Habits that influence your trading

What are harmful trading habits? What is more important being right or making money? Is trading is an emotional act?

1 Like

Nah ! emotions are no problem at all - Unless you’re human ! :relaxed:

3 Likes

What about If I can implant some circuit to become a little bit robotic!!! :grin:
I see being human is not much profitable at all.

It’s not “Humanly” possible - this is a “Fight or flight” environment - it will be a LONG time before you can “just be a trader” - but it’s “doable” (so they say !)

1 Like

The Very much realistic phrase for this kind of situation. To become “just be a trader” it will… Indeed.

1 Like

I do say in general, in everyday life, if you do not plan you plan to fail.

The worst habit to approach anything in life, especially in this case trading is not journalising your thought process because you’ll forget what you were thinking and won’t learn from your mistakes.

Also, in general, traders do not get external accountability which prolong their success and forget to open their minds to become successful. You getting involved in a community such as babypips is a great start.

Even if you become a failed trader, which most people do, if you journalise, write business plan, trade plan, make your own analysis, learn technical analysis and learn from your mistakes, you’ll still pick up the essential skills required to make your other endeavours in life successful.

Do not close your mind on making a trade journal just for trading, you will have to be openly positive about it for example, “making a trade journal now can be brought follow to other parts in my life if done correctly!”

For example, if I became a failed trader, I wouldn’t put myself down but say “hey, I picked up some skills that people normally don’t do and offer it as a service to others or such”.

Being positive is probably the most important habit required, these are my thoughts.

2 Likes

Emotions are always present in trading but I really don’t think emotions are actually the problem that most people seem to think it is. The problem is confidence, not emotion, - or rather lack of confidence.

Once you are confident that your trading strategy and your risk/money management is functioning in the longer term then individual losses no longer become a negative issue at all. On the contrary, one knows that in order to make a profit one has to be in the market, and that being in the market means that there will be losses - but one is confident that the gains will outweigh the losses and therefore the emotional side is positive and anticipative, not negative and fearful.

But reaching that level of confidence is, well…:slight_smile:

1 Like

In general,

You require a ball of steel :wink:.

Quite! At least one! :slight_smile:

I work on the premise that emotions are a sign that the trading system that Im using is not adjusted to the way i trade, when the emotions arise at a certain point of executing the system that is the spot that i need to adjust to make or settle my emotions.

Even if you use a successful trading system people dont realise that you have to make that system ur own or in the long term it wont work for you.

1 Like

I Couldn’t agree with you anymore, it has to be your own set of values and principles on how you perceive the market to create a trading system.

No matter how foolproof the trading system is, it eventually won’t work. If you got the trading system from someone else and never put any considerations on how the system works. When you attempt to fix that system, it’ll become unprofitable.

1 Like

Harmful trading habit is trading while you are drinking.

1 Like

I agree.

The usual problem for beginners, in this context, is that they mistakenly imagine that learning only the basics and then working on “just finding a trading system that works and duplicating it” is likely to be a better way forward than gradually assimilating the education and experience they actually need gradually to master.

They also think that will be quicker, unfortunately, and that’s very often important to them.

(“Unfortunately” because it means that in their haste, many of them set off in the wrong direction, which prevents them from reaching their intended destination.)

I think this is probably right, at least in the context of “complete trading systems” that prescribe all the parameters involved.

The long-term educational value of these is minimal, at best.

But they’re what most beginners are attracted to, for entirely understandable but very unfortunate reasons.

Exactly so, because you won’t really have learned much about the process of long-term successful trading.

But it’s human nature to be attracted to outcomes rather than to processes.

I don’t know that trading, looked at in that context, is significantly different from other activities people try, in order to earn extra money or to make their livings.

1 Like

There is so much point of views I can read here. People are seeing things in their own ways. I think professional trader also faces some problems which are way bigger than beginner traders. Keep educating yourself and experiencing new things is the way of foreign exchange trading. So, everyone can’t fit themselves in this running process.