No Plan, No Trade

dbphoenix

Legendary member
6,952 1,244
I've been in the market since '76, about the time I "picked up" the information while earning my doctorate in psychology.

The most psychologically fit trader on the planet will fail if he doesn't have a thoroughly-tested and consistently-profitable trading plan. And he doesn't have to spend a dime to develop one.
 
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piphoe

Legendary member
10,038 194
I've been in the market since '76, about the time I "picked up" the information while earning my doctorate in psychology.

The most psychologically fit trader on the planet will fail if he doesn't have a thoroughly-tested and consistently-profitable trading plan. And he doesn't have to spend a dime to develop one.
Exactly.
 

piphoe

Legendary member
10,038 194
All this does not work in reality , good luck with your vendor business and marketing sales.

Traders trade their beliefs ,cognitive biases and related distortions ,emotions ,stress responses (rective patterns ,freezing on trigger ,mistakes etc),subjective anylysis ,personality( Perfectionism ,Worry ,Overconfidence,
Negative Thinking.Self-blame etc),state of mind ,current body condition (tired ,fatigue,sleepless) and other influences .The trading phsychology is a complex subject ,the author has given a summary.



http://www.trade2win.com/boards/educational-resources/222992-your-brain-wasnt-built-handle-reality.html



Traders are like monkeys , they suffer from the MONKEY BIAS, THEY DO MONKEY BUSINESS ON LIVE ACCOUNTS


Like this?

Humans are very clever and we get clever , when it is not in our interests .When given a highly profitable system , we second guess systems , because we are smart and smarter than the creator of the system.We are like monkeys and do monkey business on live accounts .It is called self sabotage.


http://www.trade2win.com/boards/educational-resources/223084-why-do-succesful-traders-hang-around-forums.html

We are curious and try new things , inventions and do the same in trading.
We get too clever for our own good in trading ,like these monkeys.

Even with the realization we are monkey's, and all the wisdom that comes from that we are still..ALAS monkeys nonetheless.

actually humans came from gibbons not monkeys, as an aside
 

darktone

Veteren member
3,916 1,000
Trading is stressfull mental activity
Not for everybody its not.
You can accept the reality of what youre doing.
You can realise you are _______, rather than just your thoughts.
You can have a level of emotional intelligence.

Then you are free to execute in any way you choose, not just the narrow band of ways average tarding mind allows.

An you can help the folks who get upset and want puke it all up, eh pip ;)
 

foroom lluzers

Veteren member
3,611 135
Not for everybody its not.
You can accept the reality of what youre doing.
You can realise you are _______, rather than just your thoughts.
You can have a level of emotional intelligence.

Then you are free to execute in any way you choose, not just the narrow band of ways average tarding mind allows.

An you can help the folks who get upset and want puke it all up, eh pip ;)
All above is all possibe , when you know your psychology., but until you understand your psychology , you can not achieve because you can not plan to win against psychological demons .


This monkey has emotional intelligence , until something triggers his emotions.


A lot of external emotional triggers lead to trader self sabotage.

http://www.trade2win.com/boards/general-trading-chat/207886-what-does-your-perfect-trade-entry-look-like.html#post2893658

https://www.google.co.uk/webhp?sourceid=chrome-instant&ion=1&espv=2&ie=UTF-8#q=self+sabotage+traders+/trading
 

foroom lluzers

Veteren member
3,611 135
I've been in the market since '76, about the time I "picked up" the information while earning my doctorate in psychology.

The most psychologically fit trader on the planet will fail if he doesn't have a thoroughly-tested and consistently-profitable trading plan. And he doesn't have to spend a dime to develop one.
Customer :You are selling information about trading , yet you deny psychology has any bearing on trading.

Vendor: My course is about trading , I do not want to tell customers about psychology.

Customer : psychology is more important in trading ,than any other activity

Vendor :I just like to tell him the good side of it , so he buys my course

Customer :You failed at psychology?

Vendor :I tell him about the pschology course , after he has paid for the first course and and tell him why I failed because of it.
 

foroom lluzers

Veteren member
3,611 135
'Gekko syndrome'
So why do banks recruit these gamblers in the first place?
"What I have observed is a big emphasis in banks on technical competence - high cognitive ability or IQ," says Mr Curnier.
"When it comes to EQ [Emotional Quotient], my sense is that people are not spending a lot of time focusing on that."
Michael Douglas
Image caption
Does the "high roller" image of Gordon Gekko attract the wrong kind of candidate?
EQ is a measure of individuals' ability to manage their emotions and their relations with others, developed by psychologist Daniel Goleman.
Mr Curnier says many traders suffer from "Gekko syndrome", like the "greed is good" anti-hero of the film Wall Street.
They lack self-awareness - the ability to understand their own emotions and how they affect others.
The aggressive, risk-taking, boundary-pushing, "high-roller" image of the trader tends to attract exactly that kind of applicant.

http://www.bbc.co.uk/news/business-19849147

https://www.google.co.uk/webhp?sourceid=chrome-instant&ion=1&espv=2&ie=UTF-8#q=Emotional+intelligence
 

tomorton

Legendary member
7,317 982
Day-trading attracts gambler types.

Day-trading is the only form of trading new traders think they have a chance to profit at and can enter cheaply and start making money quickly. It might be the only form of trading they have ever heard of. It will wipe out most of them within a year. Can't shed many tears for them though: they're the sort of people who chance a red light now and then.

If you're a new trader, don't day-trade until you can trade.
 

darktone

Veteren member
3,916 1,000
All above is all possibe , when you know your psychology., but until you understand your psychology , you can not achieve because you can not plan to win against psychological demons .


This monkey has emotional intelligence , until something triggers his emotions.


A lot of external emotional triggers lead to trader self sabotage.

http://www.trade2win.com/boards/general-trading-chat/207886-what-does-your-perfect-trade-entry-look-like.html#post2893658

https://www.google.co.uk/webhp?sourceid=chrome-instant&ion=1&espv=2&ie=UTF-8#q=self+sabotage+traders+/trading
Agree for the most part, but theres different levels of emotional intelligence :D

Theres very little in the markets imo, thankfully (y)
 

dbphoenix

Legendary member
6,952 1,244
Day-trading attracts gambler types.

Day-trading is the only form of trading new traders think they have a chance to profit at and can enter cheaply and start making money quickly. It might be the only form of trading they have ever heard of. It will wipe out most of them within a year. Can't shed many tears for them though: they're the sort of people who chance a red light now and then.

If you're a new trader, don't day-trade until you can trade.
Not unlike the wannabe poker player who enters a professional tournament without knowing the difference between a straight and a flush.
 

foroom lluzers

Veteren member
3,611 135
Day-trading attracts gambler types.

Day-trading is the only form of trading new traders think they have a chance to profit at and can enter cheaply and start making money quickly. It might be the only form of trading they have ever heard of. It will wipe out most of them within a year. Can't shed many tears for them though: they're the sort of people who chance a red light now and then.

If you're a new trader, don't day-trade until you can trade.
The reason why most go into day trading is , we believe in certainty and all our actions are based on seeking certainty in what we do.If we cross the road , we want to be sure no traffic is coming.

There is uncertainty about , how the market will behave in the future ( swing periood of 2 to 5 days or next month ).There is more certainty , when you see charts intraday , but this also means trading noise. . this is what attracts people into daytrading.
 

tomorton

Legendary member
7,317 982
The reason why most go into day trading is , we believe in certainty and all our actions are based on seeking certainty in what we do.If we cross the road , we want to be sure no traffic is coming.

There is uncertainty about , how the market will behave in the future ( swing periood of 2 to 5 days or next month ).There is more certainty , when you see charts intraday , but this also means trading noise. . this is what attracts people into daytrading.

Its an illusion that intra-day price behaviour is more predictable than multi-day. Its possible that both are equally predictable or unpredictable but its equally possible that multi-day is easier to predict. Though "prediction" is really not what we're about but you know what I mean.

But this illusion is what attracts new starters into day-trading, they feel they're taking lower risks. There is no evidential or experiential basis for this. After all, most new traders are day-traders and 90% of them fail.
 
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dbphoenix

Legendary member
6,952 1,244
Its an illusion that intra-day price behaviour is more predictable than multi-day. Its possible that both are equally predictable or unpredictable but its equally possible that multi-day is easier to predict. Though "prediction" is really not what we're about but you know what I mean.

But this illusion is what attracts new starters into day-trading, they feel they're taking lower risks. There is no evidential or experiential basis for this. After all, most new traders are day-traders and 90% of them fail.
A perception that is easily missed.

As for predictability, it depends on whom one is trading with. Those who daytrade aren't focused on the same movements as those who trade daily and weekly and monthly charts. In fact, the latter don't even see what small-interval daytraders are looking at, so any substantial move at any given point or level is purely coincidental. Even accidental. If one wants to enhance his success at daytrading, it is important to be aware of what those who are interested in longer timeframes are looking at, as it is they who move money and thus prices.
 

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