Trading Anger Management

[Iron]

Hi Sam

I think that, with any form of meditation, perseverance is the key.

With breath counting meditation, for example, you'll probably find your mind interrupting you with all sorts of thoughts. And most people will probably conclude after about 3 minutes that the exercise is silly, frustrating and beyond their abilities!

It's only if you can push through the barriers of frustration and self-doubt that you will reach the inner treasures...

Jeff

At first it was impossible and i wanted to throw it out the window (bit like trading i suppose ) but once you start hitting goals like playing tunes you love or mastering complex chord progressions its a really calming hobbie.

[hgodden]

I think we can all empahise with this one!

Definately stop the weights before trading. I used to lift weights a bit but had to stop due to trading, it really does make you more aggressive afterwards. Not neccessarily lots or enough for most people who lift weights to realise, but you only need to be made a little bit more aggressive and your trading will suffer, especially when something goes wrong, instead of being calm and taking a step back you'll be likely to what to hit back at the market which obviously can be very dangerous.

Looking around the room here the walls have got a few scars from where I've thrown things at them. I smashed a monitor once and the chair I'm sat on now is a bit crooked from where I threw it across the room once I don't have the problem so much now thankfully, I meditate first thing which I find helps, and also I think it helps to have the mindset where you're not so much looking to make money but rather avoid losses (trusting that over time you will make money anyway so not to worry about it in the short term) - at least when things are tough.

[Iron]

Definately stop the weights before trading. I used to lift weights a bit but had to stop due to trading, it really does make you more aggressive afterwards.

Isn't aggression a good thing, though, providing it's channeled into your trading?

Also I think it helps to have the mindset where you're not so much looking to make money but rather avoid losses (trusting that over time you will make money anyway so not to worry about it in the short term) - at least when things are tough.

Being able to cut a trade is useful (and something I need to work on!). But IMHO, cutting your losses is only part of the equation. Surely you also need to be able to let your profits run. And if your focus is on avoiding taking a loss, isn't there a risk that you'll take just 1 point when the market is about to give you 10?

Jeff

[gutuami]

Try to save your energy and don't go to the gym in the morning but later after trading session. Trading is a game of concentration which uses up lots of energy. After concentration comes response time which is much better when your "battery" is closer to the 100% mark. There are times when you can judge the market right but you miss the opportunity because of your slow R time. On the same time you could lift up weights with any R time
Also when full of energy you're in more control of yourself.

[hgodden]

Depends on your definition of aggression. But when things are tough and your confidence is low then aggression is definately a bad thing. When confidence is high and you want to trade 'aggressively', by which maybe you mean powerfully

Aggression isnt a good thing in trading. Making the market into an enemy that needs to be fought is not a good idea.

If you clearly feel its going to go on for another 10 ticks then of course you'll want to wait till then before exiting, but that has nothing to do with starting from a mentality of avoiding losses and keeping what you have. Cutting your profit early even if you feel it will go further is just a sign of fear, and obviously you want to eliminate as much emotion as possible really as emotions just get in the way. After every loss you feel a little slap round the face at least, thats why it can be very good when you just concentrate on getting a high strike rate and avoiding losses. Builds confidence and stops you worrying about MAKING money, which can easliy lead you to chase the market.

[Iron]

Depends on your definition of aggression.

I think that's the nub of it. In this context, I'm talking about being focused and in the zone. But I think you have in mind the state of mind where your aggression isn't channeled, and you're shouting obscenities at your monitor!

If you clearly feel its going to go on for another 10 ticks then of course you'll want to wait till then before exiting, but that has nothing to do with starting from a mentality of avoiding losses and keeping what you have.

Loss aversion can hurt your trading if you take any small profits the market gives you, fearful that it will soon take them away, rather than riding the trend.

This isn't always a huge problem on Betfair, given that you can generally keep your losses to a minimum. But in the financial markets, if you don't let your profits run, then the risk is that your losses will exceed your profits. The idea that you can never go broke taking a profit is a fallacy. It stems from the fact that, for most people, the pain of losing £10 exceeds the pleasure of winning £10.

Jeff

[Predicton]

However, brain activity doesn't hinder meditation

Perhaps it's only me,

cheers, P

[Iron]

I think it depends on the type of brain activity.

Thinking about what you're going to buy at the supermarket later when you're trying to meditate isn't a good idea. But brain activity that's part of the meditation is different.

Jeff

However, brain activity doesn't hinder meditation

Perhaps it's only me,

cheers, P

[Predicton]

Lol,

those blasted supermarket lists, eh, Jeff? I'll have a look at some of the links you've posted,

cheers, P

[freddy]

We will all need some anger management after today imo

[Iron]

Indeed!

I'm actually feeling quite calm right now, which is perhaps because I did some meditation earlier.

It's certainly not because I have anything to feel calm about, having just lost money on the 14:10 because the site went down before I could close my trade...

I think I'm going to take the rest of the day off and forget about racing!

Jeff

We will all need some anger management after today imo

[jimrobo]

Rhys,

I fear for the 2nd half of your desk today!

[petardo]

I feel today as child ,missing his toy.

[rhysmr2]

Rhys,

I fear for the 2nd half of your desk today!

Strangely I was very calm yesterday, even with all the downtime!

There are some great suggestions on this thread, I'll be implementing some as of now!

I really expected a few responses along the lines of "your a loony, I'd stop trading" but instead I got some very helpful advice. Thanks everyone!

I'm going to start lifting weights on an evening after trading, and go the gym on a morning to do cardio and get me out the house.

I'll write things down and read them over and over to try to get in a good mindset before trading.

I'll listen to music rather than At The Adverts!

I will even look into meditation and breathing, if all else fails I'll try smoking a few bongs

Cheers again.

[Iron]

Good luck!

BTW, why not record yourself trading? That way, when you're having a bad day, you can watch a few videos of everything going great (preferably with some inspiring music overlayed, like Eye of the Tiger! http://www.youtube.com/watch?v=cf45I1ZI__w).

It might remind you that you do know what you're doing, and that the bad day is just a blip.

Jeff

There are some great suggestions on this thread, I'll be implementing some as of now!