As you might have figured out by now from my previous posts, traders (me included) aren't likely to start helping themselves to change until they get to a serious drawdown, in other words a huge loss in the trading world. Unfortunately it often takes this kind of very stressful frustration and extreme situation for a trader to see that they need help. It was the case with me, but even though I went through a lot of painful realizations I am very happy that at least I didn't make every possible mistake there is. I have the consolation that I never traded without a stop, and I never moved my stop to make a loss bigger. But still, my biggest mistake, my biggest issue was trading to make money no matter what. This was my first biggest mistake that became apparent once I stepped away from live trading and went back to SIM.
“Trading requires a mind free to process data and select appropriate action. But we no longer have a free will if we are mechanically reliving scripts from the past.”*
In the book I read:
“One trader I worked with grew up in an overprotective and controlling home. He rebelled as a teenager and subsequently found himself chafing at any constraints on his behavior. His violation of rules in relationships (monogamy) and trading (the risk-management rules of the firm) led to one failure after another.”*
I felt like I was reading about myself. If I had only known about this connection from the beginning I would have worked on myself a lot sooner, and I would have looked for behavior that was hurting, not helping at all. My life experiences as a kid, teenager and adult added a lot of stress to my trading. Being a very sheltered kid, a rule breaking teenager and a totally impatient parent is reflected in my trading. Having been sheltered saved me for some time and it helps me now when I finally have a set of rules to follow. The teenage rebel in me contributed to my losses by insisting that I always make money no matter what. And now in my life I have kids that force me to practice my patience. Trading on SIM account showed me what I do wrong and also what I do well, but most importantly it helped me to realize who I want to be. Reading this book gave me the great recipe for becoming that person.
“Create the roles that mirror your desired identity; live scripts of your choosing.”*
*LESSON 8 The Daily Trading Coach 101 Lessons for Becoming Your Own Trading Psychologist by Steenbarger, Brett N.
“Trading requires a mind free to process data and select appropriate action. But we no longer have a free will if we are mechanically reliving scripts from the past.”*
In the book I read:
“One trader I worked with grew up in an overprotective and controlling home. He rebelled as a teenager and subsequently found himself chafing at any constraints on his behavior. His violation of rules in relationships (monogamy) and trading (the risk-management rules of the firm) led to one failure after another.”*
I felt like I was reading about myself. If I had only known about this connection from the beginning I would have worked on myself a lot sooner, and I would have looked for behavior that was hurting, not helping at all. My life experiences as a kid, teenager and adult added a lot of stress to my trading. Being a very sheltered kid, a rule breaking teenager and a totally impatient parent is reflected in my trading. Having been sheltered saved me for some time and it helps me now when I finally have a set of rules to follow. The teenage rebel in me contributed to my losses by insisting that I always make money no matter what. And now in my life I have kids that force me to practice my patience. Trading on SIM account showed me what I do wrong and also what I do well, but most importantly it helped me to realize who I want to be. Reading this book gave me the great recipe for becoming that person.
“Create the roles that mirror your desired identity; live scripts of your choosing.”*
*LESSON 8 The Daily Trading Coach 101 Lessons for Becoming Your Own Trading Psychologist by Steenbarger, Brett N.
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