Experienced traders, do you still lose due to emotions?

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outthislife

Well-Known Member
I've been trying to iron this part out. I want to only lose when my analysis fails, not when I personally fuck it up. It's gradually being fixed, but not 100% yet. I notice I'll bail, switch or doubt my analysis somewhat often.

Do you still do these rookie moves after years, or are your losses mechanically sound at this point?
 

jack

Administrator
Staff member
outthislife said:
I've been trying to iron this part out. I want to only lose when my analysis fails, not when I personally fuck it up. It's gradually being fixed, but not 100% yet. I notice I'll bail, switch or doubt my analysis somewhat often.

Do you still do these rookie moves after years, or are your losses mechanically sound at this point?

To err is human.

I see hella profitable traders with 6, 10, 13, 15+ years of experience make execution errors. The big difference is how they correct for it once identified, and how frequently they make such mistakes. They aren't robots; experience just helps them reduce how much of an impact such mistakes have on their P/L.

The bigger problem isn't execution errors, it's people holding onto erroneous positions in an attempt to not lose on them. They'll take on silly risk, often in the opposite direction of their trade plan's setup, just to get out break even... it's perplexing, and illogical, but the behavior ties right into 'loss aversion'.

For this, I like the phrase: "The only thing worse than being wrong, is staying wrong."
 

jonnycab

Well-Known Member
Jack is on the money.

I would add one thing that might help with this: trade frequency. You need practise. Trade your analysis every single time until you hit that mechanical consistency. You cant learn anything if you don't have a position on. The longer you spend with a position on, the more you learn.

You need to have a reason to get in.
You need to have a reason to get out.
If you're in, leave it alone until the market takes you out.
 

Gruber

"I learned the game"
Jack said:
To err is human.

I see hella profitable traders with 6, 10, 13, 15+ years of experience make execution errors. The big difference is how they correct for it once identified, and how frequently they make such mistakes. They aren't robots; experience just helps them reduce how much of an impact such mistakes have on their P/L.

The bigger problem isn't execution errors, it's people holding onto erroneous positions in an attempt to not lose on them. They'll take on silly risk, often in the opposite direction of their trade plan's setup, just to get out break even... it's perplexing, and illogical, but the behavior ties right into 'loss aversion'.

For this, I like the phrase: "The only thing worse than being wrong, is staying wrong."

I don't think traders with +5 yrs of experience commit execution errors.
 

sqa

Village Scribe
Gruber said:
I don't think traders with +5 yrs of experience commit execution errors.

If there's a wrong button to push and a bad day, outside of trading, going on, you'd be amazed how much stuff you can screw up in life. Not just trading.

Everyone makes mistakes, occasionally. It's human nature.
 
I’m still towards the beginning of my trading career and have struggled with trading anxiety from the start. I’d say I’ve improved drastically over the last year or so but still have moments where I doubt my choices.
 

LuckyMac

Member
I think we all do. We are all human and unless you have a bot trading for you and you cant touch it emotions will be involved. However, i believe you should accept these losses as part of your trading plan. Trying to be 100% perfect is impossible and when you fail you'll be very hard on yourself. I think having a loss due to emotion isnt the end of the world accept it and move to the next. That's true trading imo
 

RachEB

Member
I've been trying to iron this part out. I want to only lose when my analysis fails, not when I personally fuck it up. It's gradually being fixed, but not 100% yet. I notice I'll bail, switch or doubt my analysis somewhat often.

Do you still do these rookie moves after years, or are your losses mechanically sound at this point?
A very interesting question you pose here, and some opposing opinions in the response.

Personally, no human is 100% accuarate, but experience gives the benefit of managing those errors and not letting them spiral i beleive.
 
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