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Psychological Development Journal

  • #1
  • First Post: Sep 1, 2015 12:20am Sep 1, 2015 12:20am
Welcome to my Psychological Development journal with a focus on bridging the reality gap between what should be and what is.

My journal is going to be different from other people's journals. I'll use this journal to actively discover and expose my own weaknesses, mistakes and feelings. As I gain more awareness of my self-sabotaging patterns, I'll be taking steps to rectify my mistakes in order to close the reality gap between what should be and what is.


What you'll eventually find in this journal:

  1. dealing with psychological issues (trading is virtually 100% psychology)
  2. developing of empowering routines
  3. changing my beliefs about myself and the markets
  4. setting objectives for trading
  5. creating a trading method to fit my personality (it will have price action components)
  6. adjusting the trading method to compensate for my psychological weakness
  7. developing a trading plan (rule based discretionary trading)
  8. money management (meeting my objectives through money management)
  9. working on self-discipline to execute flawlessly (this is where the rubber meets the road)
  10. mental state management
  11. live trades without any smoke and mirrors (mainly intraday TF or swing trades)
  12. technical analysis
  13. regular debriefing and mistake correction procedures
  14. motivation
  15. and lots of rambling, typos, and grammar/spelling errors


Some of my posts might be bit scattered, disjointed, and just weird rambling, but it helps me . . . after all This JOURNAL IS A WORK IN PROGRESS.

By publicly holding myself to higher standards and by taking full responsibility for my results I'll hopefully bridge the psychological gap of where I am and where I want to be. Will I make it? I don't know. I'll approach it slowly in baby steps on part time basis. Let's see where it will take me.

Even though this is a personal journal, I don't mind others posting here as long as the posts are constructive and topic relevant.

  • #2
  • Sep 1, 2015 1:11am Sep 1, 2015 1:11am
Quoting sv69
dealing with psychological issues (trading is virtually 100% psychology)
Hi Bro, I agree with most of the points you mentioned, except the above. It's overrated.

Eg, Do you think this factor will affect an institution full time traders who work in this line for 20 years to make money for the company?
The only winner is the one who survive the longest...
  • #3
  • Sep 1, 2015 1:51am Sep 1, 2015 1:51am
Hi kinspk,
Institutional traders working for a company and trading someone else money usually don't have their necks on a line, at least not to the same extent as people who trade their own accounts.

I think when it comes to trading (excluding the traders in pits), the only physical activity is clicking the mouse and typing on a keyboard. The rest comes from decision making and maintaining proper mental state controls. For clarification, I include having an edge and money management parameters being part of psychology.

Thanks for your comment.
  • #4
  • Sep 1, 2015 2:39pm Sep 1, 2015 2:39pm
Quoting sv69
For clarification, I include having an edge and money management parameters being part of psychology. Thanks for your comment.
Hi sv69, I don't really understand how an edge and money management being part of psychology, but i do agree psychology being a small part of trading, but never 100% as you mentioned.

Eg, a full time trader, not in positive psychological state, will not be able to trade? I only know even when I am not in the best mood, my survival depend on my profits, I still need to trade to make money when the market is right for me to enter. But of course mental state developments and conditions may affect decision making, but I still don't know how it will affect traders 100%, do you mind enlighten us?
The only winner is the one who survive the longest...
  • #5
  • Edited Sep 2, 2015 12:47am Sep 1, 2015 3:07pm | Edited Sep 2, 2015 12:47am
Good on ya SV, Conquering your current is crucial. Big up yourself
  • #6
  • Sep 1, 2015 11:58pm Sep 1, 2015 11:58pm
Quoting kinspk
{quote} Hi sv69, I don't really understand how an edge and money management being part of psychology, but i do agree psychology being a small part of trading, but never 100% as you mentioned. Eg, a full time trader, not in positive psychological state, will not be able to trade? I only know even when I am not in the best mood, my survival depend on my profits, I still need to trade to make money when the market is right for me to enter. But of course mental state developments and conditions may affect decision making, but I still don't know how...
Hi kinspk,
thanks for your question.

Money management is a function of a risk tolerance, i.e. emotional tolerance of drawdowns.
Emotion = Psychology


What is an edge? An edge is basically a higher probability (not a guarantee) of one thing happening over another over a sustained period of time. How does one create such an edge? By deciding to use certain trading methods, specifically methods one believes in to work and show a statistical edge.
Decisions and Beliefs = Psychology


Why does a person need to believe in his trading method? So that s/he can follow it. Everyone must have an edge that fits their personality.
Personality = Psychology


In terms of you trading when not in a positive psychological state because your survival depends on your profits, I think that's where you've missed my point. Your profits do not depend on trading regardless how you feel, but your profits are entirely dependent on executing flawlessly. To do that, one needs discipline.
Discipline is a mental state, and mental state = psychology.


As Harry Palmer said,
"You experience what you believe, unless you believe you won't, in which case you don't! Which means you did."
  • #7
  • Sep 1, 2015 11:59pm Sep 1, 2015 11:59pm
Quoting Squiggles
Good on ya SV, Conquering your current is crucial. Big up youeself
Thank you.
  • #8
  • Sep 2, 2015 1:48am Sep 2, 2015 1:48am
My obstacles and weaknesses that I'm aware of and I need to work on are as follows:

My personal life interferes with trading, and I have more stress in my life than most other traders. I'm recovering from Post Traumatic Stress, and I do struggle with chronic pain so first and foremost I must develop some regular stress management routines.

At this point of my life I do lack positive attitude, and my expectations are often low, and so I know that I'd be easily discouraged if the market would go against me. I probably have a prosperity conflict. As of today I'm starting to listen to Anthony Robbins on daily basis to get me into a peak state.

Many years ago, I have been trading when I was in a bad mental state, and the consequence were disastrous. I became addicted to trading. So more less I'm returning after many years of a hiatus, and I have to be extremely careful and I need to create a trading style that is going to somewhat compensate for my weaknesses.

Am thinking probably some type of set and forget approach to trading so that I can just set limit orders, SL, TP and just walk away from the computer and let the market do its own thing. Probably a zone to zone trading. Don't know yet.

So my plan for the next couple of weeks is just to start slowly connecting with the markets, and probably will start putting in limit orders at S/R levels so I can start observing price action at S/Rs and observing how much I can get away with tightening the stops to maximise my trade value while taking minimum heat. At this stage I won't care about anything else such as direction or how the market approaches the S/R.s. I just want to start observing the bounces, and how price behaves around S/R levels. That's all, I need to stick to the KISS principle.

So am thinking of breaking up my trading method development into testing different components individualy, and then start individually to analysing different components and then combining certain components together, and noticing how comfortable I'll feel with each component.

At this point of time am thinking starting with a limited very number of pairs, and higher TFs, probably nothing under H1 at this stage.

Now is the beginning of September, so by the end of this year I should have in place most of the necessary components of my new trading methodology. Am doing it on a part time and casual basis, so it will be a very slow process, but I'll get there.

At this stage apart from not having a trading method and plan in place, I'm very disorganised, so I need to create number of spreadsheets, journals for record keping, libraries with pictures of different components of price action patterns, and so on. I always hated this part of the trading business, but hey, that needs to be done.
  • #9
  • Sep 2, 2015 2:42am Sep 2, 2015 2:42am
Quoting sv69
Am thinking probably some type of set and forget approach to trading so that I can just set limit orders, SL, TP and just walk away from the computer and let the market do its own thing.
Hi Sv69,

Since your trading objective is to "set-and-forget" i recommend you look into longer-term mechanical systems.
Quote
So am thinking of breaking up my trading method development into testing different components individualy, and then start individually to analysing different components and then combining certain components together, and noticing how comfortable I'll feel with each component. At this point of time am thinking starting with a limited very number of pairs, and higher TFs, probably nothing under H1 at this stage. Now is the beginning of September, so by the end of this year I should have in place most of the necessary components of my new trading methodology....
Rather than optimizing system parameters in a vacuum I am of the opinion that all the parts of a system must fit and be consistent with the underlying logic of the system. Therefore, one should first start off with a core logical assumption based on market study then build a system around that.

Good luck in your journey, do note that there are some very successful traders who spent as much as several years doing intensive research before even placing a trade.
  • #10
  • Sep 2, 2015 4:35am Sep 2, 2015 4:35am
Bro, thanks for providing the definitions of each factor, lol.

I think you still don't get what I am trying to share with you, but it's ok, because when there's a time you are full time trading and depend on profits for a living, you may get what I am talking. Eg, If you are employ as a trader, you going to tell your boss you have psychological issue, etc?

But I like the way you handled the questions and presentation of your opinions.

Quoting sv69
{quote}Money management is a function of a risk tolerance, i.e. emotional tolerance of drawdowns. Emotion = Psychology
Actually there will not be any emotional tolerance if your risk/money management are properly handle. If you have emotion over it, obviously you are over-leveraging or over risking your trades.

Quoting sv69
{quote}What is an edge? An edge is basically a higher probability (not a guarantee) of one thing happening over another over a sustained period of time. How does one create such an edge? By deciding to use certain trading methods, specifically methods one believes in to work and show a statistical edge. Decisions and Beliefs = Psychology
Thru the process of realizing an edge and creating an edge, you should be in a frame of confidence of how you should handle your trades, while winning and losses are part of trading. If one sway from their decision and beliefs in their edge, then they should be looking to collect more information or data to back it up to improve their trading decisions.

Quoting sv69
{quote} Your profits do not depend on trading regardless how you feel, but your profits are entirely dependent on executing flawlessly. To do that, one needs discipline. Discipline is a mental state, and mental state = psychology. As Harry Palmer said, "You experience what you believe, unless you believe you won't, in which case you don't! Which means you did."
I have to disagree with this, as profits are never entirely dependent on executing flawlessly. Profits are depend on the market, it doesn't mean you flawlessly execute a trade, you will make profit. While decision and beliefs not necessary equal to profits as well. Market can do whatever it like regardless of our decision and beliefs. But I do agree with mental state affecting discipline.

Nothing much for me to share, every individual have their rights to believe the myths of trading on internet. Good luck bro.
The only winner is the one who survive the longest...
  • #11
  • Sep 2, 2015 6:52am Sep 2, 2015 6:52am
Quoting kinspk
I have to disagree with this, as profits are never entirely dependent on executing flawlessly. Profits are depend on the market, it doesn't mean you flawlessly execute a trade, you will make profit. While decision and beliefs not necessary equal to profits as well. Market can do whatever it like regardless of our decision and beliefs. But I do agree with mental state affecting discipline. Nothing much for me to share, every individual have their rights to believe the myths of trading on internet. Good luck bro.

Putting on a winning trade or even a series of winning trades requires absolutely no skill. On the other hand, creating consistent results and being able to keep what weve created does require skill. Making money consistently is a by-product of acquiring and mastering mental skills.
~Mark Douglas~

BTW if you'd ever work for a trading desk, then you'd know such traders that you're referring are required to follow very strict rules and parameters set out by the company in order to control loses. Unfortunately there are not too many of professional traders here on ForexFactory (FF). The really good traders sooner or later leave ForexFactory (or any forum for that mater). Majority of people here at FF have incomes from their jobs and do trading on a side, and never ever had to live solely of off their trading activities. Yet the irony is that they come to here to FF to spread such myth. Without proper mindset i.e. psychology, any trader will not last too long. Good luck to you too.
  • #12
  • Sep 2, 2015 7:03am Sep 2, 2015 7:03am
Quoting kinspk
Bro, thanks for providing the definitions of each factor, lol. I think you still don't get what I am trying to share with you, but it's ok, because when there's a time you are full time trading and depend on profits for a living, you may get what I am talking
You're not a a full time trader solely living from your profits, those who are or have been can see through you. But that's irreverent and beside the topic. The fact is that without proper mindset (psychology) nobody will last for too long when if comes to trading full time and having any other source of income.
  • #13
  • Sep 2, 2015 7:18am Sep 2, 2015 7:18am
Quoting Atokys
{quote} Hi Sv69, Since your trading objective is to "set-and-forget" i recommend you look into longer-term mechanical systems. {quote} Rather than optimizing system parameters in a vacuum I am of the opinion that all the parts of a system must fit and be consistent with the underlying logic of the system. Therefore, one should first start off with a core logical assumption based on market study then build a system around that. Good luck in your journey, do note that there are some very successful traders who spent as much as several years doing...
Hi Atokys,
I don't believe in mechanical systems, but thanks for the advice, I do appreciate it.

I didn't mean optimising any parameters in vacuum, I meant exactly as you say, i.e. it must fit the logic of how the market works, such as around the order flows, around the time of the day, how the move is extended, and so on. For example Gold has certain patterns that seem to correlate with the open of COMEX, and then also with the open of US equity markets, etc., and basically combining these differnce element to create a confluences based on underlying logic as you suggest. I appreciate your tips and comments. Thanks
  • #14
  • Sep 2, 2015 8:58am Sep 2, 2015 8:58am
Quoting sv69
{quote} Putting on a winning trade or even a series of winning trades requires absolutely no skill. On the other hand, creating consistent results and being able to keep what weve created does require skill. Making money consistently is a by-product of acquiring and mastering mental skills. ~Mark Douglas~ BTW if you'd ever work for a trading desk, then you'd know such traders that you're referring are required to follow very strict rules and parameters set out by the company in order to control loses. Unfortunately there are not too...
Kinda ridiculous.
Quoting sv69
{quote} You're not a a full time trader solely living from your profits, those who are or have been can see through you. But that's irreverent and beside the topic. The fact is that without proper mindset (psychology) nobody will last for too long when if comes to trading full time and having any other source of income.

I think just because you don't agreed with what i said and you think you can see thru me. I think you are poison by the exaggerated prospect of trading that make you lot of money thinking its not possible to be full time trader easily. It's not hard at all to make few thousands per month like an average professional executive thru trading. There is no rule that you must make millions to be a home trader. LOL. Only traders who cant make it or fail to make money will push all the blames on psychological factors. But it's good that there are people like you who believe it, that's why people who sell/promote trading system will always tell you that it's the problem with psychological that cause the poor results and executions.
The only winner is the one who survive the longest...
  • #15
  • Sep 2, 2015 9:35am Sep 2, 2015 9:35am
Quoting kinspk
{quote} Kinda ridiculous
Not at all. In Reminiscence of A Stock Operator there is an account of a man who mistakenly put on a really large trade during a bull market and retired with a decent fortune from that mistake.

Anyway Sv69. I agree with you that trading is all psychology because every element of a trading system is an emotional decision. If anyone disagrees with this assertion, you are also correct, you get to choose what you want to believe or not believe. Don't worry Sv69, many great names like Tom Basso, Bill Eckhardt and Ed Seykota concur your point.
  • #16
  • Sep 2, 2015 10:11am Sep 2, 2015 10:11am
I saw your last post and you mentioned some thing, but somehow you removed it. I think you get easily offended just because I'm sharing something you don't believe it. My sharing with you are never negative but just don't want you to waste too much time on something that is just a small part of trading. Btw, no point take screenshot to prove me wrong, if I am afraid of that I would have remove it. In trading there are profit and loss, there are no such thing as 100%.

If you don't like any of the posts i shared here, kindly report it or PM me to clean it up. I will not further post here, time and money are yours to waste.
The only winner is the one who survive the longest...
  • #17
  • Sep 2, 2015 10:27am Sep 2, 2015 10:27am
Quoting kinspk
Only traders who cant make it or fail to make money will push all the blames on psychological factors.
Based on my observation, its quite the opposite. Unsuccessful traders tend to blame something other than themselves because accepting personal responsibility is what successful traders do.
  • #18
  • Sep 2, 2015 10:43am Sep 2, 2015 10:43am
Quoting Atokys
{quote} Based on my observation, its quite the opposite. Unsuccessful traders tend to blame something other than themselves because accepting personal responsibility is what successful traders do.
The first few years when I started, due to over leveraging, I kept losing too, and I end up similar to SV69, blaming on psychological factors, but in fact, winning percentage was quite high, just that the over-leveraging causes trades to hold "hoping" the trade turns positive. After I reduced leverage, I trade with small risk, and I stop focus on finding holy grail, and it's when I start to become consistent positive in profit.

We are all in to greed, we want quick and huge money, putting us in a situation that our mind cant trade properly. When we start accepting the fact of how much we can earn, and not being too greedy, consistent will eventually come. Sometimes the problem don't really lies on the system or ourself, but it's all greed. And of cos personality to make a difference as well.
The only winner is the one who survive the longest...
  • #19
  • Sep 2, 2015 10:44am Sep 2, 2015 10:44am
Quoting kinspk
{quote} Kinda ridiculous. {quote} I think just because you don't agreed with what i said and you think you can see thru me. I think you are poison by the exaggerated prospect of trading that make you lot of money thinking its not possible to be full time trader easily. It's not hard at all to make few thousands per month like an average professional executive thru trading. There is no rule that you must make millions to be a home trader. LOL. Only traders who cant make it or fail to make money will push all the blames on psychological factors. But...
One way to recognise a good trader is how he conducts himself. Secondly by his level of awareness and insights, and unfortunately your level of awareness is of a typical newbie. Although unlike other newbies who are humble, you on the other hand are trying to impress others and yourself with your limited knowledge and awareness. The market will teach you to be humble, the market is bigger than you as you'll find out for yourself sooner or later.

Thirdly, since pictures are worth thousand words, I hope you don't mind me putting up screenshots of your real expertise and your real performance so that others who can't see through you can see for themselves how pretentious and inexperienced you really are so they don't get burned by believing in your BS.

Attached Image (click to enlarge)
Click to Enlarge Name: Screenshot1.png Size: 50 KB

Attached Image (click to enlarge)
Click to Enlarge Name: Image1.png Size: 42 KB


Do have some conscience dude, and realise that some people on this forum come here to learn. People with awareness do understand that you're trying to get a cheap thrill and an ego boost. I'm not going waste my time on self-appointed gurus and pretentious people like you. Subject closed.
  • #20
  • Sep 2, 2015 10:44am Sep 2, 2015 10:44am
trading is mostly about drawing a line on the sand in many aspects, so it is definitely not a science but more of an art
As Above, So Below
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