I bet the best traders on ET do this...

Discussion in 'Psychology' started by chrisdunn, Jun 16, 2009.

  1. It's kinda funny... most newbies get hung up on trying to program their own system or find a magic indicator.

    Anybody who's actually making money knows trading is 90% psychological...

    Therefore, my playas, I bet you'll find better traders in the psych section of ET than anywhere else...

    Just a thought...

  2. You couldn't be more right. IMO trading is 100% Psychological. If you go to "traders" houses, most of them have books on "how to trade" or how to get rich, and have no books on the brain and psychology.

    Managing your trading state is by far the most important.
  3. For sure... it shouldn't take that long to get the technical side down (30-120 days).

    The psych part can take a week or 10 years to master...

    My trading started to really improve when I started reading psych stuff not related to trading at all. I recommend-

    Psycho Cybernetics, Maxwell Maltz
    Effortless Mastery, Kenny Werner
    and of course... Trading in the Zone, Mark Douglas
  4. Its an interesting bet but you will lose.

    Why? Not because psychology isn't important but because its only important at certain phases. So once one has moved past the "I" can't do it phase then unless you have a particular interest in psych there is no need to spend time there.

    Look instead in the chit chat type areas. Once you've figured the markets out and figured the critical parts of yourself out then boards are for entertainment.
  5. What's an interesting bet?

    So, the only psychological issue is "I can't do it"? Maybe that's the only one you went through but a lot of traders have other issues... for example...

    1. Getting in to early (aggressive, greed)
    2. Hesitating (unconfident, fear)
    3. Trying to hard (struggle, not flow) check out this blog post- http://bit.ly/2XVon

    I know guys that have been trading for 30 plus years, and they still work on psych stuff... I've only been trading for 7, and still have a long way to go...

    Anyone who downplays the psych part of trading is probably a robot or hasn't been around long enough to experience all the emotions trading throws at you.

  6. Having a method you can trust ranks up there with trusting yourself.
    W/out both, you're lost.
  7. I think pschology is important, but not all. I hope I am a machine with no emotion, then I can do it perfectly.

    the problem is we are human beings. when you saw a dip, you buy, and you gain, this will give you pleasant experience. i bet you will do it naturannly next time. but if next time it does not work, and you hold on until you got a big loss, this experience is an unpleasant one. when you saw a dip aagin, even it is the same as the first one, i bet you will first hesitate or get confused a while since you will be afraid of the occurace of the bad experinece of last time.

    we learn things through experince, then associate the outside info with the experience. too bad.

    that is why we are in the same market, but we get different feelings or interpretations. the same dip, maybe to one person it is a haven sent opportunity, but to another person it may be a confsuion, to a third person it may be "get out or hit the road run" signal.

    that is why the market created 90% losers since we are human beings, we learn things by generalization, emotionalziation, association.....our brains could not deal with constant changing knowledge!

    I just wish I was a robot, then I could execute my trade perfectly!

    like this moring, I shorted crude, but somehow I started to scalp crude by longing. late I figured out I had too much experience of daily movements of the crude!

  8. Psychology to me means a lot of things. I means having a plan, having rules, following a system.

    An example for me is I am a Fib trader, I have rules that are IF this, THEN this. Most traders out there jump from one thing to another. One day they're trading EMA's another day Fibs, another day trendlines, etc.

    I have had the privilege of meeting a few billionaire traders out there and when really talking to them and asking what is it that separates good traders from bad. They always answer the fact that good traders are the ones that have very very specific plans, so specific that a 10 yr old could understand it AND the ability to follow those rules in the plan..EVERYDAY. Not sometimes...EVERYDAY
  9. a plan is a good tool. I totally agree with it.

    #10     Jun 16, 2009