In light of the purpose of this thread, I think this post by Dopey is ideal. Hope some of you have been taking the tests posted earlier in this thread seriously. I think there were three in total thus far.
Enjoy,
FX4
Enjoy,
FX4
When do you know you ready to go from demo to real trading? 61 replies
Trading: A Mind Game 15 replies
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Relaxing the heart and mind while trading 12 replies
DislikedI took the Tharp test a few months ago and it was very accurate. I would suspect confirmation bias, only that the test told me things I already had identified and to a certain extent I had already taken steps in order to fix them.
So, it turns out I am a "detailed trader". My strengths were pretty accurately described in the report: I understand systems easily and can execute them accurately. I can take this seriously and devote the required time, energy and focus. I am very analytical and can dissect successfully all components of a system...Ignored
DislikedHow many times have you entered a trade with the hopes that the market will "prove you right"? If you did place a trade, based on your idea/belief and the market DID "prove you right", how did you feel? That could be a hint as to what is behind staying in a losing trade.
If you trade that way on a regular basis, chances are you you'll probably lose overall. Trade what the market shows you, when it shows it...don't worry about what you think price should/will/might/can or can't do. Don't try to think for price: more often than not, it...Ignored
Disliked1. Swallow your pride: admit you're wrong/lost in the process.
2. Pull over on the shoulder and check your map (trading plan) again.
3. If you need to, stop and ask the market for directions.
4. Turn the "trading car" around if necessary or be more patient to wait for better timing.
5. Find a way to make up for the loss: time, money or whatever.
Don't keep driving the wrong way until you're out of gas...emotionally or otherwise.
If you find that your thinking is in sync with the market, then trust yourself and go with...Ignored
Disliked"1. Swallow your pride: admit you're wrong/lost in the process."
It's not enough to do this. Sometimes the energy for reason or emotion is too strong to deal with, and throws off one's capacity to do step 1.
I'd rather know exactly and in the same language what made me 'wrong/lost', so that I can relate to the wrong as well as the right on even terms. Then I can trade with a larger range of self-correction, one that expands upon your post's.
Staying with reason, as you say, can be helpful or get in the way --
(helpful)
Thus, I may get...Ignored
DislikedIt seems that a reason was emotionally supported, and then one all of a sudden, thru new (chart) information perhaps, that reason is undermined, and one has extra energy from the supportive emotion to expend / let go of, so that one can then redefine a new reason to support and so save one's trade.Ignored
DislikedCan happen easily. So a trader needs to find the "right balance" between being flexible and being steady in their trading perspectives as the dynamic market will provide opportunities both ways on its way to where the bias is heading currently. Easiest to stay with the market bias of the longer TFs.Ignored
DislikedConfusion plus extra energy pushes reason to wait for more information.
When confused, wait or look for opportunity to go with what has just been "confirmed" on the longer TF.Ignored
DislikedThanks for answering.
.
Agreed, except my personal preference is to find another reason in or near the original reason and so only need to wait a relatively few more candles on the same TF. Saves money per hour efficiency.
NO! As you say, a confused reason is a short-term bad trade that must be reconsidered in light of promise over the longer term.
But to accept that it is confused and stop the bad trade from continuing or happening, is a different animal. Immediate action is necessary, then.
I'd rather trust emotion, which partners with reason...Ignored
DislikedHad a thought I wanted to share. Discussions welcome.
Sometimes traders have a tendency to want to predict price action. I think this tendency can be spotted when price is doing one thing, but a trade is placed, because the trader is anticipating...or thinking through...what the market might do, and in the end, when PA plays out, the trader wonders, "Why/how did I place that trade, there?" Then, if ego was involved, it becomes harder to remove the trade, even when it becomes obvious that it is wrong.
I was thinking that maybe...Ignored
QuoteDislikedanticipation, prevision
projection - a prediction made by extrapolating from past observations
DislikedI don't know why it is so often said that "you don't need to predict where the market will go in order to make money". You do need to predict it. Not with 100% accuracy, but with enough accuracy. This is included in the definition of "prediction":
You will notice that prediction does not equal conviction, and the words "anticipation" and "projection" are also present. So, we are justified to say that in our case prediction = educated guess. And this is necessary in order to escape randomness and make money. When you follow a...Ignored
DislikedThanks for answering.
.
Agreed, except my personal preference is to find another reason in or near the original reason and so only need to wait a relatively few more candles on the same TF. Saves money per hour efficiency.
NO! As you say, a confused reason is a short-term bad trade that must be reconsidered in light of promise over the longer term.
But to accept that it is confused and stop the bad trade from continuing or happening, is a different animal. Immediate action is necessary, then.
I'd rather trust emotion, which partners with reason...Ignored
DislikedHi Ha-Pattern,
Have had some hectic days. Will reply to this either today or tomorrow.
Thanks for your patience,
FX4Ignored