Silence is Golden…but not always
In trading, eliminate noise…but not always
These two rules can help us to trade profitably with our ‘core incompetencies’
I have consolidated the incompetencies from the above post as below:
1) Target achieved in a day but still trading i.e. over trading
2) Seeing profit into loss, and still holding the position and not exiting
3) Vengeance / revenge / trading to recover losses
4) Past experience is used to exit the next trade in less profit / not able to hold profitable trades longer / early exit from profitable trades
5) Past experience of loss or fear of losing results in not taking further trades
6) Not following charts / methods and losing focus in between on the methods
7) Silly mistakes in placing orders and then praying if they go in loss
8) Switching methods / hopping from one to another trade
Disclaimer : Since I am addressing how to best use our flaws to profit, I am not mentioning how to correct them. The above are trader specific and hence should not be construed as a trader personality trait which is ‘necessary’ to trade profitably. If you do not have any or all of these flaws, please do try to ‘acquire’ them. You may be better off not having these.
1) Target achieved in a day but still trading i.e. over trading.
- Create noise, virtually. If you can play some music even better. See if you can enter your profit in an excel trade by trade (net profit) and once it crosses your days target, the sound file should run automatically (simple macros can help – google sound playing macros in excel, you will get many). You can play your favourite song too once you reach your target and play it loud, let to whole wide world know about it.
- Just pull the plug of your CPU or press down the Off button of your laptop at that moment itself in a fraction of a second once the day’s target is achieved. Rush for a shower (if at home) or for a leak in the loo (if in office)
- Dial a random number from your phone book of your mobile and start talking all good things and how you remember him or her. (other purpose of PR with friends/ relatives is also addressed by this)
2) Seeing profit into loss, and still holding the position and not exiting
- Silence is Golden…but not always…
Keep a small innocent looking toy on your desk ( a Noody or a Doreamon will do) once you get into this position, do not look at your screen, look at the toy and start speaking to him loudly (do NOT be silent – when you are mum, you will not act). Ask him why is he sad, make him answer and you speak on his behalf loudly to yourself. Ask him what will make him happy and let him ‘shout at you – ‘Get Out’ or rather ‘WTF you are doing here, Get Out’. Turn back to your screen (no looking at chart or the price), just get out at the market price.
3) Vengeance / revenge / trading to recover losses
- At the juncture of taking a vengeance / revenge trade or trading to recover loss the atmosphere in the mind is quite intense. And you need to release the pressure only at the right moment. Remember there a secret alarm bell button at a cashier counter in a bank and incase of any robbery attempt it has to be pressed immediately which sounds off the nearest police station. In the same way, create a one key (hot key) function which when pressed will sound an irritating alarm. You can use a physical bell too.
- The power of zero. If you still want to take a vengeance trade and you had decided to buy 1000 quantity of x instrument. The moment you are going to enter this trade, keep the ‘0’ key pressed for 2 seconds more and then press enter for order placement. What will happen here is your order will be rejected since the order quantity you placed will not be 1000, but will be 10000000 or 10000000000.
- Play Double Cross - (This can be done easily with little practice). When you are at the verge of taking a vengeance trade, just at the last moment – say it aloud, Allah o Akbar, Jo bole sonihal, Har har Mahadev or whatever similar you have faith in and just enter an opposite trade to what you have been thinking of i.e. if you planning to buy then place a sell order and vice versa. In the most of the most cases it will be a profitable trade.
(Remember the movie - Ghulam, Aamir running against a local train coming from the opposite direction, keeping on running, only at the last moment, jumping off the track and 'double crossing' death)
……contd...
...but still when i see any new system/method am switching....please help to avoid this...
