Hosted By
Robin
Dayne
"The Trader's Coach"
18
years as a trading and life coach
S&P Trading Tool
That
will Enhance ANY Strategy
Take a FREE Trial
See for yourself!
www.LTtrader.com
Sign
up Today!
Trader Problems TO
Solutions or
“Being Stuck”
By Robin Dayne
This is a very important topic this week. WHY?
because all traders go through this at some point in their
trading and some more often than others.
It’s getting “stuck” in the trading problem
that doesn’t seem to have clear solution. The trader
typically continues to repeat the problem regardless of their
intent to change things, and the undesired outcome is exactly
the same.
Usually when I get a phone call from a trader going through
this I can hear the frustration on the other end, in a whinny
voice that this or that is happening. Surprisingly, this is
very common in almost 75% of cases with my clients. After
all they are calling me because they have a problem so it’s
understandable and I feel for them. I can also feel their
“stuckness” (my new word).
My point is though, that most trades can clearly define the
problem they’re having and they just get stuck in it
and never work it through to a solution on there own. Now
I know we discussed the “emotional block” and
what can happen, solutions do not always come easy and the
reality is we all have the answers within us if we look hard
enough and don’t give up.
All to often the problem arises, takes over the mind and
then we become trapped in the problem and consumed by it.
This is more common than you might think and tends to pop
up in all areas of our lives as well.
So the key is to work the problem through to a solution instead.
By now you are saying but I tried and I can’t find away.
That tends to happen if the problem has been there for awhile
or keeps coming up over and over. Each occurance strengthens
the previous one and before you know it we’re stuck
again.
Think of it as a scale of measurement one side has the problems
piled on it and the other side has the solutions. When the
scale gets over weighted on the problem side that’s
when getting stuck happens. We become powerless and solutions
are no where in sight.
Back when I was first was learning to trade and I was in
an open room filled with day traders, they would call out
trades like “Microsoft is running” so everyone
would rush to get into the trade. Of course I would always
be late and as soon as I bought it, it would go down. I did
this over and over and chased the trade with the same bad
results, I would lose. Not only was I chasing the trade but
I found myself getting “hooked” into the emotions
of the trading room.
But I was very determined to fix this so my first solution
was to make a rule, and to adhere to the rule I wrote up a
small post-it note that asked the question “Are you
chasing the trade?” (Always write small solutions in
the form of a question – to avoid going into the emotion)
So, when the situation comes up again I will stop for a second
read the post-it and not take the trade if the answer is YES.
Sounds good right? Well shortly after I set it up the next
call came into the room “Intel is running” so
I pulled up Intel looked at the screen quickly read the post-it
note “Are you chasing the trade?” answered YES
> and I took the trade AGAIN! And you can imagine it went
against me again and I lost money again. I became angry and
frustrated, but my determination to fix this was stronger.
I had to find a way to stop this pattern before the end of
the trading day.
So I thought: There must be away, it’s there somewhere.
My mind knew what to do but my fingers felt like magnets directly
connected to the keyboard each time one of these calls came
out in the room. I was so compelled to take the trade I felt
like an addict that couldn’t stop. This is the power
of money, desire and the growth of greed and also an indication
there is an emotional block at work too.
Because I felt it was a physical compelling desire I looked
for a physical solution and I found it. When the next call
came: “KLAC is running!” I pulled up KLAC to my
screen, read my post-it, just in case, the answer was YES
and literally sat on my hands.
Now this may seem silly but I was very determined to fix
this. The next 3 calls in I did the same thing and it worked.
I had avoided taking 3 bad more losing trades. YEAH! Thought
I was done and had it under control but the compelling desire
was still there.
Finally I used my technique to break the block that evening
and the next day I really was back in control. And I have
to tell you I did one more thing, I asked for advice from
another trader. I told them my problem and said: “When
they call out the trades and I get in it always goes in the
opposite direction, and I lose what can I do?.” This
wise trade said “Then go in the opposite direction,
if they call out long get ready to short.” (stocks moved
so fast in those days you could do this – not today)
I sat there thinking why didn’t I think of that? WHY?
Because I was so stuck in the problem any solution was out
weighted. Be determined to work each problem through to a
solution.
So the fix:
1) Clearly define the problem
2) Make it a strong MUST to find a solution
3) Try ANYTHING you think will help
4) Never give up
5) Ask for help
Remember YOU and only YOU are responsible for your trading!
|
