Need help in trading psychology

#1

Hello guys, recently in November, I started trading in the stock market and made around 2L profit in around 4 months and it was a happy time. But on 11th March i did some good mistakes and lost around 55k but i recovered it in around 3 weeks so it was not so much painful and i handled it.

But 2 days ago from the same level of profit, i again lost around 46k. I know I can recover it but somehow this loss is mentally challenging and it’s kind of frustrating me up that i have to again recover the money.

How do you guys deal in this kind of situations, I’m sure this is not some rare thing in trading community and all traders experience this somewhere in their trading journey.

So I’m only asking about the mental fitness as a trader not about trading in particular. In trading, i know what were my mistakes and i will not make them again but I’m just asking about the psychology part.

Thanks

#2

Successful traders have different thinking psychology. They dont look upto others for answers, they find the answers from inside themselves. Unless you find these answers from within , the same mistakes going to continue. Do you have it in you ?

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#3

I think you may have had newcomers advantage. When you are new, you dont panic on seeing loss on screen. You have no previous losses, nothing to recover. New trader is very less disciplined, and actually that mostly helps. I also made lot of profits in first few months.

Then comes one big loss, then suddenly discipline and risk management comes to mind. Then due to this discipline, it becomes difficult to enter or hold trades.

Since you are very new, I am guessing this is the scenario with you.

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#4

From what I have learned so far is that traders shouldn’t have any emotions.

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#5

Hi Bro.

I am very happy to hear that u r making profits in this market where most of the retail traders fail including me. I also lost good amount of money in the last three years. I have seen three to four big losses from single trade in the past. I know the how our mind will be reacting when a big loss occurs. The reasons i found and you have to find are.

  1. Whether 46K loss was due to hitting SL which was kept while taking the position. If yes, then do not think about this at all and move to the next trade as you were ready to take 46K loss when entering the position. If the loss was due to revising of SL to avoid loss, counter trading to reduce loss in the original position etc. then you are not following any plan.

  2. Capital plays a major role in trading. Do u have any risk management rules. When you enter a trade how do u set SL. Whether this SL is within your risk taking capacity. For example if u have 1L capital and if u risk 50% on a single trade, then u cannot survive in this market. U should not risk more than 2-3% of your capital in a single trade. I know everyone keeps telling this but believe me this is to be strictly followed if u want to be successful in trading.

Thanks in advance.

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#7

Losses are part of the plan. You can never know the outcome. It’s either a win or a loss. So, when you lose, you should be peace with it. Assuming, you have a strict risk management.

So, I ld never freak out mentally. Assuming, you are trading with a plan, that has a statistically probability of winners over losers,and that has been tested throughout multiple market cycles.

And never talk about trades in terms of currency value. Let’s talk in R units. R being your risk amount.

When you focus less on money making, and more on the process, ultimately you get more R’s.

Now, what’s your why? Why are you trading? Try to answer these.

The problem with the new generation is that they want everything instantly. Hey, I am not saying you are but the way you are seeking answers, the answers are all within you.

It takes time to craft a masterpiece.

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#10

From what I've read, you need to learn more of trading psychology. We are human, and emotion is part and parcel of our lives, so you can't fail to have emotions. What you should do is to ensure you use your emotions for the benefit of your trade. Like instead of being greedy to an extent of overtrading, you can be greedy to an extent of fearing to overtrade because you'll lose. Thats just my opinion

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#11

What are these mistakes? please point out so we can help you.

#12

Actually mistake was simple that I didn’t exit at the stop loss and increased the size recklessly to recover the money.

In the past there were some scenarios when I did recover the money by doing this but actually this habbit is destructive in nature.

Also I checked the trade logs of both those 2 loss making days and mistakes were exactly similar.I believe in myself that I will not repeat them again.

Thanks to all members for suggestions, I’m feeling much better and confident now.

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#13

Have you tried any short term strategies that gave you any profit ? I see first one took like 4 months, then like weeks, take something which SHOULD (by your thoughts) give you some small profit here and there, in days literallly. It will bring more confidence in you.

#14

In my personal opinion, market is run by a group of big shot investors who actually move the market. And they get pending orders, stoploss orders from the data gathered by brokers and exchanges. Retail investors cannot ride against them. They also have NSE/BSE in their pockets. Whatever I have wrote my sound foolish but I am not inexperienced person to write this. In trading, big fish will always win, always win.

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#15

(post withdrawn by author, will be automatically deleted in 24 hours unless flagged)

#16

Hello, what’s your intention in this thread?
Why are you suggesting advisors to others? It’s evident you are selling on behalf of yourself/someone.

It’s sick that you have to advertise yourself here. No one ask for your services. Don’t fool people here with a recovery plan.

I don’t want to waste energy with you. But you seem to reply in every thread, the same intentions. Don’t give false hope to people and make their bad situation into worst.

#17

New job in market :smile:

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#18

problem here is hope. you were hoping that it would reverse from your SL.

you are trading on hope. problem is you cant get rid of hope as a human being.

increasing the size is just fine, but only if you doing great in trading.

Increase size when you are winning consistently, reduce size when you are losing consistently.

But your main problem is hope in trading. Hope can be destructive in trading.

only way to fix this “hope” issue is to automate your trades.

that is your only problem as of now and from what information you gave.

dont worry too much about increasing or decreasing risk. That is really not an issue, its more of an adjustment to your entire risk management parameter.

So you need to focus on automating your trades as much as possible. Dont try to fight hope in your system. you wont win.

#19

the first falacy in your thought process is the word recover…that s not how it works…for every penny you make…there is going to be some give back… 2ndly… be objective in your approach…and dont forget the basic tenet of trading ie not risking more than 1%of capital on a trade…lastly if you are suffering from a long loosing streak…den something is wrong in your model…so go back to the drawing board…se wat sort of model s are working in current market conditions…den watevr trades these models throw up…execute it as a law…no ifs and buts…remember it will be emotionally quite draining to put in the next order after a loosing streak…but dats what it takes to be in the 5%…
iron out emotions do it absolutely methodically .good luck

#20

Thank you guys all your suggestions were very helpful.
Also today was good expiry for me and I’m feeling much better and confident now.

Thank you to all of you

#21

If you want to fix your psycology, first fix your risks. If you had risked less you would have lost less. Trading should not have emotions withing. Trading should contain calculated risks. If you risk less you loose less. I would suggest you to not risk more than 2% of your account to grow for a long time.
you risked a lot and over leveraged and burnt your capital. Where does psycology come here. It is just an act of greed.

#22

Appreciate your intention to help the person. But, I really think greed has a lot to do with psychology and how the mind works and that is how you can control it.
So, its only natural whoever wrote this article used the word psychology.

#23

I think your problem is greed, and no one can forcefully make you to stop being greedy if you do not decide. Have a trading plan and make sure you work on your discipline if you want to overcome greed. Follow your plan to the letter. Baby Pips lessons of psychology can be of help to you