The role of psychology in auto-trading

New comment
 
In normal trading, psychology is very important. And first of all, it is very important for us to know ourselves. First of all, your risk tolerance. How much loss are you willing to tolerate? How much money are you willing to risk in a single transaction. At first glance it may seem to make little difference. After all, everyone comes to the market to make money, not to lose. But trading is a series of both profitable and losing trades. And, more often - losing trades! And when losses begin and the moment of truth comes. Do you have a thin gut? Or are you prepared to accept losses?
The best measure of your risk tolerance is its ruble (dollar) equivalent. What kind of loss can you handle? 1000 roubles. 5000, 25000? You may count the risk in % of the account. The standard risk per transaction is 2% of the entire investment portfolio.

Equally important is your willingness to make and execute seemingly obvious decisions. There is no accepted human logic in the market. More often than not, you have to go against everyone else, relying solely on your own predictions. And this is not something everyone can do. And in general, such internal contradictions can make one go crazy.
 

The most important "psychology in trading" - how to solve all your financial problems in a year with 100 dollars (or better 10) - and from 1000 dollars to become a millionaire in a year.

Then, when the 10 dollars in a couple of days becomes 15 - then invest all the money + loans - this is where the "psychology of trading" begins

Trading is the spawn of absolute evil

 
Vitriba:
... In fact, such internal contradictions can make you lose your mind.
If you have such problems it is probably better not to start at all, otherwise you might really go crazy. ))) No one prevents you from doing all the necessary calculations. For this purpose and created this site with all the necessary tools. A cold head, a cold calculation. And as long as there are still some questions, it is better not to enter the game.
 

And personally, I have an interesting point.

My psychology is almost degenerate in manual trading )))

I have an itch to close a position in autotrading (even if I have a small account, even if it's unstable) ...

After all, I see that 95% of positions will be opened, and the robot closes the position in the wrong place ))))

What a fucking mystery ...

 
papaklass:

With that philosophy, you could spend your whole life trading in a demo account. :) Because the learning process is endless.

In my opinion, as soon as you get the hang of it (and have some skills in trading) you should switch to a real account. Start with a micro. Depo = $100, lot 0.01. Apply the knowledge you gained and polish the TS. And trade with short stops (stop not more than 20.0 points), and take-ins at least 2 times higher than stops. The losses (monetary) will not be big, but you will get a great experience. On a demo, you will never learn.

In real trading, funds on the securities account should not be treated as money (I mean their purchasing power). For you it should be a tool to make money. With this approach, the psychological burden decreases manifold.

Once again you have raised a question that I have already given you an answer to. ))

I repeat. First you need to make all the tools to get to the next level. Personally, I haven't done everything I have planned yet. What needs to be done I already know exactly, and for a long time. I have no questions. No one knows how I see my tools but me. You can make adequate tests if you have the right approach to the task, but you don't know it - you cannot even master the simplest functions. Lazy people always rush to open a real account thinking that it will teach them faster and they usually lose their deposit.

And your loss-making or low-profit algorithms are yours to keep. )))

 
Vitriba:
...The standard risk per trade is 2% of the total investment portfolio.

I believe that forex trading is not an investment - pure speculation on price differences over a certain time horizon.

Risk has a direct proportional effect on profit, and its value is calculated and accepted in each TS depending on current and strategic goals. Someone is risking even 15% of deposit in one trade, and someone with high maturity expectation can afford it... For example, in the upcoming championship the risks will be obviously higher than the specified "standard" ones. All the same, a lot of Expert Advisors, automatic TS are built based on statistics/results and expectations.

The entire psychology comes down to trust in ATS. The perception of losses depends on trader's wealth - the higher it is the easier psychologically to take a risk ... The more high-risk a trader is, the easier it is to psychologically take the risk.

 
Vitriba:
In normal trading, psychology is very important...
I really have to ask - so what?
 
papaklass:
Cool, and most importantly, brazen.
There's no other way. You took the risk of offering the same advice twice, especially since I already answered it to you once. Moreover, the advice is bad because it leads to direct losses and does not teach you anything.
 
Everyone has their own methods of finding the truth, some through real life and some through a lot of literature and practice on demo/history.
 
tol64:
There is no other way. You have dared to offer the same advice twice, especially as I have already answered you once. Moreover, the advice is bad, because it leads to direct losses and does not teach anything.

This I will write without references, but quickly and effectively can be trained only and only a month or two months of daily work in online mode (video, Skype) with a teacher who can prove their level and the result.

But of course do not forget about the personal psychology, as well as that some people simply do not give ... (Well, this shouting about forex-fraud).

 
papaklass:

... Otherwise you too will become lazy, ...

I'm not threatened by it. Hard work brings meaning to life, laziness on the contrary.

papaklass:

My opinion of you is spoiled.

Never mind, it's the little things. Atmospheric pressure.
12345678
New comment
Reason: