"fake it until you make it" useful for trading?
- Thread starter 0008
- Start date
Absolutely, it's called demo trading until you have established a system that, not only produces positive expectancy but also one in which you are absolutely confident trading. If not automated, you must trade the system without hesitation.
You can do anyting you want; it doesn't make any difference. Conventional Wisdom (CW) has fear, anxiety and anger as embeded emotions for very rational reasons.
When on the sidelines CW potential traders are very very different than when they step into the markets.
Entry/exit trading is a strange irrational modus. Looking for a place to make a bet is the standard alternative to knowing what is going on in the system of operation of the market.
Entry is based upon GREED.
Exit is based upon PAIN.
Making 20% in a year of about 240 days is the net of making money sometime and having stops hit the rest of the time.
Look at the 10 most popular statistics calculated by actual traders.
Kelly worked at BTL as a member of the technical staff. He focussed on errors in data communication (transmission electronically or mechanically). LOL....
Fear comes from knowing you are making a lousy bet by not knowing what is going on in the system of operation of the market.
If a person is competent he may know what is means to do hold/reversal trading to take the full offer of the market.
Here is an example about fear.
Imagine you are a math teacher of teenagers. You are the fav teenager shooter's target.
So you always wear a large buckle belt to assure yourself of no fears of getting shot And as a plus you can protect your classroom.
Place the belt upside down (buckle down) go to the door (no lock). Raise the belt above the hydraulic door closer. Slide the buckle over the hydraulic door closer. Push it until the tongue extension (it goes through the hole in a belt) drops between the two squeezed together arms of the hydraulic door closer. Keep the door locked shut in this way until the police knock on the door. (Note MIT has been given a contract to invent a device that will replace the belt buckle above.) Suggestion: learn about what causes fear and find a quick solution that is invincible.
Will MIT have multi-parts solution where anyone of which will be misplaced? Answer YES. Is there always a belt buckle in a classroom will all its parts? YES.
When on the sidelines CW potential traders are very very different than when they step into the markets.
Entry/exit trading is a strange irrational modus. Looking for a place to make a bet is the standard alternative to knowing what is going on in the system of operation of the market.
Entry is based upon GREED.
Exit is based upon PAIN.
Making 20% in a year of about 240 days is the net of making money sometime and having stops hit the rest of the time.
Look at the 10 most popular statistics calculated by actual traders.
Kelly worked at BTL as a member of the technical staff. He focussed on errors in data communication (transmission electronically or mechanically). LOL....
Fear comes from knowing you are making a lousy bet by not knowing what is going on in the system of operation of the market.
If a person is competent he may know what is means to do hold/reversal trading to take the full offer of the market.
Here is an example about fear.
Imagine you are a math teacher of teenagers. You are the fav teenager shooter's target.
So you always wear a large buckle belt to assure yourself of no fears of getting shot And as a plus you can protect your classroom.
Place the belt upside down (buckle down) go to the door (no lock). Raise the belt above the hydraulic door closer. Slide the buckle over the hydraulic door closer. Push it until the tongue extension (it goes through the hole in a belt) drops between the two squeezed together arms of the hydraulic door closer. Keep the door locked shut in this way until the police knock on the door. (Note MIT has been given a contract to invent a device that will replace the belt buckle above.) Suggestion: learn about what causes fear and find a quick solution that is invincible.
Will MIT have multi-parts solution where anyone of which will be misplaced? Answer YES. Is there always a belt buckle in a classroom will all its parts? YES.
To ask such a question after 11 years, I suspect you have just about faked away your account.
Quote from 0008:
Is the saying "fake it until you make it" useful for trading?
If I am fearing loss, can I fake it I am not fearing?
Any comments are welcomed.
Courage is taking action despite fear.
Assuming you have a trading plan that, if followed diligently, results in steady profitability, you can learn to act despite the fear of loss and uncertain outcome of an individual trade.
You have to have a proven method though, a plan you can trust. Without that, there's not much to "fake" and a fear of loss is sensible.
Once you have a plan you can trust, a method of trading with a proven edge over each acceptable series of trades, then you can certainly learn to sit through the discomfort of the fear of loss, knowing that the outcome at end of N trades will be positive despite the uncertain outcome of each individual trade.
Maybe someday you will catch on.
Greenspan is continually improvong his reasoning.
Today (as opposed to two years ago), he is correctly addressing "fear".
His poles of fear and greed are being iteratively refined.
Rationality, comes, as has been stated, from knowledge and skills.
The real deal is found on this path:
fear>>>nonrational>>>uncertainty.
Leaving uncertainty and proceeding to effectiveness and efficiency Is following this path:
uncertainty>>>rationality>>>>>rigorous scientific total
completeness. As bighog would say completely drilling down to the end.
CW's thinking is not rational (nonrational) There is no point to betting and using its mechanisms of chance and probability and OODA. Fear supercedes greed as an extreme.
The OP is in a place where he is trying to supress the simple context, circumstance and situation of using the wrong mechanisms for trading (like you do, too).
Greenspan took a long time to figure out he was wrong, roughly a normal lifetime.
In Gary Smith's book he outlines 12 years of futility before he grew enough.
Acruary didn't switch from the CW to the solution for a long time either.
So you and the OP are still in the "animal spirits" stage.
Greenspan had to start all over. (See "The Map and the Territory"). As he says he went equation by equation.
Look at the equations you use for "red" and "black" all the years you have been in the financial industry; they are the same as the OP's.
When did you lose track of how many times you took your initial capital out of the markets?
I would recommend 'fake it til you make it' in just about any profession- but I don't think trading is one of them. You need to have to knowledge, chart time experience, and the where with all to react to markets day after day to preserver capital.
Unfortunately, risk management seems to be the very last thing most traders master, and some blow all their capital before they get there.
It's almost like being a heart surgeon - it takes time and using guess-work in lieu of proven knowledge can be the end of you.
Unfortunately, risk management seems to be the very last thing most traders master, and some blow all their capital before they get there.
It's almost like being a heart surgeon - it takes time and using guess-work in lieu of proven knowledge can be the end of you.
So... what's the "solution"?
Enlightenment to transcend this "animal" brain of ours?
===========Quote from 0008:
Is the saying "fake it until you make it" useful for trading?
If I am fearing loss, can I fake it I am not fearing?
Any comments are welcomed.
No;
try work. Wisdom is profitable to direct.