Trading and Emotion

Hi guys,

I'm 34, I've only been active in the stock market for about 12mths after doing some reading of a few basic trading/investing books. The first 6-8 months were good. I researched, bought, and sat on stocks until I thought they were at fair value and then sold them. I would see fluctuations, some big swings up and down, but it didnt worry me. Two stocks halved in value, but I liked the fundamentals and was happy to sit on them and wait until they eventually turned around (and luckily they did). But as time went on my emotions began to become much more heavily involved than before.

I began overtrading - selling too early, buying back in at a higher price, and then selling too late sometimes at a loss. I made a couple of bad calls (getting swept up in hype and buying too high, or getting a good entry but then selling at a loss due to a brief and temporary change in sentiment). During and after these bad calls I became addicted to the commsec app. I probably check it 50 times a day. I felt consumed by the market, whereas before I would check it a few times a week, I had to check it every chance I had. I would lurk hotcopper a couple of hours a day. Think about stocks all day. Dream about stocks at night. And wake up thinking about stocks. Then there was a few weeks where all my picks plunged, and stayed down. I'd lost 70% of my profits for the year during this period, and then I was in an emotional black hole.

I was depressed and felt like I had failed. I beat myself up over all of my wrong trades, for ignoring a stoploss (BLK), or enacting one when I shouldnt have (BDR, ZMI). I began feeling sick from the stress of these decisions and seeing my losses staring at me each of the (50) times I checked commsec each day. Eventually it I couldnt handle it anymore and liquidated most but a few core longer term holdings. I felt better for it, but it was the wrong thing to do. There was nothing wrong with the stocks, they were just normal market gyrations.

Thinking I could start afresh, I found my emotions are still feel heavily involved. I feel stress (heart pounding) at the slightest trace of uncertainty in a stock's sentiment, even though I myself believe in it's fundamentals and know it's just a matter of time, my mind is still plaqued with self doubt. I also seem to 'live' through the fluctuations minute by minute, sitting at the computer refreshing the screen over and over because I'm scared of a sudden price plunge.

Has anyone experienced this or overcome this? Does anyone have any tips to help remove emotion from trading or detach yourself from abhorrent daily fluctuations? I have read the STT library regarding stress, and it's excellent, it rings a lot of home truths. I have been trying to follow it, but I still feel dread when a stock's price is in a flux. I wonder if I dont have the personality type to control it/myself???? I am in awe in many of you, to have nerves of steel during similar circumstances, I really feel like I have lost mine...

Thanks in advance for any insights anyone can offer. This is a great community and I am glad to be a part of it .

Mick