How to cure stop losses from runinng addiction .

[KENNETH LEE]

I have been trading for about a year and a half. I have 4 different trading strategies I use to trade. They are very basic and profitable. I have about a 60 to 80 precent positive trade record per trade. But I still let stops run . The entire time telling myself close it and make it back. I should have been doing this full time 6 months ago if not for this...

It has gotten to the point I am disgusted with myself and am asking if anyone has heard of or knows if there are any type training type things a person could do to break that habit.. At 49 you think I would be able to stop losing money.

I have tried going back to my demo but I don't seem to have that big of a issue while trading it. Thinking maybe a trading journal. Put it all out there for everyone to see..

Any suggestions appreciated..

[n_aftab]

This comes down to your mental toughness, if you've set a stop loss, i assume you put it there for a reason.

I'll tell you what i do, charts I view using metatrader, if i dont see a reason to open my trading platform i wont, simple..

But if you continue what your doing, your going to end up giving all your profit back.

[BrianSNJ]

Kenneth,
I had a friend who dealt with the same issue. In fact, it caused him tremendous loses. We were trading as a team, but his 'mental' issues with trading, following rules, etc. forced me to walk away.

He continued to lose.

I recall quite clearly what helped him turn himself around. He read these 2 books and SWEARS on his life by them.

Trading for a Living: Psychology, Trading Tactics, Money Management
by Alexander Elder

The Psychology of Trading: Tools and Techniques for Minding the Markets
by Brett N. Steenbarger

I personally, have read the book below and really enjoyed Elder's writing, viewpoints and psychological strategies. It really left an impression on me.

Come Into My Trading Room: A Complete Guide to Trading
by Alexander Elder


I have also heard from another associate that this book was very good, but I am only going by general recommendation.

Trading Rules that Work: The 28 Lessons Every Trader Must Master
by Jason Alan Jankovsky

If I had to choose which to start with, I would say the first 3 in that order. Elder is a legend and Steenbarger has a strong reputation too.


Now, I wonder if you would mind sharing what your trading systems are with me or us here? I am looking for simple but successful. I have modest desires and would be happy to consistently grab 10 pips a day. I am not new to trading but new to Forex so I have a lot of learning to do.

If you desire privacy, you could always PM me and share discreetly. I would not mind just chatting about the stresses of trading via email either if you wanted to. I went through it myself. I know just how heavy that burden is!! Ughhh! I do understand if for some reason you do not wish to share. But do take my advice and try one or all of those books!

I wish you well.

[Yarcofin]

The simplest way is to always set a stop-loss whenever you open a trade, and do not change or cancel it NO MATTER WHAT once it is set.

Pretty much a common sense answer like "How do I save money" - STOP SPENDING IT. lol. Same thing, "how do I use a stop loss" - PUT IT ON AND LEAVE IT ALONE. You yourself said that if it werent for removing or altering them, it would have saved you a lot of money. Listen to your own advice! If you don't have confidence in yourself then you aren't ready to be trading.

[KENNETH LEE]

Thanks for replies thus far,, I will surelly checkout those books. Anything else greatlly appreciated.

One Type trading I do is off big round numders. Checkout U/J most of today. It has bounced off resitance at 108.00 and down well over 10 pips at least 5-6 times or more and will continue till it either. Breaks up or falls . Which is even a better trade. Just look for confirmation first on the breakout long preffered as it has been the major trend.

These consildations happen a lot after the active markets close , pick a pair with least spread and like picking money off a tree, Everyone says not to trade off hours . I do this alot very profitable plus usually slow moving doesn't hit your stop fast. Plus stop placement is pretty evident. The other side off the resistance or support. With a little room for the spike here or there but never more than 15 pips 10 better then you make it up on one trade.

[KENNETH LEE]

There she goes another good method.. BREAKOUTS,,,
Sorry not great at this you will have to look at my entry time and then the chart,,, ps. I use a 15 minute chart,,

[GBLilleyUSMC]

Stupid people get stupider because every once in a great while - being stupid works for them.

Traders get worse and worse when bad trading decisions work out for them.

I would venture to guess that moving a stop worked for you at some point in the past and you were very profitable as a result. This was negative reinforcement that only teaches you bad trading habits.

Once I place a stop (every trade) I NEVER move it for any reason. Never.

When I was in Iraq, one of the hardest things to do in clearing a building was the knowledge that if I entered a room full of insurgents, I could NOT pull back into the hallway! Even if it meant being killed I would have to stand my ground and continue to move forward because my buddies were right behind me ready to take the room by force. If we pulled back into the hallway, the bad guys would have the momentum and we could have gotten rolled over. If a Marine can do it in combat, you can do it in trading.

Repeat after me:
I will not move my stops back
I will stand my ground
I will not move back in to the hallway giving my enemies the advantage!

[BrianSNJ]

Originally Posted by GBLilleyUSMC

If a Marine can do it in combat, you can do it in trading.

Repeat after me:
I will not move my stops back
I will stand my ground
I will not move back in to the hallway giving my enemies the advantage!

Damn straight. Semper Fi.

[KENNETH LEE]

If I did it was very subtle , But your right as in anything sometimes the wrong thing works out but it is still the wrong thing.. I am hoping bringing this out in this forum into the light of day will help me solve this. Cheap therapy . LOL It is all that is holding me back.

Again thanks for all the replies... Ken

[BrianSNJ]

Don't worry Ken, it will happen. I understand your situation though. Been there myself. It is amazing at how powerful it is. Your answer may be as black and white as STOP IT! But it likely is more complicated. Just remember that having a clear cut strategy, game plan, set of rules, etc. is meant to keep you on track and RELIEVE you of the stress and burden of your own demons.

I allow my rules to do that for me. Allow yourself that luxury.