Chill!

BellaGeneral Comments7 Comments

Here are two comments made from two SMB traders in their daily review sent to me after the close.  Both harm their results by trying too hard.  Do you do this?

I am slowly becoming less and less content with just making $$$$ (note: SMB cannot talk our PnL because of compliance reasons) and calling it a decent day. I need to really push harder so those $$$$ days become $$$$ days. But in the last week, when i started to push harder after im already up $$$$ i always end up giving a lot back

and then……..

Now the problem today was that I wanted to push the close too hard and I really overtraded a
lot… it seems whenever I get up $$$$ im thinking over $$$$ and I start trying to force it… next
week I will try to be more cognizant of this
  • This is a common issue with developing traders.  You do not make more money as a trader because you want to make more.
  • The market does not care that you want to make more.  It rewards you for making excellent risk/reward decisions.
  • Trying harder can harm you.
  • Trading is a game.  Enjoy it.
  • Enough with the self- imposed stress.  Some of these new guys around me stress me out caring too much about a trade working in their favor.
  • One trade, One day, one week, one month will have no effect on a long trading career.  Chill!

    • Bella

    One Good Trade

    7 Comments on “Chill!”

    1. Don’t buyt this thread, and I am a long time follower, prhaps one of the firs SMB followers.  The report card is P/L.  If you don’t make money, you are out of business.

    2. The sign posted on the wall to my right reads, “Focus on process, not results.”  If the process is correct, money will be attracted to a trading account.
      I really like this post, Bella.  Self-imposed pressure and stress harm performance.  Same as an athlete being “too tight” as he addresses the ball on the tee or as he waits for the pitch in the batter’s box.  Relax, then perform as a matter of well-practiced form/habit.

    4. Agreed Bob.  But you do not perform best worrying about winning.  You do the things that matter well.  

    5. As Mike said in his book One good trade than one good trade than one good trade.

      Jordan was never thinking about salary when we was making free throws for the game, nor Tiger Woods is thinking about how much money he will make. Same with traders if you start thinking about how much money you would make you are doomed to fail.

      I check my balance only on Saturday morning when market is closed. 

    6. I heard an interview with a past Olympic Gold medal winner the other day. She had damaged her Achilles tendon some weeks before the games. “How did you do it”? was the question. “I didn’t think about winning, I didn’t think about losing, I focused totally on each moment and absolutely nothing else. It was the only way I could do it”.

    7. plus when you focus on pushing so hard..you tend to block out information that doesnt support your play because you are pressing so hard. A relaxed trader makes better decisions and see’s things more clearly.

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