My performance is a result of the following:
1. a few years very hard work at this business;
2. learning what techniques suit my personality, becoming very proficient at knowing what setups to take (by lots and lots of backtesting and forward testing) so it beomes second nature;
3. finally and most importantly being able to control / eliminate my emotions as far as possible.
I believe most people don't make it in trading because they don't approach it in the right way - as a long term structured business. This is partly because in most jobs...
My whole focus right now is understanding how emotions affect the markets. Not only my own but also the emotions of the crowd and how that appears on the chart. It has been a great study.
"Trading for a living" first 1/3rd of the book
A great read. Loads about the psychological side of it.
LeBon ….. About crowds. Mass psychology of crowds
“Whoever be the individuals that compose it, however like or unlike be their mode of life, their occupations, their character, or their intelligence, the fact that they have been transformed into a crowd puts them in possession of a sort of collective mind which makes them feel think, and act in a manner quite different from that in which each individual of them would feel, think, and act were he in a state of isolation.”
People change when they join crowds. They become more credulous and impulsive, anxiously search for a leader, and react to emotions instead of using their intellect. An individual who becomes involved in a group becomes less capable of thinking for himself.
Trade safe
Rufus
Illegitimi non carborundum - Noli pati a scelestis opprimi.
