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  1. #1
    Active Member

    Don't get cocky!!! !!!

    If you have a strategy that works, don't just stick to it. Stick to it very strictly!

    I placed 5 trades today. Won the first 3, and then made over-confident deviations from my strategy causing me to lose my next 2 trades. Damn it!

    If I had been stricter I wouldn't have placed those last two trades.

    Greed...

    Over-confidence...

    Not sticking to your strategy...

    Just don't do it.

    Still up for the day, but 3/3 is a lot different than 3/5...

  2. #2
    Senior Member Deanfx's Avatar
    Hi AnalyticalTrader,

    That is something every one of us should look. Overtrading is the biggest enemy to everyone of us. Best way to keep focused only on the high quality and low risk/reward trades is to limit your daily number of trades to only one to three. The other way is to enter into trades only at the beginning or the end of the week. This way you will avoid much of the problems related to overtrading and overexposure to the markets! If we stick strictly to our strategies we will have much more power to trade only the right trades and not random ones during our trading time.

  3. #3
    Master Member SeasaltMcFish's Avatar
    Lost my first 3 trades today and then called it a day

    Overtrading was a big pitfall for me too before, but now I use clear no-go signals to stop me from overtrading. I also quit trading for the day if I lose some trades in a row, just to prevent tilt moves.

  4. #4
    Active Member
    Thanks for your advice guys. Maybe it's me being a newbie why I struggle with it. I even placed two more trades just to make up for it! (not the safe way to go, I know.)

    I prob should have called it a day after 3 winners but after losing 2 I just wanted to get my profit back up for the day, and I had already eyed up a position for a late trade that I thought would come through.

    One ended up ITM and the other ATM, so excluding the ATM trade, I ended up 4/6 today. Some consolation I suppose.

    Perhaps I have too much faith in my strategy but not enough discipline to execute it strictly.

    I'm learning though!

  5. #5
    Specialist Member LesterK's Avatar
    Quote Originally Posted by AnalyticalTrader View Post
    Thanks for your advice guys. Maybe it's me being a newbie why I struggle with it. I even placed two more trades just to make up for it! (not the safe way to go, I know.)

    I prob should have called it a day after 3 winners but after losing 2 I just wanted to get my profit back up for the day, and I had already eyed up a position for a late trade that I thought would come through.

    One ended up ITM and the other ATM, so excluding the ATM trade, I ended up 4/6 today. Some consolation I suppose.

    Perhaps I have too much faith in my strategy but not enough discipline to execute it strictly.

    I'm learning though!
    Hi AnalyticalTrader and welcome to our binary trading club

    You have to change your revenge behaviour very quickly and decrease your trade size. This way you will safe your account and you will be able to start your learning process. It will take time but you will see that learning everything from money management and strategy development to backtesting and trading psychology will payoff dramatically and will generate good income for you at the end!

  6. #6
    Master Member Bogdan G's Avatar
    Quote Originally Posted by AnalyticalTrader View Post

    Perhaps I have too much faith in my strategy but not enough discipline to execute it strictly.
    Let me know how you overcome this. It's still a thing that bothers me. I "tilt" sometimes, as Seasalt likes to call it.

  7. #7
    Master Member SeasaltMcFish's Avatar
    It's very hard to overcome 'tilt' attacks. It's part of your personality structure to react too strong to some events. There are ways to overcome tilt (I can advise you to read some poker articles about Tilt, like on PokerStrategy.com), but it's just as much learning and training as trading itself.

    However: there are ways to minimize the chance of going on tilt.

    1. Money Management

    Use a proper money management! You should trade with a steady % of your bankroll, or with a fixed part, that you can alter after a trading day or week or so.

    F.i.: use only 1-2% of your bankroll for 1 trade. Not more, but also not less!
    If you trade with a too small %, you might not care about losing it and so not take your setup serious enough to listen to warnings.
    If you trade a too big %, you may panic after some losses and try to win back your money asap. You also get into the risk area that your account size starts getting to close to your losses, giving you the temptation to put it all in to gamble your way out. Don't!

    2. Health

    Don't use alcohol or drugs before/during trading. It lowers your mental barrier to tilt moves, making a tilt move much more attractive and thus easier to occur.
    Also try to get enough sleep to be clear in your mind about your setups.
    Take a walk or so every hour or so, to build physical condition and to make you think more clear.

    A good health is maybe good for several % better trades!

    3. Rest

    Take time to recover from your stressful trading days. Your body needs rest, but also does your brain! Go fishing, go to a Gym or do something else to recover from heavy days. It will work out wonders for your trading and also give you more fun in life and trading itself. After all: It's not reaching your goal that's the most important, but to enjoy the road to it! (not mine, heard it somewhere )

    Good luck!
    Last edited by SeasaltMcFish; 05-23-2014 at 10:15 PM. Reason: edited some typo's

  8. #8
    Specialist Member runneroption's Avatar
    Very good points Seasalt! They are really vital for every trader and the best you can do is to follow these rules, ensuring that you will be always in a clear state of the mind and ready to take the trades the best possible way!

  9. #9
    Active Member
    Cheers LesterK, SeasaltMcFish!

    Great points and advice.

  10. #10
    Specialist Member RCox's Avatar
    Maybe the best thing about the trading markets is that they can humble you very quickly. This actually might be what prevents you from losing significant amounts of money, as most quickly realize that even the best strategies have their weak points.

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