Today's article will focus on the analysis of very specific work situation.
Recently, at one of the forums where I was a few years ago led a branch of psychology (it has long been in the archive), I received a private message. Below is a short conversation (spelling preserved):
Recently, at one of the forums where I was a few years ago led a branch of psychology (it has long been in the archive), I received a private message. Below is a short conversation (spelling preserved):
Trader: Hello!
I see you are well versed in the psychology of trading, I would like you to consult unless of course it is possible.
Author: Hello!
Well, write a brief history of its traders, what difficulties. If I can - help.
Trader: Thank you, all is well in technical terms. Difficulties arise when caught stop, immediately there is a desire to recoup (starting to go where it is not necessary, I go by many couples to quickly depart loss although strategy is one open position, at least but also prisudstvuet trade without stop, in general, a full bouquet. There are such when dubious transactions still in her climb there is a feeling that if it miss the end of the world comes.
Author: I see ...
Within 2-3 days, I will give you a detailed response.
So I answer.
I do not deliberately begin to specify the interlocutor age, profession, trade experience, the details of the vehicle and other details. They may be quite different. So how different are millions of people, recruits and veterans of the Forex. But they all share one thing (at least in the first years of practice) - a huge number of erroneous actions committed knowingly, with enviable regularity, contrary to common sense, based solely on short-term emotional impulses. We will not go into right now in this topic, because it is dedicated to a great number of articles (including this blog, for example, this or this).
The views expressed by that trader of a problem familiar to everyone. Can not a man in the street immediately turn off your natural reactions and become a prudent soulless machine. Some time is spent on adaptation, learning itself in a new business, getting your mineral cones (remember "give for broken two unbeaten").
Temporary difficulties are inevitable. It is impossible not to soak, overcoming a fording raging stream, beyond which stretches blooming valley!
But if in a normal life, people tend to try to get to dry land on the shortest possible path, then the perpendicular movement in trading is often replaced by a diagonal, and sometimes even on the longitudinal. It is much easier to lay down their arms and allow you to drag the river. I am hoping that everything is formed by itself, that the next bend affectionate wave will make a lazy body on a golden sand. So year after year, and traders are floundering and financial independence of the parallel, non-intersecting courses ...
So all the same - what do you do? And that's what - to return to the base, to the root, the root cause. And the root of all evil - non-system trading. If it is - so be losses of drawdown, a negative psychological background. It is an axiom.
The opposite pole is the system trading. Only here's the problem - it is very often accompanied by the same satellites. Personally, I do not know the system, who would not profitnye periods alternated with unprofitable.
That is the difference between them only one - unsystematic nature clearly hopeless, and the system - has some chances for long-term success. And there is no other way for a trader than creative creative activity, the desire to create their ideal TC. And the ideal is quite simple: in the history of the positive periods in duration (preferably) and profit (of course) should exceed the negative.
psychological errors
Is it difficult to create a CU? Perhaps it all depends on the yield.If you focus on 50-70% a year - on paper, many traders in a couple of hours bungled very decent options. Another question - and whether they are able to implement our plans in life? Will it have for weeks (and sometimes months) to wait for signals prescribed entry and exit? Arrange whether their long-term pause before the first dividend? For most it is impossible!
So let us thank also our own mistakes and dashing traders first years because they showed us to our temperament! At our best 'temporarily-point "parameters. On our tools - loved and rejects. On the way in which trading can safely fit into our daily routine. And in view of this knowledge, we roll up our sleeves, we scrupulously grind your own TC. It is very difficult, it will take a lot of time, but the other way is not there.
If you make yourself a favor, to fake, do not register the vehicle in all-all the details, do not test it on a huge historic range - the result is appropriate. In crude TA will be a lot of losing trades, have difficulty in identifying the signals to the extent that it is necessary to go to make a decision - to buy or sell? In fact, everything will slide back to the non-system trading to negative experiences, for the next round of a vicious spiral.
How can I help this person? I do not know what psychological methods can cause a trader to work on the vehicle is not for show, but to conscience. Personally, I'm very well have treated several fusion reais. Eventually, there comes a point when you realize - it is better to lose virtual money when testing the vehicle than the blood when working blindly. For non-system trade - still that journey without a map.
