deals

Notes 23 September

I remember writing in November 2009 of the year : I have a choice now, continue to drain money and spit on everything or return to disciplined trading and stay in this business. /vremya-zhestkix-mer-chast-2 / I would not like to return to such times, so you need to work harder and better fulfill your ideas: I started thinking about money again, not about smart deals. (You can not earn by focusing on the desired amount ) Stop opening trades once and for all in the first hour The best trades were for the continuation of the trend, not to turn it around. (You can catch a reversal of the stock, but it is very difficult and becoming unprofitable lately )

yesterday's sipi short

Didn't watch the market for a long time, looked at the price in 1110 with kopecks – amazingly)
True, the fuel in the tanks tends to run out… and it's so nice to sell! :)

Reflection. Analysis or self-digging?

Steve just made a losing deal. Although he only lost 2 %, he can't stop thinking about it: “What did I do wrong? How could I prevent a loss? What i missed? What does this loss mean to me, as a trader? What will happen next? I can handle it.? ” Steve reflects. He can't let go of it. He constantly gets bogged down in a loss, scrolling it over and over in my head. Reflecting on a past loss not only reinforces a bad mood, but also, as a recent study by Dr. Andrew Ward shows (Andrew Ward), the reflective type is less satisfied, less confident and less able to adhere to the planned course.

What is the difference between a statistical drawdown and a psychological one??

Have you ever had a time getting into a situation?, when losing trades follow one another? You suddenly start to panic., and think, that it never ends? But how strong is this drawdown? Maybe, you just panic for no reason? Maybe, you turn statistical drawdown, which can always happen, into the psychological, what not to do? Statistical drawdowns need to be predicted. If you are using a reliable trading system, then the law of large numbers is on your side. From the point of view of statistics, there is nothing to worry about in a series of losing trades.. Since a large number of trades gives you a statistical probability of making a total profit. It's okay, to get a series of losses. It's just a matter of probability. If you don't take it personally, and just keep on lying to the system (managing risks), sooner or later everything will change, and the system will return to profitability. However, some traders turn statistical drawdowns into psychological ones.. They indulge in despair and pessimism., start thinking about failure. And thoughts have the ability to materialize. Reality can change, if you think, that ended up in a financial hole. Psychological drawdown is able to make you think, that you are stumped.

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