I believe traders lose because they fail to follow (simple) instructions. Discipline is a ALL OR NOTHING proposition. There are no shades of gray. You are either disciplined 100% of the time or you are not disciplined.
A trader also needs to understand their weaknesses and find a system that makes sure to minimize the effects of their weaknesses. For example, if you hate to lose, then you must trade hedging type systems. If you are impatient, then you must trade scalping type systems. If you are slow to react, then you must trade long term systems. Etc...
2009.06.24 WHY 95% OF TRADERS LOSE PART III
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- TheRumpledOne
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Last edited by TheRumpledOne on Sun Jan 10, 2010 1:03 am, edited 1 time in total.
IT'S NOT WHAT YOU TRADE, IT'S HOW YOU TRADE IT!
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TheRumpledOne wrote:I believe traders lose because they fail to follow (simple) instructions. Discipline is a ALL OR NOTHING proposition. There are no shades of gray. You are either disciplined 100% of the time or you are not disciplined.
A trader also needs to understand their weaknesses and find a system that makes sure to minimize the effects of their weaknesses. For example, if you hate to lose, then you mus trade hedging type systems. If you are impatient, then you must trade scalping type systems. If you are slow to react, then you must trade long term systems. Etc...
Selfdiscipline is soooo important. And you have to take the emotion out of your trading. Make sure that you have a plan that has an edge and execute it to the letter. Simple, but not easy.
Commitment is another one I think. Do you really want to be a trader ? If not, get the heck out. You will lose.
There's no business like [strike]show[/strike] covid19 business.
- TheRumpledOne
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Heres an article on why our brains work against us
http://www.tradingacademy.com/lessons/2 ... rticle.htm
Hope posting this here is ok Tro...
http://www.tradingacademy.com/lessons/2 ... rticle.htm
Hope posting this here is ok Tro...
I've learned from my mistakes and I'm sure I can repeat them exactly - Peter Cook
- TheRumpledOne
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Brookmyre wrote:Heres an article on why our brains work against us
http://www.tradingacademy.com/lessons/2 ... rticle.htm
Hope posting this here is ok Tro...
Great, thanks !
Another interesting article imho: http://www.investopedia.com/articles/tr ... -price.asp
There's no business like [strike]show[/strike] covid19 business.
- leonyde
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Re: bumble bees
Paul wrote:Animals do not have mass media. They act on on what they see and know themselves, not on prompts from anybody who has never grazed grass.
This statement says it all, it is the most important and interesting of your whole post! Until now I was just reading, but I feel I can contribute a bit and relate to my personal experience. Nothing much related to trading, just life in general.
I'm sort of travelling since 2 years, meaning I don't really stay at the same place more than 3 months. To limit the amount of things I have to carry, I did not buy a TV (I also simply didn't feel the need to). Basically I am living without TV and RADIO since 2 years!
This has had a very positive impact on me. Now I am not disturbed by all that noise, all those "breaking news" that you should be shocked about. Do I need to know that a guy took a gun and killed 10 student in a school before killing himself? Do I need to know that some crazy guy kill his wife and his kids with a kitchen knife? Do I need to know that some politician is *censored - swear word* his assistant? Well no, I don't.
This is just too much information for my brain to analyse. See for yourself, just watching the news for 5min I am sure you can find something that will make you "angry", "sad", etc That will make you react. Why would you loose your time - reacting - thinking - and using all your brain resources on something that somebody else planned for you?
My point is that all those "informations" given by Mass Medias are for the most unecessary in my/our own life. This is just polluting our head with useless informations, linked to emotion like greed, stress and fear.
I believe we also act based on our own experience, but when this experience is only made of TV, when it is made and manipulated by others (of who we don't know/understand the exact intentions)... What will be the consequences?
Personally I can say, I just feel better. I live better. I am better with others. I became a better person than I was 2 years ago. I have less problems now, only the ones of my own life. Life became way more simple and interesting.
Of course this is not only the results of not watching tv, there is also my personal growth, my readings, my willing to educate myself, etc that have to do with that. But I believe switching off the news was a very important part of the process... It allowed me to reach the "next level".
I let you do the parallel with trading...
- TheRumpledOne
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I have been telling traders to TRADE WHAT YOU SEE for years.
Most traders rather complicate trading than trade what they see. They do not trust what they see. They want something or someone to tell them what to do, when to do it and how to do it.
Most traders rather complicate trading than trade what they see. They do not trust what they see. They want something or someone to tell them what to do, when to do it and how to do it.
IT'S NOT WHAT YOU TRADE, IT'S HOW YOU TRADE IT!
Please do NOT PM me with trading or coding questions, post them in a thread.
Please do NOT PM me with trading or coding questions, post them in a thread.
- TheRumpledOne
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Did you see someone started this thread at ForexFactory:
http://www.forexfactory.com/showpost.ph ... ostcount=1
What is imitation?
http://www.forexfactory.com/showpost.ph ... ostcount=1
What is imitation?
IT'S NOT WHAT YOU TRADE, IT'S HOW YOU TRADE IT!
Please do NOT PM me with trading or coding questions, post them in a thread.
Please do NOT PM me with trading or coding questions, post them in a thread.
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