Reverse Psychology/Trading

Discussion in 'Psychology' started by romik, Mar 2, 2006.

  1. bob2007

    bob2007

    I think your experiment works. I was thinking the same thing about 2 weeks ago.

    I just started day trading with a prop firm. 3 trainees and we were all losers at the end of the day gross for approximately the first 10 days, with average 80 trades.

    I made a joke about doing the opposite of everything we've been doing. If we close our eyes and buy / sell the winning rate should be 50 / 50, but we all lost 10 days in a row straight. We are scalpers.

    1. Our decisions are not 50/50, influenced by charts / S and P futures indicators, MA, RSI.

    2. I speculate that I was usually late on the trends.

    The many factors that cause a loser to lose makes the decisions not 50 / 50. Trading is a zero sum game, when I started thinking more along the opposite possibilities and moves, I definetly traded a lot better. i.e. short near highs (resistance) vs long at highs.

    The only problem with your experiement is that your wife may one day learn a thing or two and no longer be a consistent loser.
    - Document the trading strategy.
     
    #71     Oct 30, 2006
  2. bob2007

    bob2007

    I think your experiment works. I was thinking the same thing about 2 weeks ago.

    I just started day trading with a prop firm. 3 trainees and we were all losers at the end of the day gross for approximately the first 10 days, with average 80 trades.

    I made a joke about doing the opposite of everything we've been doing. If we close our eyes and buy / sell the winning rate should be 50 / 50, but we all lost 10 days in a row straight. We are scalpers.

    1. Our decisions are not 50/50, influenced by charts / S and P futures indicators, MA, RSI.

    2. I speculate that I was usually late on the trends.

    The many factors that cause a loser to lose makes the decisions not 50 / 50. Trading is a zero sum game, when I started thinking more along the opposite possibilities and moves, I definetly traded a lot better. i.e. short near highs (resistance) vs long at highs.

    The only problem with your experiement is that your wife may one day learn a thing or two and no longer be a consistent loser.
    - Document the trading strategy.
     
    #72     Oct 30, 2006
  3. Buy1Sell2

    Buy1Sell2

    Really well made point.
     
    #73     Mar 31, 2015