Psychology, are you sure?

Hmmmmm.....

I'm thinking about this.....

Usually, for what I see as a good entry, I'm not really thinking about it like that. I am very strongly concentrating on what I need to be doing, rather than focusing on what the misteps of others may be. To put it another way, my entries are based on the price action to such a degree that the inappropriate actions of others don't enter into my analysis. At least I'm not looking at it that way.

But, after I'm in and if the trade is going good, then I believe I do tend to see the "dumb money" doing odd (in my opinion) things.

On the other hand, when I'm the "dumb money".....

 

There's actually a lot of truth to your statement. Look above (page 22) to see a couple of gems I pointed out. However, as you say, there's lots of "dumb money" ideas floated out on ET every day.

 

I’m with Ya Sir

And to your last sentence – me too :eek:

Good trading Sir

RN

 

FWIW

After thinking on this a bit I would also like to add this


And Btw BSAM –

In no way is this meant as a gig, off handed comment, or anything like that Sir – just some food for thought for anyone who can use it


You see how BSAM describes what he’s doing just before entering

“I am very strongly concentrating on what I need to be doing, rather than focusing on what the misteps of others may be.”


So do I....

But then I also zoom out (thinking wise) to scan the overall landscape (chart(s)) to help see if what I am doing is correct – to help see if emotional (dumb if you wish) money is possibly present – to help see if possibly I am that dumb money – should I enter


Is it a better or worse – way to trade – neither – just different – as we all are



I credit the follow gem to – Sosueme – who posted it in another thread

“Ahhhhh a thinking man, the only basis for the creation of a great Trader.”

sosueme






Just food for thought from a dumbass trader

RN

 

A good link, related to the subject of this thread (by the date and content, it could very well be that the author read our thread):

http://www.trade2win.com/knowledge/articles/general_articles/discipline-trading-investing/?r

What's interesting is that he says "I don't care how good your trading system is" and goes on to say how discipline is still 50% of what you need. But then he lists all the mistakes you can make because of your ego (not putting in stops, hesitation, overtrading, etc.), and you can make none of them if you are using an automated trading system. So my conclusion is once again that, as far as psychology, there is a big difference between these two types of trading: automated vs discretionary, and that Ross, despite mentioning trading systems, is only referring to one type - discretionary trading. And from now on, I should just assume that whoever is talking about psychology is most likely referring to discretionary trading. But the reading was useful because it reminded me of all the advantages of automated trading.

 

Well Sir

It has to with politeness, and humbleness

Two behavioral qualities I hold dear

I can’t be what I’m not


You know the really funny (quirky) thing – often time’s folks will mistake those behaviors for weakness, stupidity, ineptness, or the inability to …

Best I leave it at that Sir



Regards

RN

 

Another great and entertaining ("Hail Mary trade") article related to psychology, but once again referring only to discretionary trading (now I see why we had all those misunderstandings - everyone talking about "psychology and trading" just assumes we're talking about discretionary trading):

http://www.trade2win.com/knowledge/articles/general_articles/trading-on-borrowed-time-two/

This article reminds me of myself, when, as a discretionary trader, I was writing tons of rules to follow (by the way, he lists too many, but I guess it's unavoidable with discretionary trading), rules that I never managed to follow all at once anyway. First of all, because I didn't trust the rules themselves, as I explained in my first post on this thread. Just because today using a stoploss would have saved you, it doesn't mean the stoploss will always save you. Just because letting profits run would have worked today, it doesn't mean you should make it a permanent rule, because maybe tomorrow you will lose all your profits and so on. Basically our brain and memory are not good enough to process all our trading experience and stats in our head, and so our "rough estimates" will not be good enough to get an idea of what works (for most of us), and so we will never know what works and what doesn't, and all those lists we will write will be useless, and misleading. Or better, this is just my own experience. My rough estimates were bad, and I never figured out what worked. Congratulations to the few who succeed and who can compute in their heads all the stats and find out what works and what doesn't - I can't do it, and I must use Tradestation to find out what strategy works, and automated trading to implement that strategy (without hesitation, with the needed patience, and without losing my eyesight). That's why I abandoned discretionary trading, where you can't back-test anything and cannot therefore find out with the necessary precision what works and what doesn't.

Feel free to ignore these posts. I keep repeating the same things over and over again in all my posts, and they get clearer and clearer (in my head, and in my posts). I write them down, so to remind myself, out loud, what's good and what is bad.

 

Coming from a redneck, I find that hard to believe...

 

Suggesting that you are applying one definition of redneck - not the only one though and perhaps prejudiced by its nature.

 

Stereotypes come from somewhere, don't they?