The psychology of the successful trader.
I should add that a person's psychology is a very powerful thing, which not only contributes to his successes or failures in trading, but also, in general, largely determines his very life. A person's psychology expressed in his behavior can also be used to judge himself. In particular, in my opinion, you can determine psychologically how profitable a trader is even by what he or she says on forums. For example, many people try to position themselves as great traders by groundless attempts to belittle others, such as: "Learn from me how to trade! Such spontaneous impulses, in general, indicate the presence of a complex. Most likely, such a trader constantly suffers great losses and, internally, considering himself a complete loser, tries to at least verbally exalt himself above others and, thus, assert himself. If this idea is expressed in a joke, one can say that the more "fancy" one has, the more "losses" one loses, otherwise where would the "fancy" come from?
In my opinion, maybe wrong of course.
Once a person starts treating Forex trading as a game and not as a means of making money/enrichment. He starts to trade more calmly. More calmly survives drawdowns/losses. And the less nervous a person gets because of failed entries, the more adequately he can get out of problem situations, which sometimes occur in his trading account.
In my opinion, maybe wrong of course.
Once a person starts treating Forex trading as a game and not as a means of making money/enrichment. He starts to trade more calmly. More calmly survives drawdowns/losses. And the less nervous a person gets because of failed entries, the more adequately he can get out of problem situations, which sometimes occur in his trading account.
In my incompetent opinion, if you are searching for an effective trading system, you should adjust this TS to your character. That is, a sanguine person with his high mental activity and impatience should not engage in long term trading. And the phlegmatic with his slowness should not engage in scalping.
Treating trading as a game is fraught with the risk of developing gambling traits: a tendency towards excessive risk taking, the need for periodic losses to raise adrenaline, the cessation of analysis and work on the trading system. But excessive perfectionism causes just as much problems: the trader hardly tolerates mistakes, considers himself a loser, and is increasingly susceptible to depression. In my opinion, the best results in trading combined with inner harmony are achieved with a scientific approach: the market is perceived as an object of study, where negative results are no less important than positive ones, and success lies in finding private and general patterns. If, in doing so, you manage to make some kind of profit, that is a nice bonus. But that is only half of the overall problem.
The second half is much more serious: what will happen to the market if the percentage of successful traders increases? What will happen to the very notion of success?
People who gamble, such as roulette, also keep mathematical statistics, draw conclusions, develop systems. They are confident in the right path they are on. That is, psychologically, gamblers are confident people. Self-confidence is the cornerstone of psychology. Try it, talk to any psychologist. He will tell you: "The main thing - you have to be confident in yourself: in work, in creativity, even in relations with the girls...". And in trading - self-confidence is one of the main qualities of a trader...
People who gamble, such as roulette, also keep mathematical statistics, draw conclusions, develop systems. They are confident in the right path they are on. That is, psychologically, gamblers are confident people. Self-confidence is the cornerstone of psychology. Try it, talk to any psychologist. He will tell you: "The main thing - you have to be confident in yourself: in work, in creativity, even in relations with the girls...". And in trading - self-confidence is one of the main qualities of a trader...
You're talking about system gamblers. And then there are cheating addicts. For them it's not the result that matters, but the adrenaline. And when they lose the adrenaline rush is greater, so they subconsciously strive for it.
I think it's a way for addicts to fight depression. They don't have enough serotonin in their system. Usually they compensate for their lack of serotonin by taking anti-depressants. But some go the way of alcohol, and others go the way of gambling with roulette or forex trading.
Treating trading as a game is fraught with the risk that qualities typical to gamblers may form: a tendency towards excessive risk, the need for periodic losses to raise adrenaline, cessation of analysis and work on the trading system. But excessive perfectionism causes just as much problems: the trader hardly tolerates mistakes, considers himself a loser, and is increasingly susceptible to depression. In my opinion, the best results in trading combined with inner harmony are achieved with a scientific approach: the market is perceived as an object of study, where negative results are no less important than positive ones, and success lies in finding private and common patterns. If, in doing so, you manage to make some kind of profit, that is a nice bonus. But that is only half of the overall problem.
The second half is much more serious: what will happen to the market if the percentage of successful traders increases? What will happen to the very notion of success?
This is where a person's attitude towards the game itself (no matter what it is) comes into play. If for him the game is only a means of recreation/entertainment... At the same time, the analytical-scientific approach to achieving better results has not been cancelled. Then a man will treat possible losses calmer and extract from the experience useful information to improve their game strategy.
In this case we must exclude the patients with gambling addiction. This is a different story, let the medicine deal with it.
You're talking about system players. And then there are the gamblers. For them it is not the result that matters, but the adrenaline. And when they lose the adrenaline rush is greater, so they subconsciously strive for it.
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It's no secret that the success of a trader who trades manually depends largely on his psychology. And I think there are many competent gentlemen here who have read the relevant literature.
Gentlemen, let us first of all define (summarize) that set of psychological features that is necessary for a trader to be successful that will become our memo or guideline to strive for.
Secondly, we will present the methods, techniques, or practices known to us for developing such an effective psychological attitude.
And thirdly, let us find out whether such an ideal is achievable, or rather, estimate the percentage of n% of people that have all the necessary psychological qualities for successful trading.
From this (third) let's conclude the extremely important role of automatic trading for all other (100-n)%, which will remove from such psychologically imperfect traders a heavy burden of taking hard decisions (for example, timely closing losing positions) and negative feelings.