emotion vs. prediction

Malordana

Newbie
5 0
If people had predictive abilities, then there would certainly be a person in whom they would be more developed. At the moment, NO ONE person has proved his predictive abilities.
Why then get rid of emotions?
Let's pretend that you lost your money. if you do not get rid of emotions, then you are upset. With sadness, melatonin is released. Melatonin is a sleep hormone. If melatonin is released, then the person wants to sleep. Its concentration decreases and it is more difficult for him to analyze the market.
At the same time, endorphins are released. And endorphins give a sense of hope that everything will be fine. The trader has the idea that he will be able to return all the money. He will most likely lose even more money.
 

Akinozragore

Junior member
43 2
successful traders follow their strategy and overcome their stress. if everyone around you says BUY but your strategy says SELL, don't get emotional and follow your strategy. coding can be a solution to overcome emotion and do what your strategy says, but coding has many drawbacks too. one of them is that you can't always code a strategy to act exactly like you do. another matter is that codes and computer can have bugs, or suddenly face problems. I say the first decision about trade enrty which comes to your mind based on your strategy, you follow that decision and on't watch the chart and think more and more. when you entered a trade, don't sit and stare at chart, it does what it must do. set and forget.
 

Peter5510

Newbie
5 3
First, let's look at market prediction. Many market experts make predictions and some predictions were right and most were wrong. Wrong predictions were easily forgotten. I would incline to believe that the market is very hard to predict but IF observe long enough one can have a general feel for the market.

Second, what is emotion? What's in the mind of a driver first time on the road? He or she has to be constantly look out for other vehicles, traffic light, zebra crossing etc. YES, the first time driver is very tense at this stage. Overtime, the traffic rules sink in and everything is at ease. Of course, we cannot compare trading to driving. Trading is lot more difficult than driving in the third world countries where rules are bent.

In trading, it's all about the survival of our trading account. As long as we are in the market, we can learn from it and establish our own "flexible" rules. Why "flexible"? Market condition is not constant. As long as we are in the market, we can practise our trade and apply/test our rules. As long as we are in the market, we need capital. Once the money runs out, it's game over.

Don't plunge in where the angels fear to tread. :rolleyes: A bird in the hand is worth two in the bush. :D
 
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