Friday the Battle with Self

So you have had a good week or a great week. Things are going your way. You are now living the dream. Starting this week it is all downhill from here.

Be calm, stay with your discipline, do what you did on Monday Tues Weds to get those gains.

Good old Mom once told me "You have got to dance with who brung ya.."

Earlier this week Janos sharing some trading time with me , that big spike happened right out of the gate. Remember that nice gains to be had all that day broke out of the stagnant ranges. Was awesome and especially if you were in trades facing the right direction. Even if you were not there was plenty of opportunity to get well and into the black.

Janos was fired up I was too. He told me he had made enough for the day, which for him is more than you would believe. Then he said to me " I wish that had not happened. Because I have lost my calm".

I took note of that and realized I was fired up as well. So I closed locked down my gains we bounced songs back n forth for a few minutes then the market was running again nice strong moves. I dipped my bucket in nice awesome profit locked it down when it wobbled a lil bit. Then I thought about how I was feeling tried to calm myself and focus. So I walked away. closed shop.

No telling how much he helped me keep of the profits I had made. Well more than my daily.

Why did I stop? because I could no longer find my calm my balance,because I remember the Friday effect, several occasions in my past Had great weeks only to give it back and at times more than I had gained on a Friday.

I know you have heard many times in chat others stating the same fact. Have you not seen others express this sentiment or you experienced this in your own trading?

Yesterday the long awaited retracement came 9440 to 9640 on EJ yee haw eu rocked it markets are moving.

Dance with who brung ya.

You made gains because you planned your trades, charted your plan did the work and took the usual precautions

Good old Mom. When I was young I was the skinny kid with glasses with the pen protector in my pocket long before they made the movie. Only problem was I was a lil scrappy do, was always scrappin with somebody. One day Mom pulled me aside " Now you know that when someone makes you angry they control you right?'

Same theory applies here yet it is the battle with self. Hey I am not saying be doom and gloom you have done well congratulations are in order . I am just saying keep your self image as a successful profitable trader that does the work required and takes the precautions to be successful. That is more towards the middle a balanced view and rightly so. cheers

Your ego would have you believe that you are now the forex prime intuitive and you need simply glance at a charts and make the proper trade exactly at the right time purely by osmosis.

Now I do not want to put limiting beliefs in your head but I respectfully submit that you might consider that level has not been reach yet.

Dance with who brung ya

Alright this goes out to all new trader's. By Sir Gissachance's definition that is 7 yrs live experience. So all you experienced guys 10-15 30 years you have dealt with these issues before, any insights greatly appreciated

Hoping you all have a great day

One Love

Jim

11 members like this

Comment by Jim Mathis on July 27, 2012 at 1:50am: Yes Lisa the fight or flight response many people address this being the other end of the spectrum is not often addressed. I guess because there is nothing actually wrong with winning, that is our goal to win. I submit that in enhanced states when you are doing well your emotions remain unguarded and as such often trading discipline is out the window. I keep a post it on my main monitor, I do not need to be right, I just need to be profitable".

I have often heard you use the phrase sitting on my hands waiting etc not usually from euphoria but waiting for your spot. Us younger traders still dealing with managing emotions both sides of the spectrum.

Thanks for your response

Comment by talisman on July 27, 2012 at 2:11am: good read, thanks. i have 2 post its as well. one has one word , " discipline " , and the other says " act decisively even though you dont know with certainty the outcome "

i would describe myself as just coming out of the dip, 4 years forex live trading.

i enjoy your input on this site

Comment by Jim Mathis on July 27, 2012 at 2:17am: cheers talisman

Comment by Keith Shaw on July 27, 2012 at 7:16am: Some wise words Jim, great post.

Comment by Jim Mathis on July 27, 2012 at 10:34am: Cheers Keith have a great trading day and a super weekend.

Comment by colinwbarnes on July 27, 2012 at 11:33am: Hey Jim..our emotions are really strong things...they take precedence over our thinking..emotions always lead...what helps me is to concede that my emotions are not reality..they are just coming from me..my emotions have nothing to do with the reality..the flow and ebb of the markets..they are simply coming from me...thanks for the article and all your enlightenment.

Comment by Jim Mathis on July 27, 2012 at 11:36am: hey Colin thanks for your post, you have a great weekend and hope you have some good trades.

cheers

Comment by genxtrader on July 27, 2012 at 6:58pm: a wise trader stands aside in the midst of uncertainty, humble and modest about his achievement,and aware of his ego at all times. this is one of the best articles i have read this week jim, thanks.

Comment by Peter jcp on July 28, 2012 at 9:14am: Hi Jim - Its Saturday morning in the UK and I have just been reading your great blog. I will admit I had to check out what "dance with who brung ya" meant - as I had guessed the meaning - but was not 100% sure.

Basically its showing respect and thankfulness for those who "got you there" - or assisted you on the way. I know with you Jim - guys like Sir Gissa and Janos ( and ya I know me at times) have helped you on your way in trading currencies and they must feel like me - its great to see other traders who have asked the right questions - shown respect and the willingness and dedication to move forward on their trading journey.

So first question - I hope you and many more traders - did not lose their gains yesterday - and instead like me had their "best day of the week" ?

I can think of other phrases like the one "dance with who brung ya" that have relevance in Forex trading - for example -

"dance with the devil" and one unusual UK one - " you can be right - but you can still be dead"

Trading Fridays might be looked upon as "dancing with the devil" - and I think yesterday Friday 27th July - was certainly one. Until you are fully confident with you methods etc - as Genx says - far better to stand aside - watch or even try and trade it on a demo - so that you can still learn from market playing " bucking broncos"

"You can be right - but you can still be dead" is a phrase not readily discussed in trading.

For example everything possible can line up - all the technicals - all the fundamentals - all the expert opinions etc etc - for say a drop in a currency pair and you enter short and within 2 hrs the market risen 150 pips !

This is simply because - "the market - is the market" - it will do what it wants to ;-) so you might have got everything correct - but you were still wrong ;-) Actually the reasons are simpler - the market at times is totally manipulated by the larger players of the session or day - and they will just do the opposite to the "majority" to take their money ( study "gameplay" techniques)

Its seems to happen more and more - but I can tell - its is all there to read in the charts - but unfortunately not the charts set ups 95% of traders look at.

Jim - I know you will go the whole journey and will be successful in trading. You have the necessary traits - dedication, willingness to listen and learn, time, understanding, and importantly - focus and concentration.

Accept your wins, control you small loses and just keep doing it and learning whilst you trade.#

As that great golfer Arnold Palmer said - " the more I practice - the luckier I seem to get"

I would agree - and after now what must be well over 10,000 live trades - I seem to get better at my own "unusual" way of trading the Forex market

Enjoy your weekend - and learn to trade every day - that's only if you want to though ;-)

Regards

Peter

Comment by colinwbarnes on July 28, 2012 at 5:43pm: successful trading is a discipline that takes learning..if one loves what your doing...them training is not a burden..rather a joy.

Friday the Battle with Self

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