The psychology of the successful trader. - page 3
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For lovers of the psychology of manual trading from the creators of MT:
As a matter of fact, here I am not only trying (with the help of respected gentlemen present on the forum) to find out the psychological qualities of a successful trader, but I also want to show the rare combination of all these qualities in a single person. From which the necessity of algotrading for the success of everyone else arises.
Now this is an interesting point. Has anyone studied this phenomenon scientifically? If it is true (and a person does not know what his subconsciousness is focused on), then to be successful a trader must work with his subconsciousness (by methods of auto-training, psychoanalysis, self-mindfulness, etc.)
Yes, there is an interesting article by a professional psychologist:
https://www.allforeasylife.ru/foreks-zavisimost/
Task 1.
Given:
I know a Tajik man (for real).
He went from $5,000 to $40,000 in a month or two.
At the same time, he was working at an auto-repair shop and asked me to make a robot on his strategy.
While I was finishing the development of the bot he managed to lose all his deposit by trading with his hands.
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Question: What happened to him? What happened to his psyche that caused him to lose so much money?
What pitfalls are there inside the soul that a man makes gross mistakes?
Task 1.
Given:
I know a Tajik man (for real).
He went from $5,000 to $40,000 in a month or two.
At the same time, he was working at an auto-repair shop and asked me to make a robot on his strategy.
While I was finishing the development of the bot he managed to lose all his deposit by trading with his hands.
================================================================================
Question: What happened to him? What happened to his psyche that caused him to lose so much money?
It is possible that he did not always strictly follow the strategy. Even if he did, there could be very weaknesses in the strategy itself. Actually, in 2006 when I first learned about forex I was training on demo accounts. In the first month I doubled my deposit, but there were huge drawdowns, and I almost lost money several times. During the second month I have increased my deposit about 100 times per night: I was opening with maximal deposit load, when market was in turbulence after news. Up and down by 50-70 pips several times. And each time I opened with larger lots as the deposit grew. All deals are instantly executed on the demo, unlike on the real market. That is why I managed to make the whole move. After this case I naively decided that there would not be slippages and requotes on the real account. I opened an account with a Baltic, which no longer exists. As a result, every deal was opened and closed with such difficulties that I simply could not trade without pending orders. But I did not have enough knowledge to place them correctly. In the end, I struggled through 30% in a month, took the money out with a scandal (they wouldn't let me withdraw it for a week) and gave up for a few years: I was psychologically broken.
If Iset myself up for losses - there is a very important psychological aspect here as well (your trading strategy aspects come next). You are, paradoxically enough, properly programming yourself. Here confidence in yourself and your winning (which is undoubtedly very positive in almost all other activities) can, on the contrary, play a very bad role here (in the market). Some people, for example, are bluntly convinced that they will win and that the price will eventually turn around and stubbornly sit tight until "Uncle Kolya" comes along.
It was like this at first, until I started looking at older periods. We hold on trend longer, against a little bit :)
It is quite possible that he did not always strictly follow the strategy. And even if he did, the strategy itself may have some very weak points. Generally, in 2006 when I first learned about forex I was training on demo accounts. In the first month I doubled my deposit, but there were huge drawdowns, and I almost lost money several times. During the second month I have increased my deposit about 100 times per night: I was opening with maximal deposit load, when market was in turbulence after news. Up and down by 50-70 pips several times. And each time I opened with larger lots as the deposit grew. All deals are instantly executed on the demo, unlike on the real market. That is why I managed to make the whole move. After this case I naively decided that there would not be slippages and requotes on the real account. I opened an account with a Baltic, which no longer exists. As a result, every deal was opened and closed with such difficulties that I simply could not trade without pending orders. But I did not have enough knowledge to set them correctly. As a result, I struggled to make 30% in a month, took the money out with a scandal (they wouldn't let me withdraw it for a week) and gave up for a few years: I was psychologically broken.
I think the right approach is to use pending orders. No one knows where the price will go and by how much. The only thing that works (in my humble opinion) is levels. Psychologically, it is easier. You set orders and forget about them for some time.
p/s. Let's open a thread about levels. Who sees them and how they are defined. What is a level, a fixed price or a range.
It was like this at first, until I started looking at older periods. On the trend we hold on longer, against a little bit :)
p/s. Let's open a thread about levels. Who sees them and how they are defined. What is a level, a fixed price or a range.
p/s. Let's open a thread about levels. Who sees them and how they are defined. What is a level, a fixed price or a range.
I operate (I use it in trading) with the notions of probability density and its evolution. Levels, channels - they are mainly the ways of viewing the history.
Although, it is possible to identify long bands where the price "treads" the most frequently and identify (or rather define) these bands as levels.