Trading Psychology: Mistakes in a Forex Trade

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Old Nov 14, 2007, 12:33am   #1
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Trading Psychology: Mistakes in a Forex Trade

We've just published a new T2W article called "Trading Psychology: Mistakes in a Forex Trade" by Raul Lopez.

Quick Summary: When it comes to trading, one of the most neglected subjects are those dealing with trading psychology. Most traders spend days, months and even years trying to find the right system but this is just part of the game.

PS. Don't forget to rate the article after you've read it and share your comments on this thread.
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Old Nov 14, 2007, 6:42am   #2
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Good article.

IMO, if a trader is able to 'follow' the market ( any market ) movement, by whatever system he / she can develop, psychologically he / she will be more equipped to trade the market.

The mistake in trading as described in the article is an inevitable part of the process to develop a good and personalized trading system. This is a business.
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Old Dec 6, 2007, 3:39pm   #3
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Well, a just watched an interesting video with regards to psychology, , i hope this would help..

Happy trading..
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Old Dec 12, 2007, 12:12pm   #4
 
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Quote:
Originally Posted by GammaJammer View Post
Disagree with the assertion that if your system signals a trade, you take it, and profit from it, and all you learn is that you should follow your system then you haven't made a mistake.

I think the mistake you are making is potentially being overconfident. Reason? You seem to have made no effort to establish whether any cause and effect relationship exists between your system and the profitability of the trade. SO you will have no idea whether the sucess was a one off or part of a strategy which, if followed dilligently and consistently will yield good results.

This is the problem with all mechanical (and we're talking about largely / wholly T.A. based approaches here) systems trading. People just see a correlation and assume that is the same thing as cause and effect. That's a big part of why so few retail traders ever make it big.

GJ
That is one of the best posts for a while.
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Old Dec 12, 2007, 1:02pm   #5
 
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A trading pal of mine recently reminded me of Mark Douglas's 5 essential trading truths, and it seems to me that no. 5 is very relevant re this discussion.

1. Anything can happen.

2. You donít need to know what is going to happen next in order to make money.

since you cant know what is going to happen...everbody has to make money under the condition of uncertainty..without exeption.

3. There is a random distribution between wins and losses for any given set of variables that define an edge.

4. An edge is nothing more than an indication of a higher probability of one thing happening over another.

5. Every moment in the market is unique.
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Old Dec 12, 2007, 1:12pm   #6
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Originally Posted by bbmac View Post
1. Anything can happen.

2. You don’t need to know what is going to happen next in order to make money.

since you cant know what is going to happen...everbody has to make money under the condition of uncertainty..without exeption.

3. There is a random distribution between wins and losses for any given set of variables that define an edge.

4. An edge is nothing more than an indication of a higher probability of one thing happening over another.

5. Every moment in the market is unique.
That is really the essence of what successful, ie net profitable, trading is all about !

It's only after you've completely understood that that you'll have a chance of making it by coming up with an edge and then sticking to it.

Remember Market Wizard Bill Lipshutz...

"right" only 20 - 30 % of the time, yet made hundreds of millions.
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Old Jun 19, 2017, 6:59am   #7
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Originally Posted by pips_lady View Post
Well, a just watched an interesting video with regards to psychology, , i hope this would help..

Happy trading..
Traders can not follow systems.period
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