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Ingredients of Trading Success

  • #41
  • Apr 10, 2010 5:10am Apr 10, 2010 5:10am
It is a tricky issue: Although it may takes different forms, all critical psychology problems actually comes from one single source - fear. It can be a transparent wall to some people. Until they hit it on the way of achieving their goals, they do not even realise its existence.
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  • #42
  • Apr 10, 2010 7:26am Apr 10, 2010 7:26am
This is the average weighing of psychology as a contribution to trading success (up to now 27 votes):

Profitable Traders:.........66.32% (19 Votes)
Non Profitable Traders: ..45.00% ( 8 Votes)
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  • #43
  • Apr 10, 2010 9:53am Apr 10, 2010 9:53am
Quoting kk007
It is a tricky issue: Although it may takes different forms, all critical psychology problems actually comes from one single source - fear. It can be a transparent wall to some people. Until they hit it on the way of achieving their goals, they do not even realise its existence.
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I have to disagree...respectfully. Fear isnt the onlyl factor in one form.
If everyone was afraid of losing money they wouldnt blow their accounts.
They wouldnt trade. period.

Greed and fear are natural cycles in novice trading. To the novice trader greed gets you in fear gets you out. Its common idea that novice trader will not exit a position until the pain of losing one more dollar overwhelms them.

Good trading (of course in my opinion) actually is understanding the cycles of greed and fear. Whos trapped and and where.

Here is my thread on Price action if anyone is interested.

http://www.forexfactory.com/showthread.php?t=218468
  • #44
  • Apr 10, 2010 10:03am Apr 10, 2010 10:03am
Right. Greed and fear can be seen as two different things interlacing with each other.

In a deeper sense, greed comes mainly from fear. Greed is mainly a fear of missing a gain.

Nevertheless, it sounds too philosophical to discuss this here.


Quoting Fuzzyzc
I have to disagree...respectfully. Fear isnt the onlyl factor in one form.
If everyone was afraid of losing money they wouldnt blow their accounts.
They wouldnt trade. period.

Greed and fear are natural cycles in novice trading. To the novice trader greed gets you in fear gets you out. Its common idea that novice trader will not exit a position until the pain of losing one more dollar overwhelms them.

Good trading (of course in my opinion) actually is understanding the cycles of greed and fear. Whos trapped and and where.

Here is my thread...
  • #45
  • Apr 10, 2010 10:39am Apr 10, 2010 10:39am
True True... sorry for changing the subject of your poll.
  • #46
  • Apr 10, 2010 2:12pm Apr 10, 2010 2:12pm
Assuming that a strategy that cuts losses quickly, and lets winners ride, is beneficial, then, in so far as:

-- Fear of a loss getting bigger causes a trader to exit his loss, fear is good.

-- Greed causes a trader to try to milk more out of a winning trade, greed is good.

For me personally, there has been a bigger enemy than both fear and greed: my perfectionist nature that caused me to jump from system to system, chasing after the Holy Grail, for the first 1-2 years of my journey.
  • #47
  • Apr 10, 2010 5:14pm Apr 10, 2010 5:14pm
Quoting hanover
my perfectionist nature.
It's a sad condition. (I won't say disease).
  • #48
  • Apr 10, 2010 11:57pm Apr 10, 2010 11:57pm
I think this past polling, Why are YOU not profitable?, is relevant and even more psychology importance advocating than the result of the current polling. 80% attribute their failure to psychology and discipline.

http://www.forexfactory.com/showthread.php?t=148901
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  • #49
  • Apr 11, 2010 5:10am Apr 11, 2010 5:10am
Already Profitable: 67.6% (21 Votes)
Not yet Profitable: 47.8% ( 9 Votes)
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  • #50
  • Apr 11, 2010 6:02am Apr 11, 2010 6:02am
As we have been told thousands times, we can't be perfect, and we understand this logic is correct. What is the root cause of being perfectionist? I can't think of any root cause other than the fear of imperfectness or uncertainty.

Quoting hanover
Assuming that a strategy that cuts losses quickly, and lets winners ride, is beneficial, then, in so far as:

-- Fear of a loss getting bigger causes a trader to exit his loss, fear is good.

-- Greed causes a trader to try to milk more out of a winning trade, greed is good.

For me personally, there has been a bigger enemy than both fear and greed: my perfectionist nature that caused me to jump from system to system, chasing after the Holy Grail, for the first 1-2 years of my journey.
  • #51
  • Apr 15, 2010 12:26pm Apr 15, 2010 12:26pm
From my experience I use:

Risk management 100%
Psychology 0%
TA + FA 0%

That is enough to make money in every business
  • #52
  • Last Post: Apr 15, 2010 1:25pm Apr 15, 2010 1:25pm
^^ It isn't though is it. Though you probably know that really.
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