-276.9 on 39 contracts this week. Didn't really go crzy w/ my trading or anything, but still struggling w/ incr size and it didn't help that this week it seemed every trade slid against me (Been distracted a bit w/ some health issues in the family so perhaps my entries weren't as ideal as they should have been.).
I've added so much to my game that address specific issues (esp wrt mental aspects) that I trade w/ a very different approach than I did before. I know I can do it w/ small size but whenever I incr size, I L. I'm optimistic I can add a bit more to my trading so I can break this pattern soon. Looking forward to next week.
Try to figure out what exactly you do differently once you've increased your size, and how to recognize you're about to do it the next time you place a trade. I wouldn't take another trade until I figured that out.
ReplyDeleteThis is one of the biggest reasons retail traders fail, psychological trading issues. It's not something we tend to be good at recognizing or correcting. This is where we need to get outside help. But since most of us start out with so little cash we can't afford that help.
Take your time figuring this one out, these type of issues cost me well over $100,000 and 13 years to resolve. Try not to make the same mistake.
In essence the problem is it's a matter of getting 'comfortable' with the bigger numbers. w/ small size, I trade 'correctly' bec the numbers are so insignificant to me that it's just a game, nothing about the end result. When I incr size, however, there is a slight shift in my mind such that the numbers 'matter' to me (which they really shouldn't bec they are still so small).
ReplyDeleteI've been at this long enough to understand the mental aspect is key and nearly all of my strats now address various components affected by this. I still find the process fun and after adding so much to my trading the metrics I use suggest I'm still progressing. In fact Aug was my best month this yr so I'm feeling optimistic that I can conquer this last (hopefully) hurdle.
Thx for the input and encouragement.
That's good that August has been your best month of the year.
ReplyDeleteThe psychological issues usually are the last and most difficult hurdles to over come.
What you described is pretty much the same for every trader when they increase their size. While we may all be very different, but when it comes to trading we all go through some of the same issues.
Good luck this month!
:)
So true. I'm pretty analytical/methodical w/ my approach and am aware of the commonalities facing all traders. I know other ppl use different securities, different ideas of perfect entry spots and different initial sizing but after those things are selected (i.e. you've placed a trade), it's a matter of max. the G runs, min. L runs and relative sizing and those things are impacted by mental factors and are common to all traders.
ReplyDeleteThx. Good luck to you too.