- Posted by chicagosean on November 12th, 2013 at 4:03 pm
My previous post titled Developing the Right Mindset seemed to strike a chord with many readers. “Trader Louie” left a very insightful comment, one that I thought might be nice to share with everyone:
Hey Sean – nice read.
I’ve been trading full time for over 8 years. The one thing I will add is that, for me, paying too much attention to shorter term P&L performance led to real & substantial negative results: poorer P&L results and more emotional baggage that I had to bring to the desk the next morning.
When my system wasn’t in its market and my drawdowns would start coming in, the added pressure of being overly sensitive to performance caused me to suffer massive performance anxiety. Every single day, knowing that I wasn’t keeping up to a benchmark or in a continuous drawdown had me suffer even worse losses by trying to force something, anything to happen.
As I was paying close attention to my poor performance and it became worse by me forcing trades, it caused my anxiety to get even worse. A negative feedback loop ensued which was only broken by a forced suspension of trading as per my rules.
By working with some professional trading coaches, I have found that moving away from overly scrutinizing my results (the past) and instead focusing on meeting goals (the future) has moved my trading up multiple levels. Parenthetically, understanding & acknowledging that both long & short term performance woes are a natural part of this business and learning to cope with those periods is a must if you want to do this full time.
Just a thought for those who might suffer from the same sort of mental hurdles as I do and did.
Seany here. I love his line about moving away from the past and focusing on the future. We can learn from the past, but we can’t change it. No sense being mad about it, or negatively affected by it in some way. Focus on the lessons learned (every loss is a lesson) and apply that to what you’re doing now, today, and tomorrow.
This is my struggle. Every dawn is the start of a brand new day. Move forward.
Developing The Right Mindset
Posted by chicagosean on November 9th, 2013 at 1:21 am
I just concluded reading Enhancing Trader Performance by Dr. Brett Steenbarger tonight. In the final chapter, Dr. Steenbarger shared a quote from Larry Connors in […]
Anecdotal Bullish/Bearish Sentiment on StockTwits
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Posted by chicagosean on September 13th, 2013 at 4:50 pm
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Posted by chicagosean on May 22nd, 2013 at 9:55 pm
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Excerpt From My Daily Journal Entry
Posted by chicagosean on May 20th, 2013 at 7:52 pm
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Sean McLaughlin - Editorial, Curation, & Investor Relations Solutions at StockTwits. Also, former Member of the Chicago Board of Trade who trades his own account in Boulder, Colorado. More »
- Dealing With Performance Anxiety
- Developing The Right Mindset
- Anecdotal Bullish/Bearish Sentiment on StockTwits
- Why I Love StockTwits: Community
- Do You Factor “Luck” Into Your Strategic Process?
- Stocktoberfest Late-Night
- Where The Magic Happens
- Find Your Zen. It Makes All The Difference.
- Excerpt From My Daily Journal Entry
- An Absolute Economic, Societal, and Political Homerun