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At 12:18 AM 7/12/2000 , Kent Rollins wrote:
>Ray
>
>As a discretionary trader, when you hit a string of losers, does it shake
>your confidence and what do you do to get out of it?
>Kent
First I should point out that I almost never day trade. Only if it
accidentally works out that way (meaning I screwed up). I can't afford day
trading, I have to feed my family at this and I want to be able to do it
awhile (I like it). The folks I've known on the CBOE and the CBOT long ago
convinced me that the flush rate for day traders is way too close to 100%
for it to make sense for me. But to each his own.
Second, I don't do this for the money. I actually enjoy markets, watching
them, participating in them, CNBC, hearing you guys banter back and forth
about almost anything trading related (although there is occasionally a
believability issue), reading financial publications, etc. etc.. Before I
had enough capital to trade I did it all just for the fun of it. Now I'm
thankful that I can do it and get paid.
Sometimes I wonder if that's not a root cause of some of the problems
people have with trading. They are doing it for the money or the gambling
thrill they really don't do it cause they want to or like markets, etc..
Third, I'm not sure how to answer cause I don't know how you define a
string of losses. And why would anyone tolerate a string of them? Sounds
like someone's in a hurry or something?
But when I have a loser I have been a lot more comfortable with it now than
I was when I tried mech trading.
I don't know if I can explain it, but when I've taken losses it's because
nothing looks or feels right about the position in question. So something
inside feels more comfortable after I'm out. And now that I know I will
feel better after I'm out, the whole thing has become almost a non issue. I
don't recall even bothering to think about it after it's over.
Instead of feeling bad about it I almost feel relief. Believe it or not,
even those times when the loss whipsawed and would have went to profit if I
had stayed.
When I tried mechanical trading I would have feelings of confusion and loss
and an inability to think through what had happened. Cause the loss wasn't
caused by circumstances which logically made sense to me but instead was
caused by what some machine told me to do. Instead of being able to think
to myself that I was going to feel good when it was over I'd think about
why this crazy gadget was telling me to do this. (IMO)
I try to pray regularly. Not asking for money or anything, just thanking
God that I get to keep doing this all day every day. That makes me feel
good too.
Just my way, I'm not claiming that it's best or that it would work for
anyone else or anything.
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