PSYCHOLOGY risks of betting everything on next trade

foroom lluzers

Veteren member
3,611 135
Seems to make trading hard work.
The trading part is only 20% i.e technical analysis , system /method and fundamental analysis.Most traders lose because they jump into trading with these 20% skills , little information becomes dangerous in live trading , 95% lose is the result.

This video is one of the best that I heard , but it does not give a trader winning method , it just explains the way most traders trade is wrong psychologically.There are almost 20 psychology threads in this forum , that are worth reading , this excludes the 10 threads that I have started .

Here are those threads , excluding my own threads

http://www.trade2win.com/boards/psychology-risk-money-management/80752-best-threads-psychology-risk-money-management-forum.html

This thread is about a winning method and a psychologically correct method .This style was profitable for last three weeks of live calls.Trading is easy ,if you have a correct method of trading.

http://www.trade2win.com/boards/indices/224294-profitable-support-trading-indices-dow-dax-nasdaq-s-p.html
 

foroom lluzers

Veteren member
3,611 135
Psychology is 90% of trading success ,unless trader is a robot.The human with a mind is going to execute the trades.The brain command center makes all the trading decisions.

The evidence is there on the free internet , there are simple free profitable methods ,systems and techniques , yet 95% fail and dissapear.

If traders don't understand the mind ,how it works subconsciously in trading , the traders can not have any plans for the 90% risk of under performance due to psychology.It is with the mind where traders lose in trading due to emotions ,stress , need to be right , subconscious emotional executions ,mind traps , automatic mind in trading , beliefs in trading , subconscious errors , brain command centre shutdown during trading , brain freezing in trade executions ,the power the thought , negative wiring of human brain and it's performance in trading ,meditation , unreality reading of the real market conditions,cognitive biases in trading decisions , mental traps , benefits of patience and disadvantages of impatient traders , impulsive , self sabotage in trading executions , stress responses , amygdala hijackings ,personality , ego and other psyche characteristics.There are effects of cortisol hormone testosterone traders trading risk.The mental preparations are required for daily trading.

Those traders who say psychology is unimportant are just useless clueless traders.
 

piphoe

Legendary member
10,038 194
I don't believe that psychology is a full 90% of trading success..it's more like 20-30%, and edge or method being the greater. I do think that psychology can be 100% the cause of failure to execute properly an otherwise winning system. A wonderful psyche for trading will do just as poorly with a bad methodology as a good methodology with a bad psyche. Once get mind right the focus is on methods & systems. Your focus is 99% on psychology...why?
 

foroom lluzers

Veteren member
3,611 135
I don't believe that psychology is a full 90% of trading success..it's more like 20-30%, and edge or method being the greater. I do think that psychology can be 100% the cause of failure to execute properly an otherwise winning system. A wonderful psyche for trading will do just as poorly with a bad methodology as a good methodology with a bad psyche. Once get mind right the focus is on methods & systems. Your focus is 99% on psychology...why?
Poor psyche will ruin a good method , a good method will not ruin good psyche , the good psyche can outperform a mediocre or poor method.

Without psyche method is worth zero , method is 20 % and trading is very simple i.e 10 % or 20 % , mastering the psyche is the hard difficult part.
 

piphoe

Legendary member
10,038 194
Poor psyche will ruin a good method , a good method will not ruin good psyche , the good psyche can outperform a mediocre or poor method.

Without psyche method is worth zero , method is 20 % and trading is very simple i.e 10 % or 20 % , mastering the psyche is the hard difficult part.
a great method may be tainted by poor psyche but still make $. i'll take that over a great psyche executing a poor method or NO method. That will never work well.(n)

I'll take the great method any day. I'll automate the MF'r thats an absence of psyche ;)
 

foroom lluzers

Veteren member
3,611 135
a great method may be tainted by poor psyche but still make $. i'll take that over a great psyche executing a poor method or NO method. That will never work well.(n)

I'll take the great method any day. I'll automate the MF'r thats an absence of psyche ;)
not everything can be coded objectively
 

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