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Psychology of it

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  • First Post: Sep 14, 2022 5:39am Sep 14, 2022 5:39am
Been pondering this thread for a while now. Psychology is 95% of trading, if you ask me 99%
I cannot count the times, I've known not to do something but did it anyway, whether because of greed, fear, revenge or just cuz I convinced myself I know what the market will do, or worse I convinced myself, the market will do something cuz I said so.
The point of this thread is discussion and help in the most important area of our business.
To start this whole thing off. My biggest step was made when, I started to write a live journal, as the price ticks away I write what I see. This prevented me from overtrading and from disregarding my rules. Of course, psychology is rather an individual issue, but I think we can get a lot from each other here.
One thing really difficult but necessary is the discipline, that you need to let your personal life at the door when you are trading. As a full-time trader, this can be really tricky, I found visual cues really helped me. Posted notes, journal, heck a knife on my desk reminds me to keep writing what I see (when I don't write I fidget with it).
current situation I have a bunch of personal shit on my mind and I hit MAX loss for the EU session. So the game plan, away from the computer until the US market opens clear my head deal with the shit I can fix rest cant be in my head. make a goddamn good pasta (homemade from scratch) then come back to the chart on the US open like I do after every loss. Learn from the mistakes make a note of them and keep going. IF THE RULES ARE APPLIED AND APPLIED PROPERLY YOU ARE SAFE.
Hi Gbdaja


Why do you think psychology is 99%?
Is it because of psychology affects the way we think , and affects all our actions?
If you're having issues with the mental aspect of trading, then you're:
1. Using too much leverage
2. Using too much margin
3. Not in tune with the fundamentals "trend"
Quoting newbiforever
Hi Gbdaja Why do you think psychology is 99%? Is it because psychology affects the way we think, and affects all our actions?
Exactly, that technical knowledge is easy and very attainable. then it's just a matter of time how long the backtesting works. But all that can be rendered useless If you don't know how to control yourself. One bad mistake can harm you for weeks if you stop and really analyze yourself and the way you work. Bad trade that you know its your fault can trickle down to revenge trading, confidence loss and doubt. It can easily become a domino effect. So my conclusion 99%
Quoting investing101
If you're having issues with the mental aspect of trading, then you're: 1. Using too much leverage 2. Using too much margin 3. Not in tune with the fundamentals "trend"
Very true.
Over-leveraged/marginalized trading is a real issue, but even that, when you break it down, it's pressure and doubt. ( Ok except when the trader who is ridiculous to the point that the math just doesn't support your exposure plus your edge)

The 3rd one is intriguing. In tune with the fundamental trend. Well put Now it definitely comes down to actual knowledge of our trade, and the discipline to learn, write a proper plan and then stick to it. And at least how I look at things all comes back to psychology..
Quoting Gbdaja
I have a bunch of personal shit on my mind and I hit MAX loss for the EU session. So the game plan, away from the computer until the US market opens clear my head

This is such a cool plan; basically when I face consistent losses in a specific session, I do the same!
Quoting Gbdaja
{quote} Exactly, that technical knowledge is easy and very attainable. then it's just a matter of time how long the backtesting works. But all that can be rendered useless If you don't know how to control yourself. One bad mistake can harm you for weeks if you stop and really analyze yourself and the way you work. Bad trade that you know its your fault can trickle down to revenge trading, confidence loss and doubt. It can easily become a domino effect. So my conclusion 99%
Attached File(s)
File Type: pdf The_Inner_Voice_of_Trading_by_Michael_Martin.pdf   1.2 MB | 335 downloads
B4 Elvis there was nothing
Quoting jonstewart
{quote} This is such a cool plan; basically when I face consistent losses in a specific session, I do the same!
Well, the goal is to avoid consistent losses, I have a ticket system so for every trade I take I must create a ticket which has a checklist. And with that, I have a real minute and detailed look into my trading and my trading mind. and when I looked through my trades, I noticed that 3 consecutive losses do happen but never because of plan or strategy. It's always my fault. So if I'm to blame for this then I can be the solution. So yeah its a good plan but its a band-aid on an open wound.
I don't want to be discouraging, but I think we can do better.
Quoting T721
{quote} {image}
Much appreciated!
your welcome, if you need anything else check my thread
B4 Elvis there was nothing
Another wonder of the day, for my mind.
Got REALLY bad news in my personal life today. Major setback and a huge pain to bear at least for me. But when stepping into the office, that shit got to wait outside.
The glimpse of the notebook and that knife reminded me of what must I do, and if I am not ok when I sit down, no trading is allowed.
Like my brother always says to me man no live trade sometimes is the best position to hold. The market can be as good as you want, but if you are not ok it doesn't matter. You will find a way to fuck things up.
So stay patient stay disciplined.
IF THE RULES ARE APPLIED AND APPLIED PROPERLY YOU ARE SAFE
Trading is like playing poker. If you have a way to win and follow capital management, you will win. For example, if you risk 1% for each trade, you have to lose 100 times in a row until your money is becomes zero and this is impossible. If you want to win, you must follow capital management. we are poker player
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Quoting Gbdaja
{quote} Well, the goal is to avoid consistent losses, I have a ticket system so for every trade I take I must create a ticket which has a checklist. And with that, I have a real minute and detailed look into my trading and my trading mind. and when I looked through my trades, I noticed that 3 consecutive losses do happen but never because of plan or strategy. It's always my fault. So if I'm to blame for this then I can be the solution. So yeah its a good plan but its a band-aid on an open wound. I don't want to be discouraging, but I think we can...

Well, nice to know your detail explanations! By the way, may I know your trading checklist please?
Quoting investing101
If you're having issues with the mental aspect of trading, then you're: 1. Using too much leverage 2. Using too much margin 3. Not in tune with the fundamentals "trend"
I couldn't agree more about using too much leverage, and I have bitten off way more than I could chew in my earlier trading days. That's why I have to stick to my trade plan to keep my emotions in check and it holds me accountable. When I deviate from my trade plan or fixate on my trade losses, that's where my troubles start.
Keep Learning, Humbly Accept Your Mistakes & Do It Better Next Time
I've been trading for around 9 years (on and off) and would have to agree that a lot of my performance has been influenced by my psychology. I think for any trader who is serious about trying to make money in this game, it's all about having a trading plan, sticking to it, and finding something that keeps them accountable / committed to the plan.

After having awesome runs of good trades, I literally always find myself in a situation where I take on more risk than I should. Even with trading plans, I'm missing the piece that holds me accountable.

Can anyone relate to that at all? Interested to hear what's worked for others on the "accountability" side.
I'm kinda new to the market but have been seeing too many traders affected by their own mindset.
Found this thread rather helpful! I guess the tricky part is about the risk control and not be too greedy!
Your own psychology is important. Correctly predicting the market makers psychology is more important.
Trade the Manipulation
The main thing is to understand that Forex is your job.
If you want to earn passively, it is better to invest in PAMM.
Quoting ScalpWithMe
Your own psychology is important. Correctly predicting the market makers psychology is more important.
yes, Psychology is really important in trading because only with a strong mindset and clear approach one can take decisions and do market analysis on that basis.
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