Jump to content

Welcome to the new Traders Laboratory! Please bear with us as we finish the migration over the next few days. If you find any issues, want to leave feedback, get in touch with us, or offer suggestions please post to the Support forum here.

  • Welcome Guests

    Welcome. You are currently viewing the forum as a guest which does not give you access to all the great features at Traders Laboratory such as interacting with members, access to all forums, downloading attachments, and eligibility to win free giveaways. Registration is fast, simple and absolutely free. Create a FREE Traders Laboratory account here.

brownsfan019

How best to fight the mental game...

Recommended Posts

Have a wonderful weekend, All! I am going to take some time off this weekend to do an aerobics benefit. It will calm me, clear my mind and hopefully raise money for a good cause. Please take care, and try to do something wonderful for yourself and for someone you love. Time is all we really have.

 

Namaste

 

Janice

 

Good Doc enjoy ¡¡ I will try to disconect myself too... cheers Walter.

Share this post


Link to post
Share on other sites

Thanks Doc and Walter.

 

Watched my brother overwork, he is still on Prozac 7 years later.

Came close to doing the same but stopped short of Prozac.

Watching a cousin do the same thing, risk trading off health to achieve goals.

Few understand what they stand to lose, by the time they learn its a bit late.

 

Yes, addictive nature, true.

Only a deliberate persistent intervention might succeed.

It does need to go on the list sooner rather than later.

 

Thanks for the wishes.

Regards

Share this post


Link to post
Share on other sites
Thanks Torero

Yes, I made things worse by demo trading on a $100K demo account which is a breeze compared to a startup account.

.....

 

The size of the stake has a lot to do with it.

I am comfortable with a certain level of risk or gambling, but as the stakes get higher there comes a struggle with risk aversion.

The strangest thing of all is that when I do take some damage it bothers me less, I can sleep like a baby afterwards, weird!!

 

This is the reason why demo accounts can't be real. You have to recreate the demo account as exactly real as possible, the same stake as you would start out in the real world. The more real you make it, the more seriously you can take it and imagine yourself more in that trading.

 

I think the 2nd part about sleeping better with big damage is most likely denial and not owning up the loss. Now acknowledging it will recreate these same losses/damage account.

Share this post


Link to post
Share on other sites

Torero

 

The mistakes were ones I have made before and partly continue to make.

The denial is more in continuing to trade without fixing them all.

They will repeat until they are fixed.

 

On the large account I could avoid losses by trading with the trend and letting a trade go into drawdown until the trend rescued it. It didn't stop me trading.

 

On a small account drawdown is paralysing, it is better to take the loss sooner so you can continue trading. Of course if you call the trend wrong and allow drawdown, that is double trouble. If you overtrade that is triple trouble, so guess what I did... yeh all three at once. The only thing I did right was close out at the mental (well chosen term) limit. Yeh, the price came back 50 pips the next morning too, rats.

 

A bunch of sadly familiar mistakes, the temptation to overtrade looks to be the most persistent denial. Go to so much trouble to analyse the market to reduce the gamble and then introduce gambles of my own making.

 

On the loss of equity, I was both fearful and determined.

I have tried to trade back blown demo accounts and know it is close to impossible. Nerves took the equity down to 60% before it came up again.

 

At that level it was serious but not desperate.

 

I think the reason I could sleep was that I recognized that stupid mistakes had caused the damage, not bad luck. Mistakes can be learned from.

Blaming luck would be a greater denial.

 

Overtrading should be less tempting as the equity becomes more comfortable. Less stress, less temptation. Less temptation, less stress.

 

It has been a full on 6 month battle against the forex learning curve to get this far. To me a 5k account is not a comfortable equity, 15k has been my initial target. The platform from which to approach the future.

Share this post


Link to post
Share on other sites

Doc

 

Some comments on an earlier post, then I will try to have less to say.

 

A Type Personalities and the markets-

The over-achievers may be drawn to the markets, challenge, reward, risk, ego validation, its all there for the adventurer. Just the cocktail they go for, make it a double, no, gimme the bottle. The markets are certainly not a place for the faint hearted.

 

Superwoman hits the wall-

With hitting a wall there is a loss of abilities or options in the sense that you have to treat some areas as no-go zones for your own protection.

With falling down a hole there can be a loss of dreams, the gut felt ones that are near the core of a person. Those can take decades to replace and then only with watered down versions in comparison.

 

In both cases perspectives are gained that few have, but at a hell of a price.

 

The brilliant thing about your dream is that it has a double reward system built into it. A fuller reward than the rest of us can take from the markets.

Well done, the constructive dreams are the hardest to find and pursue, but they are the only ones that really count for much.

 

Some quotes from Eleanor Roosevelt-

 

A woman is like a tea bag- you never know how strong she is until she gets in hot water.

 

Do what you feel in your heart to be right - for you'll be criticized anyway. You'll be damned if you do, and damned if you don't.

 

Great minds discuss ideas; Average minds discuss events; Small minds discuss people.

Share this post


Link to post
Share on other sites

What great posts! Thank you for sharing!

 

I believe that traders are "called" to trading. There is something about it that is haunting and daunting. Yes- there is certainly the element of Type A, as well as obsessive compulsive ( addictive) involved. The flashing lights and blinking signals, etc can be mesmerizing and hit right at the so-called "reward" areas of the brain which produce dopamine. THere is no legal substance as rewarding as money, so that plays into it as well.

 

Hitting the wall- Every great trader hits the wall. If you haven't hit the wall, you are not really in the game. It is what you do with what happens when you hit it that matters. Some don't even though that they have hit it and continue in denial. Others are so beaten down and defeated that they either turn to more self-destructive behaviors ( as if the markets are not punishing enough!) or crawl away in defeat and self- loathing and despair. Others manage to reconstitute themselves, step away, get it together and come back fighting.

 

Life and trading are never about what happens. They are always about how we handle what happens.

 

Thanks!

 

Janice

Share this post


Link to post
Share on other sites

Hi Doc : a technicall question here... can dopamine give a sensation of strength... (real one) that gives or puts you on a state of motivation that you can work more hours without feeling worn out ? and a state of optimism ? thanks Walter.

Share this post


Link to post
Share on other sites

Yes, Walter. Dopamine is one of the major chemicals that is responsibile for the feeling of being what is called "high." In fact, the street people know about dopamine which is one of the reasons they call some drugs "dope." Cocaine, which produces this sense of power, strength, stay up for hours, etc acts through release of dopamine in the brain. Hope this helps, Walter!

 

Janice

Share this post


Link to post
Share on other sites

Yes, Walter. Dopamine is one of the major chemicals that is responsibile for the feeling of being what is called "high." In fact, the street people know about dopamine which is one of the reasons they call some drugs "dope." Cocaine, which produces this sense of power, strength, stay up for hours, etc acts through release of dopamine in the brain. Hope this helps, Walter!

 

Janice

Share this post


Link to post
Share on other sites

Doc

 

The wellbeing/balanced sensation that comes with meditation is associated with alpha wave brain activity but I cant associate it with any single chemical. Do you know of which chemical or chemicals seem to be beneficially involved? May not be a simple answer.

 

Also depression tends to go with dopamine suppression, or have I got that back to front? I wonder why they dont sell dopamine instead to prozac, I don't trust that stuff, too many suicides when they come off abruptly. Might be better to stick with natural stuff imo.

Share this post


Link to post
Share on other sites

Hi Pyenner,

 

There appears to be enhancement of both alpha and gamma brain waves during meditation. The gamma waves are more difficult to see, but experients on experienced meditators ( primarily Buddhist monks- many of whom do little else but meditate) have shown a clear preponderance of gamma brain wave activity.

 

Re: antidepressant medication: The three main brain chemicals which are affected by antidepressant medications ( such as Prozac) are serotonin, epinehprine and monoamine oxidase. There is no antidepressant to my knowledge that affects dopamine selectively. Prozac and most of the newer antidepressant drugs are called selective serotonin uptake inhibitors. This means that they provide excess serotonin by blocking the normal serotonin reuptake at the connection between two nerve cells ( this connection is called a synapse and there are something like 10 quadrillion synapses in the human brain--lots of synapses!). Serotonin is known to be depleted in suicidal and depressive states, thus the use of Prozac-like drugs to treat depression. There are likely thousands of brain chemicals and our knowledge ( despite the decade of the brain and the logarithmic acceleration of technology) is still primitive in this area.

 

Hope this helps!

 

Thanks!

 

Janice

Share this post


Link to post
Share on other sites

these are all wonderful traders sharing. may all of you be bless with abundance of love, health and money.

 

being grateful with pocketed profit always - feel bless. print out the charts helps and fine tune stop-loss and profit taking. you see your profit taking signals and out you go. live your trading plan and be happy then you live longer as trader

 

What exactly is your psychology?

 

In short, your psychology refers to your emotional responses to a given situation…In trading, fear, greed, vanity, pride, hope, jealousy, denial - all these can affect investment decisions. Although your aim in the market is to maximize your profit and minimize your risk, emotions often make this easier said than done.

 

For example, traders who react emotionally, make the wrong decision – such as the common mistake of holding a losing position in the belief that someday it will become a winner.

 

This classic mistake is called loss aversion. Loss aversion refers to the tendency for people to strongly prefer avoiding losses than acquiring gains. Some studies suggest that losses are as much as twice as psychologically powerful than gains. Loss aversion compels most traders to hold a losing stock while it plummets downward. This clouded judgment clearly contradicts the trading adage “cut your losses.”

 

These investors also engage in other forms of irrational behavior, like attributing success to skill, and losses to bad luck. Worst of all, this is just the tip of the iceberg when talking about the other devastating effects of trading using your emotions.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.


  • Topics

  • Posts

    • DXCM Dexcom stock, great day off the 69.73 support area, from Stocks to Watch at https://stockconsultant.com/?DXCM
    • Depressions aren't real either... ??
    • Dear B4 #42, I heard you can't get out of bed and decided you were going celibate and shaved your head and “reconsidered” having children.  If it took Trump getting elected to get you to stop fkn every Dum, Harry, and Dick you meet, we’ll take it.  thx Sincerely just sayin’ zdo PS To all the other girls I loved B4 - https://www.youtube.com/watch?v=rVq0ONrSH-Q 😚
    • MDB MongoDB stock watch for a range breakout at https://stockconsultant.com/?MDB
    • Date: 12th November 2024. Market Buzz: Trump Trade Impact! “Trump trade” has boosted the US Dollar and US stocks, but Trump’s policies may have less favorable effects on global assets. Trump’s plan to raise tariffs is expected to negatively impact economies worldwide, especially exporters like China. Asia & European Sessions:   Bitcoin Surge! Bitcoin broke $90K, driven by Trump trade once again. Bitcoin is up roughly 110% in 2024, helped by robust demand for dedicated US ETFs, interest rate cuts by the Federal Reserve and Trump’s cryptofriendly agenda. Crypto market capitalization has exceeded its pandemic-era peak, reaching $3.1 trillion. Traders are betting on Bitcoin reaching $100,000 by year-end, according to data from the Deribit exchange. Open interest — or outstanding contracts — for CME Group Inc. futures for Bitcoin and second-ranked Ether (ETHUSD) scaled records on Monday, a sign of growing engagement by US institutional investors. Asian shares dropped, alongside European and US equity futures, as traders evaluated the implications of President-elect Donald Trump’s policy agenda and potential cabinet choices. The MSCI Asia Pacific Index fell for a third consecutive day, driven by rising Treasury yields amid concerns that Trump’s proposed tax cuts could increase inflation. There are also reports that Trump is considering two individuals for prominent roles in his administration with track records of criticizing China. DAX and FTSE100 are down -1.1% and -0.5% respectively, after a pickup in German HICP inflation and higher than expected UK wage growth dampened easing expectations. Investors await the US CPI report for insights into the Fed’s easing path, as Trump’s inflationary policies may lead to fewer rate cuts. Financial Markets Performance:   The USDIndex continues to rise and is currently at 105.75. It hit a 1-year high. EURUSD drifts to 1.0620 and GBPUSD is in a sell off, currently at 1.2800. Oil prices fell after their biggest 2-week decline, amid a weak demand outlook from China, a stronger US Dollar, and concerns over a potential oversupply. Crude oil has traded within a narrow range since mid-last month, influenced by Middle East tensions, the US election, and OPEC+ output decisions. Gold remains under pressure and is currently at just $2604.36 per ounce. It hit a one-month low, down 5% since Trump’s election victory, as a strong dollar and US equity rotation pressured the metal. Gold’s decline was also technical, breaking below the 50-day moving average, causing funds to cover long positions. Despite recent drops, gold remains up 25% for the year, supported by central bank purchases and geopolitical risks. Always trade with strict risk management. Your capital is the single most important aspect of your trading business. Please note that times displayed based on local time zone and are from time of writing this report. Click HERE to access the full HFM Economic calendar. Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding of how markets work. Click HERE to register for FREE! Click HERE to READ more Market news. Andria Pichidi HFMarkets Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.
×
×
  • Create New...

Important Information

By using this site, you agree to our Terms of Use.