Essentials Of Trading Psychology

dbphoenix

Legendary member
Aug 24, 2003
6,922
1,162
#16
One might make the same observation regarding the importance of psychology in marriage, or business, or child-rearing, or driving, or grocery-shopping. There's nothing particularly important about psychology in trading per se. What is impossible to overestimate is the importance of a trading plan. If it's sound, and the trader follows it, whether he's upset or happy or sad is beside the point.
 
Feb 12, 2016
76
3
#17
Such trivial thing as psychology is often the reason traders can't get profit. It's true even for people who have enough experience and knowledge.
 

Quantt

Established member
Jul 23, 2017
945
57
#18
One might make the same observation regarding the importance of psychology in marriage, or business, or child-rearing, or driving, or grocery-shopping. There's nothing particularly important about psychology in trading per se. What is impossible to overestimate is the importance of a trading plan. If it's sound, and the trader follows it, whether he's upset or happy or sad is beside the point.
Absolutely! if you have a sound back tested plan, this is the conviction you'll need to execute... (the next step is to automate it, so you won't make mistakes) and that's all you need, no need to meditate, yoga, drinks, weed, etc... all the psychological aspect of trading is taken care off in one single swoop...
 
Aug 24, 2015
95
3
#19
All people are different and can be in different mental states. Of course, we all have some similarities, but when it comes to details, we're all unique. And that's what we call individuality. But, one way or another, you can develop your mind or personality, if you like.
 
Sep 8, 2015
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#20
Unfortunately, not all traders agree that psychology is very important in trade. Big mistake. I used to think that all this is nonsense until I myself ran into this problem.
 
Oct 28, 2015
91
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#21
those who think that psychology is not important for trading don't stay in forex for long. Psychology is important at least because it helps to make well-considered decisions.
 

NVP

Legendary member
Jun 21, 2004
36,091
1,752
#22
i recommend all traders watch the big short......then ask yourself ......would you have held your short positions to the end in the face of all the flak those guys took for shorting loans.....

serious mindgames ......

N
 

NVP

Legendary member
Jun 21, 2004
36,091
1,752
#23
you must have 100% belief in your system and 100% efficiency in your execution of it .........then with a solid understanding of probability theory you will be able to rationalise the inévitable drawdowns and disappointments that occur in building a solid sample size

that’s where the mind games are .......managing that failed trade scénario cycle

which will,happen
 
Likes: Oscar Reed