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The Battle Between the Individual and the Group

  • #1
  • First Post: Sep 29, 2019 2:26pm Sep 29, 2019 2:26pm
Trading Psychology - The battle between the individual and the group. Every trader behaves in accordance to their own emotional makeup. Fear, Greed, Hope and Regret drives trading behavior. We all know them! Trading the markets is a battle. The ups and downs are inevitable! Our mindset before, during, and after each battle needs to be correct. There are many discussions regarding on how to eliminate emotions with trading plans/trading systems and I have participated in my share. Some of the aspects include discipline, risk management, etc... but one behavioral perspective not talked about a lot is that people love to join groups and act like everyone else. Herd mentality... It's such behavior that can cloud your mind. It's human nature! How do you Traders eliminate or combat that behavior in your trading?? All opinions welcome!
  • #2
  • Feb 5, 2020 12:28pm Feb 5, 2020 12:28pm
Actually, I can't agree that in trading this rule works 100%. First of all, it is due to the fact that most people hide what they are trading. This may not be understood by your relatives or friends, because for many people it is not the most profitable business, it is more like some kind of entertainment. In addition, you constantly need to learn something and then practice it, you can't do it in a group format - the entire responsibility for the actions taken rests only on you and you don't need to worry about anything, except your own consciousness and willingness to constantly work on yourself. So you are alone in trading, but it's probably even for the best...
  • #3
  • Feb 6, 2020 5:05am Feb 6, 2020 5:05am
Quoting ChopinTrader
Trading Psychology - The battle between the individual and the group. Every trader behaves in accordance to their own emotional makeup. Fear, Greed, Hope and Regret drives trading behavior. We all know them! Trading the markets is a battle. The ups and downs are inevitable! Our mindset before, during, and after each battle needs to be correct. There are many discussions regarding on how to eliminate emotions with trading plans/trading systems and I have participated in my share. Some of the aspects include discipline, risk management, etc... but...
For me it had to be pretty extreme but it improved my P&L so I've stuck with it:

no tips from others
no twitter
no seeing how others are positioned in any pair
no talking heads
minimal time of FF (and only look at psychology/mindset posts, never look at trading ideas posts)
no opinions on fundamentals

Just me & my charts, I take full responsibility for all decisions and keep things super-simple.
  • #4
  • Feb 6, 2020 4:51pm Feb 6, 2020 4:51pm
Quoting ChilledT
{quote} For me it had to be pretty extreme but it improved my P&L so I've stuck with it: no tips from others no twitter no seeing how others are positioned in any pair no talking heads minimal time of FF (and only look at psychology/mindset posts, never look at trading ideas posts) no opinions on fundamentals Just me & my charts, I take full responsibility for all decisions and keep things super-simple.
Exactly! just look at TSLA. That's the type of 'herd mentality' I was referring to. It's great if you could ride the coattails of the herd but at some point you have to be an individual and jump off...
  • #5
  • Feb 10, 2020 9:39pm Feb 10, 2020 9:39pm
It totally depends upon a trader whether he/she wants to be part of a group or want to trade as an individual. Sometimes a trader doesn’t feel very confident about his/her strategies, so it is comfortable to join a group and consult them regarding the trading strategies. But sometimes a trader doesn’t want to disclose or share his/her strategies and didn’t want anyone’s control over their trading, then he opts to trade as an individual.
  • #6
  • Feb 12, 2020 6:24am Feb 12, 2020 6:24am
Quoting Oliver-30
It totally depends upon a trader whether he/she wants to be part of a group or want to trade as an individual. Sometimes a trader doesn’t feel very confident about his/her strategies, so it is comfortable to join a group and consult them regarding the trading strategies. But sometimes a trader doesn’t want to disclose or share his/her strategies and didn’t want anyone’s control over their trading, then he opts to trade as an individual.
Ahhhh, there lies the golden nugget! To trade on your own, you need to be 100% confident in your strategy. It has to make complete sense to you and you have to have trust in yourself.

If ever I feel my confidence wavering, it's always better to have a break from trading, until the confidence returns.

Turning to others for that confidence has never worked for me.
  • #7
  • Apr 2, 2020 1:09pm Apr 2, 2020 1:09pm
It's a good question that can be considered from different angles. First of all, I do not think that the opinion of the majority is always bad, because nowadays traders are almost unlimited in obtaining information, they have a lot of services and tools for analysis, they are quite free in the market. And this allows them to achieve high results. Another thing is that vanity and greed still accompany traders at every step. And this also often leads to the fact that not everything works out. Secondly, it seems to me that a person who is engaged in professional profit making in the market has enough critical thinking to not only listen to the opinion of the majority, but also to analyze and draw conclusions himself. Do not think that traders are a single mechanism. And yes, there are indeed those who go against the system and make a great profit thanks to it.
  • #8
  • Apr 10, 2020 9:56am Apr 10, 2020 9:56am
If you have ever read Think and Grow Rich, then you will understand the power of a mastermind group.
You cannot be extraordinary by being normal
  • #9
  • Last Post: May 4, 2020 12:00am May 4, 2020 12:00am
Quoting ChilledT
{quote} For me it had to be pretty extreme but it improved my P&L so I've stuck with it: no tips from others no twitter no seeing how others are positioned in any pair no talking heads minimal time of FF (and only look at psychology/mindset posts, never look at trading ideas posts) no opinions on fundamentals Just me & my charts, I take full responsibility for all decisions and keep things super-simple.
I must say I am agree with most of it... my problem is how one understand those points ...
take this one ... no tips from others" ... hey, tell me what really tips are? enlightening ideas, are tips or not?
take another one ... "no talking heads" ... again what is head is saying is important, saying BS, go to hell with this one, but when is giving enlightening idea?
Problem is not mechanical, verbal, problem is to gain ability to select from all garbage few pearls ... to find how to use them for own benefit...
You see that why I do not like verbal statements, cos every one is different and meaning of words is crucial what we quite often forgetting. This is where our responsibility lays...
"Make things simple but no simpler" A.E.
Have nice week ...
BN
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