Trading psychology and mental health

Hello Everyone:

I have been inactive for a long long time, mostly was dealing with my mental health. It was a traumatic experience taking too much risk by borrowing a lot of money and seeing my accounts being wiped when the market did a nose dive. I have been in therapy and dealing with my childhood traumas.

I am almost healed and believing I am a better person now.

I strongly suggest there be a category in the forum for trading psychology and mental health.

Best regards.


That is why system VALIDATION by backtesting, walk-forward testing, Monte Carlo testing is crucial.

  1. You have to have the system that is expressed in mathematical terms, not your "wishes" or "gut feelings"
  2. You have to backtest the system so you know how it behaves in various market conditions
  3. You have to be honest with yourself that you can actually stomach all drawdowns that backtest shows you. Prepare for losses, expect the loses, accept the loses. Backtest will show you that loses come inevitably.
  4. You have to monitor system performance when trading for real and as soon as system metrics shows signs of degeneration - which happens - stop trading NOW and go back to the drawing board

I have created AmiBroker and released it for the very this reason - to SAVE the people from losing their money when they jump into deep see of trading without being prepared.

If you don't have a system that was validated and you do your "discretionary" trades sooner or later you are going to get into SERIOUS trouble.

Don't trade unless you have something that you rigorously tested.

Be wiser than the crowd. Be wiser than thousands of others. Prevent the trouble in first place, don't get into trading without mathematically proven and sound system, instead of curing from psychological issues caused by dramatic loses.
If you don't do rigorous system validation first, the market would do that for you, in a painful way.

We all lost some money along the way, it is not uncommon. I feel your pain and I believe many people on this forum would sympathize with you too.


That's incredibly brave of you to reveal your situation. I commend you - hats off!

Good job! All the best to you going forward!

The Market certainly can teach you how not to trade and it's tough on you that you have learnt this harsh lesson. Now that you have had this life lesson and are currently on the mend, this is a great opportunity for you to show yourself that you can trade correctly with the correctly risk management and reap that rewards that come your way...

All the best to you.


Glad to see you back with greater confidence and higher morale to bounce back from the spring board while taking care of your economic conditions.
Let us make better use of Amibroker capabilities to know how much deep we need to get into the river and where we should not go. :grin:
Though new to this forum, I stand besides you in your journey to bounce back.

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Hey Bud, sorry to hear you went through a rough time.
There’s no easy fix . As Churchill said, if you’re going through hell, keep going.
On the same note, be kind to yourself.
Hope you get well.

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Thank you for the advice. It means a lot. I Have systems. But somehow my brain didn’t trust them completely and stopped following them. Yea honesty with oneself is super important, I didn’t know I was not .

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Thank you so much for your kind words. Yes to expose myself here is to admit my mistakes and to heal the shame.


Thank you so much for the encouragement . Good to see you here .

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Very well said ! I was too harsh to myself and even hated myself. But no longer so. Send you kindness and compassion.