Market psychology. The secrets.

Discussion in 'Psychology' started by paperboy, Feb 3, 2015.

  1. Chris Mac

    Chris Mac

    Well, trading can be close to the "real life".
    Sometimes you win
    Sometimes you lose
    Sometimes you are a genius
    Sometimes you are dumb.

    But because it is so easy to win with markets without skills, traders tend to think it will repeat again and again. WRONG !
    You can have success with the "same tactics" in real life (for example, you know how to charm a girl, how to make great formulas), in trading, markets don't care about you!!!!
    You need work, experience, and develop your own edge.
    This is why some Nobel prizes are big losers. They think the bigger the brain, the bigger their trading account. WRONG !

    To resume: lot of players, few winners.
     
    #11     Feb 3, 2015
  2. dbphoenix

    dbphoenix

    People do get what they want out of the market. Most want to lose, so they do. A few want to win, so they engage in winning behavior.
     
    #12     Feb 3, 2015
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  3. My comments were purely from the aspect of psychology. (not expectancy, not risk management, not the bus. plan. You have all of those great. You have a winning system fannnntastic. If your head isn't right, can't follow the plan, can't be flexible with bias. forget it.)

    Afraid of failure? you will fail.
    Afraid of success? self-sabotage, you will fail.

    All of that represented in the charts. How many accounts squeezed short this morning? Over-leveraged? Busted? Stubborn shorts? 2035 looks like a good short opp, why go higher for now. squeezed already.

    Psych title thread, I went with it.
     
    #13     Feb 3, 2015
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  4. Trading is very simple. As long as you don´t make it complex. But making it complex can give you an edge. Depends on what you mean with complex.
     
    #14     Feb 3, 2015
  5. JTrades

    JTrades

    That quote in context:

    Why do so many traders fail in the marketplace?

    For the same reason that most baby turtles fail to reach maturity: Many are called and few are
    chosen. Society works by the attraction of the many. As they are culled out, the good ones are left,
    and the others are released to go try something else until they find their calling. The same is true for
    other fields of pursuit.

    What can a losing trader do to transform himself into a winning trader?

    A losing trader can do little to transform himself into a winning trader. A losing trader is not going
    to want to transform himself. That' s the kind of thing winning traders do.

    How would you rate the relative importance between psychology and market analysis to
    successful trading?


    Psychology motivates the quality of analysis and puts it to use. Psychology is the driver and
    analysis is the road map.

    You have focused a lot on the field of psychology. Can you tell by talking to a person whether
    that person would probably be a winning or losing trader?


    Yes, the winning traders have usually been winning at whatever field they are in for years.

    What traits do you look for to identify the winning trader personality?

    1. Не/she loves to trade; and
    2. Не/she loves to win.

    Don't all traders want to win?

    Win or lose, everybody gets what they want out of the market. Some people seem to like to lose, so
    they win by losing money.

    I know one trader who seems to get in near the start of every substantial bull move and works his
    $10 thousand up to about a quarter of a million in a couple of months. Then he changes his
    personality and loses it all back again. This process repeats like clockwork. Once I traded with him,
    but got out when his personality changed. I doubled my money, while he wiped out as usual. I told
    him what I was doing, and even paid him a management fee. He just couldn't help himself. I don't
    think he can do it any differently. He wouldn't want to. He gets a lot of excitement, he gets to be a
    martyr, he gets sympathy from his friends, and he gets to be the center of attention. Also, possibly,
    he may be more comfortable relating to people if he is on their financial plane. On some level, I
    think he is really getting what he wants.

    I think that if people look deeply enough into their trading patterns, they find that, on balance,
    including all their goals, they are really getting what they want, even though they may not
    understand it or want to admit it.

    A doctor friend of mine tells a story about a cancer patient who used her condition to demand
    attention and, in general, to dominate others around her. As an experiment prearranged with her
    family, the doctor told her a shot was available which would cure her. She constantly found excuses
    to avoid appearing for the shot and eventually avoided it entirely. Perhaps her political position was
    more important than her life. People' s trading performance probably reflects their priorities more
    than they would like to admit.

    I think that some of the most flamboyant and interesting traders are playing for more than profits
    alone; they are probably also playing for excitement. One of the best ways to increase profits is to
    do goal setting and visualizations in order to align the conscious and subconscious with making
    profits. I have worked with a number of traders in order to examine their priorities and align their
    goals. I use a combination of hypnosis, breathing, pacing, visualization, gestalt, massage, and so
    forth. The traders usually either (1) get much more successful, or (2) realize they didn't really want
    to be traders in the first place.

    Surely, some people lose because they lack the skill, even though they really want to win.

    It is a happy circumstance that when nature gives us true burning desires, she also gives us the
    the means to satisfy them. Those who want to win and lack skill can get someone with skill to help
    them.
     
    Last edited: Feb 3, 2015
    #15     Feb 3, 2015
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  6. so 35 ended being a good short term top, there is psych for you, exhibit A. i wonder why it stopped up there. ( - ; 2025.xx now. take profit. (the gamblers will want 2015..i wonder why..okay I will tell you it's a channel line on a large TF)
     
    Last edited: Feb 3, 2015
    #16     Feb 3, 2015
  7. MadeMan

    MadeMan

    so where is the secret? hidden in plain sight perhaps?
     
    #17     Feb 3, 2015
  8. Like Poe's "The Purloined Letter".
     
    #18     Feb 3, 2015
  9. The entire quote... total drivel. There is a big psychological component to the market, but it ain't that one.
     
    #19     Feb 3, 2015
    asiaexpat and Clubber Lang like this.
  10. Poe unfortunately couldn't handle his liquor. Can't look for secrets there.

    Perhaps secrets in his doppelganger (William Wilson) (your rival as yourself, now that is a psych tale that fits with the market. damn freud would be all over that).
     
    #20     Feb 3, 2015