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Psychological aspects of traders and investors.

CrazyTrader (CrazyTrader)
Mar 20 2014 at 15:35
1718 posts
cevsmile posted:
'
Well, thats my story:
Same mistakes again and again.
I start to make deposit next month, then, it happens again, again, and again.
'


We all have experienced this 100 times in our Forex trading life.

My suggestion would be to automate your strategy.

Chikot
Mar 20 2014 at 16:46
2299 posts
Yes, it is like being in the loop. Doing same mistakes over and over. There is no solution for this outside of will power and making strict and complete plan.
Determine when to trade and trade same time every day. Preferably not too many hours but the most active or the most smooth depending upon trading plan and what you are looking for.
 For example trading only 2-3 hours a day since say 8:00 a.m. to 11:00 a.m. EST or 3:00 a.m. EST to 6:00 a.m. EST. It is in case of FX market. Every market has different behavior during different times.
Determine maximum loss per trade and per day. Maximum amount of losses in a row and if one of those time and loss limits hit trading is stopped doe snot matter what is going on. It is about setting limits and capital preservation. Daily profit goal might help too. But it should be no less than daily loss limit.
It is more important than strategy... It is psychology.

CrazyTrader posted:
cevsmile posted:
'
Well, thats my story:
Same mistakes again and again.
I start to make deposit next month, then, it happens again, again, and again.
'


We all have experienced this 100 times in our Forex trading life.

My suggestion would be to automate your strategy.

cevsmile (cevsmile)
Mar 20 2014 at 21:45
30 posts
CrazyTrader posted:
cevsmile posted:
'
Well, thats my story:
Same mistakes again and again.
I start to make deposit next month, then, it happens again, again, and again.
'


We all have experienced this 100 times in our Forex trading life.

My suggestion would be to automate your strategy.


thats make me feel better, EA will solve my problm, by using EA, i can set time, risk, etc like @Chikot says.
But before that, im gonna try to act like EA. I really want to beat this psychology things.
I use demo right now, its funny, my demo just stepped out 'twice' 😐. I was in demo acc before, but not this bad.
I always won when using demo before, but now?? what the..... even with demo account still im the loosers.

I watched this screencast from @kingdomvault, i should react like that.
https://screencast.com/t/n6yF1XnI

Btw, thanks for sharing guys. it really help me a lot to stay in the forex market.

Discipline with your trading plan!
ForexAssistant (ForexAssistant)
Mar 20 2014 at 22:01
465 posts
'My suggestion would be to automate your strategy.'

OK, that will help your trading but the problem is not so much with your trading as it is with your mental frame of mind. Everything that happens, has a cause. Eliminate the cause and the effects change. Lalu, you mentioned that your family was influencing your decision making. This is very common and akin to what we see happening on these forums.

You give too much weight to the opinions of the untrained. There are reams of advice on these forums worth every bit as much as you get from your untrained family. Your problem is that you are listening to them instead of listening to your own head. Since you are directing your life, everyone, including me, is less capable than you. You are the very best person to make your life meaningful and rich. This is how you fail, you stop doing that for which you are the best person for the job. If you are not doing it this leaves the control to others.

Those other people are morons compared to you, why would you want to let them do your job.
Does that perspective help? I use it myself.

Here is another way to help yourself get back your self control. When I was young, I went to the Brookfield zoo where they had a monkey house that separated the humans from the monkeys by steel bars. The monkeys were agitated by the constant stream of humans but being of a lower life form had no way to voice their frustrations except by throwing things at the humans as they strolled past. They didn't have much to throw so they would throw their own feces.

As you take control over your life, others will feel like they lost something, which they did, controlling you. However, you can expect criticizing and even name calling as there is a resistance to change. Only when you do what everyone expects of you do you not get criticized, so don't let it concern you.

When this happens to me, I just visualize those monkeys throwing their excrement, then realize that they are lessor creatures. When you realize that other peoples opinions are not worth your consideration, your life will change and so will your trading because you will have the confidence to stay in control.

As to improve your work, I will leave you with the wisdom of the ages, 2 Timothy 2:15 (Bible)

   ' Study to show thyself approved unto God, a workman that needeth not to be ashamed'

Be proud of what you do and continue to learn so you can be the best that you can be, not for your family sake but for your own and because you want to present the best 'you' that you can to God or who ever it was that is responsible for us being on this planet. .

Hope this helps.

Bob

where research touches lives.
Myulli27
Mar 21 2014 at 08:29
1 posts
Do not gamble Forex. It is too expensive and frustrating.

I experienced it some times.
Starting at new again and hoped to master it NOW better, again.
The problem to solve seems to be taking the Forex game too personally, too much as a part of myself.
I started to use a robot, but the same problem occured although it changed to robot on or off, changing to manual or automated system.
It is impossible to switch off emotions, but it is possible to control them. More often I'm successful now.
Simply by making myself clear about, that the robot is doing well. In the next second switching off my homeoffice, going into the garden or elsewhere. This reduces the 'keeping imprisoned' in the game.
It is not, it is really not the solution to be or become nihilistic. (Close the eyes and hope for the best.) I tried it, but as a result I got nothing but a bad view on live. Regarding to Forex it didnt change the traders problem.
I prefer to carry out some statistics about relations of emotions and trade to become clearer about.
Last but not least I have very strict times in which I may look to the robot. Each week I take out two thirds of the win to a second account, which is fed with a very successful but rare signal, not more than two trades per week. So I secure a possible margin call from the robot. The second account must have min the double size of the robots account.
This system works well and produces high profits.
Nevertheless I must control the emotional problem, else my system would implode.
Once I believed to know it better than the robot, I interfered and destroyed the win of a week.
Now I'm aware of this experience and next time even if I would had been right, I know the next times the robot is right.

Basing on my experiences I suggest
1. to constate what is your valuable experience
2. differ if the oncoming decision is based on an emotion or on your experience (you may see it very easy: May you let this opprtunity go or not? If you can, you are right. To be sure, you must demonstrate this sometimes and switch off your computer. Dont rebel the next chance is coming soon...)
3. if your emotions took the better of you, get a timeout, far longer than you normally would do, spent three days without the market but not less. (There is a 72 hours border in the mind, where thoughts become obsolete.) This will strengthen your mental discipline.

I became much clearer with this conclusion.
Dont believe that it was easy for me to keep on discipline. No, it was hard and nobody was supporting me. After 6 weeks it became easier and easier.

Do not gamble Forex. It is too expensive and frustrating.

ForexAssistant (ForexAssistant)
Mar 21 2014 at 09:03
465 posts
Question, why wouldn't you just use a robot that doesn't lose, that way you could always have that at least, to fall back on when your manual trading isn't going as good. You only want to quit when it seems hopeless, by using an ultra safe robot, you might not make as much money but it wouldn't be hopeless thus no instinct to quit.

Having one of those safe types, you could go out for three days, rest and come back to see if you made any money, you would already know you won't have lost any. Well, that's the way I think, anyway.

Bob

where research touches lives.
MTexpert (MTexpert)
Mar 21 2014 at 11:27
90 posts
In the beginning I wrote about how I created this theme for those who already know how to trade profitably . I understand that everybody needs help , but I think that those who can not trade profitably on a demo account can not trade on a real account . To be able to trade it means to have a history of successful trading at least a year on a demo account . An exception may be for those who trade the robot and test successful trading has at least one year . Psychological help those who do not yet learned to trade , can be only one - forsake real trade ! I trade with the help of a robot and I have a history test a few years ago. For this reason alone , I trade on a real account .

So I again offer psychological problems considered here only those who already know how to trade profitably .

The strategy gives a 15% profit per month.
CrazyTrader (CrazyTrader)
Mar 21 2014 at 11:48
1718 posts
'So I again offer psychological problems considered here only those who already know how to trade profitably.'

=> It is sensless, contrarian trading aspect, paradoxal theory....

If you win day after day...You don't have to fight against psychological aspects. Those kind of problems only pops up into your mind when your situation is in danger... Psycho pb will change your trading plans 100 times before it finally blow up your head and also your account.

While being profitable with a long track record allows to trade without these psycho pb.

cevsmile (cevsmile)
Mar 21 2014 at 15:14
30 posts
Thank you... thank you so much ...

this conversation and advice really help me to regain my confident


Discipline with your trading plan!
ahuruglica (ahuruglica)
Mar 21 2014 at 15:21
852 posts
Psycological circle, unable to win from the market unless the trader breaks it.




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