When you are new to trading, it is not easy to control or even understand your own thoughts and reactions after some losing experiences.
Your probably blame your brokers, other traders or even friend because of your failure. That is not the right way to continue!
All your “bad” emotions will out, and at some point you might ask yourself…"man am I a mad person, or what?"
If you listen to yourself a bit, you will find out, who you really are. Maybe you won’t like what you see. In this case you have to change something.
I mean you already know your “old way” which obviously did not help you a lot.
Change it…right now!
How? Write down, but is bothering you first, then find solutions by contacting to people with experience.
Never ever ask someone for their opinion if they haven’t made continuously money from trading the last 1-3 years at least…to be continued
Personally I fight that psych monster every day. Its that last armed security guard right before the bank vault. You have to deal with him every time before you can go in there and plunder. But if you don’t deal with him properly you end up dead.
I just completed a “Addictions Educations for supervisors” course taught through my employer, I particularly liked the day we spent on gambling addiction.
Online Gambling and Online Forex trading, imagine trying to explain the difference to someone with no investing background…hell, we’d all sound like gamblers in denial!
If you want to get into a trading mindset I’d recommend googling gambling addiction and read up on the emotional aspects that a gambler goes through, chasing after the high, developing a system and trying to win their way out of losses(Sound familiar?). Once you understand how the brain works you can work on dealing what your emotions tell you about a trade, and what statistical analysis, backtesting, and the fundamentals tell you.
one thing I’ve learned as a newbie is treat each trade as your first! forget about the lose and move on! of course for the obvious reasons mentioned above, if you hold on to a thought of a losing trade one thing will lead to another and everything gets messed up
Yup! When it comes to trading, the key is never to take anything for granted or imagine that you are going to make a profit on every single trade. And yes, you need to have a positive mindset or you are not going to cut it…
Kahneman and Tversky’s Prospect Theory shows that people naturally have a lot of irrational biases when it comes to risk and are generally not very good at thinking in terms of probabilities.
It is evil when you know not what you do, even when you know what you do it is still evil because everybody want the money.
For best results it is best to have a lot of money for a standard account AND know what to do then when you win the money it does not affect your brains
for poor traders like me it is especially hard because i want to turn a little money into a lot of money so that i can live the high life but that makes me risk alot of money and my brain ruins me and i lose alot of money in forex .
i average loss 50 dollars every two weeks which means no profits just 100 percent loss every two week because i want to live good in the bad economy.
this is very hard for people with psychological problems already like myself , if you are sane in beginning you will do better
Given the last quote in this thread, think about it - the mind came up with the idea of the market in the first place so chances are it’s going to be as complex as the mind. Jokes aside, does any pep talk work when it comes to recovering from losses?
I have written many articles on the subject of TRADING MINDSET.
It’s my favourite topic since only when i became great at having the the perfect trading mindset did i start to make money trading.
I always say “Mind before method”.
Us traders can get crazy sometimes since we are always thinking on the lines of: How can I not only avoid losing money, but also make money? How can I not only make money, but make a lot of money? How can I not only make a lot of money, but make the most money. Most novices think like this instead of thinking about making a great trades. This creates an emotional roller coaster ride of fear and greed that sends traders into fight and flight mode.
Your mind is so powerful that if you stick to one method and know it inside and out. What you can do is learn to filter out the losing trades. How? This is because there will be patterns in your behaviour that makes the losing trades. Once you know those patterns you can then avoid them.
Once i understood the power of mindfully trading and being in sync with the market did i start to reap the rewards of trading. Mindfully trading allows you to be in sync with the market and being in sync is the best possible method out there. However it’s the hardest and you need to have a deep profound emotional and almost spiritual connection with your mind and body, then the market.
Sounds crazy i know. But it’s true for me and many others who are successful in this industry. “Being in sync” is so powerful.
I use to think I was a mad man when i first started to learn. Always jumping from method to method, then i started reading about philosophy and mind power. Then i found my stride.
Far out i could keep on writing… But i hope this helped some people.
Great thread…psychology plays a huge part in succesfull trading, as does knowing when to cut losses. there are somne great articles out there if you search for psychology trading and losses in any good search engine
This is totally 100% fact, but you better make sure your process produces an edge over the market. otherwise your dead anyway. After streaks of good or bad results I always battle the money demon, its my psychological problems “little friend”. Usually its other issues but when that one comes up i know i gotta stop, period.
The problem that keeps coming up now in the mindset is how to milk the goat for all its worth and that is what is causing me to lose trades
I get in a trade it becomes profitable but i want to get every last penny before I exit and that is where the trade reverses turns on me and I LOSE ALL MY MONEY.
it must be mastered to take small pennies instead of losing dollars.
Trading brings out every single flaw you have in your mind.
As you become a confident trader, you will see other things in your life become great aswell.
Trading requires you to be confident in your thoughts and be extremely true to yourself. When you are true to yourself there is clarity in how you interpret the chart. This clarity leads you to being more in sync with the market.
I wrote in my article. The Way Of The Holy Grail Trader
[I]Forex trading mastery is about being linked with the primary core of who you really are. From this position you are linked with everything there is about you, and that of course includes the market. This sensation is also described as being in flow.[/I]
