Trading Method or Trader's Mindset, What's More Important?

[cornixforex 10]

This is often discussed question. For me the answer is proper trader's mindset is more important than particular trading method. The reason for that is that during my trading career I met many successful people as well as those who tried and failed. I also myself failed many times before became more or less consistent.

 

All consistently winning traders I know have their own style. Some use pure price action, some add volume to that, some extremely successful people use stochastic indicator, others use CCI... There are those who use all together as well. They only have one thing in common: they know their style like their own hand and they are very disciplined in following it correctly, so they can be called true professionals.

 

From the other side, most of consistent losers have the habit of trying new methods again, again and again. I was not an exclusion from the rule. I tried nearly every trading method I could find on the Net, read about in the book or buy from some vendor. Some I tried more than once, some more than 5 times... I was running in circles so to say, looking for Holy Grail.

 

Until realized that it must be not the method issue and Einstein was right when said, "Insanity: doing the same thing over and over again and expecting different results." I was trying different methods, but basically did the same thing over and over again by trying a trading method, getting a loss or a couple, dropping it and trying to find another...

 

What changed it, was a little of self-analysis, which made it clearly obvious: the problem is my wrong mindset. It is plain wrong to look for a miracle, which would make you huge profits, would preferably not make big losses and be mechanical enough to follow it easily right from the start. Sounds like a trader's dream, huh? Well, yes.

 

So when I realized that all I need is take ANY forex trading method I more or less like and practice it with DISCIPLINE, situation suddenly started to improve. And funny, but the more I practice one single method, the better results become. Percent of losses really decreases, winners really become bigger and it becomes easier and easier to follow rules...

 

The moral of the story: if you want your dream to come true, do not look for a grail somewhere outside you, better put all efforts into becoming the true ace professional yourself... The only way to make your career easy is follow the seemingly hard way of deliberate practice and training... But I must tell you, it is much less painful than consistent losing for years. Believe me, I've been there...

[robertotrader 10]

Psycho is the multipler of your edge. If you have no edge, no psycho will save you.

[cornixforex 10]

Psycho is the multipler of your edge. If you have no edge, no psycho will save you.

 

Edge by itself is often the result of deliberately practicing the particular trading method (except purely mechanical approaches).

 

So it is not possible to gain an edge until you practice the method with the proper mindset and discipline.

[Tams 20]

without a mindset,

there will be no method.

[robertotrader 10]

Edge by itself is often the result of deliberately practicing the particular trading method (except purely mechanical approaches).

 

So it is not possible to gain an edge until you practice the method with the proper mindset and discipline.

 

You're correct, too! Good observation; without discipline and consistency there is no measurable edge. Thank you for pointing out that aspect.