Article Awareness is Vitally Important to Trading….But Why?

T2W Bot

Staff member
1,428 49
‘You can’t change what you can’t face, and you can’t face what you don’t know.’  This obscure but very important quote was coined by my friend, Jackie in a conversation we had some years ago.  We were discussing the challenges that all humans face with initiating and managing change.  Within this conversation we both agreed enthusiastically that, embodied in this simple yet deeply profound statement is a principled truth about how acutely and pervasively awareness plays into your ability to detect and repair issues.
The speed and effectiveness with which you become aware that you have initiated an error in the sequence of behaviors needed to secure an effective outcome to an endeavor…like trading… will determine whether you get stuck in a negative behavioral loop or proactively negotiate your way out of it. In other words, if you can’t identify your point-of-failure in a circumstance, that means that you don’t have the data to address it and initiate a course correction.  This...
Continue reading...
 
Last edited by a moderator:

trendie

Legendary member
6,089 975
I am probably being a tad thick here, but I dont get it.

I thought having a strict set of rules to follow was a logical means to overcome any kind of personal flaws . Having a set of rules prevents random trades, sets specific entries/exits, SLs, etc.

I always thought that NOT "being in the moment" helped more.
This helps to remove attachment, or any sense of importance on any specific trade, and allows you to take your individual losses and individual wins, and see the big, aggregate picture.

I hope others can make sense of it, but I am none the wiser with this article.
 
  • Like
Reactions: Mr. Charts

dbphoenix

Legendary member
6,926 1,229
I am probably being a tad thick here, but I dont get it.

I thought having a strict set of rules to follow was a logical means to overcome any kind of personal flaws . Having a set of rules prevents random trades, sets specific entries/exits, SLs, etc.

I always thought that NOT "being in the moment" helped more.
This helps to remove attachment, or any sense of importance on any specific trade, and allows you to take your individual losses and individual wins, and see the big, aggregate picture.

I hope others can make sense of it, but I am none the wiser with this article.
There are a lot of psychologists churning out articles on trading even though they themselves either don't trade or aren't particularly good at it if they do (for example, Van Tharp). I assume they do it to drum up business for themselves. But, as always, caveat emptor: make sure that whomever you're reading or listening to knows what he or she is talking about.

Db
 
  • Like
Reactions: Mr. Charts

Trader333

Moderator
8,478 879
Being in the present moment means that you are less likely to allow thoughts / feelings that would cause you to not follow your rules / plan. There are a huge number of traders that don't do what they plan when in a trade because of attachment to previous thoughts and emotions.

I agree that the logical thing to do is to follow a strict set of rules but logic often goes out of the window when in a trade as many traders will attest to.
 

NVP

Legendary member
36,356 1,801
There are a lot of psychologists churning out articles on trading even though they themselves either don't trade or aren't particularly good at it if they do (for example, Van Tharp). I assume they do it to drum up business for themselves. But, as always, caveat emptor: make sure that whomever you're reading or listening to knows what he or she is talking about.

Db
if you cant trade ...then teach trading

if you cant trade or teach trading .....then teach Trading psychology

if you cant do any of the above ......... ?

:smart:
 
  • Like
Reactions: Nowler

Mr. Charts

Legendary member
7,364 1,181
Self-control, focus and having the will power and determination to ignore your emotions and concentrate on the evidence in front of your eyes are all key to me. When you are very experienced there might be times when your sub-conscious is remembering similar situations in the past and that gives rise to a "gut feeling" which you might well choose to follow, but that's not for beginners.
Objectivity and and some seasoned judgment are what matter in my opinion. When the facts change, your view of them and your actions should follow on.
A lot of trading psychology is waffle and navel gazing - imho.