I got Risk Manager Now

So this post is pretty self explanatory. I went and got myself a risk manager. At the moment I am having trouble remaining disciplined and keeping the course. I dont think I am a bad trader per se but once I am on a constant streak I manage to get over confident and over leverage and ultimate blow weeks of profit because of emotions (THE TILT)

Currently, My risk managers role is to help me manage my risk by locking my account if I do not follow my Risk management rules which have been modified a bit. I think this is the best approach because I can’t seem to discipline myself and take a day off once my risk limit for the day/ week has been hit. You see in trading if you dont create rules you are bound to fail and do some reckless things. The worst part too is that sometimes  you are rewarded for doing the wrong things and this creates bad habits.

For me the biggest thing is to maintain my lot limit and daily/weekly risk limit. This way I can really reduce my losses and focus on the process. Last friday, (February 9th, 2018) I was not suppose to trade at all. I even discussed the plan for friday with my risk manager,  I said “I won’t be trading until next Tuesday” But what did do?
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Talking to myself (back dated December 19th, 2017)

Do I really know what makes me risk more than I should. I think vaguely it would be emotions, but which emotions exactly. I’d say mainly greed because I always forget this is a long term game. Last year this time I deposited 1K and lost it over a week period. 1000/5 trading days= $200 a day roughly. Keep in mind last year I had no real risk management plan.

That’s a loss of more than 10% a day. If I took my time and managed my risk and actually gained that 1% a day for a year I would be laughing now with at least 10-15K and a ton more experience managing my risk and another step closer to leaving the 9-5 life. Right now the #1 goal is to be financially free then mentally and physically fit!

Remember this: Winning takes discipline, discipline comes from confidence and only a system in which you have confidence will you increase your chances of succeeding as a trader.

Q and A – Psychology (backed dated December 10th, 2017)

Some Risk Management Questions:

  1. Was the loss of money worth all the emotional pain and financial heartache?
  2. If you had the opportunity to do that trade or investment again, what would you do differently.

Tales of Losses

  1. What is the biggest loss you have personally taken in the market?
  2. What was your emotional experience during this event?
  3. What went through your head and heart during this event?
  4. Were you in emotional control or was your destructive ego in control?
  5. Was it worth it my dude?
  6. What did you learn from this experience? If nothing, Then this loss will probably repeat again in the future.
  7. What new disciplines have you now implemented when you invest or trade to protect yourself against losses

Answers:

Continue reading “Q and A – Psychology (backed dated December 10th, 2017)”