Psychology, are you sure?

The only pyschology needed is in asking traders who lose money - why are you losing money when it's not necessary? You can paper trade until you find something that works.

Probably the answer is - people want to gamble.

Maybe not all of us are trading to make money. Some of us (me, too in the past) are already quite happy with the thrill and excitement of "gambling". Otherwise I cannot explain why I kept losing money for 12 years, a few hundreds at a time. Or maybe it's only part of the explanation. Partly I was happy with the excitement, and partly I actually thought I was about to learn how to do it. Or rather I was thinking, all the time, "this time I really understood how it works" - now I know it is like an illusion that never ends, unless you are willing to make some statistics of your trades and face reality, but we are often afraid to do so.

 

I agree with this in professional sports. How could athletes who shoot and practice thousands of shots each day in basketball miss free throws when it matters?

1 - They can't mentally block out the noise.
2 - And most importantly, they keep thinking of the importance of a simple free throw... and it's psychologically harder when the game is on the line.

 

Psychology is important until you get your head on straight, after that it's not an issue.

 

Even the best free throw shooters miss at times. Think about all the thousands of shots they practice everyday... should be purely mechanical, shouldn't it?

Just a thought.

 

Point taken Sir


And with that in mind I would like to extrapolate out a little more as I believe it may provide some food for thought


So why didn’t I just chose to ignore Mindtrade’s words, or just say thanks but no thanks – and move on

FIRST A LITTLE BACKGROUND

I believe to trade with maximum efficiency and effectiveness – I must be in 100% alignment (call it totally confident, at peace, hitting on all 8 cylinders – whatever) with myself… Believe what I do, do what I believe.

AND AS

I’ve stated more than once “I an open and willing to learn from anyone”


What I have never added to that (shared here) – “as long as I respect them”

This is my filter for the above statement because obviously I do not want to listen to, or be influenced by those I deem idiots, liars, or charlatans, or would lead me down the wrong path

SO WHY MY DIATRIBE

I respect Mindtrade, and to that end there was no way to partially filter out what he said…

I am either open to (and obviously influenced by) everything he says, or I’m lying to myself about being open and willing to learn from anyone….

I can’t have it both ways.

STATED ANOTHER WAY

I respect him and as a result he has credence with me (his words have meaning, and carry weight with me – because I respect him)

To that end – anything he says directly to me – could potentially affect me (okay RN then why not just ignore the part about the mentor…. BECAUSE – then I am not open and willing to learn – am I)

Again I can not have it both ways and still remain in sync with myself – no way – no how

HOWEVER

In times like this (instances where conflict with my core beliefs occur) I have built coping (resolution) mechanisms to help me get back in alignment (at peace with myself)


Y’all witnessed one of them (my lashing out to Mindtrade’s comment) – Truth be know my post was intended for me, and not him

ASIDE

I have total confidence in me (I built it) – and because of that – I trade 100% of the time the way I must


SOME EXAMPLES

I trade the way I must 100% of the time with out hesitation or reservation

I don’t second guess my decisions – ever

I have utmost respect for the market’s ability to take all my money – and because of that – I exit losers with out hesitation

I absolutely know every moment in the market is unique – to that end – I stay in the moment, trade what I see (anticipate price direction) – but if it changes (because it can and does and I know it) I do what is necessary and never dwell on the woulda, coulda, shoulda crap – it’s a waste of my time

And there are more – but I won’t bore ya…


ADDITIONALLY

I have also have built resolution mechanisms that I use when conflict arises (a disconnect between what I truly believe, and stuff I get exposed to/ influenced by – that legitimately holds the potential to conflict with – what I truly believe)


IN CLOSING

I would respectfully submit – If anyone is having issues with hesitation, reservation, second guessing, dwelling in the woulda / coulda/ if only (or anything like these) – something is not in alignment (total agreement) with you (your core beliefs)

Figure out what’s outa wack and fix it…

It will be either you…, or your system/ approach / methodology to trading – I guarantee..

By process of elimination – if your system / approach/ methodology is sound – guess what – it’s you… And as only you can build your system/ approach/ methodology to trading – tag – it’s still you

I believe you will be amazed at the results you will achieve if you do this…..


I would also add – that in the process of fixing you – also build coping mechanism – so that when a situation arises – where possible conflict could occur – you can resolve it quickly and move on

But as you build these coping mechanisms – please – please – always be aware of the “unintended consequence” that could occur – obviously I had one here

I absolutely know;

A person will do only what a person believes… and a person will do it almost 100% of the time (with the exception of when we get coursed, persuaded, or intimidated to do otherwise – but those are the only exceptions)


Is trading mostly psychological – Yes – on a multitude of levels – just depends on where your vantage point is as to how you utilize it (unfortunately)


RN

 

You sound humbled by mentioning your respect for Mindtrade and his thoughts. I also liked what you said about having 100% confidence in your own system... and if what Mindtrade says can help improve your effectiveness and efficiency... you may consider it.

 

Already have Sir - and learned

To me trading (and life) is a journey - not a destination - I just keep moving forward

And try not to allow my own iggnorance or arrogance get in the way

Regards

RN

 

The reason I kept trading discretionary despite being unable to make money, is that the more I was bored and inactive, the more I looked for fun and thrill from trading, whereas I should have looked elsewhere. I remember reading other people saying this, but I never thought it applied to me. Today, after not trading for a few days, I felt bored. And I realize I feel inactive, and that trading made me feel alive. Having an empty life is dangerous. I kept it empty to be able to do what I needed to do, but now that I don't need the free time any more, it's dangerous (for trading, I mean). Free time is great, but only to a point.

 

Travis, I hope this post gives you clarity as it is intended as food for thought and fwiw.

To the casual observer it would look like your problem is a really bad case of trading addiction. But the truth most likely is something else entirely.

Instead of being addicted to trading, you are probably addicted to the feelings you get from trading that follow a cycle I have outlined in a previous post some days ago called the Lust-Fear-Grief cycle.

If you notice when you open a trade you might see this cycle at work.

Why would person become addicted to this cycle?

The answer is: Anxiety. (GAD)

A brain born with G.A.D. will develop certain personality characteristic or disorders that are latent to the conscious mind, that in most cases remain undetected throughout the persons life . The most noticeable of these disorders is called the Self-Defeating or Masochistic Personality Disorder.

For a person who suffers from GAD, holding on to anything (long term) like jobs or relationships can be IMPOSSIBLE. The same goes for short term periods, like holding on to positions or being able to execute a simple trading plan with consistency.

If you feel this is your case, fortunately there is very good news. PM me for details if you think you this is your case.

Cheers!

 

Remember the famous quote from Ed Seykota... one of the wizards:

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