thread: Psychology is nothing

For God's sake, and in which way your emotions' control will save your cash from a market which moves against you for 200 pips in a matter of minutes or even seconds?

First you open a massive position, which might be the first mistake. You can be a scalper, and that would be fine, but in that situation you don't allow the market go against you for 200 pips when scalping. Or you can have another egy which allows you to have a market 200 pips from youpersonally, but in that situation you surely don't open a massive position (known as a % of your funding ).

And this can be PLANNING, not emotion management.

Yes, even in case you've got a massive position along with a market moves against you for 200 pips, yes, surely, you're feeling strong emotions! But going to control those emotions will not save your cash in any way. You can be as good as you like with controlling your emotions, but if you allow a drawdown of 200 pips for a massive position you are likely to lose your cash anyway sooner or later, regardless of your absolutely mastered plogical control.

You require a PLAN, a broadly back analyzed and forward analyzed one, and analyzed by yourself. A plan which gives you confidence that it's positive expectancy. You need this strategy to tell you exactly what to do in every market position (go long, go short, stay away) and the way to do it (entry, exit, position size, etc.). You then need the DISCIPLINE to strictly behave only in accore for this strategy.

Primarily my stop losses are really tight.
Second if I do get 200 pips of losses once I have assembled a massive position I'm headed for the poor house.
What I wanted to highlight is that sometimes you are likely to be wrong.Dead wrong.The market will run against you like a raging bull.
Should you allow your feelings of confidence and dread overrun you then you will freeze and you'll be incapable of behaving.
What I meant by stating 200 pips wasn't you'll take the losses but sometimes like those you have to stay calm and being able to analyze whether the current market activity is merely a fluctuation that shortly will fade away and go away or a movement that clearly indies that you are wrong.
Because a spike may indicate either a SL trigger or a breakout,in the event you allow time pass expecting the market will go your way soon it may be 200 pips from you.
I'm not likely to bring any examples but if you want me to so I can describe it better then I'll be glad.
Your emotions command will save you as so long as you see the market moving against you,in a way that in the event that you don't immediately act you are likely to get destroyed,you need to shut the position without expecting for a retracement.Because sometimes its simply not likely to occur.
On the other hand shutting a position recklessly just because it moved 30 pips against you in an explosive manner is not correct as well either.


I couldn't agree more that you require a plan.A egy anything you call it.
I favor the term worst case situation.
But how are you going to implement the egy if you are entirely incapable of thinking or acting.Believe me when you are in the red huge time and the market is moving against you quickly you need balls to await a retracement or to shut the position.

Of course how bold someone is depends upon his machine and here I agree.That given a method with 100% accuracy then there would be absolutely no fear.As the accuracy reduces the risk increases along with also the fear becomes greater as well.
We agree a 100%. A trader needs discipline which cannot be achieved simply by reading books.
I believe that a way to control your emotions stems from two things.
Knowing yourself and having coached yourself.
By having trained yourself I also consist of physical training such as any kind of game and preferrably martial arts which highlight on discipline.
People want the easy way.Follow a person's information and so discipline will be attained.This is impossible without some kind of hard training.

P.s
If you read my previous posts you will see I agree absolutely with the fact that knowledge is the key to get rid of emotions.

P.s 2
Emotions sometimes are triggered not only because of losses and incorrect judgement but because of missed chances as well.

Should you watch, Kitchen Nightmares, the reality TV series, you'll find that it's all based around people who own companies who don't have a clue what is wrong, despite the fact that it's staring them directly in the face.

They don't have any idea because they can not accept that they are mistaken. They would be the problem... they believe they have all the answers, and when someone comes along and proves that they are incorrect , they go into denial and refuse to acknowledge their own flaws.

This is precisely the same with trading and why plogy is so essential.

That is so straightforward, it's funny how it's going over all of the psych fans' heads. I'm going to run with your analogy.

Let us say someone wanted to start a restaurant. But most of the things they cooked was inedible. They looked around and explained, the problem is, I'm a bad cook. How do I learn to cook?

But all of his friends put their arm around him and said, Your problem is in mind. Allow me to refer you. He struggles on.

Ultimately someone shows up with some decent recipes, makes sure the man understands them, and all of a sudden he could cook pretty well.

But, if the person insists, my food is GOOD! When a casual observer can see that people make lousy faces, leave a lot of it on the plate, and never come back, then the cook is in denial. Good recipes would still solve the problem, if he would follow them. Then he would see that he was wrong before by being shown the difference.

When someone insisted they had been a good trader, then withdrew account after account, they're in denial. The answer: teach them to trade.

If somebody blows accounts and says, I'm not a good trader. I need to study, learn, and practice trading, I don't follow that he needs plogical assistance.

If and I say when we had a system that could split market's symmetrical character then I would not have any fear to trade openly my entire account on each and every trade knowing that there is no chance I could ever shed.

We know it is not feasible to have a system that could never shed.

We know it is possible to make consistent profits. Folks do this.

So why would it be essential not to lose in order to keep composure? Is not it good enough to know that you will profit more than while sometimes the market moves against you?

When you reach that level of competency, you can trade in the zone.

That is so simple, it is funny how it is going over all of the psych fans' heads. I will run with your own analogy.

Let us say someone wanted to start a restaurant. But most of the things they cooked was inedible. They looked around and said, the issue is, I am a lousy cook. How can I learn to cook?

But all his friends put their arm around him and said, Your problem is all in your head. Allow me to refer you to some good shrink. He struggles on.

Finally someone shows up with some good recipes, makes certain the man understands them, and all of a sudden he can cook pretty well.

But if the person insists, my food is GOOD! When a casual observer can see that people make lousy faces, leave most of it on the plate, rather than return, after which the cook is in denial. Good recipes could still fix the issue, if he would follow them. Then he would see that he was incorrect before by being shown the difference.

If a person insisted they had been a fantastic trader, and blew account after account, they're in denial. The answer: teach them to exchange.

If somebody blows accounts and says, I am not a fantastic trader. I need to study, learn, and practice trading, so I do not follow that he wants plogical help.

Might it be possible for somebody to have a system that's correct 90% of their time and not having the ability to profit from the market?

We know it isn't possible to have a system which could never shed.

We know it is possible to make consistent profits. People do this.

Why is it necessary not to lose in order to maintain composure? Isn't it great enough to understand you will profit over time, while sometimes the market moves against you?

When you reach that level of competency, you may trade in the zone.

Never said the opposite,I agree.I just want to outline that understanding and not mere statistical data is exactly what will totally free us from feelings.

From the way.What does the word that the zone mean?I'm not familiar with it.

Can it be possible for somebody to have a system that is right 90% of their time and not having the ability to profit from the market?

Absolutely.

Expectancy = (percent winners * typical gain) - (percent losers * moderate reduction )

or (number of winners * moderate gain) - (number of losers * moderate reduction )

If your typical loss is 50 pips and your ordinary gain is 5, you will lose.

Plogy isn't anything

Knowing is your entire game.

Knowing what's right does not necessarily mean you'll do it. That can be guaranteed by Only mindset.

This is so straightforward, it's funny how it's going over all of the psych fans' heads. I will run with your own analogy.

Let us say someone wanted to start a restaurant. But the majority of the things they cooked was inedible. They looked about and said, the problem is, I'm a bad cook. How do I learn to cook?

But all his friends put their arm around him and said, Your problem is all in mind. Let me refer you to some good shrink. He fights on.

Finally someone shows up with some decent recipes, makes certain the guy knows them, and all a sudden he can cook pretty well.

But, if the individual insists, my food is GOOD! When a casual observer can see that people make bad faces, leave a lot of it on the plate, and never return, then the cook is in denial. Good recipes would still solve the problem, if he'd follow them. Then he'd see he was wrong before by being shown that the gap.

When someone insisted that they were a good trader, and blew account after account, they are in denial. The answer: teach them to trade.

If somebody blows accounts and says, I'm not a good trader. I need to study, understand, and practice trading, I don't follow he needs plogical assistance.

Should you provide 10 people the exact same trading system, and yet they all get different results, why is that?

But, if the individual insists, my food is GOOD! When a casual observer can see that individuals make lousy faces, leave most of it on the plate, rather than return, then the cook is in denial. Superior recipes could still fix the issue, if he'd follow them. Then he'd see he was incorrect before by being shown that the gap.

If someone insisted that they had been a fantastic trader, and blew account after account, they're in denial. The answer: teach them to trade.

The simple fact that great recipes could address the guy's problem is just not correct. I just watched a show the other night and the dude still wouldn't listen. He eventually blew up, made a complete jackass of himselfand only then did he realize he was wrong. And that's all plogical. After awhileyou either quit in failure, or acknowledge that you let emotions take over and blur the conclusion (or plan) you know you should've followed... especially if this program was tested and shows profitability. It is one thing to be dumb. It is a whole'nuther problem of not adhering to your plan because you've got fear, or greed, or whatever issues... that is plogical.

In trading, a trader blows account after account since he can't follow his plan and he believes just like you do -- that it can't be his mind... once more -- if I devote ten traders exactly the same plan and inform them to do it precisely, they will get unique outcomes. The deficiency of these failing to follow the program has nothing to do with the lack of knowing how to trade. It is because they have poor habits and start using their mind thinking they understand where the market is going next... plus they do not...

If it was as simple as you think it is out of a know-how perspective, then everyone would be successful, because trading isn't challenging; You have a chart, and a buy and market.

never stated the contrary,I agree.I just want to outline that knowledge and not mere statistical information is what will completely free us from feelings.

From the way.What does the term the zone mean?I am not acquainted with it.

It's a phrase that I believe was used in athletics. When a player's at the zone they're pretty much outside their own body, doing at their peak or outside, don't have any fear, feel no pain, look almost invincible, can't miss a shot, etc..

Over time it has been used in many other fields.

Mark Douglas wrote Trading in the Zone, it's a good book. Trading in the zone could mean executing a system click-click-click with no considerations regarding wins, losses, no emotion in any way, simply exchange the system together with certainty that at the end of the day, per week, or month, the gain will probably be there.

He describes the zone in much detail.

He studied traders for 18 years prior to writing the book. The main difference he found between the traders and the traders was that this mindset.

That leads you to conclude that they all need to do is have the right mindset, and they'll be successful at trading.

It is very obvious to me today, that one would need to have a robust system, and understand how to trade well, in order to exchange from the zone. When I initially read the book, I had been doing all of the things he talked about (the four fears of trading - very astute) so I thought it was just me.

Hey, I'd taken a few courses, I am a wise guy, I am not earning money. It's gotta be all in my mind! Wow, how easy it will be to develop into successful, just change my mindset and presto! I'll be rich!

Earth to Rob -- no delay -- Market to Rob: trading is simply a bit more complicated a problem than you have sized it up to be. However, come on in, heh heh heh.