10 Mental Errors Traders Make | Forex Factory

  • 10 Mental Errors Traders Make

    From newtraderu.com

    The primary thing that trips up the vast majority of traders and investors is not the math, the markets, or a trend. What causes the 90% to end up unprofitable in the long run is mental errors. Errors caused by fear, ego, greed, and a lack of discipline to create a plan or to follow it if they do. Here are the 10 primary mental errors traders and investors make. They hold on to preconceived beliefs about the direction of the market with no planned signal that will show them they are wrong. This is an ego error when we think we’re smarter than the market. Taking a huge position size that will cause a huge loss if ... (full story)

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troneras
Apr 25, 2015 2:20am
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Quoting parsifal23
HERE IS THE PROBLEM OF MOST TRADERS;

http://i.gyazo.com/126c7ef39e3ccceb41a2c31debf9f52b.png

Winning 3 our of 4 trades wonīt help you if your losers are more than 3 times your winners !!!!!!!

And : Risking 18 % of your account on average is a foolīs game !
Yes, the homework laziness is the key. If you see you are loosing money, you have to stop, analyze your problem and read some books for solving it.
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Ojiego
Apr 24, 2015 2:37am
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Quoting Mingary
Mental errors ? what a joke
How about that gorilla in the room (:

Addiction to random reward

http://www.quora.com/Why-are-variable-rewards-addictive
Thanks for the link mate!
Now, I have more tools to explain social (mis)behaviours.
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Aussi
Apr 25, 2015 2:37am
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http://www.forexfactory.com/news.php?do=news&id=536423#post8228020 this is a link just go and read it might even help you traders , greed kills accounts
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Mingary
Apr 24, 2015 1:57am
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Mental errors ? what a joke
How about that gorilla in the room (:

Addiction to random reward

http://www.quora.com/Why-are-variable-rewards-addictive
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parsifal23
Apr 24, 2015 5:29am
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Itīs not the marketīs or the Brokerīs fault, but lack of understanding MM : Because youīve a high leverage doesnīt mean you can trade 1 Standard-Lot on a 500 USD-Account, it wonīt work !

People who donīt recognize the truth in this article should stop trading until they do.
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parsifal23
Apr 25, 2015 1:50am
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HERE IS THE PROBLEM OF MOST TRADERS;

http://i.gyazo.com/126c7ef39e3ccceb41a2c31debf9f52b.png

Winning 3 our of 4 trades wonīt help you if your losers are more than 3 times your winners !!!!!!!

And : Risking 18 % of your account on average is a foolīs game !
Reply
limzy
Apr 23, 2015 10:57pm
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its not that we plan to fail, its that we fail to plan.
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kinky
Apr 24, 2015 6:58am
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Quoting Scotch
yep.
Yep.
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Chawl
Apr 24, 2015 5:18am
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Quoting Scotch
yep.
yep.
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Nilfmonkey
Apr 24, 2015 1:25am
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I disagree. The article talks about the importance of admitting you're wrong, but I think prematurely admitting you're wrong is the reason that most traders are unprofitable.
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Nilfmonkey
Apr 24, 2015 7:22am
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All this psychology stuff is just one person's perspective. How can we say one habit hurts most traders when it also works for some. Just keep it simple, there are two things in trading: buy and sell.
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Steve J
Apr 24, 2015 1:58am
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We're not robots! You will never be able to erase emotion from trading. Furthermore the article pretends that the odds are not stacked against the trader.
For instance, often after major news the market will move with alacrity in the opposite direction to what is supposed to happen. It is hard to defend one's positions when the market does not follow principles of economics.
In summary, one has to accept that trading is educated guessing and educated gambling unless you have definitive inside information.
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parsifal23
Apr 24, 2015 1:18pm
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In my opinion itīs far better to do it the other way round, lose a few pips on bad trades and gain 100 or more in winning trades...........
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Forexpcb
Apr 23, 2015 8:54pm
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yep.
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kaizeneziak
Apr 23, 2015 9:30pm
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Quoting Forexpcb
yep.
yep.
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Frano
Apr 23, 2015 11:35pm
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Everything is true .
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Scotch
Apr 24, 2015 1:18am
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Quoting kaizeneziak
Quoting Forexpcb
yep.
yep.
yep.
Reply
Trader#F919
Apr 24, 2015 2:10am
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This works for me: focus on the word "investors" above, and use investation minded strategy; say, I want to earn 20%/month from my investment (100 usd), so I just take 1 bug profit a day. Just one bug a day! Makes me easy to use any methode whatsoever.
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Trader#6B9E
Apr 24, 2015 3:37am
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Quoting Steve J
We're not robots! You will never be able to erase emotion from trading. Furthermore the article pretends that the odds are not stacked against the trader.
For instance, often after major news the market will move with alacrity in the opposite direction to what is supposed to happen. It is hard to defend one's positions when the market does not follow principles of economics.
In summary, one has to accept that trading is educated guessing and educated gambling unless you have definitive inside information.
well said well said as almost most of the time markets move against us and most of the brokers who just say they are ECN, STP and DMA all prove to scrap our money in some way or other.
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pipec
Apr 24, 2015 6:05am
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everything here does not matter, only matters that majority looses no matter what..

if every one will be heros supermans super humans successfull traders in the room, 90 % will fail to trade.
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Trader#569F
Apr 24, 2015 10:52am
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In my opinion most of what has been said is true. You win 10 trades with just 2 to 3 pips profit per trade (fear) and make 100 pips just to lose them all in one single irresponsible entry with a 'take a chance attitude'.
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Trader#4586
Apr 25, 2015 12:12am
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Successful traders plan their trade and trade their plan. Consistent winning trades are based on high probability strategy and disciplined money management. Always stay focused on entering trades with a reward/risk ratio greater than 3 to 1. Learn to exercise patience by sitting on hands until you find a worthwhile trade. Excessive trading is like trying to pick up nickels in front of a bulldozer. Always run along side of the herd and follow the market trend. It is important to remember that trading is a zero sum end game.
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Trader#2446
Apr 24, 2015 4:33am
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you are playing against big machines what else may happen
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Trader#8C63
Apr 24, 2015 7:00am
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To Pipec - Did you mean only 10% would fail to trade???
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