Trading Psychosis
- Thread starter masterm1ne
- Start date
With this I agree for 100%.
So Do I but there is a misconception
Trade the system , method or trend and you will be a succesful trader.Now there is somethinng incomplete in the above statement , half information here is dangerous.
The system, method or trend is traded by a robot ?.No it is traded by a human being with a brained wired in the following
1)Humans are wired for certainty in decisions , trading does not offer certainty
2)Humans have a need to be right , on placing trades , market is always right traders are not
3)Humans have reactive patterns , they are not robots.Humans trade reactively
4)Humans have emotions and their decisions are made by their emotional brain , it is faster than the rational brain
5)Human brain is wired to produce for stress responses , trading is very stressful and is done with stress reponses .....i.e fight flight flee
6)humans don't like taking a loss , they will avoid a loss at any cost ...............free advice from goons is cut your losses
7)human brain is a poor judge of risk
8)The emotional brain is trading not the rational brain (this is why systems , methods are free , yet 95% lose).
Trade the system , method or trend and you will be a succesful trader is promoted by internet marketeers with hidden agendas.
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You are right that there is a misconception, but not the one you think about.
Wrong. The only certainty in life is that the moment when you are born you know for 100% sure you will die one day. Tell me what other certainties there are.
Wrong. We have a need for certainties, but can function perfectly with a high probability as certainties don’t exist. We live and choose in reality on (what we think are) high probabilities, not certainties. And the only certainty we have, we try to avoid. Nobody likes to die.
Wrong. Some humans, or even many, do. But good traders don’t. They have a plan and have statistical evidence of high probabilities about the results. They know that certainties don’t exist and choose for (what they think is) the best available option.
Wrong. Good traders know that emotional trading is lethal, and know they have to trade rational. They learned how to do this like we teach our children how to drive a car.
Wrong. Good traders reduce stress by watching their statistical evidence of high probabilities about the results. Each and every day their trading will confirm their statistical evidence of high probabilities about the results, resulting in lots of confidence, or in other words in reducing the stress. Stress is a result of people doing things without understanding, or controlling, what they do. Trading but not knowing where this will go, causes stress. Those who have a plan and their statistical evidence of high probabilities about the results, know within certain limits where they will go. Their statistics will tell them. In fact they already know this even before initiating a trade.
Wrong. Losses are an inevitable part of trading. Nobody can avoid all losses. Good traders don’t try to avoid losses as they are irrelevant, they try to avoid not to follow the plan on which their statistical evidence of high probabilities about the results is based. Because if they do, their statistical evidence of high probabilities about the results, is worthless.
Wrong. Good traders calculate risk mathematically. They NEVER judge on anything else.
Tell me what the hidden agendas are? Or maybe you don’t know as they are still hidden for you too? “Trade the system , method or trend and you will be a successful trader” is correct. But only on 2 conditions:
- Trade and NEVER break the rules, and you will approach the statistical evidence of high probabilities about the results. At least if you calculated everything correctly.
- Have a system that, based on the statistical evidence of high probabilities about the results, is profitable. Because otherwise you will have statistical proof that you will lose money. Stats work in both ways.
Your statements make 1 thing very clear: you are not a successful trader and never will be if you don't change your attitude.
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My statements are very realistic , just search the internet and other phsychology articles /video webinars on youtube and you will learn the real trading phsychology.
I have read hundreds of articles and seen countless phsychology videos , on you tube , in particular I have heard the top trading phsychologists and sought
further advaced information on the human mind and it's behaviour.in trading , from non trading phsychologists.I am very well informed on the subject , including reading biased statements from posters.
My attitude is fine , I know real trading , I am not just one of the pretenders working as a forum poster .
You are demonstrating the human "need to be right " and trying to make my views wrong , when clearly you have not got a clue about real trading phsychology.If you applied this attitude in trading , I would most likely think you are not a real trader .
I even called an S and P trade here , in advance and the methodology , and I can see the S and P does not trend twice daily , again these beliefs are more of your delusions on S and P trending twice a day.
https://www.elitetrader.com/et/threads/s-and-p-options-thread.304097/
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I was registered on 02/25/2013. You were registered on 09/15/2016.
I made 912 posting, so average 0.676 postings a day.
You made 498 posting, so average 9.764 postings a day.
So you post 14.44 times more than me. It is clear that YOU are the forum poster and not me.
About the real trading psychology. My partner has a university degree in psychology. I don't make this up now, I posted this already in another thread on ET in past. I have a fairly good idea about real trading phsychology and how the human brain works.
I have +20 years of trading the S&P. Started before the Emini was launched. So at 250$ a point. Orders were still given by phone. Daytraders were still hard to find at that time.
I wrote very clearly why you are wrong, but you don't reply on any of these reactions from my side. Only real arguments have value. Vague statements like you make, without any proof, are irrelevant. Reading on internet is no professional reference to me. Anybody can write any nonsense there. Webinars are also not really a good reference.
Not me, but you you are demonstrating the human "need to be right ". Proof? You wrote this:"I even called an S and P trade here , in advance and the methodology , and I can see the S and P does not trend twice daily , again these beliefs are more of your delusions on S and P trending twice a day."
It is not because you are blind and cannot see that the S&P does not trend twice a day. Last week I did 13 trades (winners and losers) in 5 days. All trendfollowing trades with average net profit per trade (total net weekly profit divided by 13 trades, so included losing trades) over 5 points net (don't want to give exact figures). Net average profit per day was beyond 10 points net. So there are clearly more trends than 1 a day on average.
Your partner having a phsychology degree does not make you an expert on trading phsychology , it only makes you husband and wife.
S and P does not trend twice daily , here is S and P chart
Are you sure , you are not suffering from trading phsychosis or Dunning Kruger Effect ?
Please define your definition of trend , so we can kill this delusion .
Mtrader
Just work it out . 65 ticks a week , compound it every month and you should be MTRADER forum billionaire.
Your story does not add up , because like those of all the succesful forum traders , you would be a forum billionaire by now .
The consequences of giving away the holy grail
This is definitely a mindset issue.
https://www.elitetrader.com/et/thre...ght-in-trading-decisions.304141/#post-4355117
Now it is clear you have no clue about trading. I wrote 65 POINTS, not 65 ticks. Never heard that these are two different things?
About your billionaire logic: first try to find out what is completely wrong in your logic. Or the logic you copied from somewhere else.
I will help you a little bit:
- you cannot grow into eternity at that rate. Even Renaissance and Soros have that problem. They cannot reinvest their money anymore as the amounts become too big. This is not my problem.
- Not everybody is interested in becoming a billionaire, because to become that you have to give up part of your good life.
- Not all systems can grow that way. I can perfectly have a system that generates what I posted without becoming a billionaire. I am limited as I cannot and don't want to trade bigger. I prefer quality of life above being the richest body on the graveyard.
- Following your "billionaires logic": if your logic is correct half of the world should be billionaire. If you invest 10K at 30% a year, you will have a few billion dollars before you die. Statistically it would mean that you would be the 361st richest man in the world. You would be in the top 0.0001% richest people in the world. Just 30% a year. It shows clearly how stupid your logic is. At 30% performance at least 10% of the population should be billionaire.
- Can you post here the exact and complete calculations to show how you arrived at those billionaire logic? I will show you all the errors you made. And don't tell me you found this logic on internet. What do you trade? Starting capital? Leverage? Number of years you used for calculations?