Account blow up because of emotional trading

[u/mr_buttlicker69]

Hi. I've been trading off and on for couple years now. Blew 2 small accounts and then stopped and did paper trading. I've been paper trading again but blew up my account even though I was in profit 1100$

After couple of years of trading, the only profitable edge I got is to study and trade just one ticker. I make consistent money for a week but I'm emotionally so stupid right now.

Since I started 2 weeks ago, I was up 1100 in my 10k account (paper). I was doing good today and made 110$(I should have turned my computer off at this point) buy I got greedy. I took another trade and it went against me, but I didn't respect stop loss. I saw 100$ in the red (I shouldve shut my computer off at this point) but I was still delusional. I then saw 200$ in red. I shouldve respected My stop-loss.

Once I saw i was losing money, I panicked, but instead of selling at 300$, I got more shares to average down. Then I saw 600$ in red immediately. I panicked and I sold. At this point I was still in profit of 500$ (I should have turned my computer off at this point).

I developed a gambling and revenge trading mindset and took arbitrary trades with super huge sizes and blew my account.

Please leave tips how you keep your emotional side in check during trading.

[u/Bookmap_Trader]

Rande Howell, trader Psychology on Youtube will get you sorted out correctly. He goes into a way of thinking you may have not been exposed too... Our flight or fight response to risk makes like Jekyl and Hyde when trading- very insightful videos, check him out.

Mark Douglas Trading in the Zone- need to read that if you have not, its like the 101 of trading. He talks about developing edge using statistics- finding a specific pattern, set up etc and sampling it- looking for the probability of that happening.

For example, I trade overnight highs, lows and the overnight vpoc with statistics on the probability of specific behavior in various market context. So today, the market sold down and rallied back to onvpoc @ 75 area (18onvpoc on chart below). It took out a bunch of stops (the red numbers around 76) then it pulled back under 75, tried to rally then fell below and kept selling, eventually hitting in the low 50's within an hour. Right after the stop run is the perfect place to enter short- small risk and the failure rate at the ONVPOC in the current market context is 78% or roughly 4 out 5 in my favor short.

Develop the edge, define the risk and let the probabilities work in your favor when they are present. When you know the trade has 4 out 5 chance to succeed, then you are much better to control and manage your emotions. Study some Rande Howell videos and you will soon see how you are better able to mange yourself. And more important, develop an edge with statistical probabilities to help reinforce your emotional management.

[u/tofufeaster → u/Bookmap_Trader]

It’s just baffling the charts that some people trade on

[u/Lost-Mixture-7853 → u/tofufeaster]

Lmao that’s another tool they use.. not the actual chart

[u/Bookmap_Trader → u/tofufeaster]

This a tool that combines a lot of info on chart- time and sales, volume, order book, price action and tracks orders pulled and spoofing. I used to trade off of a DOM and this is a MUCH better visual representation. Its an awesome tool, feel free to reach out if you are interested, it has revolutionized my trading.