Saturday, 26 March 2011

Freedom


I feel as though a huge weight has been lifted from my shoulders. For the first time this week and possibly the first time in over a month, I traded with almost complete freedom. Every trade I executed without fear and followed my strategy almost to perfection. Hell, I think I even ENJOYED today! I'm certain that if I'd gone into today's trading with the anxiety of yesterday, I would not have done well, so the bank management has made a huge difference. The pressure of failing and picking up reds has dissipated. I still have that underlying anxiety about my overall financial situation but I now realise that the only way I'm going to overcome this is to trade as if I am a novice again, starting at the bottom with relatively small stakes. If I can stabilize and then grow slowly in the short term, it shouldn't be too long before I can up my stakes again because I have everything else in place that a novice wouldn't have - a solid strategy, market knowledge, experience and awareness of the mindset required. All today's profit was gained from a stake that was 3 times smaller than what I had become accustomed to using. What a difference it makes to be able to trade without fear - I've gone from a day where every trade was red to an all-green day!

The strange thing is, all of those wins came from me using my old strategy. As of today, I will refrain from all this old and new strategy speak. The fact is, I have several different strategies which are adaptable to different situations and so the new ideas that I have been paper-trading so successfully, will actually now become another string to my bow. So when I refer to my strategy now, it will just be a collective term for all my systems, I won't be ditching anything.

Tomorrow sees the start of TV coverage from Miami - FINALLY! The first week of Indian Wells and Miami are pretty much the only 2 weeks of the season where there is no stream to watch until the weekend. This has undoubtedly impacted on my trading, as I've been far more hesitant to get involved than usual. So hopefully, things will continue to improve as the tournament drives into its second week. I certainly won't be getting carried away by one good day though. This is going to be a long, slow process, very unlike the way I've attempted to trade in the past. Getting ahead of myself is a reaction that is every bit as dangerous as the paralysing fear I've experienced lately. However, this time, I'm ready for it.

3 comments:

  1. Hi mate,

    I think your return to lower stakes is a great idea. You will find that you are able to trade much more freely and the fear factor won't even be a factor anymore!

    I recently had todrop down to small stakes after numerous problems with my connection. I was having to trade using a dongle full-time for 4 months and I just didn't trust the connection using big stakes.

    My concerns were proven correct after a big loss when my connection cut out mid trade. It was off for 10 minutes by which time it had gone well beyond my planned exit and deep into the red (40%).

    I had previously been trading with £500/£300/£250 depending on game and opportunity so to drop to £50's was a big hit for me.

    However, i found myslef more at one with the market and i could really get a feel for the games and was easily hitting 100%+ a day consistently. This was something I'd find hard to achieve with £500's because the temptation is always there around the £50 mark in any game..

    Just to say good luck with the new idea! We all need to be flexible in how we trade and I think you have taken the correct approach by taking a step back and starting from scratch.

    Good luck and Happy Trading! :-)

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  2. Glad to see an improvement. The horrible emotions you expressed are scarily familiar and not a nice place to be. I think you are right, stake size is imperative to allow you to trade in your comfort zone, ie acceptable reds. I find that I have a subconscious level of loss that allow me to accept it and move on, if it surpasses this I revert to lunacy and bank blowing. Self awareness is just as critical as discipline, and both are inherently linked.

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  3. Hi Guru, that's a pretty inspirational story, thanks for sharing. It certainly helps to know others have been through the same problems and overcome them. It was always around the £50 mark where I used to get wobbly too!

    Guy, yes, same with me. It was usually anything over £50 red that would see me leaving the trade to run too long. I had actually cut this out in recent weeks but the pressure of having such a small bank without any management plan, has lead to me making different mistakes. I just wish I'd been more thorough and less impatient when I first began trading. Still, can't change that now and no point dwelling on it - onwards and upwards!

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