Start a trade journal and journal EVERYTHING from emotions, why you took the trade, how you reacted. You’ll be amazed what you will discover, what works, what doesn’t work … honestly I cannot stress this more. It’s like a programmer not righting notes on a 5,000 line of code. Or a doctor not having notes for patients and every time the doctor sees that patient, goes “so remind me what the problem was”. I’m confident your trading will move up to the next gear. Good luck.
Been there as well… And one black day did it all for me. Couldn´t trade for a while. Now I hardly feel it anymore. I deliberately exposed myself to watching trades go by, profits and loss. Over tiem it became easier and in the end Icouldn´t care less.
In short, it is normal. It is excellent that you recognized it. The people before me already gave some good advise, but what I want to say is that the pain will almost go away over time. Don´t walk away from it. Force yourself to do the trade and let it go. Don´t cut profits and let it be a loss if it is a loss. The moment you take control over the trade, the trade setup was probably not correct and you should not have entered in the first place.
the basic template to address these issues contains the following:
having a trading plan and executing it as consistently as possible
treating trading seriously/as a business
acknowledging losses as part of trading
tons of hours of practice and study to gain confidence and experience
respect for the markets you are trading; personal humility
Hi Mr Chilled, IdeFX and FringFX thank you for all your comments. Since reading your reply’s I have looked at each element of my trading plan, checked the indicators I use and thought about my trading history.
Conclusions are, that I do have the ability to trade and trade well.
Been there as well… And one black day did it all for me.
Where I have gone wrong in the past you touched upon a raw nerve.
This resounded very deeply. It is also a point at which I revised my trading plan to reduce risk when trading correlations. Very early this year on the AUD…NZD/ JPY…CHF…USD pairs there was significant correlation. Looking at the way the waves had developed I took a number of positions across them. It transpired that I had miss counted the wave formation on the monthly although the weekly count was continuing as expected. Well to cut a long story short the trades reversed and I ended up with a 30% hole in my account.
That I believe was the pivotal point at which my doubts, fears and conflicts came into play. Like you I didn’t trade for quite a while afterwards.
Taking your all your feedback on board I have produced a summary of the only trade carried out since the original post.
Are these the types of entries you place in your trade journals?
EUR/AUD 12th Dec 2012 LONG
Currency is in a general downtrend and forming a Bearish wedge of A,B,C,D,E on wave 4. At time of trade the wedge is in the E part of the correction heading towards the top level of the wedge.
TP set at 1.23831 with initial stop loss set at 1.23400 trailing stop 5 pips behind stop loss. Pips win should be 24 pips. A reversal should occur around the 1.23831 level and head downwards into wave 5. Main PP level is 1.23579 where the currency is bouncing currently.
Trade taken consisting of 3% of account balance.
Anticipated length of trade 24 hrs
Elliott Wave Count: Current Wave 4, E portion of correction.
Bullish divergence 15 min TimeFrame
Price Close contained within +1 and +2 bollinger bands 5 min timeframe
.682 of C = top of the pennant for E
RSI above 50
MCAD crossover to the buy side
Confident upon taking trade. Although the trade is a long trade against the current overarching daily and monthly trend.
Nervous watching the trade develop as it weaved backwards and forwards across the PP line for most of the day.
Delighted the trade hit TP at 17:28 GMT