It is my belief that the best trading is made when one recognizes ones emotions, but just sort of lets them flow through, not resisting them. This allows for the optimal decision making state.
My selfish reasons for sharing this is to make it some sort of therapy. My thinking is that sharing will take the ”sting” off of my emotions.
You can benefit from this as well, by reading and relating. I would very much like for you to share your experiences as well; either in the comments section or in you own posts. If you write similar posts, please tell me where to find them.
In the long run, about 45% of my positions end up as losers and 55% as winners. Here are 2 of my recent winners and the reasons for them and emotions behind them:
Tuesday evening I felt the market, and a few stocks in particular was due for a correction. So I decided to go short. The arrows on the charts shows my approximate entry and exit levels.
OMXS30 went above MA200 (black line) on Tuesday the 24th but reversed and was about to close near the lows for the day on high volume. That’s when I put on my short position.
The next day the index started to go lower, went below MA50 (green line) but started to inch higher agan. This made me nervous, so I closed out my position at a small gain on wednesday morning.
Kindred Group released some negative news, had a big down day on tuesday, and was about to close below MA50 on very high volume. I put on a short position.
On Wednesday morning, as I closed the short OMXS30 position I was thinking that If the index is going to reverse, this stock will probably do the same so I closed out the position at around 120, where it was floating at the time. The stock soon began to fall rapidly to as low as 110,65 only to reverse and close at 120,5.
Even though both of my positions ended up as gains, they made me feel very differently and a wide range of emotions:
On the OMXS30 trade:
- Proud that I made a good call in both entry and exit. The fact that the market kept going higher thursday and friday and would have hit my stop point is satisfying.
- I have reasons to believe the stockmarket will crash pretty hard soon. If there is a big move down on monday or soon thereafter without a big move up first, I’m afraid that I will look like a fool in a public forum for having closed my short position.
On the Kindred trade
- I felt fear that I would give back some or all of my gains when the stock bounced just a little bit. I’ve had positions recently, that was at a big profit, that reversed on me so I gave a lot of it back. The pain of that memory made me close the position too soon.
- I felt satisfied and proud on some level because it made money
- A little bit ashamed of the short holding period. Some people argue that this kind of short term trading is not useful to society and is a sign of greed an immaturity. I guess they have managed to get under my skin.
For the moment, that is all I can recall from these trades. It would make me very happy if you would share some experiences you’ve had and how your emotions affected your decisions and actions. It doesn’t even have to be trading, but if it is, I see that as a plus.
Hi @trading-sweden
I like your post man. It is like a diary we can all take something away from. Thanks for the share.
We are a group of people into arbitrage trading and made some money in the hype of crypto last year November to December. It is a quick in and out to take some profits. It actually got so good that some of the guys would leave their money in longer to try and profit from the jump of the BTC price as well. This went on until there was the massive drop from around $14000 to $9000. One of the guys in our group still had his money in and not just the profits that he had made over this period but also some of his personal savings. He ended up selling for far less for what he bought at and lost more than $20000.
We had a great thing going and he, at that point, had made close to $18000 and lost it all and a bit more.
What I I could take away from that experience is never change you game if it is working for you. Yes you can look for other ways to do things once your streak has ended but why would you change to a winning strategy.
It sounds like you are quite clued up when it comes to trading and economics. i would like to hear your opinion on my latest post if you have the time to read it.
Hi @dpl,
Thank you for you sharing!
I'm glad that you found something that worked for you and that you personally could keep your profits. I'm sure your friend is better off as well since the experience in my opinion is way more valuable than the money.
When you say arbitrage, do you mean to profit from the price difference between the different exchanges?
I'll for sure read your post, but I have something coming up in my schedule in a few minutes, so I will do it first chance I get. Probably tonight, but at the latest in a couple of days.
Again, thank you for taking the time to write, I appreciate it very much and the feedback motivates me to put up some more posts!
Agree with you on the experience man. Although money makes things easier, it is not everything.
That is correct.
Take your time man and keep up the good work.
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