plogical biases affecting trading
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Thread: plogical biases affecting trading

  1. #1
    I have been trading for quite some time. No problem happening, I generally read the day very well.

    I detect I have some prejudice... if the day is easy and my profit is reasonable or small I don't want to spend the risk to lose it. I do not although I should make a killing. I really don't trade or simply small, taking very fast profits although I know I must let it operate.

    On the other hand, once the day is hard, I shed some, I want to make up for it. Start. . .and bigger.

    It's ridiculous, my motivation seems to be to deal with (instead of get out of) a tricky position instead of just picking the low hanging fruit.

    Can anybody recommend some exercises, some ritual to combat this?

    Thanks,
    Ivo

  2. #2
    Try having a couple of sessions a week were you do not let yourself trade in the event that you find a golden chance. Just see the market and take plogical transactions only.make sure you set the exact same allotted periods each week.do this for quite a few months every week.eventually you will finally have learned self control and adjust your mindset to be in controll of every action you require .
    To not take a trade is much more important than taking you

  3. #3
    Thank you but I'm profitable just nowhere near what it could be. Now 47 pips in EURUSD (my only pair) but should have been 100 at least.

    Mental trades go much better, lol

  4. #4
    D?aGlwz
    Guest
    Quote Originally Posted by ;
    I've been trading for quite a while. No problem to see what's going on, I generally read the day very well. I notice I have some prejudice... when the day is simple and my profit is little or reasonable I don't want to spend the risk to lose it. I don't although I should make a killing on those days. I really don't trade or simply little, taking quick profits even though I know I must let it run. On the flip side, once the day is tough, I shed some, I want to compensate for it. Start trading large. . .and larger. It is foolish, my motivation appears to be...
    I became also quite quickly cautious on my winning times and on shitty times I traded like a maniac.
    My problem was simply fear, I was scared of committing my wins back and of cutting down losses.

    I then started trying to slowly overcome my anxieties. Within my winning times when I normally would've ceased trading after a win/few little wins, I continued trading using 25 percent of my normal size (Just to keep trading and not thinking about the money at all)

    After a few weeks I had been a lot more comfortable and started to bet more and more.
    You have to have confidence in your egy and remove all emotions to truly make the most of your winning times and to not do anything stupid once you've got a terrible day.

    For me personally reducing the trading dimensions and practicing was the key.

  5. #5
    Oh, plogy and self management is everything in trading. In the event that you exchange with EA's, and if certain finance is invested in by you, you are still deeply affected by your biases. And once you eliminate control you may get into trouble very quickly.

    With optional trading daily you may feel as the master of the universe, the next day the sky is falling. It happens to everybody. Its part of the game, or as they say occupational danger.

    In 2015 I composed a couple of things on this topic here. You may find something helpful in my ramblings.

  6. #6
    Quote Originally Posted by ;
    quote I became also quite quickly cautious on my winning times and on shitty times I exchanged like a maniac. My problem was fear, I had been fearful of giving my wins back and also of cutting losses. I then started trying to gradually conquer my fears. Within my winning times when I normally would have ceased trading after a win/few little wins, I continued trading with 25 percent of my usual size (Only to keep trading and not considering the money whatsoever) After a couple of months I became a lot more comfortable and started to bet more and more. You need to have assurance...
    Thanks. . I agree that somewhere it has to do with confidence. .

  7. #7
    Quote Originally Posted by ;
    Oh, plogy and self control is everything in trading. If certain finance is invested in by you, and even if you exchange with EA's, you're still deeply affected by your biases. And once you eliminate control you can get into trouble. As the master of the universe one day you might feel with trading, another day the sky is falling. It happens to everybody. Its part of the game, or as they say occupational danger. I composed a couple of items on this topic here. You...
    Thank you, will definately take a look. .
    Ivo

  8. #8
    D?aGlwz
    Guest
    Quote Originally Posted by ;
    Oh yes, plogy and self control is everything from trading. In the event that you exchange with EA's, and even if you invest in certain finance, you're still influenced by your own biases. And as soon as you lose control you can get into trouble very quickly. The day one day you might feel with trading that the sky is falling. It happens to everybody. Its part of the game, or as they say danger. On this subject I composed a couple of things in 2015 here. You...
    Amazing post (The ribbon) !!!

  9. #9
    Quote Originally Posted by ;
    I have been trading for quite a while. No problem to see what's happening, I generally browse the day well. I notice I have some bias... when the day is easy and my profit is small or reasonable I do not want to take the risk to lose it. I should make a killing but I do not. I really don't trade or just small, taking very quick profits even though I know I should let it run. On the other hand, once the day is tough, I lose some, I want to make up for it. Start trading big. . .and bigger. It is ridiculous, my motivation appears to be...
    Hi ivob,
    What you describe is something most of us need to address at some point, it is normal human nature based on our reduction avoie plogical bias being somewhat stronger than our profit maximisation one.

    I have problems with pretty much the exact same mentality and that I deal with it by having a daily profit goal. That's it for the day, when I reach my goal. If I fall behind then I look to contact scratch or a loss bigger than my daily goal. This helps keep revenge trading urges in check: simply keep trading normally until the day isn't so bad anymore and, again, then stop for the day. Just have a maximum acceptable daily loss limit and if you hit that, stop for the day and allow yourself to recover emotionally. If you do not let it get out of control now you could always get it back. It is a marathon, not a sprint, just make sure that you remain in the race.

    The perfect pattern I am looking for is every day being a scratch or a target winner however in practice there needs to be some losing days in route. This best matches intraday trading with numerous trades daily but the principle could be extended to longer timeframes in an equivalent way.

    The very key thing is something you have already mentioned - keep the risk control really rigorous. NEVER raise the trading dimensions simply to recover, necessarily 1 day you may martingale yourself to the mother of all losers and that is going to be the end of your account. All transactions should be equal risk. Risk control is paramount, never overlook that if your system has some validity and you're going to be OK.

  10. #10
    Quote Originally Posted by ;
    quote Hi , What you describe is something most of us have to address at any stage, it is normal human nature based on our loss avoie emotional prejudice being somewhat more powerful than our profit maximisation one. I suffer from pretty much the same mentality and that I deal with it by having a daily profit target. That's it for the day, when I achieve my target. If I drop considerably behind then I seem to get back to scratch or a reduction larger than my daily target. This helps to maintain payback trading urges in check; just keep trading normally...
    Thank you... I just can't stand myself for not taking advantage of these great days. . .and then watch myself fighting to make a significant profit in a challenging market.

    Ivo

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