You have to die before becoming a successful trader

[galvinlee888]

Yes, i am kind of marketing my thread here : https://www.elitetrader.com/et/threads/day-trading-basics.305348/

And this thread is strictly meant only for butterflies which is less than 1% of trading mass.

Sure you are.
It it much easy to sell something in day trading madness (or scam) and impossible to make money in day trading consistently and legally in long term. Whan you will setup your own web site, social followers, education website, signal provider? How much you will charge for the subscription?

 

[zdreg]

Actually my trading is systematic and automated: entirely mechanical and requires no thought whatsoever. Despite all this I still make plenty of money out of it.

I reserve my creative abilities for posting sarcastic posts on this forum.

GAT

it is an easy task considering the quality of many posts.

 

[galvinlee888]

The dull headed analytical personality has to die to give way to the birth of a brand new creative personality called trading businessman, an art of philosophy, the highest form of psychology, which is also an art.

This art of dying and taking new birth is known as transformation.

If you think a profession is nothing more than a means to make money, then your personality is that of a caterpillar. A Profession is a means to transform the personality into a more radiant one and money is just a byproduct.

The personality of a successful professional is that of a butterfly. Profession is a means to transform the life itself.

Trading businessman ?

What you want to sell in your business? Subscription? Trading Education? Signal providers? Trafing follower in Social media?

It is always smart to sell tools to day dreamers in gold rush scam (aka day trading) .

 

[rajesheck]

Sure you are.
It it much easy to sell something in day trading madness (or scam) and impossible to make money in day trading consistently and legally in long term. Whan you will setup your own web site, social followers, education website, signal provider? How much you will charge for the subscription?

Trading is an art. Not all people can be artists, musicians, sculptors, poets, etc right?

Each art is unique. For example music is unique from painting.

Day trading is unique from positional trading.

Positional trading is unique from holding postions for years which we call as investment.

Just because i cannot play flute or write poetry or paint a picture... I should not say no one can do that and all who claim so are scams.

Yes there are scams. Not all people are scam.

Just because a person fails in day trading he cannot say that no one can succeed in day trading right?

Trading art is only for natural traders or passionate traders. Not for others.

Failing in day trading either means lack of passion in day trading or having a gambling mindset. If they try and succeed in positional trading then its good. Otherwise it is surely a gambling mindset.

What you see is what you get.

See trading with gambling mindset and get it.

See trading with genuine passion and get it.

Trading, either day or positional, is not a poker game. People trade stocks here. Not run by casinos. Its a simple demand supply psychology with varying speculations.

Knowing when to trade and when not to trade, how to enter why to enter when to exit are all trader's responsibilities. Those who dont want to learn but simply want to make money are actually gamblers and treat day trading as gambling.

It is hard for onself to transform his gambling head into a genuine trader. Its like a drug addict trying to come out of it. Yes it is possible but very hard.

Relatively positional trading is not as safe as day trading because of the overnight gaps which defeats the stoploss theory and shakes the risk management, tending towards gambling.

In day trading we can choose to play safely. But in positional trading one news after trading hours can upset our positions. It is beyond our control.

Also day trading profits are far better than positional trading. The low profits generated by months of positional trading can be easily wiped out by occational overnight gaps.

It is not so worth to do positional trading. It may be a good hobby but not a profession imo.

 

[Llxa]

WAY too much thinking. Trading is just about letting the profit run and stopping the loss short and repeat.

 

[rajesheck]

WAY too much thinking. Trading is just about letting the profit run and stopping the loss short and repeat.

I agree with you 100%.

What is there to think too much about swimming ?

Just jump into swimming pool and try. Simple.

Swimming is a skill. Nothing more and nothing less.

Trading is a skill. Nothing more and nothing less.

And any skill is a phenomenon. Un-explainable.

Can we explain the skill of swimming in words ?

Trading is a psychological skill. Its a phenomenon. Un-explainable.
(The demand supply in trading is a psychological game)

The challenge among the trading fraternity is that 90% or more traders try to apply analytical skill to trade instead of psychological skill.

Can we swim with bicycling skill?

It is the stupidest question, right?

Probably possible, yet will be inefficient, right?

Just because this stupidity of trading with analytical skill instead of psychological skill is not so obvious, people do this stupidity elaborately and extensively.

Probably possible, yet will be inefficient, right?

Now can you see, your simple one sentence has so much practical/psychological challenge inside it.

What is obvious to some may not be so obvious to many.

That is the play of psychology in trading and our life as well.

 

[Llxa]

I agree with you 100%.

What is there to think too much about swimming ?

Just jump into swimming pool and try. Simple.

Swimming is a skill. Nothing more and nothing less.

Trading is a skill. Nothing more and nothing less.

And any skill is a phenomenon. Un-explainable.

Can we explain the skill of swimming in words ?

Trading is a psychological skill. Its a phenomenon. Un-explainable.
(The demand supply in trading is a psychological game)

The challenge among the trading fraternity is that 90% or more traders try to apply analytical skill to trade instead of psychological skill.

Can we swim with bicycling skill?

It is the stupidest question, right?

Probably possible, yet will be inefficient, right?

Just because this stupidity of trading with analytical skill instead of psychological skill is not so obvious, people do this stupidity elaborately and extensively.

Probably possible, yet will be inefficient, right?

Now can you see, your simple one sentence has so much practical/psychological challenge inside it.

What is obvious to some may not be so obvious to many.

That is the play of psychology in trading and our life as well.

No you don't really need skills. To trade successfully, you just need to create a system that you confirmed is profitable and then all you need to do is follow that system and that's it. And anybody who finds that system, all they have to do is follow it and they will be successful as well; they don't necessarily have to have any "skills", maybe just one, the "skill" of being able to follow procedures exactly like a machine. People overthink trading WAY too much.

 

[rajesheck]

No you don't really need skills. To trade successfully, you just need to create a system that you confirmed is profitable and then all you need to do is follow that system and that's it. And anybody who finds that system, all they have to do is follow it and they will be successful as well; they don't necessarily have to have any "skills", maybe just one, the "skill" of being able to follow procedures exactly like a machine. People overthink trading WAY too much.

We need six cognitive (mental) skills to create a trading system as you said. They are (from low to high) remembering, understanding, applying, analysing, evaluating and finally creative skills, which are explained in Bloom's Taxonomy.

Now the question is "Where does the psychology come in?"

Psychology is blend of cognitive and emotional skill. (For emotional skill see : https://en.wikipedia.org/wiki/Emotional_intelligence)

The affirmation that "I am a trading businessman" invokes the psychological view point and the emotional intelligence needed for trading. Without invoking this personality called "trading businessman" within us, trading will be like trying to swim with bicycling skill.

Psychology and Emotional Intelligence are modern forms of the ancient science called ontology, which is an ancient study of human psychology and abilities/skills. This science of ontology is used in modern days as "Affirmations'. "I am a trading businessman" is an affirmation or ontological view point to invoke the trader inside us.

 

[Llxa]

Yes but WHERE is the dying coming from? WHY do you need to die to learn those skills? LOL

 

[rajesheck]

Yes but WHERE is the dying coming from? WHY do you need to die to learn those skills? LOL

Appreciate your good question

The analytical personality has to die for the creative personality to take birth.

While climbing the ladder of Bloom's taxonomy from a bottom to top, it is natural that the personality based on lower cognitive skill will try to suppress or dominate the higher skill. Creativity is a higher skill than analytical skill. Its human psychology where the older skill wants to be the king and wont allow a new higher skill to dominate. This phenomenon is know as "attachment". Detachment, also called as death, towards analytical personality is what need to take birth of creative personality. These are familiar aspects for people in psychological and philosophical fields.

The new affirmations or "way of beings" or personalities has to take birth..
1. I am creative
2. I am trading businessman (business is a philosophical/psychological skill)
3. I am philosophical (highest form of psychology)

In other words creativity, philosophy, intuition and insights has to become the top priority and analytical skill has to be supportive.