Psychology matters most!

Trading "Psychology" its the most overhyped, over rated "topic" in this activity !! its just plain stupid to keep talking about it..

2 things you need:

1.- Know how to trade

2.- Play ONLY with the money you can AFFORD to lose in the first place


period.... all the crap and "feelings" you get while trading came from those 2 points: you either have no idea wtf are you doing in the first place while placing a trade in front of a chart OR you are risking money that you are not allowed/can NOT lose in the first place..

If something else comes up, well my friend, those are personality traits/weak spots in your character and the trading activity its just resurfacing them.. 1 by 1.. you dont like them? well, change them !!

pretty easy

True, you have mentioned the two most basic but relevant points. Many a times traders fail to do good at these two only, hence having to face losses.

ultimately i would say that trading is the act of transcending and simplyfing. a process...

I don't think mental or psychological factors affect trading... You either make money or you don't with your beliefs.
p. s. in a psychiatric clinic sits only the one who got caught =)
It all depends on what you use in trading. If your strategy has a good win ratio and a return ratio of 1, it will be easy for you. If you're trying to make money using statistics and positive expectations using a return factor of 3 (BS), it's going to be harder for you (it just so happens that people don't like to lose). Also, if you use 1 \ 3 or any other instead of winning percentages (1\ 1), the probability of getting a negative account balance is greater in the long run.I'm sure a big role is played by how you trade and the system you use, if you use a really valuable one, you wouldn't even think to ask anyone anything! Profitable system will teach you!

Yeah, its going to different with time. you’ll maybe start off with losses then turn it to some profits then losses and eventually you’ll learn how to make consistent profits.

So, its all about how calm you can keep yourself in these highs and lows.

Psychological factors can fundamentally change the results of your activities in the market. Even if you have been trading profitably on a small deposit for a long time, then when switching to a large trading account, there is a very high probability of sharply worsening your performance.

I can't disagree with that because it's when you trade that you need to keep your concentration all the time and not give in to emotions. And they will be very strong, because everyone who sees something wrong with his money will panic and it is absolutely normal. Another thing is that not everyone manages even with time to take control of their emotions, hence the colossal slumps and disappointments that do not allow you to gather your thoughts and act further as if nothing had happened. It took me a lot of time to do that myself, because every loss was felt very painful. But over time, I learned to recover and deal with all the problems in a more cold-blooded way, and only then did I succeed in achieving positive results.

I like this post (resurrected from the past).

The one thing that sorts out most psychological problems is being profitable, which comes with knowing what the fuck you are doing.

The one thing that causes all sorts of psychological problems is running an account into the deep red, which comes with not knowing what the fuck you are doing.

"Trading is 20% knowledge, and 80% psychology", so the cliche goes.......IS IT FUCK! 20% psychology, 80% knowing what the fk u are doing.

The reason why most of the new traders fail is because of bad psychology. You feel a variety of emotions during trading, from greed, fear, to anxiety. Traders should abide by strict trading rules to avoid them. If trades learn how to control emotions, trading becomes much easier.

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 !

I definitely wouldn't say that...

What is your emotional response to missing a good trade entry by a single tick? Anguish, pain? Are you still looking at the market 100% objectively or is an emotional need to capture the carrot the market dangled under your nose going to colour your decisions? The market comes back to your original entry and you jump in (even though the parameters that justified the original trade idea, have now changed....and the market runs right over your stop loss. The frustration and anguish builds....

....then in the next trade, you do the hard part, and nail a retrace entry almost on the head, and watch the market start to resolve in your favour. HOWEVER, the market stops just shy of your 1st TP level, and comes back against you violently. With the anguish and pain of the previous trade still fresh in your limbic memory, you start drawing lines in the sand where the market may not cross. The market runs right over that line, on a big impulse candle and you exit with a market order, at the point of max pain, taking slightly less than 1:1 rr, on a trade that was almost 2.5:1 rr up at one point. You immediately realise your mistake, but somehow, you can't bring yourself to re-enter as the market retreats away from your rash exit point (again, due to fear of the pain of being proven wrong). By the end of the day, the trade clocks up a potential 7:1rr.

....you are now seething mad, and are cussing your over cautious approach, and see a market that has likely hit a reversal zone, and you enter at the market, abandoning your usual rules of engagement with a much bigger than normal position size....but the market keeps running against you.....you *know* that at some point, the market will revisit your target zone, so you deeply retreat your stop loss. On this occasion, despite running up huge unrealised losses, you got away with it and exit with a profitable trade........except that you broke the 'rules' of the prop account you were trading and your account has now been nullified.

This shit happens all the time, and indeed pretty much describes what happened to me (a technically knowledgeable trader) last week.

Psychology, or rather a disciplined control of emotional responses and/or the ability to not act on emotional triggers, is an extremely important aspect of being a successful trader. Just no getting away from that.

It matters...although not nearly as much as knowing wtf u are doing matters. Until you know what you are doing, psychology is neither here nor there.