There is a steady stream of this type of amorphous generality that is applied to just about any endeavour and trading seems to cop more than its fair share. I used to imagine the seemingly constant supply was as a consequence of equally constant demand from those who think trading is 80% psychological. But I’m no longer convinced there is that level of demand and I’m absolutely certain the 80% figure bandied about is complete tosh.
Those that are in their ‘80% psychological’ phase of trading have either blown their first account (or two) and/or realise it’s all a lot harder than they thought. It’s a welcome respite from wracking your brains trying to figure out what to do next. It’s a resting state for traders that are going to make it and also for those that are moving on to better things, either with or without that final shot at it. No indicators, no price time or volume. No fundamentals. No analysis. No research. Just the equivalent of easy listening for tired (and largely broke) wannabe traders.
No disagreement with Mike or what he has written, only in that it’s just more of the same and doesn’t really take any real effort to produce (pretty much boilerplate across all disciplines) or read and consequently has a similar degree of benefit for the reader. The other issues I have is that it takes time away from doing something more utilitarian in support of developing a successful trading approach while lulling the lazy recipient into the Belief they have done something useful by an uncritical absorption of what is effectively muzak for the troubled trader’s mind…
If it were a post, I’d ignore it, but there is something about the ‘elevation’ of prose to article standard that indicates to me that it is, or should be, something of special merit, interest or novelty to bring to our attention. This article has none of those qualities.
Many traders suggest “Trading in the Zone” and “The Disciplined Trader” as hallmark works on the psychological aspects of trading. I have both in my library and have read them both too - when I was in my ‘trading is 80% psychological’ phase. And I thought so too, then. But they tackle the issue from the wrong angle too – you can’t handle psychological issues related to trading from a trading perspective. You have a platform problem. You can’t tackle any problem from the same platform on which it is created or exists. You need to subtle with these blighters and approach them without them realising they’re being approached at all. You have to go in through the back door.
The solution is a simple one. You pretend.
Trading is 100% trading. And you are 100% psychological.
Sort out the trading and you wont have any psychological issues – trust me. LOL
How many times have you got really good at something and with that competence found confidence and a sense of ‘Not Caring’? It comes with the territory. You have to get good at ‘it’ (whatever ‘it’ is) first before you can feel good about being good at it. Savvy?
Anyone who has tried the various ‘mental game of..’ Golf/Tennis/Knitting – whatever, knows, unless they were one of the outliers, that it simply doesn’t work. You need to get good at the tangible endeavour level before you can start to feel good at the psychological level. No amount of mental gymnastics will do that ahead of you actually becoming competent.
There is a shortcut.
Pretend.
While you’re working on all you need to sort out to ensure your trading is approaching perfection (intelligent setups, timely and accurate datafeed, adequate platform resource, adequate capital, trading plan, money management, risk management, entry criteria, stop placement, trade development profile, execution plan etc) pretend you’re the trader you know you’ll need to be n order for all of that to work OK.
Maintain a Distance from your Actions. Keep an Objective and Detached View of all you’re doing and Develop a Deep Sense of Not Caring. You’ll need to pretend in the beginning, but it gets much easier. Your successes will ensure that.