end-of-day trade stocks (and deep-in-the-money options when suitable for leverage), and I use a systematic approach to screen them, pick the entry, stop and profit targets, and sometimes I let them go for days without paying attention to them. I do relatively well at this, but even with the small leverage DITM options afford me it's not enough to make a living off yet.
Now, here's the problem. I apply the same approach to Forex trading, and I can clearly see that it is applicable. The problem is, I keep second guessing myself and not pulling the trigger on the entries even when they do signal everything properly. I get in on a few trades, and do great, then have one or two small losses and lose confidence even though I know full well that is to be expected of the system I am using. So I go for weeks or months not touching it, then do the same thing over again.
What I can't for the life of me figure out is the mental block I have when it comes to Forex trading. I have a few theories:
1) I've always loved trading stocks, and feel like I really need to get to the point where I can do it for a living before doing anything else; like I can't let the stock market 'win' by myself not trading it well/profitably enough.
2) The Forex leverage is intimidating me. It's fun to gain big, but the losses can be pretty significant as well.
3) I am not allowing myself to become truly successful. Not to get off on too much of a tangent, but I suspect that my professional career while rather successful could be far better if I really allowed myself to do the things I know I am capable of.
...so there it is. I really don't know what is 'wrong' with me that I can have a really good systematic trading approach that I am sure can make me a lot of money and NOT USE IT.
If any of you have been in this position, how did you identify the root cause and more importantly, how did you get past it?
Thanks for listening, I know there are many brilliant traders on here so I am hoping for some help getting my head straight.