Psychology, are you sure?

Quote from Alexis:

Redneck,

Thanks for your reaction, and we most certainly respect your opinion as well.

Could I ask you to tell where you stopped agreeing with me in my initial post? (put differently, where do you think my reasonning is flawed?)

thx,

Alex
More...



Well Sir

I don’t think your thinking is flawed – it is yours




My approach – to trading


Priority one
Figure out who is in control (buyers / sellers)… call it market sediment, up / down days – bullish, bearish, fear, greed – whatever – But it is the market’s psychological make up for that minute, hour, day

(I spend the majority of my work day doing exactly this, constantly evaluating, confirming, verifying – this)


Priority two
The rest of my day is spent entering and exiting based on priority one

The action of performing priorities one and two (“trading”) – are intermingled throughout the entire day



All the other stuff has been thought through, worked out, and planned – before the day begins (zero emotion/ psychology involved - on my part) – It's business


eta - actually planning for tomorrow - while I'm here now

Take Care

RN
 
Quote from Alexis:

Hi everyone,

Just wanted to share a thought with you all. I recently read, from a fellow ET member, that :

"Psychology is 90%, Money management and Analysis are 10%"

That. Again.:mad:

I was sharing my anger about this topic with a colleague and he had a funny, yet interesting, answer:

"yeah, tell them we have been consistently making money for decades, that we do an awful lot of analysis and stats in here but that we never felt the need for a shrink in the room!"

Bottom line is, analysis and risk mangement are 99% of the job. If you trust your strategies, there is no room for thinking or doubts.

testing -> validation -> trading.
A problem? Drawdown?
re-testing-> re-validation -> back to trading

This is a never ending process.

But why on earth would anyone cease to trust a validated strategy (you gyus validate your trading ideas, rght?) in the middle of a position and start doing something else? Markets are real-world, they are not in our head.

Hope I don't offend anyone,

Alex
More...

Yogi Berra be my psychological mentor.

"Baseball is 90% mental, the other half is physical"

Baseball and trading are very similar in my opinion so I defer to Yogi.
 
Quote from Alexis:

"Psychology is 90%, Money management and Analysis are 10%"

That. Again.:mad:

I was sharing my anger about this topic with a colleague and he had a funny, yet interesting, answer:
More...

Its time you spent some time with a shrink figuring out why this made you angry. You'll end up a better trader.
 
Quote from Ticketwatcher:

Yogi Berra be my psychological mentor.

"Baseball is 90% mental, the other half is physical"

Baseball and trading are very similar in my opinion so I defer to Yogi.
More...


:D :D

Thank You Sir

RN
 
There is little room for psychological factors if you have solid analysis and years of experience.
------------------------

I agree. What is the psychological impact when you've "been there done that"? None. Of course assuming one hasn't decided to "wager" (ahahahaha) outside his risk tolerance.

Well, maybe not. When the eyelid starts twitching, you relive those moments of despair, those countless failures return to haunt you. screaming "you loser". But.. but... it's different this time., I do have more experience, my analysis is solid........rufffff ruuffff. calm down boy.
 
Alrighty – I have a plan

I know how much I can lose on each trade, and overall for the day
I know the share size I will trade for each position
I know how many times I will scale in (if the opportunity presents itself – or not – if it doesn’t)
I am pretty sure which stocks I will trade (unless something drastic changes between now and tomorrow – then I will reevaluate, and possibly amend my list)



Tomorrow

I will – Trade (reference previous post for my definition of “trade”)
I will – Stick to the plan
I will – Lose or make money
I will – Be prepared to either go long, or short throughout the day
I will – Remain detached – while I observe – anticipate – react
I will – Wash – rinse – repeat


What I don’t know – What the market’s psychology will be tomorrow (up or down day)… but I don’t need to

Zero psychology / emotion on my part – today….

Tomorrow will be all about psychology – I however must never get involved in it.


As I have just posted my thoughts – You have just read my mind


Good Trading

RN
 
Quote from Redneck trader:

Alrighty – I have a plan

I know how much I can lose on each trade, and overall for the day
I know the share size I will trade for each position
I know how many times I will scale in (if the opportunity presents itself – or not – if it doesn’t)
I am pretty sure which stocks I will trade (unless something drastic changes between now and tomorrow – then I will reevaluate, and possibly amend my list)



Tomorrow

I will – Trade (reference previous post for my definition of “trade”)
I will – Stick to the plan
I will – Lose or make money
I will – Be prepared to either go long, or short throughout the day
I will – Remain detached – while I observe – anticipate – react
I will – Wash – rinse – repeat


What I don’t know – What the market’s psychology will be tomorrow (up or down day)… but I don’t need to

Zero psychology / emotion on my part – today….

Tomorrow will be all about psychology – I however must never get involved in it.


As I have just posted my thoughts – You have just read my mind


Good Trading

RN
More...

RN.

I agree with you 105% to 107% percent.

Tomorrow, I will trade according to the psychology of you (if you trade the same stock, and you can be my friend or enemy)

Tomorrow, I will trade according to the psychology of everyone (the overall market).

And most importantly, I will trade without my own psychology.

OK, maybe they are right. Without my own psychology involved, it is 100% mechanical!
:D

EDIT: How do you determine the psychology of the stock or I should say the psychology of the traders involved in the stock, sector, and overall market? You do it by candle sticks, patterns, charts, etc., and then it becomes mechanical again! See the difference between psychology and mechanical?
 
Quote from Love Trading:

RN.

Tomorrow, I will trade according to the psychology of you (if you trade the same stock, and you can be my friend or enemy)

Tomorrow, I will trade according to the psychology of everyone (the overall market).

And most importantly, I will trade without my own psychology.

OK, maybe they are right. Without my own psychology involved, it is 100% mechanical!
:D
More...

Hey LT

Ain't seen you in a while:)


As we both know in this silly business - It can be no other way


Take Care Sir

RN
 
Quote from Love Trading:

RN.


EDIT: How do you determine the psychology of the stock or I should say the psychology of the traders involved in the stock, sector, and overall market? You do it by candle sticks, patterns, charts, etc., and then it becomes mechanical again! See the difference between psychology and mechanical?
More...


LT,

Some things (very few) not even my wife knows Sir - This is one of them

I believe it best we find our own way - as we are all different...

eta - LT you already know my set up - I've posted it a few time


And folks (everyone else)

I'm NOT saying I have the end all be all way - I am saying I have something that works for me...

I just choose to keep it mine

RN
 
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