Controlling The Emotional Roller Coaster.

Controlling The Emotional Roller Coaster.

My emotions have been up and down like a rollercoaster after a huge day of analyzing data.

I've been critical of myself for the mistakes I've made and how I let my portfolio slip...

And then finding a solution that could bring things back on track.

I find myself sitting at my desk.
After implementing all of my changes.
Staring at a screen of red numbers.

Hot flushes. Heart sinks.
Feelings of worry flood over me, head to toe.

It seems as though everything I know and have taught myself around the psychology of trading seems to have left my brain.

After reassuring myself, I wondered if anyone else feels like this when they trade or launch some bots...

I'm sure they do.

So I thought I would compile a few things I reiterate to myself whenever I launch a bot, and fail to remember the strategic decisions I made when I decided now was the time to pull the trigger.

Here they are:

  1. Remember where in the cycle you launched this bot and where was it headed - You knew this at the time you set it up and you were aware of the different ways it could play out.
  2. The logic of this bot is: Buy Low, Sell High. (It has to go up and down)
  3. Rather than focus on the change value %. Focus on the % return the bot is producing. How many days at this velocity would it need to turn those reds into greens.  
  4. If the market price is on the way down, that might be causing your numbers to be in the red. Again, logic is, buy low, sell high.
  5. You had a strategy, look for your support levels and where they are on your grid. This is where you predict things will turn around.
  6. Remember what your backtest results were. If they were 15% a month. Set your expectations accordingly.
  7. Give it time. Settle. Assess results over a 2-3 day period.
  8. Lastly, remember the compound effect. Rome wasn't built in a day.

Safe trading.

Simon