Tag: psychology

 

Expecting to lose – the sleep test

Nobody likes to lose – I can safely say. It’s been hardwired in us as part of the survival instinct, that we need to win. Financial trading is a very different ‘game’. You have to expect to lose, in order to win. This is not to say that we have to like losing. Instead we need to get close to the idea that losing is not actually losing. Now that may seem quite crazy. ButRead More

Change takes time

Most trainers talk about discipline. In fact they over-emphasise discipline so much that it becomes a ‘pain’. But there is another aspect to discipline which involves pain. Remember ‘No pain, no gain’? As a noob you really don’t appreciate that much what this ‘discipline’ is about. Well, the markets inflict their own callous discipline on noobs – that’s a different sort of pain. From that pain comes a newfound discipline. ‘Feelings’ about the market causeRead More

The two most important things in trading

It takes some time for the two most important things in trading to hit home. It’s easy to understand the words, but the meaning and importance come later. Limiting loss with sensible stop-losses is of the utmost priority. With a 60 – 80% loss rate which is not unusual, that’s where any profits made on winning trades evaporate. So, it must be of the highest priority. Targets – sensible ones – are the next mostRead More

Separating missions, strategies, methods and goals.

In trading circles many new and seasoned traders use the words (or similar): strategy, method, targets, goals. But what do they actually mean? How do they all fit together? How are they organised? (see mindmap below). In this post I take the concepts apart and put them back into some sense of organisation. Some have confused and conflated strategies and methods – and have lost track of the ‘Grand Mission’.  Some seem to take theirRead More

Mindsets

Today I was chatting online with another trader and attempting to show an alternative way of taking a chunk out of the markets. You might think that there would be great interest in that. However, this trader said to me words to the effect that a new strategy meant a new mindset – and in a nutshell s/he doesn’t care about what I was showing. In other words s/he only cared about their own ‘strategy’. Read More

Synthesis

What do I mean by ‘synthesis’? It’s about putting things together. Jeeeez – is that such a big word? So the pic below represents the result of synthesis. Synthesis of what? The method of binary options and harmonic trading principles. Huh? With Binary Options you only need price to stay away from your entry point to make some dosh. If going long price must stay above your entry – if going short price must stay less thanRead More

What people want – and why they won’t get it.

The more I study the true experts at financial trading the more I discover some common themes: 1.They struggled initially. 2.They failed repeatedly. 3.They never gave up. 4. They learned from painful mistakes. 5. They put in crazy hours over many years training their brains. 6. In summary they shared some ‘core psychological characteristics’. Warning  – this is a long one, so if you need to bathe a dog please do that first. Look, ifRead More

Skill acquisition and training

It has been on my mind for some time, how new traders develop in their acquisition of skill. There are several different models out there on the net, not specific to traders but quite applicable. In the diagram below I present the Dreyfus Model of Skill Acquisition (adapted from Wikipedia) I think this is important for the following reasons: New traders can benefit by self-reflection by placing themselves at various stages of development. They seeRead More

The so-called Fearless State

Mark Douglas is commonly credited for coining the term ‘the fearless state’ in his book Trading in the Zone. Lots of other people have probably talked about this state of mind. But what is it exactly? I explore but I disagree with some of what he has said – or the meanings put on what he has said. For the avoidance of doubt, I’ve written this not to win a point or score a point.Read More

Totally sickened

I’m totally sickened by the fact that many so-called expert traders (self-proclaimed) have monetised their various websites by charging a fee for memberships or selling courses etc. I do not mean attracting income from advertising of independent sources. Some sites advertise and take a cut from advertisers if members sign up to various services/opportunities. I’ve seen this phenomenon so many times. What is it with the so-called pros? If you’re making tons of dosh withRead More