Have you improved your trading psychology?

[margin]

Ever since I bought that DIY lobotomy kit, I've had no trouble with emotions getting in the way of trading.

What's a "DIY lobotomy kit" can you please explain this a bit ?

 

[iMusingKiMi]

For me Psychology is only risk of loss of real money.

One can be down 500 pips and still lose only $5, and one can be down 5 pips and lose $500 dollars.

For most retail traders, who are trying to make a living out of the forex markets, with $5k deposit, I am not sure if any kind of psychological course would work. Most retail is trying to double their money within a month. With such a wide spread attitude, the term "Psychology" is overrated.

Psychology of the retail game is a lot different from the Psychology of an institutional portfolio.

I don't think psychology is overrated in trading. Human born nature to be right, feared, greed, etc.

To be right: They doesn't like to admit their direction is wrong. They trade by using their "subconscious" or "deluded" mindset instead of what the market telling them to do. Another example is why a lot of trader always add more on losing position? This is another term of psychology example.

Feared: For instance, a trader putting on a trade having a few pips profit, their brain processed and will tell them, I better close the trade, otherwise it will come back and I will give back all the profit. Therefore, a lot of people couldn't keep their trade running.

Greed: As your previous example, they thought they can double up their account in less than a month. Hence, they are actually trading without money and risk management in place.

Only this 3 simple basic psychology that killed most of the trader out there. Therefore, I don't really agree what you mentioned that "Psychology" is simply overrated.

 

[iMusingKiMi]

Ever since I bought that DIY lobotomy kit, I've had no trouble with emotions getting in the way of trading.

Nice one mate. But can you please explain more and share with us your experience? In fact, I believe on 20% technical analysis, 80% consist of psychology in trading. Therefore, I always search something that can improve and get away from emotion.

 

[Whitesnake]

What's a "DIY lobotomy kit" can you please explain this a bit ?

Well even i had the same question and hence giving you the answer, "The DIY lobotomy" is a procedure to increase productivity and decrease stress, more like a creative thinking workshop and in Amazon this book is available for $32. Pharaoh can give you more opinion on this as he has already learnt from the workshop.

 

[iMusingKiMi]

Well even i had the same question and hence giving you the answer, "The DIY lobotomy" is a procedure to increase productivity and decrease stress, more like a creative thinking workshop and in Amazon this book is available for $32. Pharaoh can give you more opinion on this as he has already learnt from the workshop.

Nice, thanks for the information.

 

[nahiyar]

I improved my trading psychology with passage of time as i trade in market. In start i was much emotional , feel loss too much and remain in tension.Then I change my thinking, I did low risk trading, Try to remain away from emotions . If I had no good market analysis I skip trading until market is not suitable for me. This thing make me confident.

 

[ForexVerified]

If you're stressed whenever you opened a trade it means you're trading more than you can handle. Try lowering lot size until you become consistently profitable. Otherwise you'll find it hard to control your emotions when you see your equity melting away.

 

[arigoldman]

But sometimes stress can be a good motivator and keep you aware of what's going on in markets.

 

[ForexVerified]

But sometimes stress can be a good motivator and keep you aware of what's going on in markets.

Maybe, but many traders would rather avoid as much stress from trading as possible.

 

[Apip_saepudin]

Both ideas won't make any difference. High possibility to lose everything in a short period of time.

As long as no crucial news for the market, both signals and robot are useful to gain some profits.

About trading psychology, train it by doing some trades. You might get yourself shocked when you lose big amounts of your real money, but that's how to train your trading psychology. Master your emotions is a big deal to your future trading...