EDIT: I'm quite sure I put this in the wrong section. Sorry mods.. I wanna talk about something called "Tilt". I'm sure you're all aware of what it is, but there might be someone who's not familiar with such word, so here's the explaination: a state of mental or emotional confusion or frustration in which a player adopts a less than optimal strategy, usually resulting in the player becoming over-aggressive. See, I used to be quite a good poker player. But my main problem has always been this bloody tilt. And I think that it could easily affect a trader's perfomance too. You loose a few good hands, you start tilting. You loose a few trade you thought to be good, and you start tilting. In both poker and trading, tilt can bring you to loose your entire stack. So here's my question: how do you manage tilt? What limits do you put to yourself? Have you ever experienced such mental state?
Im pretty sure everybody here has been through that. Most often its due to over trading and taking on too much risk. Slow down, take smaller positions, get back into the groove!
I used to be a active poker player, mostly Holdem and only took with me what I wanted to risk on any given night. If the cards weren't running good for me I would change casino's and you would be surprised with the results. The same can be said for stocks except you can add TA and set your self a stop(s) if your trades are not going in the right direction. You need to take emotion out of trading and treat it like a business.
Tilting is one of the reasons why I dedicate less hours to this job than I probably could have. So yeah, there's obviously a certain problem here.
One thing that can help with "tilting" is to have trading rules. Then have the discipline to follow them. Set the conditions that need to be present for you to put a stock on your watchlist. What needs to be present to buy. Set exit position if trade goes in the wrong direction Position size with a rule that limits the amount of loss. Etc. Easy to say but if one can implement trading rules the tilting will take care of itself
Okay, so I have my rules, I revisit them every day - how do I keep to them? How does one manage to resist the opportunity of a "life-time trade" and stick to his trading plan/rules/strategy?
Yeah, that's where the problem lies for me. I've had quite a lot of ideas lately, none of which actually finished, since I'm more interested in coming up with something rather than bringing it to a conclusion. And don't you say I need to develop and improve my discipline, since this would require some discipline itself
I think I already said it. So I guess that puts one in a position that they are doomed to keep repeating the same steps over and over again and expecting different results
If you were a "good" poker player, you wouldn't have tilted as you would have a fundamentally sound understanding of variance and BRM. Investing is the same. Proper play is rewarded long-term, as is the case with investing.
Kenny Rogers imitation: "You gotta know when to hold em, know when to fold em, know when to walk away and know when to run" and also, "You never count your money when your sittin at the table. There'll be plenty time for counting when the dealing's done" So, yes I see the similarities
Well, with such a latitude of analogies you could basically compare trading to any activity, and any activity to poker
You pluralized analogies in order to try to fit the word latitude in but in reality poker is 1 analogy so it is not a latitude of analogies. Also by the very nature of an analogy some latitude in the comparison is assumed. That said one would have the latitude to pick from several other analogies that might fit the occasion.
What I found in my experience from a young pup to a my status now dinosaur is when I was a pup the market was a place to make a lot of money and have crazy money. In my dinosaur years what I found out is if you are trading/investing for a living in the comfort of your home and you acknowledge it's a business then you establish a trading plan put it on paper go and buy an expensive picture frame, frame your trading plan put it up in front of your screen and don't ever divert.
They're both games of psychology. Ability plays a minimal role compared to mental fortitude and discipline.
