Trading is 80% mental 20% mechanical | Forex Factory

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Trading is 80% mental 20% mechanical

  • #1
  • First Post: Apr 30, 2018 3:48pm Apr 30, 2018 3:48pm
I think that a strong mind is the most important in trading.
People are only interested in the wrong stuff. New strategys every week and so.
They dont want follow a plan they want to be a bit smarter than the plan without even trading it.
Greed and fear.

Like sport no one wants to do the work but everyone want to be fit and muscular. So they buy alot supplements and fit teas.
Everyday better.
  • #2
  • Apr 30, 2018 3:50pm Apr 30, 2018 3:50pm
Dont try to find the best ema or macd setting its all dust in the Wind.

Take a setup learn it and trade it.
Its Hard but possible.
Everyday better.
  • #3
  • Apr 30, 2018 3:56pm Apr 30, 2018 3:56pm
https://www.trendfollowing.com/behavior/
Everyday better.
  • #4
  • Apr 30, 2018 4:24pm Apr 30, 2018 4:24pm
imho its 95% mental 5% mechanical. Trading isn't hard but our brain makes it extraordinarily hard.
  • #5
  • Edited 4:42pm Apr 30, 2018 4:30pm | Edited 4:42pm
Yep most people have to Trick their brain to fit for trading.

But its a fault of social media and so on you can now fake success easier and alot of People follow then they understand it doesnt work. Then they begin to fake and teach. Its a circle of bullshit.
Everyday better.
  • #6
  • Apr 30, 2018 5:08pm Apr 30, 2018 5:08pm
We are all formatted right from the start by this industry and along the way.
Itīs shaped in our mind a reality that later is very difficult to change or even realize that thereīs another reality.

When we get out of the format, we are alone and that's when the magic happens.
POW!
  • #7
  • Apr 30, 2018 8:12pm Apr 30, 2018 8:12pm
It is mental becos it has beaten the shit out of all of us and inflicting us all with post trading traumatic syndrome disease.

Hehe
  • #8
  • Apr 30, 2018 10:35pm Apr 30, 2018 10:35pm
Sadly lost of people dont have what it takes to be a trader; they are text book examples of the Dunning/Kruger effect and they just have no idea

Trading is simple and easy once you know what to REALLY look for. The only "extra" it needs its to have a little bit of discipline/dedication; nothing out of this world if you are a fully functional and normal human being. and NOOO its not the 3 million "details" pasted everywhere that you need to be constantly "aware" and the other 3 extra million "crap" and whatnot to try and have a good trade.. only to reverse it on you and lose ,etcetera, rinse and repeat forever until you are destroyed

YES TRADING IS EASY AND SIMPLE.. there i said it
  • #9
  • May 1, 2018 3:29am May 1, 2018 3:29am
You all have made great statements I wish that more newbies dont make the same mistakes we made.

I had focused on the wrong stuff for almost 4 years but now I make money.
Everyday better.
  • #10
  • May 1, 2018 3:32am May 1, 2018 3:32am
Forex is a world market where we are taking part of currency exchanges from different parts of the world and traders are actually facing global competition here. And in order to be successful here a trader will require a amalgamation of strong mind and adequate trading skills, expertise and knowledge. To be triumphant here a currency exchange trader will necessitate a combination of staying power, hard work, rational decision making and enough knowledge.
  • #11
  • May 1, 2018 6:53am May 1, 2018 6:53am
Quoting havo
Sadly lost of people dont have what it takes to be a trader; they are text book examples of the Dunning/Kruger effect and they just have no idea Trading is simple and easy once you know what to REALLY look for. The only "extra" it needs its to have a little bit of discipline/dedication; nothing out of this world if you are a fully functional and normal human being. and NOOO its not the 3 million "details" pasted everywhere that you need to be constantly "aware" and the other 3 extra million "crap" and whatnot to try and have a good trade.. only...
Can you show me how simple and easy it is.
Thank you in advance.
POW!
  • #12
  • May 1, 2018 8:17am May 1, 2018 8:17am
What my trading has changed the most is cutting time out of my charts.
Price bars and 2 filter. Profitable for me. But probably not for someone else.
Everyday better.
  • #13
  • May 1, 2018 9:46am May 1, 2018 9:46am
80% to 20% ( how do you get these figures..scientific study?) massively underestimates the difficulty of being able to accurately read price movement. The fact is, most people cannot read it well enough to profit from trading, and this is something which has to be learnt way before psychology even comes into it.

This is why the majority of would be traders out there believe they can take the fast route to success - learn it in a few months and we will be able to deal with the psychological issues easily enough when they come along, after all, we are all incredibly mentally resilient aren't we?

Psychology is an incredibly important part of trading, but to diminish the cognitive side of it to a mere 20% is a massive error.

80/20 is a joke. 50/50 is probably nearer the mark, and understanding how, why and when price moves must come first.

Anyone who claims trading is simple either doesn't know what they are talking about, or it has been so long since they mastered it that they have forgotten how hard it is.
  • #14
  • May 1, 2018 10:04am May 1, 2018 10:04am
Quoting Redbaron81
imho its 95% mental 5% mechanical. Trading isn't hard but our brain makes it extraordinarily hard.
I agree with this...

They say... less intelligent people tend to do better as traders than very intelligent people. Why? Mainly because intelligent people tend to over think, that leads to price prediction rather than price reaction.
Trade what you see, not what you think!
  • #15
  • May 1, 2018 10:31am May 1, 2018 10:31am
Quoting OMGtrader
{quote} I agree with this... They say... less intelligent people tend to do better as traders than very intelligent people. Why? Mainly because intelligent people tend to over think, that leads to price prediction rather than price reaction.
Attached Image
  • #16
  • Edited 11:36am May 1, 2018 11:00am | Edited 11:36am
Cat your right! THe numbers are mostly from my experience with never traders.

But 50/50 is not nearer to the truth than 80/20 I think for every stage as a trader it differs alot.

A good trader will not have the mechanical issus as an newbie.
Everyday better.
  • #17
  • May 1, 2018 11:18am May 1, 2018 11:18am
I have a question for everyone posting in this topic. If you consider your charts to be 99.9% mime, would you consider this a mental or mechanical issue?
For those that don't know mime:
Attached Image (click to enlarge)
Click to Enlarge Name: mime-holds-his-palms-parallel-in-the-air_1304-2809.jpg Size: 25 KB
  • #18
  • May 1, 2018 11:37am May 1, 2018 11:37am
Quoting Robertk
I have a question for everyone posting in this topic. If you consider your charts to be 99.9% mime, would you consider this a mental or mechanical issue? For those that don't know mime: {image}
What?
Everyday better.
  • #19
  • May 1, 2018 12:11pm May 1, 2018 12:11pm
Quoting arlucad
Cat your right! THe numbers are mostly from my experience with never traders. But 50/50 is not nearer to the truth than 80/20 I think for every stage as a trader it differs alot. A good trader will not have the mechanical issus as an newbie.
Agreed, better I didn't put any kind of ratio on it, though it was just plucked out of thin air, unlike your title to this thread, which if I may so, reads as if it was a factual statement.

The truth is, all facets of trading are difficult, extremely difficult, there is nothing simple about it. Some succeed eventually, most don't, for reasons which have been discussed endlessly on this forum.
  • #20
  • May 1, 2018 12:31pm May 1, 2018 12:31pm
Briefly, so as to clarify my previous posts here. For me, my journey as a trader has been a long one, far longer than I would have ever imagined when I first looked at a financial chart over ten years ago. I have had to learn, and unlearn, an awful lot of stuff, and I am a very different person now to the one I was before, at least when I am sitting in front of my charts. For me, nothing was simple, everything had to be built, destroyed, and built again. It was a process, and it still is, but at least I have enough in my armoury these days to know more or less what I am doing.

So when I see the word ' SIMPLE ' attached to trading, it kind of gets my rag, because for me it has been anything but, and I do not believe that I am so different to the majority of people out there.
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