David_R 

Thanks Trend, I appreciate the feedback. I'm not sure how to express this because for me it's inexplicable. I have told myself to "focus on the process", "follow my plane" etc. more times than I can count. What I'm trying to convey is that when I sit down at the computer to trade it's very much like the flight or fight response. You know those feelings you get when it occurs? You get adrenaline, become tense, maybe get tunnel vision etc. But this response is automatic when the situation presents itself. When I trade it's the same thing. Its not the flight or fight response, but the thoughts, emotions and feeling are, at least to me, feel automatic. It's not as intense when just looking at the chart, but if I start to consider entering or if I enter these things do become intense and the thoughts are just out of control. These thoughts, feelings and emotions take over. This is what I don't know how to control, or more importantly change for the better. It sounds like to me the only way to fix these things is to do these things. But at the same time I've been told willpower alone is not enough. So if willpower is not enough then what's the answer? Be born to do it? DR

It seems like you're describing a state of intense emotional arousal and automatic responses when you engage in trading activities. These automatic and intense reactions can indeed be challenging to control solely through willpower. The answer to overcoming these emotional responses and creating positive change lies in a combination of strategies that address both the psychological and physiological aspects of your trading experience. Is it always like that each time you trade or it just occurs occasionally ? Do you have a journal ?

trendisyourfriend 

It seems like you're describing a state of intense emotional arousal and automatic responses when you engage in trading activities. These automatic and intense reactions can indeed be challenging to control solely through willpower. The answer to overcoming these emotional responses and creating positive change lies in a combination of strategies that address both the psychological and physiological aspects of your trading experience. Is it always like that each time you trade or it just occurs occasionally ? Do you have a journal ?

It's pretty much that way all the time now. It has gotten worse over time.

Do you mean a journal on Futures.io? I do not. I used to have journals here. I haven't been consistently trading.

Those that have posted their suggestions and comments regarding this thread is very much appreciated. I have not been able to get through all the comments yet but will. The fact that members are willing to take the time to try and help means a great deal to me. Thank you.

If you don't decide and commit to an account amount and size your positions properly then you are gambling, not trading.

You cannot control market direction but you can decide upon your risk.

Managing your risk will keep you in business in a normal losing streak without too much drawdown and ready to profit from a winning streak around the corner. Managing your risk will also keep your emotions in check. This is the answer to HOW to do that, manage your risk.

Trading is a probability game. What does that mean?

System expectancy is a function of:
1. risk-to-reward
2. win-rate
3. commissions and spreads

Assume there is a 50% chance your trade is a winner. When you win you win $100 and when you lose you lose $50. You risk $50 to make $100. The risk-to-reward is 1:2.

After 10 trades the pay out is as follows: (5 x $100) when win minus (5 x $50) when lose. This means you make $50 every time you put on a trade! Even when it's a loser!

Again assume there is a 50% chance your trade is a winner. The probability of a loser is also 50% or 1/2.

The probability of two losers in a row is 1/2 x 1/2 = 1/4.

The probability of three losers in a row is 1/2 x 1/2 x 1/2 = 1/8.

This means that in a 50/50% system, if you bet one third of your account on any one trade you go broke every 8 trades.

The probability of seven losers in a row is 1/2 x 1/2 x 1/2 x 1/2 x 1/2 x 1/2 x 1/2 = 1/128.

Every run of 128 trades you have a chance of seven losers in a row.

If you bet 14% of your account on any one trade you go broke every 128 trades.

Many small traders go broke with a great system because a run of bad luck (which is a mathematical certainty) takes them out before the good streak starts.

This (i.e. a run of bad luck) not only influences your account size but even more importantly your mental state.

If you understand this and know the numbers and understand it's a probability game there is no reason at all for anxiety.

There is zero reason to give meaning to any one trade in particular. It can be a winner or it can be a loser. You just don't know. You don't have to know because you manage your risk. You know, and accept, there will be losing streaks and you know you can handle them without problem because you manage your risk. You know that at the end you will come out positive. What's there to worry about? Not one trade (with a random outcome) but a batch of 100 trades (with a predictable outcome). Think in probabilities.

Going forward. Decide upon a trading system which details mechanically entry, exit and position sizing. It should be simple and straight forward. Resolve to follow this system for a batch of trades without changing the rules. The resistance will start to go away somewhere between 10 and 15 trades. Try to stay in the presence.

Mies 

Assume there is a 50% chance your trade is a winner. When you win you win $100 and when you lose you lose $50. You risk $50 to make $100. The risk-to-reward is 1:2.

If it were that easy, everyone would be successful. If you are using a 1/2 risk vs. reward ratio, then there is no such thing as a 50% chance your trade will be a winner. Over the long term, it is more accurate to say you'll average a 33.33% chance your trade will be a winner.

To achieve a 50% probability of a successful trade, you need a risk/reward ratio where the risk and reward are equal. This false perception of a 1/2 risk-reward and 50% chance to win each trade is widespread all over the internet.

All your calculations are based on a false premise.

trendisyourfriend 

If it were that easy, everyone would be successful. If you are using a 1/2 risk vs. reward ratio, then there is no such thing as a 50% chance your trade will be a winner. Over the long term, it is more accurate to say you'll average a 33.33% chance your trade will be a winner. To achieve a 50% probability of a successful trade, you need a risk/reward ratio where the risk and reward are equal. This false perception of a 1/2 risk-reward and 50% chance to win each trade is widespread all over the internet. All your calculations are based on a false premise.

It's not about the exact numbers. I didn't mean to relate the win-rate to risk-reward, these are just two separate examples to make something clear. You are reading something completely different in it than it was meant to be. You missed the whole point. You can read it with 50% probability and 1:1 RR if that makes you feel better. The message stays the same. Manage your risk.

David_R 

It's pretty much that way all the time now. It has gotten worse over time. Do you mean a journal on Futures.io? I do not. I used to have journals here. I haven't been consistently trading.

I meant a journal for your own benefits. At your stage a private journal is mandatory.

Asking yourself thoughtful questions is an essential part of identifying strengths, weaknesses, patterns, and areas for improvement as a trader. Here are some questions to consider and answer in your journal:

Strengths:

What trading strategies or techniques have consistently led to profitable trades?
In which market conditions do I excel the most (e.g., trending markets, range-bound markets)?
What aspects of my trading plan have contributed to successful trades?
Do I have a keen ability to identify specific chart patterns or technical indicators effectively?
What skills or qualities do I possess that give me an edge in trading?
How do I handle and capitalize on winning streaks or profitable trades?

Weaknesses:

What are the recurring mistakes or errors I tend to make while trading?
Do I have a tendency to ignore my trading plan and act impulsively?
What emotional challenges do I face while trading, and how do they impact my decision-making?
Are there specific market conditions or trading setups that consistently lead to losses for me?
What skills or knowledge areas do I lack, hindering my trading performance?
How do I handle and recover from losing streaks or unsuccessful trades?

Patterns and Areas for Improvement:

Are there any common factors that lead to successful trades, and how can I replicate them?
Do I observe any repeating mistakes or habits that need to be addressed and corrected?
Are there specific time frames or trading instruments that align better with my trading style?
How can I refine my risk management approach to protect my capital more effectively?
Am I leveraging appropriate trade sizes in relation to my account balance and risk tolerance?
How can I enhance my understanding of technical or fundamental analysis to make more informed decisions?

Self-Reflection and Psychology:

How do emotions such as fear, greed, or overconfidence influence my trading decisions?
Do I follow my trading plan consistently, or do I deviate from it under pressure?
What steps can I take to maintain discipline during volatile or challenging market conditions?
How do I cope with losses, and how can I improve my mindset after experiencing them?
What measures can I implement to reduce emotional biases and make rational decisions?

Learning and Development:

What educational resources or courses can I explore to enhance my trading knowledge?
How can I actively seek feedback from experienced traders or mentors to improve my skills?
What steps can I take to stay updated on market news and events that impact my trading?
How do I track and evaluate my progress over time, and what milestones can I set for improvement?
What changes or adjustments can I make to my trading plan based on the insights gained from my journal?

By regularly asking yourself these questions and thoughtfully reflecting on your trading experiences, you'll gain valuable insights that can help you build on your strengths, address weaknesses, and ultimately improve your trading performance over time.

Lance Beggs has written many articles you might want to read to improve:
(unfortunately, this was his last post ever)
http://ww1.yourtradingcoach.com/trading-business/ive-shown-you-the-path-yet-very-few-take-action/?usid=16&utid=32571138587

@David_R

What @Mies and @trendisyourfriend are explaining is part of the game theory:

Game theory is a mathematical method that derives rational behaviour in decision-making situations in which the success of the individual player / participant depends not only on his own actions but also on the actions of others. Taking into account the economic behaviour of each participant. It's all about statistics. And the best of.
There are very good articles with videos on this topic to be found on the net.
Go for it!

GFIs1
PS: I studied (long ago) statistics / special theme 'game theory' @ the University of Basle.

Here a top ten list from the web for you @David_R

I am revealing it because it can be a good source for many readers of this journal.
These websites should provide you with a solid foundation in game theory and help you understand the fundamental concepts and applications.

Khan Academy - Game Theory: Khan Academy offers a comprehensive introduction to game theory through easy-to-follow video lectures and interactive exercises.
https://www.khanacademy.org/economics-finance-domain/microeconomics/nash-equilibrium-tutorial

Coursera - Game Theory: Coursera provides various game theory courses, including those offered by prestigious universities, allowing beginners to learn from experts in the field.
https://www.coursera.org/

Investopedia - Game Theory Definition: Investopedia offers a clear and concise definition of game theory, perfect for beginners who want to grasp the basic concepts quickly.
https://www.investopedia.com/terms/g/game-theory.asp

Game Theory 101: This website is dedicated to explaining game theory concepts in an approachable manner, with examples and illustrations to aid understanding.
https://gametheory101.com/

Stanford Encyclopedia of Philosophy - Game Theory: Stanford's encyclopedia provides an in-depth and scholarly overview of game theory for those seeking a more academic perspective.
https://plato.stanford.edu/entries/game-theory/

The Strategy of Conflict: This interactive website presents an adaptation of the renowned book "The Strategy of Conflict" by Thomas C. Schelling, which explores the essence of game theory in conflict situations.
Michael R. Baye: Nash-Equilibrium.com

Game Theory Explorer: This tool allows beginners to experiment with different game theory scenarios and see the outcomes, helping them gain practical insights into the subject.
https://gtexplore.net/

MIT OpenCourseWare - Game Theory: MIT offers free online course materials on game theory, providing lectures, notes, and assignments for self-paced learning.
https://ocw.mit.edu/courses/15-098-b-game-theory-with-engineering-applications-fall-2012/

The Big Bang Theory and Game Theory: For fans of the TV show "The Big Bang Theory," this website examines how the characters' behavior often ties into game theory concepts.
https://the-big-bang-theory.com/game-theory/

Game Theory.net: This website serves as a hub for various game theory resources, including interactive tools, lectures, and articles.
https://www.gametheory.net/

My preferred one is the interactive site of: Strategy of Conflict!

GFIs1