Right mindset: is it key to profitable trading?

Discussion in 'Trading' started by Liberty Market Investment, Apr 14, 2020.

  1. ironchef

    ironchef

    The right mindset:

    On March 19-20, had the guts to buy BA when it was trading @$90, TSLA @ $350, or FB @$140 while everyone was dumping everything.
     
    #11     Apr 15, 2020
    Sekiyo likes this.
  2. Sekiyo

    Sekiyo

    I have greater chance now than 10 years ago ! Guess it has more to do with experiences (exposure) than age alone.

    You’re right ^^
     
    #12     Apr 15, 2020
  3. One of the first steps to professional thinking is to put things in order in the charts.
     
    #13     Apr 15, 2020
  4. traider

    traider

    The top trader made $190 before comms and before the firm took a cut.
    I think I can make more money as amazon warehouse worker with more consistency.
     
    #14     Apr 15, 2020
  5. Mindset is one piece of the puzzle but before all that, skill development/acquisition MUST come first. E.g is learning how to play tennis, doesn't matter how great of a mindset you have, if you haven't been taught the mechanics of HOW to serve (broken down into its various components), perhaps from a PROVEN coach, you are not going to hit great serves reliably well.. particularly under pressure. Sure you can blindly smash an ace every now and then but that is inconsistent luck..

    Ofc at a higher level (e.g. breaking into world top 50), mindset is important for a player to hit shots in match play that he already knows how to do in training.

    There is a place for mindset when learning to trade in that it's better to have growth beliefs that you can learn the necessary skills vs having a negative mindset that you can't get better with (correct) practice. However, IME trading mindset/psychology is an easy smokescreen for internet gurus to hide behind to disguise the most important fact - that they haven't got a scooby about how markets work and the actual journey to profitability

    For me it goes like this:

    Principles & understanding > method > behaviour (.. discipline, mindset etc)
     
    Last edited: Apr 15, 2020
    #15     Apr 15, 2020
    Real Money and Sekiyo like this.
  6. ironchef

    ironchef

    Where did you get that information from, may I ask? o_O
     
    #16     Apr 16, 2020
  7. traider

    traider

    upload_2020-4-17_14-44-4.png

    Read post #1
     
    Last edited: Apr 17, 2020
    #17     Apr 17, 2020
    ironchef likes this.
  8. ironchef

    ironchef

    #18     Apr 18, 2020
  9. traider

    traider

    No worries, and that is an optimistic estimate. Most traders don't have win rate above 60%. Multiple it by 60% and you get closer to $120.
     
    #19     Apr 18, 2020
  10. orbit23

    orbit23

    This is so right. You need everything. Mindset is required, but is not sufficient by itself. I would agree though that a very large part, even 90% maybe does depend on the mindset. Because even with the best strategy and poor execution, you are going to fail. You need a profitable strategy and after that it's 90% on the mindset.
     
    #20     Apr 19, 2020