Dump it Here

DaveTrade said:

I know this but sometimes it can harder to do than other times. My emotional state varies depending on what may be happening in my life and this may have some influence but I think the main reason why I sometimes feel a bit sick in the stomach is because I'm over-exposed (too much account risk).

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Hi DaveTrade
rcw1 is hearing ya.
The longer in the game that feeling in the gut will be second nature, as the body has built a higher level of resilience and your mind turns it around into a benefit, making your senses / mind more attuned to what is needed to succeed.

When in doubt have a rum (several) ha ha ha ha
Just jokes.

Kind regards
rcw1

Captain_Chaza said:

Nobody is Immune to Sea-Sickness

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As keeping your eye on the horizon helps to avoid sea-sickness, having a long view when trading can also be helpful.

Skate said:

"Trading for Beginners - Skate's Practical Guide to Profitable Trading"
A daily series of posts aimed at those just starting out on their trading journey.

17. Loss aversion
Trading is a stressful endeavour that's emotionally charged. Therefore, it is essential for traders to develop self-control and emotional restraint. The likelihood of trading success can be greatly increased by being conscious of emotions and minimising their influence on decision-making.

Losses are an inevitable part of trading's probabilistic nature, but traders must get beyond a major psychological hurdle called loss aversion. Loss aversion is the tendency to experience the agony of losses more keenly than the pleasure of profits, which can result in poor trading.

It is crucial to approach trading with a disciplined and analytical mindset if you want to get past the effects of loss aversion. We may effectively manage risk and reduce the influence of emotions on our decision-making by establishing a precise exit strategy and profit targets and strictly adhering to them.

Successful trading requires a combination of knowledge, skill, discipline, and emotional intelligence. Traders can enhance their performance and reach their trading potential by being conscious of how loss aversion affects decision-making and actively striving to overcome it through risk management, and emotional control.

Every trading plan should be reviewed and updated on a regular basis to keep traders disciplined and concentrated on their long-term goals. A disciplined and analytical mindset, as well as an emphasis on risk management and goal setting, are necessary for overcoming psychological hurdles like loss aversion.

In conclusion, trading is a highly emotional activity that calls for self-control, emotional restraint, and a strategic mindset. Traders with awareness can regulate their emotions and trade better by being aware of how emotions affect their decision-making process.

Skate.

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Mr Skate,

I would disagree that 'traders' can modify their emotional psychology to the point of being able to execute on a strategy that is at odds with their emotional psychology.

A strategy that is in conflict with a trader's psychology will always ultimately result in bad losses and potentially a blow-up. The strategy will be relentless in testing the discipline of the trader. Over time this will erode the discipline as the trader becomes emotionally exhausted. As discipline erodes, the probability of a complete breakdown in discipline will arise. That will result in a bad loss, possibly a fatal loss to the account.

The design of the strategy must be driven by the psychology of the trader. It is a mistake to design a strategy and try to (train) fit your psychology to the strategy to allow it to be profitable.

A person with a high loss aversion psychology will never successfully trade a system with a 52% win rate and R/R of 1:4, even though it will (potentially) be highly profitable. The constant losses will drain their emotional bank over time. A bad run of say 5 consecutive losses that has just under a 76% probability of occurring, will wear them out.

A far better strategy for them will be a higher W/L % and accepting a lower R/R but having really tight control (stops/exit/etc) in that smaller number of losses. For example a W/L of 75% with say a R/R of 1:1.5 has a probability of 5 consecutive losses at 4.4%. That is probably something that they can live with.

You also have in another post the 'probability' of W/L. This is really a loaded statement. Are you talking about their 'edge' or are you talking about the probability of price moving from X to Y?

Are the 2 (even) related?

jog on
duc

ducati916 said:

I would disagree that 'traders' can modify their emotional psychology to the point of being able to execute on a strategy that is at odds with their emotional psychology. A strategy that is in conflict with a trader's psychology will always ultimately result in bad losses and potentially a blow-up.

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@ducati916 I apologise if I've given you an opinion that differs from what was intended. Although, the notion that traders can't manipulate their emotional psychology to the extent of executing a trading plan that contradicts their emotional psychology is debatable. In the next post, I'll explain how conditioning works as an example.

While traders can concentrate on managing and regulating their emotions to some extent, it may not always be possible to execute a trading strategy that is at odds with their emotional psychology of which we both agree. It is critical for traders to be aware of their emotions and to manage their tension when trading.

To avoid making impulsive decisions that can harm their strategy performance, traders must be mindful of their emotions and manage their stress levels when trading. While traders can focus on managing their emotions to some level, it is critical to establish a trading strategy that matches their psychology in order to achieve long-term success.

To summarise, traders should prioritise developing a strategy that aligns with their mindset and concentrate on managing their emotions in order to properly execute that plan.

Skate.

Skate said:

How to think
The 'Dump it here' thread is designed to condition traders how to think, how to be aware of their emotions. Stress from trading can be hazardous to your health & certainly to your wealth. I'm a firm believer how one handles stress when trading can be the difference between being profitable or a dead set loser. You only have to read some of the words other posters use to gauge their emotions.

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Skate said:

Platoon Sergeant
We have all seen it in the movies when a Platoon Sergeant shouts at the new recruits, stressing & confusing them - do you ever wonder why they are so mean, shouting loudly into their face?

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Skate said:

The answer
It's so the new recruits are conditioned to handle stress from the get-go, ensuring they make calm, measured decisions under enormous stressful combat conditions, their lives will depend on it. This is the very reason why it's so important to control our emotions & stress when trading giving us the ability to make calm measured trading decision because our wealth will certainly depend on it.

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The focus of a Platoon Sergeant
Platoon Sergeant yells at new recruits to prepare them for stress and strain in tough situations. Military training is designed to simulate the high-pressure, chaotic environment of combat, and soldiers must be able to maintain their focus and make sound decisions in such situations. Platoon sergeants try to instill a sense of urgency and stress their recruits by shouting loudly and angrily, requiring them to concentrate and react quickly. Over time, recruits become accustomed to the rigours of training, and they learn to compartmentalise their emotions, think clearly, and carry out directives successfully even under the most stressful circumstances. Finally, in conflict, this training can mean the difference between life and death, and it is a crucial component of military training regimes around the world.

ducati916 said:

I would disagree that 'traders' can modify their emotional psychology to the point of being able to execute on a strategy that is at odds with their emotional psychology.

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As I said, it's debatable if traders can modify their emotional psychology but I'm also in the camp, that recognises "where there is a will there is a way". With effort and determination, anything is possible within reasonable limits.

Skate.

"Trading for Beginners - Skate's Practical Guide to Profitable Trading"
A daily series of posts aimed at those just starting out on their trading journey.

19. Trading is full of uncertainties
The trading process is complicated, and a risky endeavour filled with uncertainty that requires careful manoeuvring. Managing uncertainty is critical for successful trading. Traders must recognise that they are operating with incomplete data and that each trade carries a unique risk of loss.

A well-defined trading plan that considers risk management, and probability analysis, can help in controlling this uncertainty. Making well-informed trading decisions based on data-driven research can provide traders with a competitive advantage over those who rely on intuition or emotions, distinguishing trading from gambling.

Traders using a methodical approach can also identify areas for improvements to optimise profits while minimising risks. By researching and applying effective trading techniques, traders can achieve more consistent returns. Trading is a competitive environment filled with uncertainties. That’s why you need to have an open mind to capture new opportunities and stay ahead of the curve by modifying trading techniques as markets shift unexpectedly.

In contrast to gambling, which is based on chance or luck, successful trading requires a combination of knowledge, talent, discipline, and emotional intelligence. Traders must recognise the inherent unpredictability in the trading process and actively manage it through proper risk management.

Traders can improve their chances of success and reach their financial goals by having a well-defined trading plan, remaining disciplined, and continuously educating themselves. Trading with a plan and a dedication to risk management, as opposed to gambling, can result in consistent profits over time.

Skate.

"Trading for Beginners - Skate's Practical Guide to Profitable Trading"
A daily series of posts aimed at those just starting out on their trading journey.

20. Our beliefs are difficult to modify
A variety of things influence our opinions, including our upbringing, education, and culture. Our beliefs can have a significant impact on our trading performance and decision-making.

Traders who fail to take into account a wide range of factors and information may miss crucial market trends, risk considerations, and prospective opportunities. This can result in poor decision-making based solely on emotions and short-term thinking, rather than a well-thought-out, long-term strategy.

As a result, it is critical to remain open-minded and examine many perspectives while making trading decisions in order to reduce risks and boost chances of success. To be successful in trading, you must approach it with a growth attitude, viewing losses as opportunities for learning and improvement. By assessing each transaction and pinpointing the source of any losses, we can improve our procedures and increase our success over time.

Some beliefs, however, may be strongly established and difficult to modify, even if they are detrimental to trading or other aspects of life. It is critical to become conscious of our beliefs, and emotions, and work actively to change them. A good mindset can help us control our thoughts and emotions, which in turn can boost our trading performance.

Being present and attentive is essential in trading since it allows us to stay focused and make reasonable, well-informed decisions. Although "mind-wandering" is a fundamental aspect of how our brains process information, it can cause emotional tension and poor decision-making.

To summarise, our trading performance and decision-making are influenced by our beliefs, ideas, and emotions. To limit the impact of these elements on our decision-making process, it is critical to stay present and attentive while trading. We can boost our chances of trading success by doing so.

Skate.

Skate said:

To summarise, our trading performance and decision-making are influenced by our beliefs, ideas, and emotions. To limit the impact of these elements on our decision-making process, it is critical to stay present and attentive while trading. We can boost our chances of trading success by doing so.

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Skate said:

Our beliefs can have a significant impact on our trading performance and decision-making.

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If you substitute the word 'beliefs' with the phrase 'the way we think' then this also plays a big part in trading success. As a matter of fact, for some people, like me, it has been the hardest most enduring obstacle to overcome.

Skate said:

It is critical to become conscious of our beliefs, and emotions, and work actively to change them.

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DaveTrade said:

If you substitute the word 'beliefs' with the phrase 'the way we think' then this also plays a big part in trading success.

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@DaveTrade you are correct as in much those two words are interchangeable as our "belief system" drives "the way we think". The way we think has a big impact on our trading success. It is not only about our views but also about how we perceive things.

Even when we are not conscious of it, "the way we think" is our belief framework, that is continuously at work. I am a great supporter of education and the dissemination of information that might benefit others. However, in the end, people's beliefs will determine whether they accept or reject anything.

While some people have an open mind and are prepared to examine alternative points of view, others may have a closed mind and reject anything that contradicts their own ideas.

It's critical to remember that if something resonates with us, it can make a big difference in our trading results. As a result, it's critical to keep an open mind and be willing to explore new ideas and information, even if they contradict our pre-existing convictions. By doing so, we may constantly enhance our strategy and our chances of success.

Skate.

Trading techniques can be daunting and intimidating to new traders
Many new to trading equate the phrase "strategy development" or "system trading" with complexity. However, relying on intuition is not a long-term trading strategy. To be successful at this game, I believe you must have a trading plan in place. However, with so many different trading ideas available, it can be difficult to know where to begin.

The good news
There are numerous simple yet efficient trading ideas available for beginners to evaluate. System trading helps you stay focused in making consistently smart trading decisions, that can result in long-term market success.

Patience and discipline are required for successful trading
Allowing a trading strategy to run its course without making too many frequent changes increases your chances of success. This entails monitoring and analysing its performance over time. Remember that a sound trading strategy combined with discipline and patience is the key to successful trading.

Skate.

Off-topic
I enjoyed watching the YouTube video "WTF Happened to Nuclear Energy?". In this video, they discuss the important issues that contributed to nuclear energy's downfall, including safety concerns, excessive costs, and political resistance. The high expenses of building and operating nuclear power facilities have made it difficult for nuclear energy to compete with natural gas and renewable sources such as wind and solar.

Deaths per unit of electricity consumption
The video examines some of the most significant nuclear mishaps in history, including the tragedies at "Three Mile Island", "Chernobyl", and "Fukushima". Widespread public fear and suspicion of nuclear energy seem unfounded with an evidence-based approach when discussing this energy source.


Skate.

Skate said:

Off-topic
I enjoyed watching the YouTube video "WTF Happened to Nuclear Energy?". In this video, they discuss the important issues that contributed to nuclear energy's downfall, including safety concerns, excessive costs, and political resistance. The high expenses of building and operating nuclear power facilities have made it difficult for nuclear energy to compete with natural gas and renewable sources such as wind and solar.

Deaths per unit of electricity consumption
The video examines some of the most significant nuclear mishaps in history, including the tragedies at "Three Mile Island", "Chernobyl", and "Fukushima". Widespread public fear and suspicion of nuclear energy seem unfounded with an evidence-based approach when discussing this energy source.


Skate.

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The latest developments in nuclear are SMR (Small Modular Reactors) and Micro SMR. Micro SMR's can power a single building and can fit in back of a large van, also they can be built in a couple of weeks. They only need to be refueled every ten years. A lot of interest in this around the world because it's clean unlimited energy that's now becoming cheaper and safer with new developments.

This is a Nice Data Dump you might all enjoy


Salute and Gods' Speed

Captain_Chaza said:

This is a Nice Data Dump you might all enjoy

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@Captain_Chaza thank you for the upload, it's a nice find. Lengthy youtube videos are normally a turn-off for me but "it must be worth watching" if you posted it.

When posting videos a short description of the content matter is always appreciated
The video in question is from an episode of "The Compound & Friends,". Barry Ritholtz a financial adviser and trader is joined in this episode by a panel of guests who examine the present situation of the stock market and the prospect of an impending crash.

The debate revolves around the fact that, despite concerns about inflation, rising interest rates, and other economic indicators, the stock market has continued to climb without a dramatic crash or correction. The panel discusses various possibilities for why this might be the case, such as the impact of government stimulus, the increase of technology stocks, and individual investor behaviour.

Throughout the episode, the guests engage in a lively and interesting debate, providing their market insights and analysis as well as their predictions for what might happen in the future. They also address bigger economic concerns such as income inequality and the Federal Reserve's role.

Overall, the video offers a thoughtful and instructive examination of the current situation of the stock market and the variables influencing its performance. It is a valuable resource for anyone interested in understanding market dynamics and the forces that shape them, carrying on from the comments I've recently posted about in my daily series,

Skate.

What struck me between the eyes is when Davis with (20 Billion USD in management) asked lots of his clients if a Monkey got the last 100 buying decisions correct in a row without a loss Would you buy the Next Buy

The overwhelming answer was NO!

It is just a MONKEY!

Josh Brown is one of my favourites Technical Analysts
He disguises his TA with a lot of Sweet FA because he does not want to be seen as a Monkey
( As we All Do)

Salute and Gods' Speed

"Trading for Beginners - Skate's Practical Guide to Profitable Trading"
A daily series of posts aimed at those just starting out on their trading journey.

21. Trading requires focus
Trading requires concentration and emotional intelligence in order to trade efficiently, we must retain focus in order to avoid making emotional decisions. Our thoughts are continually busy, something we often take for granted. We can learn more about how our minds work by pausing and evaluating our thoughts.

Silencing the mind for more than a few seconds, on the other hand, can be difficult because the mind is always gathering information and coming up with new thoughts. Because we are so accustomed to our minds' continual chatter, we frequently assume that our thoughts correctly reflect reality.

It is critical to understand how our ideas and emotions affect our trading performance and decision-making. Our thoughts tend to drive us in making rash decisions by jumping to conclusions without thoroughly considering all the relevant material. This is due to our "lizard brain," a primordial component of our brain that regulates our survival instincts.

This tendency of jumping to conclusions can lead to trading mistakes. Many people respond to a problem with the first thing that comes to mind, without properly contemplating if it is the correct decision. We may make better trading decisions by becoming more aware of how our minds work and controlling our thoughts and emotions.

Skate.

Skate said:

We may make better trading decisions by becoming more aware of how our minds work and controlling our thoughts and emotions.

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Skate said:

Our thoughts are continually busy, something we often take for granted.

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One very successful trader that I follow does twenty minutes meditation every morning and says it's one of the most important factors for being successful.

Skate said:

Trading techniques can be daunting and intimidating to new traders
Many new to trading equate the phrase "strategy development" or "system trading" with complexity. However, relying on intuition is not a long-term trading strategy. To be successful at this game, I believe you must have a trading plan in place. However, with so many different trading ideas available, it can be difficult to know where to begin.

The good news
There are numerous simple yet efficient trading ideas available for beginners to evaluate. System trading helps you stay focused in making consistently smart trading decisions, that can result in long-term market success.

Patience and discipline are required for successful trading
Allowing a trading strategy to run its course without making too many frequent changes increases your chances of success. This entails monitoring and analysing its performance over time. Remember that a sound trading strategy combined with discipline and patience is the key to successful trading.

Skate.

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Good morning
@Skate has documented succinctly through a series of posts some priority points necessary to achieve as a trader. All most pertinent and educational.

Above all else right from the get go rcw1 believes that a trader must be honest with themselves at all times.

There is no place to possess superiority complexes or arrogance. Being humble, honest and focused towards favourable end goals exhibiting steadfast character, which for mine, should better reflect in positive attitude towards trading.

Traders need to ensure their own front and back of house are in order.

Have a very nice Sunday

Kind regards
rcw1

DaveTrade said:

One very successful trader that I follow does twenty minutes meditation every morning and says it's one of the most important factors for being successful.

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Hi again DavTrade
rcw1 runs 6k’s regularly, well when the body allows … Cleanses the body and soul and clears, toughens the mind. Many problems are solved during the run and can lose weight too !!!

Kinda like bash oneself on the grog and then bash oneself running it off hopeless ? ha ha ha ha

Have a very nice day DavTrade

Kind regards
rcw1

"Trading for Beginners - Skate's Practical Guide to Profitable Trading"
A daily series of posts aimed at those just starting out on their trading journey.

22. It’s never too late
The Chinese proverb "The best time to plant a tree was 20 years ago". The expression "the second-best time is now" is a helpful reminder that it is never too late to begin pursuing your dreams.

Aspiring traders may be frustrated by lost opportunities or blunders in the past, but it's vital to remember that trading is always evolving, and there are always new opportunities to be had. Trading provides a one-of-a-kind opportunity that is tough to find in other professions, regardless of age or experience. While trading might be scary at first, it can also be incredibly rewarding both financially and personally.

One of the major advantages of trading is that no specific degree or educational background is required. Instead, having a strong desire to learn, constant attention to detail, and a disciplined approach to trading is what truly matters. There are numerous tools, such as books, online information, and software that can assist in developing a complete understanding of crucial topics such as technical analysis and risk management.

However, it is critical to realise that trading is always risky, and losses are an unavoidable part of the process. It is critical to enter trading with a thorough understanding of the potential hazards involved, as well as a disciplined approach to risk management. Anyone can learn to trade successfully and achieve their financial goals with the appropriate knowledge, mindset, and a half-decent strategy.

It should be noted that gaining the essential skills and experience may take some time and effort. It is vital to approach learning with a growth mentality, focusing on continuous improvement and a desire to learn from both successes and failures. While the route to success may not always be easy, the potential rewards, both financially and personally, can be great.

Anyone who is willing to invest the time and effort required to learn and apply the relevant abilities can enter the trading business. It is possible to attain financial success in trading with education, perseverance, hard work, determination, and a positive attitude. Anyone may realise their trading potential by staying focused on the present, committed to improvement, and overcoming doubts and regrets. The ideal time to begin trading is right now.

Skate.