Food for Thought

Discussion in 'Psychology' started by The_Merchant, Jan 30, 2017.

  1. algofy

    algofy

    Yep 100% right here. Psychology is overrated. The difficulty is extracting alpha is underrated.
     
    #21     Jan 31, 2017
  2. Wait...most? Pretty sure one or more of those three is the reason everyone fails at everything.
    But I think number 3 is the only one that's not able to be fixed by trying harder.

     
    #22     Jan 31, 2017
    pinabetal likes this.
  3. Psychology is the "culprit" due to the fact that psychology is the study of the human mind. So, ultimately, we make poor and inconsistent decisions against logic regarding trades, stocks, ect. Psychology is there set it place to make sense of why our brain(mind) did the good, and bad and the ugly. Regardless, until we can tell the future(which I hope we never can because it will eliminate trading altogether), we will continue to drive ourselves to make poor decisions while pursuing the ultimate goal of obtaining more of whatever it is we want.
     
    #23     Jan 31, 2017
  4. comagnum

    comagnum

    If I go into a live market without a clear cut plan in advance I will behave like I am in a casino - having a few big winners, and a lot of losers making me net negative over the long run. I will selectively boast about my winners and supress the losers - thinking I am doing well - until I go bust. It will make me feel crazy invoking a lot of emotions. All the meditation, therapies, mentors, positive visualizations, bio-metrics, spa time, drugs, etc will not ever make that type of trading turn into a sustainable source of income.

    Making trading a business by having a detailed plan with a strong risk mgmt strategy and a detailed schedule of the trading processes evolved me from the casino mentality. A compulsive gambler, or a trader in casino mode has a psychology problem which can be resolved - but not from changing their psychology.
     
    Last edited: Jan 31, 2017
    #24     Jan 31, 2017
    vanzandt and KDASFTG like this.
  5. vanzandt

    vanzandt

    Sooo true. Golden words.
     
    #25     Jan 31, 2017
  6. I couldn't imagine anyone trading WITHOUT a clear cut plan in advance...I'm sure some exist. Are you sure you would have a "few big winners" without such a plan? Even that would be difficult...in my opinion.:banghead:
     
    #26     Jan 31, 2017
  7. vanzandt

    vanzandt

    I need to print his words and paste them on my monitor. :D
    CMag knows whats up. I suspect he's one of the best players here.
     
    Last edited: Jan 31, 2017
    #27     Jan 31, 2017
  8. Simples

    Simples

    This is why people go to war: It'll supposedly feel good, and there's a reward, supposedly..
     
    #28     Jan 31, 2017
  9. comagnum

    comagnum

    It's a well known fact that very novice traders have a written trading plan. Every published study of day traders shows they make the same types of mistakes as the causal trader/investor does and the vast majority lacked having any sort of trading plan let alone understand risk mgmt, expectancy, risk mgmt, the road to ruin, etc. Most make a plan after having blown up at least once or more.

    Of course you can make some big gains when just shooting from the hip, I sure have. I don't know why you find that hard to believe. I have known many non-traders that have made some big gains in a short time frame - the hard part is keeping it.
     
    Last edited: Jan 31, 2017
    #29     Jan 31, 2017
  10. vanzandt

    vanzandt


    images.jpg ET is lucky to have you here.
    For real.
    This ain't no ass kissin. This is what it is.
    Gotta put politics aside and see the forest thru the trees.
    This dude has been there and done that.
    I'll shut up now. And only listen.
     
    #30     Jan 31, 2017