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Trading Psychology That We Need To Succeed

  • Post #1
  • Quote
  • First Post: Dec 29, 2018 12:06pm Dec 29, 2018 12:06pm
Hello guys,

I am creating this thread to share the videos/books that I strongly believe we need to equip our selves to become a highly successful trader.

Because I totally believe that trading is just 10% technical and 90% psychological.

So, in order for us to stay successful and consistent in the long run; We have to get our mind focused on the right things we need to stay on top of our game.

Feel free to share your videos, books or even images of the best trading psychology that you believe helped you succeed in trading...
We're not here to be right, we're here to Profit Consistently!
1st and most important trading psychology that you will ever need....

Trading in the Zone - Mark Douglas - Trading Psychology - Unabridged Audiobook

Inserted Video
We're not here to be right, we're here to Profit Consistently!
Some Motivation For Us To Start the Week great and profitable!

Inserted Video
We're not here to be right, we're here to Profit Consistently!
Quoting ranilo.vince
Hello guys, I am creating this thread to share the videos/books that I strongly believe we need to equip our selves to become a highly successful trader. Because I totally believe that trading is just 10% technical and 90% psychological. So, in order for us to stay successful and consistent in the long run; We have to get our mind focused on the right things we need to stay on top of our game. Feel free to share your videos, books or even images of the best trading psychology that you believe helped you succeed in trading...
Hi.

Besides Trading in The Zone, I think that all Brett Steenbarger books are worth it; specially "Enhancing Trader Performance". As a second book after "Trading in The Zone" it will guide you through the long way ahead to become a consistent trader.

Kathy Lien's "Millionaire Traders" is also a good read because it talks about the experiences and situations of several successful retail traders.
Quoting scherzi
{quote} Hi. Besides Trading in The Zone, I think that all Brett Steenbarger books are worth it; specially "Enhancing Trader Performance". As a second book after "Trading in The Zone" it will guide you through the long way ahead to become a consistent trader. Kathy Lien's "Millionaire Traders" is also a good read because it talks about the experiences and situations of several successful retail traders.
Really? That is great to hear.

Can you share it here?
We're not here to be right, we're here to Profit Consistently!
It's on amazon, I have the hardcover version.

https://www.goodreads.com/book/show/...er_Performance.
Do not overtrade. Don't be tempted to make deals in large numbers without being supported by calculations and good capital management. Lots of traders who do that only for one purpose: so quick to generate profit in no time. They don't remember that the greater the amount of transactions carried out then the potential disadvantages whatsoever will be even greater.
  • Post #8
  • Quote
  • Edited 5:29am Jan 28, 2019 5:15am | Edited 5:29am
Quoting amri.rudi
Do not overtrade. Don't be tempted to make deals in large numbers without being supported by calculations and good capital management. Lots of traders who do that only for one purpose: so quick to generate profit in no time. They don't remember that the greater the amount of transactions carried out then the potential disadvantages whatsoever will be even greater.
In fact, trading is 85% business methodology/model and psychology and then 15% corresponds to the technique you may use for trading.

Knowing trading techniques and strategies is just the beginning and the easiest part. Profitability only comes after years of practice and understanding how the trading business works, that is completely independent from the type of trading you do, what you trade or how you get money from your trades.

I can tell you here that if you buy on the bullish trendline first retest on a support you will have probably 80% of winning ratio, maybe more. But this is a principle and making it profitable requires years of rehearsal, money invested, a few accounts blown up, costs payed and a reasonable capital.

I could also say that if you buy a roulette, you will have a winning ratio below 6%, so 94% of the times you will lose and will have to give money to the players. But casinos make millions from it. So it is not the technique but how you plan to exploit your technique. So why not everyone becomes rich just by opening a casino? Why do 80-90 percent of the new traders lose everything in less than 6 months and then give up?
10% technical, 90% psychological? Biggest myth in retail trading, and the most dangerous one, because it leads inexperienced traders and people coming into the business for the first time to assume that all they've got to do to be a success at this game is to screw their head on right. There is way more to it than that.

Psychology is important, very important, but I wouldn't quantify it like this. Self destructive behaviour will ultimately ensure that many would be traders will only ever lose money, but, it is not the main reason why the majority lose money. The main reason is that the majority just do not acquire sufficient knowledge of the markets and price movement to be able to profit from them consistently. Too many traders jump in without really understanding why. Learn to trade, however long it takes, and the psychology will look after itself if you are a normal, rational human being.
Quoting cat
10% technical, 90% psychological? Biggest myth in retail trading, and the most dangerous one, because it leads inexperienced traders and people coming into the business for the first time to assume that all they've got to do to be a success at this game is to screw their head on right. There is way more to it than that. Psychology is important, very important, but I wouldn't quantify it like this. Self destructive behaviour will ultimately ensure that many would be traders will only ever lose money, but, it is not the main reason why the majority...
Completely agree with you, people tend to simplify, psychology means here behavioral psychology that among others study:
- What is motivating people to do what they do.
- Which is the best way to learn anything,
- Which behaviors lead to success.
- Which is the correct mindset required for trading.
- How to deal with uncertainty.
- How to think in probabilistic terms.
- How to select your assets,
- How to create your own trading management system,
etc...

So one of the things implicit in psychology is the right way to define the learning process, the trading methodology and everything else that goes beyond where and when to sell, including risk management and so on.

And I think that it's true that trading (technique) is more about a Pareto 20-80, being 20 the trading strategy, technique and mechanisms and 80 the rest, including everything you need to do and know to become a profitable trader given a particular trading style. And one of the key aspects is spending years of rehearsal if needed until you become profitable under simulated conditions.

I think many mentors mean much more than psychology when they mention it, they mean the 80 side of the pareto issue.
  • Post #11
  • Quote
  • Edited 7:49am Jan 28, 2019 7:30am | Edited 7:49am
And one of the risks of simplyfing (I continue) is thinking that you will succeed if you are really committed to succeed.

That is false.

You can only succeed only if you do things in the right way and if you have a talent for it. No matter the efforts you do, if talent is not present, success won't ever be.

Conversely, one may be the most talented person that if one does not do things in the proper manner, one will never succeed neither.

Therefore, correct self-assessment is a must because not every business (including trading) and not every style is appropriate nor feasible for every person.

And in my opinion trading is a tough one. It is not an easy business any enterpeneur can be successful at.

This means that one should be very careful and have a very good plan and strategy proved to be profitable before funding an account with real money. And do not expect doing it in less than 2-5 years of preparation. This is the psychological side, you have to be wise, persistent, committed, patient, serious, methodic and consistent. Always use a scientific approach, never take a decision upon an intuition here. Do your numbers and know exactly where you are and where you can go.

Look, on a seminar I gave last week, some persons were just feeling panic when I had my trades opened, only by watching price moving around. And these were my own trades, not theirs. But the mental pressure you have to support is very strong and this is not something one is born with. You need a stable head during your trades otherwise greed and fear will just control you. Not everyone can learn it, not everyone want to learn it, not everyone is born with it.

Some started saying "nooo", "oooh", "ahhhh" while watching price moving; telling me they were really suffering, that the situation was very stressful. I insist it was me who was trading my own account.

So now imagine how would they feel with their own trading account. I can tell, just paralized losing everything trade after trade.

And I was trading using a simulator and past data, not even with real money. Mental preparation is a crucial part of this way indeed.
Thank you, guys for motivating videos!
Some really excellent points by scherzi above, which will, I hope, provide a reality check for some people. Trading will force all of us to look into the mirror, and look hard, because there is a very good reason why brokers make so much money. The odds are heavily stacked against anyone being able to make a success as a trader, whoever one is, but they are well nigh impossible to surmount unless one ticks every single box before putting one's money on the line. The qualities one needs to succeed are so numerous that I wouldn't even know where to start by listing them, so in case there are some people reading this thread who are hoping to short cut their way to success, forget it, you will only lose your money and put yourself through a great deal of personal grief in the process.
Are there people who are blessed with "a market instinct"? Either. But so far even the greatest traders ever gain the ability of learning and based on many years of experience in the market. That experience strengthened his "intuition" as traders.
This is one way that we can implement for us to win in the Markets:

Check this video out which I find myself very helpful...

Inserted Video


P.S. Nevermind his other videos, this video only is the one I think that is useful...
We're not here to be right, we're here to Profit Consistently!
I have come to the conclusion that trading psychology really means figuring out when to exit a trade. Yes? If you know when to exit, there is really nothing to think about anymore. Good Luck.
You cannot be extraordinary by being normal
Quoting dkrock
I have come to the conclusion that trading psychology really means figuring out when to exit a trade. Yes? If you know when to exit, there is really nothing to think about anymore. Good Luck.
Yes accept the location that you will have to exit.

The only acceptable exits are:
1. Small Loss
2. Small Win
3. Break even
and
4. Big Win...
We're not here to be right, we're here to Profit Consistently!
You should learn a lot and be persistent in your decisions, also be very patient not to hurry and make mistakes, just trade at the right time.
well thats really great.
while books and other stuff is really helpful i think one can not succeed unless he/she learn to stick with the plan and no get tempted or greedy
Quoting Sam016
well thats really great. while books and other stuff is really helpful i think one can not succeed unless he/she learn to stick with the plan and no get tempted or greedy
Just be systematic and remove emotions...
We're not here to be right, we're here to Profit Consistently!
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