Strong opinion is a trader’s greatest threat

Perfect example of what not to do.

Unbelievable and attached to a position, both signs of either no trade plan or not following a tradeplan. The use of "should of" to solidify how bad he feels when he takes the final loss. "I'm screwed" which also should never be part of a vocabulary of someone with a tradeplan.

Then, a final command telling the market what to do. "It MUST"...

The neurosis is painted on thick on this post. Don't know if this is a joke or not, as the trader's SN seems to me he might be a troll. Either case, he illustrates the points well (my apoligies if you are a legitimate poster but i hope you understand what im talking about).

 

it is an old saying: the market can remain irrational alot longer than u can stay solvent.

 

You know... if you follow the tradeplan long enough you will at least know whether it has + expectancy or not. If you keep violating it, you wont even deduce that...

 

Yes. It is important (VERY IMPORTANT) to know if under real trading conditions the plan produces. As the kid says, the only way to know that is to execute the plan.

It seems to me that there is an almost universal tendency to over think during the trading day. Market hours are times to observe and execute. It is during the off hours that thinking about how to improve the plan makes sense.

Think about executing as if you were a broker following a clent's instructions. Yes ... you are the client. And who deserves better execution than you?

 

fuck!!!! I am still on the old contract and it almost hit my stop!!

 

To be fair I did say "I BELIEVE I’ve pinpointed the greatest threat to traders", not "I've pinpointed..." or, "I know what kills traders..." etc.

As for dead newbies, I'm sure a lot of them who blow out quickly do so based on one of those 2 scenarios.

 

ok i avraged another contract.. im maxed out. it needs to go to 1148 (M0) then il only lose last two weeks profit i made with longs.

i think im overleveraged though.

 

I am thinking that having a strong opinion could be either good or bad depending on that number showing in the open p&l of the blotter.

If the number is red, it's better to not have that strong opinion.
If the number is green, a strong opinion is needed to hold it til exit.

PA

 

Good trading is about making the best (not right, as we can't see into the future) decisions at all times and taking action on them. The OP gave two examples of not making the best decisions available. There are many many other examples not mentioned.

 

NOD,

Good topic


My 2 cents – and I am using “I” below in the generic

Opinion(s) – all be they strong, or just strong enough….

I must have one (possibly a strong one??) to enter a trade

I must hold to my above opinion when the above trade goes against me, but remains valid

I must hold on to my above opinion when the above trade is winning, and continues to do so


However…

I must relinquish my above opinion (quickly) – and adopt an exact opposing opinion (just as quickly) – of equal, or possibly greater strength – when the above trade fails and it’s time to exit (regardless of however I define fail)

I must relinquish my above opinion (quickly) – and adopt an exact opposing opinion (just as quickly) – of equal, or possibly greater strength – when it’s time to exit and take profits



Two diametrically opposed mental stances (opinions)…. That it essential I switch to/from in a heart beat

My question….

“Specifically” – How do I develop and assimilate the mental dexterity required – so I am always trading in sync with myself – and able to switch back and forth easily?

And btw – It is akin to the same dexterity required to go long, short, short, long – back to back to back….


I should add – responding; You must hold onto a strong opinion weakly – okay already heard it, and a hundred others like it – so please tell me “specifically” how to do that….


Please be specific, as we all know generalities in this business are BS…


I very much look forward to reading the responses


Regards

RN