Psychology and Perspective

by | Oct 15, 2019 | Blog

Keep it Simple

Q and A

Traders are willing to accept risk for the potential rewards. The question becomes “How much risk so we may enjoy the rewards.”

01. Risk and Reward

Accumulate capital while we get an education. Be conservative and learn the rules of the game. Eventually we develop our trading plans and style.

02. Emotional Factors

Controlling our nerves and emotions is essential if we are going to play this game and win. FOMO (Fear of missing out) and Revenge Trading are emotional responses that need to be overcome.

03. Trading Size

Execution, disciplne and money management is essential. Trade size needs to be appropriate for our account size and trading style. Look for high odds trades and take them.

 Psychology

Eagle Training

Question from a Student

Can you please talk about Psychology

  • Scared money never wins
  • Futures games are filled with headfakes
  • Let it come to you
  • Determine who is trapped and join the other team
  • Never make this about any one trade or day
  • Be happy with accumulating profits; singles and doubles
  • Timing is important
  • Fade extremes

Common Mistakes in this business

  • Too much leverage
  • Overconfident
  • Averaging into losses
  • Not having an uncle point
  • not having an edge with a systematic approach
  • Being in the market too often
  • Guessing
  • Not knowing how to read the tape

What was my problem(s)?

  • See Mistakes
  • Lack of Experience
  • Self-Doubt
  • Fear of Failure
  • Fear of Success
  • Lack of Capital willing to risk
  • Responsibility to my wife and family
  • Trading for home runs
  • Lack of focus
  • Trading is Mental, Physical, and Emotional
  • Safety Net isn’t there if all your eggs in one basket
  • Too much information
  • Lack of confidence
  • Not being satisfied with small wins consistently
  • Trading is Simple but not easy

How did I overcome it?

  • Still working on it
  • My needs are less at this time in my life
  • less distractions 
  • More experience
  • Deep breathing and meditation
  • positive self-talk and listening to my personal tapes (Iphone)
  • Program my mind to see myself as disciplined, confident, reactive
  • Listen to the classic wealth masters like Jim Rohn,Harv Eker etc
  • Keep some income coming in from Real Estate business

Does our Slack room with his bookmarks from September get erased?

No, they remain there for your study

What is Taylor day 3?

https://www.smbtraining.com/blog/the-taylor-rhythm

Is it two large down days in a row, followed by 3rd day expected to go up?

Yes, as described in the work by George Taylor in 1950 Book Method.

What is the difference between Down and Up Trend days?

FOMO and Revenge Trading; how did it (does it) manifest in my trading and how do we overcome it?

Superior Analytical Solutions

The Professional Edge

Obstacles

Trader Challenges

News Events

Both scheduled and sudden events can be market movers.

Overnight Gaps

The market never sleeps, and positions need to be managed.

Lack of Capital

Underfunded traders usually lack staying power and sufficient leverage.

Fear of Failure

Scared money never wins. Confidence comes from experience.

Indecision

There are no guarantees, leading some to Paralysis by Analysis.

Greed

“Greed is good” has a nice ring to it, but pigs get slaughtered.

Get In Touch

MARKETwizardz.com
Naples, FL
e@eminiwizard.com