Why do We Make Trading so Difficult?

Flashboy · Mar 29, 2006

I am probably the biggest offender .. but I sure do make trading difficult on myself and I'm trying to find some answers as to why..

Still with paper trading I am looking for reversals..

I have a plan for reversals as well as a plan for trading with the trend.. but in the last two days all I do is look for places to sell instead of going with the trend..

Yesterday was trending nicely upwards till about 12:30 ..and I made 3 sells in the time frame..

same with today... looking to sell..

Why do we/I do this though???

Has anyone been through this before?? and found a way to minimize the mistakes..

fhl · Mar 29, 2006

When you don't have a conceptual framework for the way the market works, then the only thing left is where did it come from and it must go back there. When you develop your own framework for the way the market works, you have another frame of reference about what the next move in the market will be. Start looking at momentum and volume and it may give you a different perspective.

StacyTrader1 · Mar 29, 2006

There are many ways to simplify your trading style,

For starters, turn off CNBC

Ciao!

Stacy

SizesTrader · Mar 29, 2006

You need to have a sense of where the momentum is in the market. Look for stocks breaking highs/lows. Let your profit rise and cut your losses earlier. This will help you improve your trading.

sulong · Mar 29, 2006

Quote from Flashboy:

I
Why do we/I do this though???

Has anyone been through this before?? and found a way to minimize the mistakes..

Cheese · Mar 29, 2006

Quote from Flashboy:
I am probably the biggest offender .. but I sure do make trading difficult on myself and I'm trying to find some answers as to why..

Still with paper trading I am looking for reversals..

I have a plan for reversals as well as a plan for trading with the trend.. but in the last two days all I do is look for places to sell instead of going with the trend..

Yesterday was trending nicely upwards till about 12:30 ..and I made 3 sells in the time frame..

same with today... looking to sell..

Why do we/I do this though???

Has anyone been through this before?? and found a way to minimize the mistakes..

Its hard to say what will work because almost all are astray together.

The thrust, push and construct of human activity is social. Therefore reversion to the mean is the overwhelming force .. to be normal that is, to be one of all others, to demonstrate you are part of all, to show you fit, to revert to the mean of being a general loser. It is an outward and inward force at the same time .. to be a loser.
That is all you are doing. It is the masochism of reinforced mind habit, social and personal.

You choose to want to 'sell' only or to look only for 'reversals'. You refuse to want to understand the whole market.

Can you be helped? I can't see that anyone or most can be helped. It is too comforting to be other than an eternal loser. To borrow a phrase, 'the force is with you'.

nzbryant · Mar 29, 2006

Quote from sulong:

Flash,
You are in luck. Just go through these threads and note the similarities between them. You'll see a behavioral pattern, which you can choose to change, or not change.s=&threadid=16839[/url]

Great call - all about feelings. Your feelings override your plan. Must incoporate feelings into your plan else they will override it. Cant 'squelch' them down. What are your values?

Flashboy · Mar 29, 2006

Quote from sulong:

Flash,
You are in luck. Just go through these threads and note the similarities between them. You'll see a behavioral pattern, which you can choose to change, or not change.

http://elitetrader.com/vb/showthread.php?s=&threadid=57627

http://elitetrader.com/vb/showthread.php?s=&threadid=50583

http://elitetrader.com/vb/showthread.php?s=&threadid=49906

http://elitetrader.com/vb/showthread.php?s=&threadid=48070

http://elitetrader.com/vb/showthread.php?s=&threadid=44213

http://elitetrader.com/vb/showthread.php?s=&threadid=37686

http://elitetrader.com/vb/showthread.php?s=&threadid=34781

http://elitetrader.com/vb/showthread.php?s=&threadid=32739

http://elitetrader.com/vb/showthread.php?s=&threadid=25293

http://elitetrader.com/vb/showthread.php?s=&threadid=23986
http://elitetrader.com/vb/showthread.php?s=&threadid=23344

http://elitetrader.com/vb/showthread.php?s=&threadid=20504

http://elitetrader.com/vb/showthread.php?s=&threadid=21339

http://elitetrader.com/vb/showthread.php?s=&threadid=21210

http://elitetrader.com/vb/showthread.php?s=&threadid=19436

http://elitetrader.com/vb/showthread.php?s=&threadid=19468

http://elitetrader.com/vb/showthread.php?s=&threadid=17821

http://elitetrader.com/vb/showthread.php?s=&threadid=16839

Wow Sulong,

Forgot about most of those.....

Amazing how the same pattern keeps repeating itself..

thanks for the eye opener...

sulong · Mar 29, 2006

Flash,
You're fortunate that you ether intentionally or unintentionally created a record that goes back for a good amount of time. You'll learn a great deal by reviewing and noting behavioral patterns. If you do the leg work, you'll be that much ahead in disrupting the undesirable patterns you find, and reinforcing the desirable ones. (record keeping)

FuturesTrader71 · Mar 30, 2006

Quote from sulong:

Flash,
You're fortunate that you ether intentionally or unintentionally created a record that goes back for a good amount of time. You'll learn a great deal by reviewing and noting behavioral patterns. If you do the leg work, you'll be that much ahead in disrupting the undesirable patterns you find, and reinforcing the desirable ones. (record keeping)

Sulong,

It is very generous of you to take the time to post all of those threads for Flashboy. I haven't read them and don't have the time to go through each one.

Can I ask you to kindly summarize your observations either here or through a PM on this subject? I am always interested in what to learn in the area of trader psychology.

Thanks.