Disliked{quote} I am not saying that the psychology part is easy or unimportant, but the technical part is also extremely hard, and it is not going to help if you concentrate your effort on the psychology part, before you grasp the technical part after making a big effort.Ignored
The way I see it, we are not all created the same. In my day job I train individuals and companies in an NLP (Neuro Linguistic Programming) discipline. I show that how someone sees the world is revealed in the language they use (how they choose to express and phrase things in a certain context).
There are a few traits we use that are clearly evident in different types of traders.
For example – some people are motivated by achieving something – they are goal orientated (we call them ‘toward people’).
Others are motivated by not losing something (we call them ‘away from’ people). Both motivation traits can be equally strong, and neither is right or wrong – they are what they are.
But think about those traders who speak mostly of protecting capital – they are ‘away from’ and they find success in strategies that focus on that. Conversely think of those who are ‘toward’ – they set targets and goals – they want to ‘achieve’.
Don’t not make the mistake of thinking ‘toward’ is positive and ‘away from’ is negative
If you know which one you are you can find a strategy that suits your pattern and you are more likely to be successful with it.
I know of a man who has become a millionaire three times. Each time he got there he sabotaged his business and lost it. Why? I turns out he was an ‘away from’ person. He was motivated by ‘moving away’ from poverty. When he got there and had made a million he lost his motivation, he made subconscious mistakes that put him back into a place of motivation.
There are other patterns I am happy to explain, and how I see they fit with trading psychology if folk are interested, or Chris wants me to.
NB – people have different patterns in different contexts. Just because you are one thing in the context of trading, it doesn’t mean you are the same in the context of family, work, or vacation.