Some Snippets on mental game

Discussion in 'Battlefield Psychology' started by wahlaueh, Oct 26, 2011.


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  1. dandannoodles

    dandannoodles Well-Known Member

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    Friends, I thought I would share something with you all tonight based on my chat with ChartNexus trainer to share some of my experiences over the past months.

    Q: When did you graduated from our ITP (ChartNexus course)
    A: June 2011 (started trading in Feb; was fortunate to have been using TA from the start)

    Q: Are you in overall nett gain since you graduated (no need say how much )
    A: To be honest, not really. But I will not be one of those people with inferiority complexes who only post winning trades. I recognize that I have some work to do on my trading psychology. Analysis-wise, have been rather accurate, but ever so often, I get hit by one of the 7 deadly sins below, and that's where the losses originate from. Take a look - sound familiar?

    1. Over-trading
    2. Hero trading (have both longs and shorts while trading the same time frame)
    3. Boredom
    4. Vengeance
    5. Copycat trading
    6. Impatience
    7. Self-doubt

    So every time you are about to click bull/bear, check whether you are exhibiting one of the 7 deadly sins. If you are, look for another opportunity instead.

    Q: Share more about your experience on how you trade
    A: Don't bother looking for the holy grail, that perfect trading system. Just stick to classical patterns and candlesticks. Entering on dips or on breakout - it depends on the market conditions. There are all these funny strategies out there that new traders love to test and trust me, you will probably lose money if you didn't invent it yourself. Simple is best.

    After doing some soul-searching recently, I realized that if I only trade with a preconceived trading plan and stick to it, the times when I'm right are a LOT more than when I'm wrong. Like a trained sniper, one must wait for that high probability trade and then go in without doubts.

    This is a difficult year to start trading in a year when direction is more often unclear than clear. (Omg is it a bear or bull market? Hurry up!) Inexperience really gets to you. There will be better times, so treat these times of adversity as a boot camp. After all, people with rough childhoods tend to emerge stronger, right?

    Let us become better traders together=)
     
  2. trendtrader

    trendtrader Well-Known Member

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    Waaa Piang eh.......the Speaker go toilet Ah Nee Koo eh........NABEH....he lau sai or wat ???!!! Faces32.gif

    Roll Trades1.gif
     
  3. wahlaueh

    wahlaueh Well-Known Member

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    Trading is really about psychology, the studying of the masses but much more than that, it is really a journey about discovering ourselves.

    No other activity comes close to offering the thrills and the spills that trading offers. The interplay of greed and fear, elation and regrets that plagues us, that seeks to render us powerless at times is something a non trader can never understand.

    As much as money management, methods (Technical Analysis and Fundamental Analysis) should be the corner stone and in the arsenal of every trader, mastering the mind should also be right on top amongst the skill set that every trader should develop.

    I am sure many amongst us have friends or relatives who have been washed out of the market. It is a well known fact that only a dismal percentage of traders are around after a significant amount of time. These are the winners, these are the people who have master the 3Ms of trading, Methodology, Mind, Money Management.

    How many times have we at one point of time or another followed a tip, followed a guru and lost money? That we willingly submit to them and choose to disregard the fact that we have a higher faculty that allows us to decide very well for ourselves. We have thought to ourselves, 'this guy is in the market longer than me', 'this guy has been proven right so many time'....Just at the critical moment, we decide to say YES, let us follow that one tip, and guess what? WHAM BAM, SEND ME A HAM, that was the only time amongst his 10 trades that he lost money, but for him he still has a 90% win record, but for you, a 100% loss record as far as I am concern when you trade with him.

    How many times have we lost sleep over our trades, when we kept open positions overnight, to squeeze that last bit of juice out and for the market to turn against us in a most ruthless manner with a vengeance that only an ex-wife could muster. And how many times have we alighted from a trade, for the trade to start on a exponential trajectory that could potentially generated so much profits that could have covered all our losses for the year. How many times have we paper traded and seemingly can command at will the direction that we want the price to move in our favour, but when we put in a real trade, for that trade to go right against us, a docile animal that once was leashed became suddenly went berserk and turn against us. I can give so many examples that will plunge that dagger deeper into your heart. But my intentions are pure, I am not a murderer, I am surgeon, and I am cutting out all those dead tissues, doing a heart transplant if you would allow me so that you can have a new heart, one that is no longer weighed down by the past but can look forward to the future.

    To stand out from the crowd, we got to think different, we got to become contrarian and go against the grain of what the herd is doing. Isn't it so simple, to always feel safety in numbers, to have the assurance that other people who are much older and much more experienced are doing what I am doing. I simply do not have the aptitude nor the attitude to stand independently to stand on my own....guess what, you are not alone, slow down your steps and look behind, as far as your eyes could take you, there are magnitudes moving right behind you. As a BB or CK, this is what I am thinking, I see the magnitudes before me, if I ever want to take them out, if ever I want to INSTIL MAXIMUM pain, because that is precisely what I NEED TO DO to stay one step ahead of you, all I need to do is whack one bomb right in the middle and that would cause total annihilation chaos. It is for this precise reason that because you guys are standing so close together that I am able to cause maximum destruction with minimum effort. On the contrary, if you can imagine, you are standing by yourself, or a tactical squad of a few of your trading buddies are running round, shooting and scooting, with a much smaller signature or target, the BB/CK would naturally have a much harder time to nail you down.

    News makers or financial journalists are no better than the excrement that should be confined to the sewerage to never see light nor day. If their hearts could ever be sliced through and fed to the famished dogs that have not fed for weeks, it is likely that they would be rejected outright and dogs will rather eat grass that day. Even a pungent and putrid corpse serves a noble purpose in the dissection anatomy room for medical students.

    While you might not want to anticipate a trade, you could always anticipate what twist they will come out next. Good times don't last forever, neither do bad times. Not everyday is a Sunday is a mantra that I abide by for years. Those of you with kids could easily attest to the fact that a child's terrible TWOS soon give way to a TERRIFIC THREES phase. Life cycles, moon phases and seasons are nature laws which is replicated also in the financial world.

    When there is a deluge of bad news, nothing is good enough and like wise, when the market decides to be bullish, no amount of bad memories can shake me off that bull. BB/CK and newsmakers often have an incestuous relationship that gives birth to a bastard offspring (both good news and bad news) that seeks to dry up our capital.

    Trade your Views and Fade the News....

    End of Part 1
    I need a toilet break:laugh4:
     
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