Here's a new video on managing risk in a trade. A key factor in trading well. I use a simplistic example, but cover an important point/problem about risk that I see repeatedly with traders. See if this is something you relate to.
Trying to help people to trade better....is similar to trying to help everyone who enters the casino be a better gambler, that can generate nice profits. It's kind of a fruitless, futile, flawed, attempt. The sad reality is essentially 98.9% of the people will be ....losers...in life. No matter how much conditioning and training is applied to them. To be a champion Poker player, or champion BlackJack player, or Champion trader....requires a unique set of variables a certain soul needs to possess and go through. Many, many, are simply not cut out of the right cloth. But don't let me dissuade you or anyone else. It all starts with a dream, within a dream, Soundtrack from The Saint 1997...a woman's quest to find fusion, The Holy Grail of energy,
MacBook, its interesting, I really don’t help people to “trade better.” I help them understand themselves, their behaviors, their subconscious actions, impulses, etc. As a result of our work, there is healing, growth, changing habits, releasing past traumas, and more. Through this work, trading naturally improves. Often their life improves as well. It can be a powerful process. Have you had the opportunity to work with a coach?
Work with a coach? I can't say I have ever did that, for anything in my life. I consider myself....my own coach -- I kind of talk to myself a lot. I think a lot in my head, I spend a lot of time with introspection. I'm practically a movie script writer, and director, .....I have two people in my head discussing situations across life a lot. I'll have two people in my head discussing the pros/cons of donuts, steak, masturbating, sexual fantasies, homes/zillow, buying this or that, what should I watch, politics, issues, etc etc misc misc....I can spend hours a day doing this in my head, until I reach an agreeable, refined, solution,
Apparently, he can also spend hours a day doing this outside his head on ET... [Friendly ribbing, MacBook - nothing personal. ]
This reminds me of so many conversations we had decades ago back when we traded equities. Someone would talk about a stock going from $15 to $400 and how much money they would have made - because they called it but they weren't in it. And at some point we would tell the guy that he could never have made that money...some back and forth and then we'd break it to him... "because if you bought at $15 there is no way in hell you could hold past $75 without selling every share of it. You would absolutely piss yourself and tell the whole world about your amazing 5 bagger." Not that we were any different, but at least we knew our limitations. I agree that being a successful trader is as much about knowing yourself as the markets and the products being traded.
I think of psychology this way as published in Futures Truth #1, 2016 entitled: "Ask for More, Ask for Less & You Will Get It": When it comes to the world of science, psychology isn’t one. It is a subject area that is too subjective; conclusions are mushy, and not falsifiable or repeatable. As a college major, it is not in the top 20 (or 30) highest paying majors but in fact one of the lowest. The same is true for graduate school salaries. Trading psychology recommendations are outright silly: Consider the statement: “The most important attribute for making money in financial markets is self-confidence” but how is confidence, self or otherwise, defined and measured? If self-confidence cannot be defined or measured, it cannot be understood so how can it be the most important? The same can be said for this statement: “Do not trade money until you are fully confident in your strategy”. Since “fully” cannot be measured it is useless. Consider 3 in the list of 6 keys to managing trade psychology which include “have an edge” (what is that exactly?); know thyself (who me?) and avoid emotional mistakes (My, oh my). Putting psychology to the curb, there are defined situations where we are defeated by aberrant choices that we can avoid using math analyses.
Mason, in general it sounds like textbook language about psychology. Working with a coach or psychologist is done in real-time. It doesn't have to be "measured" etc. to be supportive. I will ask you the same Q, . . . Have you had the opportunity to work with a coach? Psychology isn't an intellectual pursuit. It is like riding a bike. You can't study it in a book, you have to get on the bike, feel it, and maybe tip over a few times!
I'm grateful I experienced the benefits of a trading coach. Ms Wylan I'm at a loss to understand your statement above. Psychology is an intellectual pursuit for those who seek a bachelors or masters degree in psychology. In my understand you can't divorce intellect from psychology, as the very basis for attaining and maintaining a traders mindset is based on "rational thinking" vs driven by emotion. Not sure what methodology you use for your clients, so I'll assume it's something esoteric.