The 5 Steps to becoming a trader

Discussion in 'Psychology' started by ArmaTrader97, Jun 8, 2021.

Do you find yourself in this words

  1. Yes apsolutly in all words

    15.4%
  2. Yes

    38.5%
  3. No

    15.4%
  4. You shouldn't have shared this, it's useless

    30.8%
Multiple votes are allowed.
  1. johnnyrock

    johnnyrock

    Algo traders - with a proven edge - don't use psychology. They simply run the program.

    I'm not saying patterns or indicators don't work. I'm not even saying trend following systems or mean reversion systems don't work.

    My mix of patterns, indicators and various methods didn't have an edge. However, getting mired in the muck of "stick to your system" prolonged my agony. I would have been better off in simulation mode "testing" my flawed method. The time frame would not have shortened, but the real cost of trading tuition would have been much smaller.
     
    #11     Jun 8, 2021
  2. smallfil

    smallfil

    Trading is a lot simpler than you think. The more complicated you make it, the more you will fail. The chances for mistakes are higher with complicated trading systems. In simple terms, "the trend is your friend." Any trade you place, make sure it is aligned with the major trend. It is as simple as that, probably, you have it 70% right at that point. Add proper risk management and you add that 30% to make yourself a successful trader.
     
    #12     Jun 8, 2021
    roca, KDASFTG, SimpleMeLike and 2 others like this.
  3. johnnyrock

    johnnyrock

    I will go so far as to compare trading to dieting or working out. If someone is seeing results - a system that meets their personal objectives within the boundaries of their own desires and personal interests - you don't need discipline. The results will fuel you to stick with it.

    However, the diet, gym and trading industry thrives on "discipline." Desire trumps discipline when you can align your goals to your desires. Case in point, I don't fight fat in Colorado (walking/hiking/trails/rock climbing, mountain biking). If you like any one of those things you will burn fat at elevation. Now that I'm back in FL, I have had to figure out a way to line the two up. Otherwise, every day sucks. Drinking beer at the beach isn't a great workout strategy. Riding a stationary bike at the gym is just insane. Buy a bike and ride to the beach. Then drink beer!
     
    #13     Jun 8, 2021
  4. DaveV

    DaveV

    Let's say you and I are betting on the flip of a coin. I'll pay you $60 every time it's heads, and you pay me $40 every time it's tails. If we do this a thousand times I guarantee you would make lots of money. Now let's make one small change. This time we flip only once. I'll pay you $60,000 if it's heads, and you pay me $40,000 if it's tails. You have exactly the same edge as before, but 50% of the time you are going to lose all your money. Why? You didn't practice solid risk and money management.
     
    #14     Jun 8, 2021
  5. You are right johnnyrock.

    lol, I was stuck in the ""stick to your system" or "follow your written plan" or "be discipline" or "have no fear"....... and all that BULLSHIT.

    That is stuff is pure marketing bullshit. If you have no trading edge(s) you have no high probability of making money man. It is not guaranteed, but better than trading blinding.
     
    #15     Jun 8, 2021
  6. johnnyrock

    johnnyrock

    That saying a death by a thousand cuts comes to mind. Taking stops with a losing system just prolonged my agony.
     
    #16     Jun 8, 2021
    ArmaTrader97 and SimpleMeLike like this.
  7. I completely understand buddy.

    Been there and done that.

    Its like the saying "Do not mistake Effort for Achievement". And as traders we think because it looks good on paper or chart, then it will work going forward. WRONG.
     
    #17     Jun 8, 2021
    ArmaTrader97 and johnnyrock like this.
  8. Because of no edge.

     
    #18     Jun 8, 2021
  9. #19     Jun 8, 2021
    ArmaTrader97 and johnnyrock like this.
  10. johnnyrock

    johnnyrock

    I'm sitting here eating low fat foods, drinking skim milk, hungry as hell; then I binge eating. Now I'm 500 pounds. I haven't been to the gym in a week to ride the stationary bike. My high tech row machine is a clothes hanger. I need discipline.

    Or:

    Lay off the processed diet food that lacks what my body needs (protein, fat and carbs). Eat in moderation. Snack with fiber and protein to kill hunger. Then do any ACTIVITY that I desire to do. I won't be starting in any action movies, but I also won't be doing something that results (just look around) in a culture of obesity and diabetes.
     
    #20     Jun 8, 2021