Menu
Sister Sites

  • Can psychology improve your trading performance?

    From financefeeds.com

    The goal of forex trading is simple: to earn a profit. While there are a variety of ways that you can improve your chances of building your capital, one of the most important steps is understanding the impact that psychology has on the way you make decisions. According to the efficient market hypothesis (EMH), financial markets are completely rational, as market participants always make the most logical decisions, in order to achieve the greatest results. However, IG Group’s ‘Psychology of Trading’ research showed that despite being correct in their predictions more than 50% of the time, traders tend to lose ... (full story)

the simply is eating and tea
Yes, if you are crazy enough from before LOL
  • Post #3
  • Quote
  • Edited at 10:57am Feb 4, 2020 10:46am | Edited at 10:57am
Of course..
"despite being correct in their predictions more than 50% of the time, traders tend to lose significantly more money than they win".

So in general were good at technically predicting the market.. whatever our "System"..
(In fact if your NOT Right 60-70% of the time.... dont attempt to trade live... youre just not ready or your systems is crap)
But were shit at Risk Management... and the rolling process of probability analysis...which is what trade management is about.

so the take-away is Concentrate on Risk Management chaps.. and dont let emotions (fear&greed) get in the way.
It is important to realize that you will be WRONG 90% of the time. Accept this and love it. Sometimes your own bias is wrong and you take a losing trade. Other times you have too many contracts/shares on your losing trades or not enough contracts/shares on your winning trades. At times you get out of your trades sooner than you should have or other times you should have got out quicker than you did. You may miss proper stop and target levels. It's a game of imperfection and uncertainty. You almost never get it right.
The nice thing is that you can be wrong most of the time and still make money if you practice strict risk control. Take a chunk out of the middle and be happy.
Quoting Maxthetrader
It is important to realize that you will be WRONG 90% of the time. Accept this and love it. Sometimes your own bias is wrong and you take a losing trade. Other times you have too many contracts/shares on your losing trades or not enough contracts/shares on your winning trades. At times you get out of your trades sooner than you should have or other times you should have got out quicker than you did. You may miss proper stop and target levels. It's a game of imperfection and uncertainty. You almost never get it right. The nice thing is that you can...
Reading Maxs post above .. I concede Max is right too..
Seems contradictory? No..
but we are talking about same thing from slightly different perspectives.. and slight diferent definitions.. of right and wrong.. It complicated even to explain.. but if it were easy to understand everyone would be winning..
  •  Guest
  • | IP XX.XXX.174.215
that is like asking if breathing can improve your life expectancy
the favorite FX signal
Attached Image (click to enlarge)
Click to Enlarge Name: 74968674_774072476407901_5143295931256269019_n.jpg Size: 140 KB
Psychology is number one even exceeding risk management.
Markets always whipsaw price and the Trader finds themselves caught up in the moment driven by the need to be Right Bias. Being able to take the heat of adverse volatility and being able to know the difference between adverse volatility and a Trade that has gone Bad whilst minimizing Loss getting out, is a major challenge.
The only way to handle all that emotional baggage is by having a way to calm the mind so as to maintain perspective. An allegory for this would be to think of oneself as goalkeeper while having 100 hockey pucks coming at you without flinching.
Developing a Mind of Steel is well worth working upon.
Psychology has nothing to do with trading. Google trading. There are multiple systems that offer you the best entries and exits. All you need to do is to follow the schemes and you get rich quick. Best of it all. It is almost risk free.

If you are such a poor trader that not even these FREE systems can help you become profitable go to youtube and search for trading strategies.

Following the above will make you a 1% of the 90% losing traders out there.
" Psychology has nothing to do with Trading"
Ezee Pezee just goggle trading and follow what the Guru has to offer and you too will get Rich.

Oh really!
Psychology has a lot to do with profitabiliy. The way we handle losses and wins. In general I will say it gives the ovaral balance to a trader.
Quoting foto
" Psychology has nothing to do with Trading" Ezee Pezee just goggle trading and follow what the Guru has to offer and you too will get Rich. Oh really!
Oh dear, Foto. Irony. Sorry, if it didn't come through properly (: Want a link to some of the extremely profitable can beat em systems? (:
The best thing I ever learned to do is place a trade and walk away. Its amazing how little you f**k them up when you aren't there to do it.
  •  Guest
  • | IP XX.XXX.197.175
Mastering how to define where the key levels are, comgined with patience and correct position sizing, amazingly alters your confidece and state of mind. You cant win em all cos u dont know the outcome of upcming data
Finally leave any timeframe under the daily well alone
Quoting clockwork71
The best thing I ever learned to do is place a trade and walk away. Its amazing how little you f**k them up when you aren't there to do it.
I think that is probably right. Many of the younger traders that I have worked with always run their losses to the stops (that's what they learnt) but they always cut their winners short. it is simply human nature to cut the winners. When sitting in front of the screen you can make up a 1000 reason to close a winning trade, maybe the Bollinger bands, the moving average, support or resistance. So you are probably right that the less you watch the less you fuck it up.

Another thing I have implemented is not to trade on my phone. I accept that sometimes I will watch the trades while on the go. But, I will not trade.
Quoting Banditten
{quote} Oh dear, Foto. Irony. Sorry, if it didn't come through properly (: Want a link to some of the extremely profitable can beat em systems? (:
Thanks but no thanks. Took me many and I do mean many years to put together a methodology that works for the way my mind works. A balancing act between Tech Cycle analysis and Fundamental interpretation of real world events and their impact on markets.

A Trader who puts emphasis on matching their own psychology with what they are trading as method has a chance at success. Blind following of a system developed by someone else in attempt to take out that personal factor is a very tough Row to Hoe.

The post by above guest about letting time frames under daily alone is something that took me some time to learn the hard way. The Siren call of day trading works for some but it tends to be a graveyard for many an account.
Can psychology improve your trading performance?

Oh yes! But definitely not when the psychologist is a scam who only wants to take your money.
Forex is 70% psychological
a little improvment I think .... because price movement by market maker .... so market maker playing with order flow ... and only they see the order flow .... with their big money ... they can movement the price, according to the direction they want ... so it's not psychology that influences trading ... but is .... does the market maker want traders to profit or lose, especially the broker you use .... that's all ... forex is a scam
Trading the forex or other markets doesn’t have anything with pain, psychology or improvement: the only law is: if you know, you win, if not you lose! The proof: your results and abandon your thread.

You who have already lost everything and are looking for a way to get your money back, stay away from all the EA’s, indicators, softwares as Metatrader, Jigsaw, Sierra, Bookmap and all other. Understanding the options on the futures is the only thing that will help you efficiently. You ‘ll never find anything to help you on forex website.

Finally, think about that: universal access to financial markets is a huge opportunity to get rip off millions of naive people! YOU JUST GIVE LIQUIDITY TO THE MARKET MAKERS VIA YOUR BOKER!
  •  Guest
  • | IP XX.XXX.25.113
Join FF
  • Story Stats
  • Posted: Feb 4, 2020 10:33am
  • Submitted by:
     Newsstand
    Category: Educational News
    Comments: 20  /  Views: 13,832