Tactical Trading
|
Trading Psychology Books
|
Is it overstated when it is said that trading psychology as the reason for
trading losses is 90% trading psychology, or
any similar high overweighting of trading psychology over trading method? To say this also
seems to be saying that regardless of method, a trader with control of all
emotional issues would be a profitable trader, and I can't accept that as the
case. If a trader was able to trade 'any' method profitably they would
do so because of (1) their understanding of the method's inherent strengths
and weaknesses (2) their ability to maximize these strengths and minimize the
weaknesses. But regardless, how could a trader ever overcome any amount
of trading psychology related issues without this complete understanding of
method and how they intend to trade it, and thus the resulting confidence that
they will be trading profitably.
Trading psychology has
become so widely 'discussed' and 'promoted' in books, articles, consultants,
etc - that it has become available as any necessary excuse for losing and not
taking responsibility, as a trader keeps trying to trade against the market
and against themselves. For instance, keep trying to buy the bottom of a
strong downtrend, or keep trying to take indicator trades inside of a range
that isn't wide enough to provide a partial profit; is this method, or is this
psychology?
Sure, all of the trading
psychology issues and emotions regarding losing and being a loser are going to
surface, but I think the root problem here is one of method, and then its
interrelation with psychology. Will the trader realize this,
chances are a psychologist will have another answer, to them this will still
be a psychology issue with a root cause of WHY is the trader trying to pick
the bottom. I think we need to separate psychology from trading
psychology, with a concept that any general psychology issues will be 'brought'
with the trader and certainly surface while attempting to trade, but if these
are not a root problem, trading psychology issues are going to be best
controlled by method understanding.
-
-
FIRST
- separate tpsych from personal psych
-
controlling
tpsych through method
-
sabotage
-
causing your problems and the things you are trying to avoid
-
-
Controllable Mistakes
-
-
decisions that you can
consistently make because of repetition and evaluation of the tradeoffs
-
ignoring ticki and not
realizing that enter against - especially a reverse with a ticki counter to
the previous move
-
missing a trade and not
looking for a next trade
- missing a trade and
taking first indicator reverse
- forced trades - no
market alternatives
- emotion -vs- consistency
- random exits - trading
to get back to breakeven
-
-
-
discuss trade
scenarios on chart below
- trade from initial
entry until reverse gains 24 ticks on initial entry - if trader A makes
4 ticks do they have a profitable trade
Additional Charts Discussed In Audio
 
 
 
 
 
 
 
 
 
 
-
Wasted
Trades
-
-
eliminate trading decisions
-
eliminate wasted trades
-
profitable trade -vs- good trade
-
some
amount of room must be given to a trade - even against your exit
-
eliminate trap trades
-
overtrading a range that isn’t partial width
-
-
Consider: entering a trade that you really don't have a reason for or
are committed to then on the smallest retrace you exit the trade and then it
goes your way - AND then you realize it actually was a good setup.
-
-
-
Missing
Trades
-
-
what
is a missed trade
-
WHY?
-
missing trades on purpose
-
preparation – when do you know you have a setup
-
increased preparation time
-
where
is the next trade -vs- I missed the trade
-
where
is the next trade -vs- waiting for the first reverse
-
-
Consider: most traders think trading is fast chart momentum trades in
congestion but miss filling the winning trade that breaks out and never get in
until the next congestion or until there is an indicator reverse.
-
-
Additional Trading Psychology Considerations
-
-
price
-vs- bar noise
-
focus -vs- awareness
-
-
Consider: trade
reading ‘slows’ down price movement by turning focus to decision/actions at
a price instead of a constant watching the last bar/tick
-
-
trading at repeating prices instead of constant adjusting by a tick as if
this was of primary significance
-
again where the trader is placing focus
-
overreaction to a tick – creating whipsaws and emotion that could be
eliminated
-
-
Consider:
1 tick and bid/ask – what if last price is the bid and exit isn’t hit but if the
last price is the ask the exit is hit.
-
-
trading speed and access through available platforms allow for additional
patience and timing without constant risk of ‘missing’ a trade
-
trade
what can define and understand in terms of setup-risk
-
chasing a trade
-
fear
of missing a trade
-
reverse trap trade – counter trade because ‘missed’ direction trade which
loses then reverse to direction trade which also loses
-
-
Consider: I do not care about best price as much as best setup clarity and best
movement out of the trigger. I am not afraid of missing a trade and not having
another entry. But I do not want to wait any longer than necessary.
-
-
maintaining focus with ‘large’ number of trades in a range that isn’t
partial width
-
fear
of missing a trade – and still missing it
-
maintaining trading confidence after series of consecutive losses – again
inside a range that isn’t partial width
-
maintaining extended focus staring at ticks
-
impact
of consecutive losers
-
it's
only 1 trade out of a series of trades
-
loss-loss/win-add win
Copyright © Tactical
Trading, LLC. All rights reserved.
Reproduction in whole or in part without permission is
prohibited. |
|
|
|
|
|
Trading Psychology and Self Help Resources
Trading Mind Software - Studies show that 90% of our mind's power
is housed in the subconscious mind and is responsible for our
behaviors, habits, and performance.
Trading Development Problems - Overcome trading psychology and
trading related issues such as fear of losing and self-sabotage.
Trading Stress
Management - Trading is a mind game with mental and physical
consequences brought on by stress; learning to control your mind is
necessary if you are going to come to control the stress.
Mind Method Market
- What are your beliefs, and how do they affect
your decision process. Overcome your personal characteristics and
learn to "hard-wire" proper response to emotionally driven situations.
Emotional
Freedom Techniques EFT - Where emotional relief brings physical
health.
Trading Psychology Books
Self Help Motivation Personal
Achievement Books
Personal Achievement Bookstore
The Power To Shape
Your Destiny
Have you noticed sometimes you
can perform at your best and still fall just short of your goal?
Now, Anthony Robbins will show you how to utilize a quality you
already possess so you can achieve that goal. This audio program
entitled The Power to Shape Your Destiny: Seven Strategies for
Massive Results shows you how.
The Power To Shape Your Destiny
will become your close companion as you use it to realize what you
really want from your life. You will learn:
-
How one simple exercise, when practiced for 20 minutes a day,
can make your biggest dreams happen, even when peak performance
isn't enough. This same exercise can instantly wipe out any
fear, hurt, procrastination, worry, angst, anger, bad habit, or
obstacle to achievement.
-
How a certain quality you already possess can eliminate all your
bad habits and vices, and how that same quality can drive you to
establish a new level of excellence for your life.
-
How to identify the primary motivator in your life and modify it
so it serves you.
-
How to improve your decision-making system and your nervous
system so you naturally attract and create a superior destiny.
The Power To
Shape Your Destiny
The Science of Self-Discipline
Science Proves That
'Trying Harder' Won't Make You Self-Disciplined
For centuries, Western civilization has had a passionate
belief in the power of hard work. Striving and struggling,
pushing and punishing yourself have been praised as
sure-fire methods for getting the things you want out of
life.
So when most people think of self-discipline, they think of
fighting with themselves, pushing themselves, depriving
themselves, driving themselves. But science has now taught
us that nothing could be further from the truth.
Ask yourself, why should there be a conflict between what
you want to do and what you actually do? Why do you persist
in unwanted habits? Why do you procrastinate? Why do you
avoid activities that are good for you? The Science of
Self-Discipline gives you the answers to all these
questions, based on the latest behavioral research.
Once you understand the behavioral roadblocks that stand in
the way of the things you want to do, removing those
roadblocks is a relatively easy task. When you apply the
tools and techniques in The Science of Self-Discipline,
self-discipline becomes virtually automatic. You are no
longer struggling against yourself. You will have maximized
your motivation and removed the blocks, and will be
proceeding with proven, scientific methods for behavioral
change. These 12 audio sessions put you on the fast track to
iron-clad self-discipline — without stress or pushing
yourself.
Put in the simplest possible way, The Science of
Self-Discipline is about working smarter, not harder. Once
you understand and remove the reasons why you don't do the
things you want to do, your own desire will carry you
forward with the same effortlessness that doctors and
psychologists have identified with the peak performance
state. You will be able to move toward the things you want
with the best that is in you — relaxed, confident, and
happy.
|
|
|
|