{"id":43313,"date":"2016-03-11T14:44:04","date_gmt":"2016-03-11T19:44:04","guid":{"rendered":"http:\/\/www.smbtraining.com\/blog\/?p=43313"},"modified":"2023-04-25T17:27:23","modified_gmt":"2023-04-25T21:27:23","slug":"try-automated-stops","status":"publish","type":"post","link":"https:\/\/www.smbtraining.com\/blog\/try-automated-stops","title":{"rendered":"Try automated stops"},"content":{"rendered":"<p><iframe loading=\"lazy\" width=\"600\" height=\"338\" src=\"https:\/\/www.youtube.com\/embed\/GVRXFpCmKd0\" frameborder=\"0\" allowfullscreen><\/iframe><\/p>\n<blockquote><p>Dear Mike,<br \/>\nThank you for your insights in your 2 books. \u00a0Given me great insight into the mentalities of the top traders and that too, of the failing trader. \u00a0I\u2019ve started learning to trade in the last year and admit that I am failing. \u00a0Had gone through my journal, done backtesting on \u201cmy edge\u201d and meditating and deep breathing during trades. \u00a0Yet, I still have a huge, huge difficulty : <b><u>\u00a0Psychology.<\/u><\/b> \u00a0On the advice of Steven, I humbly write this email to you for advice.<\/p>\n<p>About my trading journey:<br \/>\nI started my trading April 2015 following the trading system of a certain someone on internet. \u00a01Min bar, candlesticks on BB and I\u2019m good to go. \u00a0Frankly, I did well then. \u00a03-5 mins a day, I was up $300-$500. \u00a0For 2 weeks. \u00a0Then things started falling apart when I traded on news of $AAPL and bought on the dips intraday. \u00a0No idea what I was doing, but I lost all my profits in a single day. \u00a0I then stopped and started reading up and testing. \u00a0For the next couple of months, I started testing my strategies on SIM, and when I\u2019m on a roll, I\u2019ll start doing something stupid again, totally deplete my account, and start doubting myself again. \u00a0But I continued to read, learn, talk to people. \u00a0<b><u>But each time I had a run, I\u2019ll go on to do something stupid like:<\/u><\/b><\/p>\n<p>&#8211; not following stop-loss rules, extending my losses<br \/>\n&#8211; placing a stop, and not adhering to it and closing out before I get hit (and the original stop was never hit)<br \/>\n&#8211; placing a stop so close it is IMPOSSIBLE NOT to be stopped out (like $0.02 from entry price)<br \/>\n&#8211; closing a trade at breakeven (within 5 mins of placing the trade) without any confirmation of direction<br \/>\n&#8211; questioning myself over and over about an entry and either miss the trade totally, or I\u2019ve just simply increased my risk-reward from 1-2 to 1-1.<br \/>\n&#8211; placing a LONG when I told myself it was a short because the Dow Jones was UP (stocks)<\/p>\n<p>In short, I\u2019ve done well <b>DOUBTING EVERY TRADE I AM TO PLACE and MYSELF<\/b>. \u00a0I Aced it. \u00a0I\u2019ve gone back to simulation, and the same thing happens when I treat it like a real account. Yeah, I know, crap beginner.<\/p>\n<p>I have <b>FEAR. GREAT FEAR<\/b> of making a wrong trade. \u00a0GREAT FEAR that I will lose the profits I have. \u00a0I had beaten myself up constantly during trade not because I took a trade and it didn\u2019t go my way. \u00a0In fact, when that happens, I accept I was wrong and was at peace and seek to improve my judgment. \u00a0Rather, I beat myself up for the total doubt and fear in placing a trade when I think I see it or ruin the trade with so much fear that I close out with a small loss or at breakeven, even when the trade was in my favour. Things I have identified about myself:<\/p>\n<p>1. \u00a0Extreme Fear of placing a wrong trade<br \/>\n2. \u00a0Extreme Fear of losing profits or the trade losing money<br \/>\n3. \u00a0Fighting my judgment of a trade by creating a mental resistance to that judgment<br \/>\n4. \u00a0FEAR<\/p>\n<p>I\u2019ve tried various ways to calm myself : Deep breathing, meditation before the trade, telling myself to trust my judgment, all to no avail. \u00a0When I see an opportunity, ALL 4 of the above stands right in front of me again. Every night. \u00a0I\u2019ve come to a point where I show her what I think can happen, and she goes: \u201c So what? You still can\u2019t trade!\u201d<\/p>\n<p>I\u2019m sorry for the long email but hope that I can have some advice from you on overcoming them.<\/p><\/blockquote>\n<p><a href=\"https:\/\/tmblr.co\/mlpl7QZiO2QRmFxnpYWvaEg\">@mikebellafiore<\/a><\/p>\n<p>Try placing automated stops immediately after you enter your positions.\u00a0 Specifically try automated limit stops.<\/p>\n<p>We had a similar issue with a trader at our firm.\u00a0 He started having trouble hitting out of positions past his stop loss.\u00a0 We suggested placing automated stops.\u00a0 In fact we placed him on a demo to practice and successfully place automated stops until he could trade firm capital again.<\/p>\n<p>Automated stops take you out of the equation.\u00a0 When a price is hit you are automatically flattened.\u00a0 No thinking.\u00a0 No doubting.\u00a0 No reconsidering.<\/p>\n<p>Start there and see if that helps.<\/p>\n<p>*no relevant positions<\/p>\n<p><a href=\"https:\/\/tradingworkshop.com\/\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-42831\" src=\"https:\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2023\/03\/smbwebinarsignup.jpg\" alt=\"tradingworkshop\" width=\"600\" height=\"300\" \/><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Dear Mike, Thank you for your insights in your 2 books. \u00a0Given me great insight into the mentalities of the top traders and that too, of the failing trader. \u00a0I\u2019ve started learning to trade in the last year and admit that I am failing. \u00a0Had gone through my journal, done backtesting on \u201cmy edge\u201d and meditating and deep breathing during &#8230; <a href=\"https:\/\/www.smbtraining.com\/blog\/try-automated-stops\" class=\"more-link\">Read More<\/a><\/p>\n","protected":false},"author":144,"featured_media":42840,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[3422,1336],"class_list":["post-43313","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general-comments-2","tag-automated","tag-stops"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.1.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Try automated stops | SMB Training<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.smbtraining.com\/blog\/try-automated-stops\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Try automated stops | SMB Training\" \/>\n<meta property=\"og:description\" content=\"Dear Mike, Thank you for your insights in your 2 books. \u00a0Given me great insight into the mentalities of the top traders and that too, of the failing trader. \u00a0I\u2019ve started learning to trade in the last year and admit that I am failing. \u00a0Had gone through my journal, done backtesting on \u201cmy edge\u201d and meditating and deep breathing during ... 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