Comments on: Remember Your Trading Objective http://www.thestockbandit.net/2007/11/13/remember-your-trading-objective/ Trading blog for day trading, swing trading, and trading psychology Tue, 07 Feb 2012 17:25:00 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: World Series Series, Part 3 - Sacrifice Bunt | TheStockBandit.net http://www.thestockbandit.net/2007/11/13/remember-your-trading-objective/comment-page-1/#comment-113954 World Series Series, Part 3 - Sacrifice Bunt | TheStockBandit.net Sun, 26 Oct 2008 01:26:57 +0000 http://www.thestockbandit.net/2007/11/13/remember-your-trading-objective/#comment-113954 [...] Not every at-bat is going to be a glamorous one for the baseball players on TV, so when it’s time for the sacrifice play, it’s important to note that there’s actually some honor for the guy willing to lay one down for the better good of the team. Accepting a short-term setback in return for the longer-term health of the team (or your trading account) is wise. It keeps the ego out of the equation, which is great because we want to be in the habit of making good decisions. [...] [...] Not every at-bat is going to be a glamorous one for the baseball players on TV, so when it’s time for the sacrifice play, it’s important to note that there’s actually some honor for the guy willing to lay one down for the better good of the team. Accepting a short-term setback in return for the longer-term health of the team (or your trading account) is wise. It keeps the ego out of the equation, which is great because we want to be in the habit of making good decisions. [...]

]]> By: TheStockBandit http://www.thestockbandit.net/2007/11/13/remember-your-trading-objective/comment-page-1/#comment-95130 TheStockBandit Thu, 31 Jul 2008 04:10:05 +0000 http://www.thestockbandit.net/2007/11/13/remember-your-trading-objective/#comment-95130 Hey Mike, Thanks for your comment - we have all gone through that many times. I agree, there has to be some internal peace about the trade from the beginning in order to see it through. I think the most common conflict we have is based on the P&L, worrying that the trade might not be doing what we counted on from the front end. Then micro-managing kicks in and before you know it you've accepted a smaller gain or loss than originally planned for. (I speak from experience on this one!) To let a trade begin to work, I think it needs to be sized small enough that the focus is on "the move" rather than the dollars. Only then can you monitor the price action accordingly on that specific trade, and then over time begin to build some habits which will truly benefit you monetarily going forward. Then you slowly increase your size but only enough that you're still able to focus on the price action on the chart, not those flickering red & green numbers on your position screen. Hope this helps! Jeff Hey Mike,

Thanks for your comment – we have all gone through that many times. I agree, there has to be some internal peace about the trade from the beginning in order to see it through. I think the most common conflict we have is based on the P&L, worrying that the trade might not be doing what we counted on from the front end. Then micro-managing kicks in and before you know it you’ve accepted a smaller gain or loss than originally planned for. (I speak from experience on this one!)

To let a trade begin to work, I think it needs to be sized small enough that the focus is on “the move” rather than the dollars. Only then can you monitor the price action accordingly on that specific trade, and then over time begin to build some habits which will truly benefit you monetarily going forward. Then you slowly increase your size but only enough that you’re still able to focus on the price action on the chart, not those flickering red & green numbers on your position screen.

Hope this helps!

Jeff

]]> By: mike hart http://www.thestockbandit.net/2007/11/13/remember-your-trading-objective/comment-page-1/#comment-95051 mike hart Wed, 30 Jul 2008 23:18:38 +0000 http://www.thestockbandit.net/2007/11/13/remember-your-trading-objective/#comment-95051 this is great advice, as I wait for the inner argument that begins everytime I anticipate a trade I realize that one must be in total agreement with onesself to put on a trade. If not, then it is unlikly the trade will work. Please, a comment on what it means to let a trade begin to work. mike this is great advice, as I wait for the inner argument that begins everytime I anticipate a trade I realize that one must be in total agreement with onesself to put on a trade. If not, then it is unlikly the trade will work.
Please, a comment on what it means to let a trade begin to work.

mike

]]> By: Trading With Objectivity | TheStockBandit.net http://www.thestockbandit.net/2007/11/13/remember-your-trading-objective/comment-page-1/#comment-87882 Trading With Objectivity | TheStockBandit.net Tue, 08 Jul 2008 15:41:27 +0000 http://www.thestockbandit.net/2007/11/13/remember-your-trading-objective/#comment-87882 [...] However, if you’re paralyzed by recent trading losses, if you have a distinct market bias which puts you at odds with the existing downtrend, or even if you have personal distractions away from the screens, then there’s nothing to justify being active. If that describes you, then sit on your hands for a little while and wait for the fog to lift. Remember your trading objective, and wait for the right conditions to surface (both externally and internally) before you get active again. You’ll prevent a lot of frustration by doing so. [...] [...] However, if you’re paralyzed by recent trading losses, if you have a distinct market bias which puts you at odds with the existing downtrend, or even if you have personal distractions away from the screens, then there’s nothing to justify being active. If that describes you, then sit on your hands for a little while and wait for the fog to lift. Remember your trading objective, and wait for the right conditions to surface (both externally and internally) before you get active again. You’ll prevent a lot of frustration by doing so. [...]

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