When you answered the other member's trading question, you placed extremely high importance to the psychology factor (Analysis 1%, Money management 9%, Psychology 90%) Can you briefly share your insight or give an example about the importance of the psychology factor? Thanks.
I've discussed my holding time previously. Scaling is something I do almost always, both entry and exit.
I do not understand how 90% of trading is pychology. In fact I suspect eveyone who says that is actually someone peddling trading setups that do not work - so they blame the trader. So please tell me why 90% of successful trading is psychology. I think 90% of trading is either experience or having an approach with a strong edge.
Price is usually the ultimate determinate of whether I am correct or not, so I try not to argue with it or trade against it (average down - unless that was my original intention). Yes, I much prefer to average in when the price is moving in my direction, even if I have to pay up for it. I don't have predetermined profit targets. When the market looks like it is undergoing a change in character, I will usually adjust my positions accordingly. Options writing is part of the profits but not all of it. Watching the market intraday gives me the most comfortable feel for the market. I watch the market intraday as much as I feel is necessary. There are days with very little volatility and range, for example, and in that case I would just note the close. From your list, #2 and 6 sound better than the rest, but I don't know that they are the best description.
He's too harmless to be banned. At this point, most of us just tune-him-out. *** If you have someone to show you the ropes, trading can be learned in six months. If you you have to figure it our by yourself, the process instead may take five years (or more, or you quit). After you get the knowledge in place, it's all about the psychology (especially when it comes to holding on to the bigger moves, which is how you get paid). *** The OP seems to be a decent enough guy who has given honest answers to the best of his ability. I don't know why you guys want to make such a big deal about it, but then again, this is ET.
I sometimes do something similar when I want to enter a short to medium term position and am unsure about entry position and expected near term volatility which may cause me to prematurely stop out. So I play a long option (or more probably an option spread). Helps me manage my risk better. I know its 'inferior' to vol trading (and I used to make fun of those retail types who traded options outright instead of playing the underlying), but now that I am older I have sheepishly joined their camp. As long as it is profitable, so be it. You know, any of us can rip any other of us a new one here. So what.
To discuss both your questions... I view the market as a market of buyers and sellers. So, for me, I tend to think that for my buy to be profitable, I have to either buy before everyone else and/or make sure that there are a sufficient amount of buying after me to be profitable. For me to do this, I try to figure out the buying behaviour of others. To me, that is psychology and very important. I know of traders who are purely systematic and psychology is of little importance to them. And it works for them.