How to become consistently profitable

Discussion in 'Psychology' started by Riskmanager, Feb 24, 2006.

  1. volente_00

    volente_00

    If you want to do it the easy way then all you have to do is wait for bird to start a S&P thread and fade him with max leverage. This will net you a minimum 20-100 points of profits in the S&P everytime.
     
    #11     Feb 25, 2006
  2. The original poster recommended NLP to you along with the link and I wonder if he took the time to read the link he posted.

    Some clips :

    Scientific analysis of NLP
    NLP has been empirically tested over many years and many of its models and methods have been found to be largely ineffective [160].

    In relation to current understanding of neurology and perception, NLP is in error (Bertelsen, 1987), and instead of being grounded in contemporary, scientifically derived neurological theory, NLP is based on outdated metaphors of brain functioning and is laced with numerous factual errors (Druckman and Swets 1988).

    The 1988 US National Committee (a board of 14 prepared scientific experts) report found that "Individually, and as a group, these studies fail to provide an empirical base of support for NLP assumptions...or NLP effectiveness. The committee cannot recommend the employment of such an unvalidated technique"[161]. In addition, Edgar Johnson, technical director of the Army Research Institute heading the NLP focused Project Jedi stated that "Lots of data shows that NLP doesn't work"[162]. NLP has failed to yield convincing evidence for the NLP model, and failed to provide evidence for its effectiveness [163].



    or perhaps he missed this :D


    Cult characteristics
    NLP is sometimes referred to in scientific research reviews as a cult [243][244][245], and a destructive or amoral pseudoscientific psychocult [246][247](eg. NLP Rekaunt[248]), and in research it is often considered to be akin to a cult [249][250][251][252][253]. The German educational ministry banned the use of NLP in education due to its close similarity to Scientology [254]. Bandler's legal actions have been compared to the vexatious litigation and restriction in freedom of speech of cults such as Scientology [255].



    Botton line is that NLP is fantastic for Bandler, Robbins and all the other vendors out there selling their wares to the nieve.

    It took me 5 years of study to find out that it lead Nowhere.
     
    #12     Feb 25, 2006
  3. Well said.
     
    #13     Feb 25, 2006
  4. nevadan

    nevadan

    Seek out and find a mentor who is walking the walk!



    you said it best mschey
     
    #14     Feb 25, 2006
  5. Nothing seems to go fast for me. I trade strategically.

    Everything is regulated off of exposure and drawdown.

    For me the key is too never be so exposed that there is not any room or time for adjustments.

    I keep my leverage below 5:1 and my drawdown below 8% in my "always in" retail spot forex system.

    Much of my time is anticipating movement and which pairs I will need to hedge with. There is always a challenge going on and I am chasing leverage and drawdown continuously to not let it get away from me.

    The yield comes when it comes and I never look at it, because I am so busy containing leverage and drawdown. Sometimes I am surprised as I can see the rubberband stretch as my positions develop...but the basis for my decisions always come around my way...its just that I do not like to stretch the rubberband too far, and I know I am sacraficing yield at times.

    To get my NLP, I follow a series of steps in order to find the balance. I recently have started to look at fundementals which has improved my trading. I pay for some of these newsletters I read and I think it is worth the money in currency trading. But my system trades on TA, and I use fundementals for bias. But I have learned that this can be bad to and sometimes I ignore the fundementals.

    Michael B.

    P.S. Some days are better than others and finding my NLP is key in determining how I am in touch with the cycles. But I always have time. I can trade many instruments and find a sort of balance point, where other traders think that I am a genius. If they only knew that it is quite simple what I am doing and that in fact my IQ is normal and just slightly above average. I did not even get a college degree.
     
    #15     Feb 25, 2006
  6. I would like to add that creative people must find their floating NLP....

    I know I will get some comments about this as it may disrupt NLP precepts.

    But there is a sort of sweet spot to find and then one can identify where they are...

    We are all creative in varying degrees and this can be more or less challenging.

    Michael B.

    P.S. Have you ever just not been able to find where you are....Remember, there is always time.
     
    #16     Feb 25, 2006
  7. such as the "skill" of schizophrenia
     
    #17     Feb 25, 2006
  8. I think the issue of habit building is a very good one. I don't ignore the need for an edge first but I know that it took me a long time to move from an edge to intraday consistency and if I'd focussed on:

    1) get a really simple, hard to misunderstand, well tested edge

    and then (the harder bit)

    2) build the habits necessary to follow it

    I would have got there a lot faster.


    A useful (I thought) quote from www.innerworth.com mailouts is:


    Remembering the Obvious

    Traders are notorious for making the same mistakes over and over again. They abandon their risk limits. They sell earlier than their trading plan dictates, or hold on to losing trades too long. It's human to make mistakes, but long-term profitability in the challenging field of trading requires steadfast discipline. Discipline is often hard to maintain, however. Humans are prone to falter and act on impulse. How can you fight impulses? One straightforward method is to develop simple plans and remind yourself as to why you need to follow them.

    There are times when we try to make things more complicated than they really are. Humans tend to over-think matters and seek out complexity. We may wonder why we make common trading mistakes, and as we wonder, we may search for a "hidden," unconscious reason for it all. Perhaps we secretly feel we don't deserve the profits we make and want to give back what we've made to return everything to the status quo. Maybe we secretly see money as the root of all evil and have trouble accumulating wealth. If you do hold these beliefs, they can severely hamper your trading performance, but not all traders are influenced by such unconscious motives. Sometimes a lack of discipline merely reflects a very human inability to make simple plans and follow them.

    Psychologists have long noticed that people have trouble following simple plans. Whether it is managing their time, losing weight, or trying to stop smoking, people have difficulty controlling their behavior. One effective strategy, though, is to take a few obvious steps: Make a simple plan, observe and write down the conditions that stop you from following your plan, and remind yourself of the benefits for following your plan.

    For example, if you have trouble maintaining your risk limits, it could be for simple reasons. You may be tired during the trading day and allow your objective state of mind to waver. Or you may get bored during the trading day and want to seek out a little excitement. Whatever it is, it is necessary to outline the specific conditions under which you do the undesired behavior that you are trying to change or control. Once you know these conditions, it will help you anticipate when you are prone to fall prey to them. No one can know under what conditions you engage in an undesired behavior but you. Identifying the conditions under which you do an undesired behavior is harder than it looks. It may take time to observe yourself making mistakes and identify when mistakes happen. The next step is obvious: Write down why changing your behavior is important. If you want to avoid risky trades, for example, then you need to write down why it's important to avoid such trades. You might write down on an index card, "I cannot afford to keep losing capital or else I will blow out my account." Once you write this fact down, you will have to repeat it to yourself over and over again. Will repetition of this fact guarantee that you will change? Unfortunately, no! But it will go a long way toward making you change. There's something about human nature that is hard to change, but if you repeat the reasons you need to change over and over again, it may stick with you.

    Sometimes self-control is just a matter of willpower and reminding yourself you can maintain control if you try. It's like standing in line at the grocery store. If the line is long and there is only one checker available in the whole store that is impossibly slow, you may be tempted to leave, but if you decide that you want your groceries no matter how long it takes, you can convince yourself to wait in line patiently. You can repeat over and over again, "I'll eventually get out of here if I just wait my turn. I'm determined not to leave." Repeating this mantra over and over again will help you stay in the line. But if you think, "I don't have to time to wait. Maybe I can walk out the door and go to another store," leaving will start to seem like a good idea and you will do it. A similar strategy can be taken with trading. If you want to avoid selling a trade prematurely, it is useful to repeat to yourself over and over again, "Stick with the trading plan. Don't sell until the price reaches my profit objective." Repetition is the key strategy. Repeat what you want to do and remind yourself over and over again why you want to do it. Focus only on the trade at hand, and repeat what you want to do over and over again. It may seem obvious, but it works.
     
    #18     Feb 25, 2006