Why Traders Continue to Fail - When They Are Trying Hard Not to Lose

[DbPhoenix 42]

I have just scanned your 33 lessons in 'Zen and the art of poker'

I deliberately only read the core of each lesson and all I saw was 'acceptance'

Now you may have another name that you prefer, but to me Zen is 'acceptance'

in that you accept what is (the reality) and use it to your advantage.

 

To me also, Trading is the same, exactly the same.

 

But then I'm not afraid of it.

 

Only so much can be done on message boards. I appreciate your comments.

[4EverMaAT 10]

I'm not sure you understand what I'm saying, so you appear to be agreeing with the wrong thing.

 

I don't know that I really want to get into this here, but, for the moment, I'll say this much. While you acknowledge fear, you also circumvent it, just as nearly everyone else does, including psychologists, and begin talking about risk (not unlike those who pooh-pooh simtrading because there's no "risk"). But it's not about risk; it's about fear. And the fear stems from a thorough lack of knowledge of what motivates price movement. Since the failing trader has no understanding of this (and, often, the individual who's trying to help him), he is forever seeking someone to follow, some method to use, some indicator to plot, even to the extent of using some mechanical and/or automated system. But, again, all this does is circumvent the central problem, a brace on a broken leg, morphine against the cancer. This is not unlike the manager who must deal with employees but has absolutely no idea how to do so, believing that taking a workshop or reading The One-Minute Manager will solve his problems. But they don't, because skills are not the problem, any more than "patience" and "discipline" are the central problems for the failing trader.

 

My understanding of the markets is mainly that there are buyers and sellers constantly coming together to agree on a price. The various market participants vote with their feet (hard cash) their purchasing decisions at all times of the day while the market is open. The change in price simply represents a change in agreement. This change in price can be measured objectively.

 

I do agree that the loser trader is in a near perpetual state of trying to find that which can never be lost. And the classic "blind leading the blind" scenario perpetuates the losing, until the adequate discontent sets in which causes the loser to look more honestly at the situation, including any fears that are in the way.

 

.....

Magee addressed this back in the forties. There may have been others before him, but so little of that survives, it's not always easy to trace these threads. It's tempting to suggest that systems and indicators have only made the problem worse because they hold the promise of enabling the trader to avoid addressing his fears for the foreseeable future. But of course they don't. Fear is far more central, and has been lurking in the shadows for millenia.

 

Your quote about religion is apt, but it somewhat misses the mark. Fearful traders do approach trading in much the same way as the religious approach religion, the latter being motivated by a fear of death. There are rituals to perform, actions to be repeated, truths to be denied. In both cases, we "run" from that which we ought to embrace.

 

Well said. It is difficult to put the truth into words. Using one set of symbols to describe another set of symbols that we see. But symbols aren't so bad when they are used as a tool for communication :helloooo: The reason why I advocate systems is because of the ability to put repetition in action. Ramit Sethi put it this way in his Big Wins Manifesto:

 

Next time you hear the same old tired advice of keeping a budget, or cutting back on $2 lattes [or any other method/system that is not producing desired results], ask yourself: Has that really worked for the millions of people who’ve tried it? Are they really not “trying hard enough”? Or is there perhaps a systemic problem urging people to waste their limited cognition on near-meaningless tasks with little reward…and should we instead focus them on high-leverage areas that will result in massive payoffs?

 

Following exact steps to produce a certain concrete result is transparent and measurable. Then the user can focus on the fun stuff (exploring the possibilities of the system), rather than being bogged down with repetitive tasks. We only have so much attention and so it should be focused on measurable results, not chasing some exotic indicator. You hinted earlier about how a basic understanding of market price action is needed, but rarely if ever actually sought after.

 

"We pick our teachers and we get what we want" (Jed McKenna). So perhaps the student has implemented a trading method/system 100% to the best of their ability and have not received the results they are looking for. Wouldn't any honest seeker would go through the steps of the system to see where the problem lies? Maybe only minor adjustments need to be made like position sizing. Maybe the whole system needs to be tossed out or replaced for a new system that can give you the reproducible results you desire.

 

But there is only one way to find out. And it doesn't take years and years of stalling; its mostly a matter of having the courage to insist on those reproducible results. The same way you would insist on it for a car, boat, airplane, blender, or other mechanical systems you are surrounded by and/or use nearly everyday. Death awareness can be life affirming, and it doesn't necessarily require a major accident. Large drawdowns or "blown accounts" would be the death equivalent to losing it all or significant enough amount for you to begin the process of more objective system/self analysis. One of the most interesting aspects of death awareness was really the fear of being alive.

[TheDude 10]

Clearly I see things from a different perspective than most folks

 

 

Most of my "process" isn't about trading per se....learning how to trade is actually pretty straightforward (I can show someone how to do it in about 3 months time)....what I see as the primary obstacle is the developmental delay and the attendant character issues that show themselves when the student encounters ANY problem, ANY delay of gratification, or has to take the initiative to do something on their own...finally the issue of risk is also paramount...people with adolescent or childlike personalities cannot tolerate risk, and that shows itself in the inability to hold a position long enough to make a profit (as just one example)....

 

I think it is no surprise that so many try to learn this profession, and fail...

 

Best of luck to all

 

Steve

 

I agree.

 

Not meant to be a pissing contest, but Ive worked with firms where traders get to profitability after 1-2 months.

 

Of course, this is in a professional environment, trading a professional strategy. And before everyone pm's me here is the strategy:

 

trading calendar spreads against each other to build a fly and then getting out either as a fly or in on a fly and out in cals. no charts, no ta, just maths and knowing how 2 markets relate to each other, and understanding the whole curve - be it wheat, corn, eurodollar, nat gas... This is the basic strategy taught at prop firms the world over.

 

To do this, you need focus, determination, discipline to focus and basic maths skills that anyone with average intelligence can build through mental rehearsal. low costs are also needed - but such costs are available to a retail trader if he applies himself in a business like fashion through exchange schemes and professional brokers (forget IB!).

 

the down sides? none other that the determination. ok, you can be sitting on multiple trades waiting for them to fill which will be boring as hell to those of you looking for a quick fix like you do trading outrights in crude or fx (and then try and convince everyone risk is high on your agenda! lol - what a freakin' joke!!).

 

why wont anyone here be able to do this?

 

because most here a losers. losers lose. that is a fact of life.

 

losers would rather keep chasing their tails trying to day trade off charts, kidding everyone they are successful, when real traders know either they are lying, or 1 in a million. Whichever it is, its a lot easier to day trade without charts once you understand what trading is, which some of these gurus dont.

 

keep looking at your charts kids, and keep beating yourself up wondering why its taking you YEARS to learn after reading 10000's of guru's empty posts when others get it in 1-2 months because they approach from a different angle.

 

there was no psychologist at this firm, no mental 'peak performance' crap, just kids out of college who want to make money. All there was was an afternoon talking about mental toughness and not giving up when times are tough.

 

I'm sorry Randy & Co, but if you need all this introspection and self-analysis then the problem probably isnt the individual, but the method being taught - which is probably TA/chart based. You dont see any other profession with so much BS written about it like trading!! (as Steve sort of eludes to)

Edited April 14, 2013 by TheDude

[equtrader 10]

Trading is math and statistics and a share of good luck. Any other approach is doomed to fail and 95% of traders will fail because they don't understand math and statistics.

[steve46 12]

I agree.

 

Not meant to be a pissing contest, but Ive worked with firms where traders get to profitability after 1-2 months.

 

Of course, this is in a professional environment, trading a professional strategy. And before everyone pm's me here is the strategy:

 

trading calendar spreads against each other to build a fly and then getting out either as a fly or in on a fly and out in cals. no charts, no ta, just maths and knowing how 2 markets relate to each other, and understanding the whole curve - be it wheat, corn, eurodollar, nat gas... This is the basic strategy taught at prop firms the world over.

 

To do this, you need focus, determination, discipline to focus and basic maths skills that anyone with average intelligence can build through mental rehearsal. low costs are also needed - but such costs are available to a retail trader if he applies himself in a business like fashion through exchange schemes and professional brokers (forget IB!).

 

the down sides? none other that the determination. ok, you can be sitting on multiple trades waiting for them to fill which will be boring as hell to those of you looking for a quick fix like you do trading outrights in crude or fx (and then try and convince everyone risk is high on your agenda! lol - what a freakin' joke!!).

 

why wont anyone here be able to do this?

 

because most here a losers. losers lose. that is a fact of life.

 

losers would rather keep chasing their tails trying to day trade off charts, kidding everyone they are successful, when real traders know either they are lying, or 1 in a million. Whichever it is, its a lot easier to day trade without charts once you understand what trading is, which some of these gurus dont.

 

keep looking at your charts kids, and keep beating yourself up wondering why its taking you YEARS to learn after reading 10000's of guru's empty posts when others get it in 1-2 months because they approach from a different angle.

 

there was no psychologist at this firm, no mental 'peak performance' crap, just kids out of college who want to make money. All there was was an afternoon talking about mental toughness and not giving up when times are tough.

 

I'm sorry Randy & Co, but if you need all this introspection and self-analysis then the problem probably isnt the individual, but the method being taught - which is probably TA/chart based. You dont see any other profession with so much BS written about it like trading!! (as Steve sort of eludes to)

 

well I don't want to continue to beat this horse...so I will offer one short & sweet comment

 

From my seat, and after several decades of seeing the parade go by....it looks to me as though there are a few ways to make money in this profession. Some of these methods are available and viable for amateurs, retail trader whatever you want to call non-pros...and if you have the sufficient capital and you can be disciplined, AND you can tolerate risk, it works...I've seen it often enough to know....

 

The problem is that people discount the psychology...yes there are skill people who can look at what you do and see if you are in some way causing your own problems, but there is a bottom line here, and that is the legacy of your childhood...you either have the ability to tolerate risk (to tolerate delayed gratification to use the jargon) or you don't and if you don't it is going to take an act of congress to change....so why not just go with what you have....become an investor, buy bonds, long term stocks, bank CD's, why try to fit into a coat that was made for someone else?

 

I spend most of my time telling people that I'm not the right person to teach them....and why...mostly because I am trying to be polite...when in fact what I really should say, is that no one is going to be able to teach them, because they really should be doing something else with their lives....

 

Sorry if that pisses some folks off, but after I while you just have to say it like it is....

[TheDude 10]

well I don't want to continue to beat this horse...so I will offer one short & sweet comment

 

From my seat, and after several decades of seeing the parade go by....it looks to me as though there are a few ways to make money in this profession. Some of these methods are available and viable for amateurs, retail trader whatever you want to call non-pros...and if you have the sufficient capital and you can be disciplined, AND you can tolerate risk, it works...I've seen it often enough to know....

 

The problem is that people discount the psychology...yes there are skill people who can look at what you do and see if you are in some way causing your own problems, but there is a bottom line here, and that is the legacy of your childhood...you either have the ability to tolerate risk (to tolerate delayed gratification to use the jargon) or you don't and if you don't it is going to take an act of congress to change....so why not just go with what you have....become an investor, buy bonds, long term stocks, bank CD's, why try to fit into a coat that was made for someone else?

 

I spend most of my time telling people that I'm not the right person to teach them....and why...mostly because I am trying to be polite...when in fact what I really should say, is that no one is going to be able to teach them, because they really should be doing something else with their lives....

 

Sorry if that pisses some folks off, but after I while you just have to say it like it is....

 

You make a fair point.

 

I'd just add to that though by stating there are many ways to trade. Finding the approach that is right for the individual is key.

 

Intraday trading off a chart using some sort of momentum based strategy is probably the toughest of all. We all know the failure rates. Yet this is the only approach most retail traders try. It looks easy (simple pattern recognition and simple maths, throw in some back testing and off you go), but as many have found out, it's really a coin toss as the markets are ever changing.

 

In the example I posted above of spread scalping, I'd be the first to admit, that it's like watching paint dry for some. These guys are trying to catch a tick or 2 - often taking hours or a day in some markets to do so. You have to be managing a lot of orders in a lot of markets. On the trading spectrum, I'd say it's way at the other end of the scale to an FX trader trying to grab 40 ticks with a 2 lot on every trade. One is a skill, with a defined and quantifiable edge based on pricing dynamics, the other is a high octane gamble. One will appeal to a methodical, analytical thinker, the other to someone who's probably more emotional in nature and searching for a high.

 

One method has a success rate of 60-70% for those who enjoy it/well suited, the other has a success rate of say 15%. Some trade!

[SIUYA 11]

YI'd say it's way at the other end of the scale to an FX trader trying to grab 40 ticks with a 2 lot on every trade.

 

i think you are being generous here

.....my guess is many watch paint dry to try and grab the illusion of 40 ticks, but end up only taking 10, while those few that are sucessful take far more than 40.

 

This maybe be one of the end results of why many traders fail - what causes this is the elephant in the room in the discussion.

[johnw 10]

Trading is math and statistics and a share of good luck. Any other approach is doomed to fail and 95% of traders will fail because they don't understand math and statistics.

 

Hi equtrader,

 

Yes, that is the attitude that most people bring into trading, only to experience disappointment, followed by more disappointment as they continue to ram math and stats at the infinite world of trading.

 

Steve46 and some others view the trading world from a realistic point of view.

 

The question then arises as to whether a risk adverse Person can change into a Risk Manager.

It all depends on how badly they want it ... assuming they can accept that the problem is them in the first place.

Most people never get past this acceptance stage ... and the very few who do, then face the commitment to change.

By this stage, the Survivors of this self selection process are reaching a place of acceptance and are finally beginning to see and enjoy the real world of trading.

[steve46 12]

For those few who take the time to really think about these issues

 

There are only a few valid methods for approaching markets and they ALL require the following steps

 

1. Characterize the target market (how it moves through time)

2. Based on that characterization, find a systematic approach that provides a way to accurately forecast price movement while adequately managing risk

3. With adequate capital, execute the plan in a disciplined manner while periodically evaluating your progress.

 

Markets change periodically, and THAT is why there are so many methods talked about, sold and then discarded as useless....I used to teach people to see all of this in the proper perspective by demonstrating how it is done...step by step....what I found was that people (that include just about everyone here) didn't want to know or be involved with any but the last step.....too bad really because IMPLICIT IN THAT THIRD STEP IS THE NEED TO GO BACK AND DO IT ALL OVER AGAIN

 

I have to freaking laugh at the naivete....everything in this world requires maintenance and eventual replacement....in order to maintain a business, it has to change with the times, and that includes trading....that's why I suggest (claim, state, whatever) that people who are serious about making money need to find someone who can demonstrate how...not just sell them an idea, an indicator, a system, a chart package....etc)....

 

and that's why statistics alone, indicators alone, buying someone else's system or package or crap....won't work, has never worked and will not work in the future...if you want to do more than just be cannon fodder you have to take time to really learn how the markets work...from someone who can do it (trade) in front of you.

 

Good luck

[TRADEZILLA 10]

Everyone brings out really good points and I can't disagree with any of the posts really.. This might be a simple solution; For those that may have psychological obstacles that are hard to identify or pin point, why not focus on an automated approach to trading, where psychology becomes a non-issue.. I've heard many traders have found success with that approach so it must be possible.

 

Discretionary trading is execution and skill based and how we respond psychologically has high impact on execution and read on the market.. Whenever traders respond unreasonably despite the reason why (which can be all over the board), I automatically assume they're loosing traders unless they trade automated where psychology and emotional response has no impact..

[ntrader 10]

Most traders lose money because they can not control their emotions and they don't have any money management rules and targets

[steve46 12]

Fully automated trading requires skills most folks here don't have....from the ability to conduct good research to programming to maintaining good records and having the skill to analyze results periodically to insure your system is still working....for those who have those skills OR are willing to TAKE THE TIME TO LEARN them....that is a good alternative...

 

What many are missing here is hidden in title of Randes' thread...."when they are TRYING HARD.....

 

It should be obvious but I would like to put a bit more emphasis on this because it is crucial to everyone's understanding of what is going on....it isn't about your conscious behavior....he is point a finger at those issues that aren't in controlled by a person's conscious mind...but by our subconscious.....that's why you can say you understand, and that you "get it".....and still be unable to do the right things at the right times.....THAT IS WHY I SCREEN PEOPLE who ask to come into my classes.....precisely because I know in some instances they simply won't be able to make it work...and that leads to (needless) disappointment and anger....

 

My suggestion is to screen yourself first and take inventory of who you are and what you have to work with...ask yourself these important questions

1. In my professional life....am I or have I been able to be successful

2. In my personal life....do I have good relationships with others...

3. In the pursuit of success trading....have I given myself the best possible odds of success, by putting the best tools in my hands...what has the result been (if not....why).?

 

These are just a few of the questions that I ask folks who want a seat in my class.

 

If you have problems in these areas, it may suggest that you have issues to resolve before you can find success in trading (or anything for that matter)...

 

Good luck

[TRADEZILLA 10]

@Steve,

 

Fully automated trading do take skills of-course but there is no execution factor to deal with as its automated.. Execution is what separates discretionary traders.. how they choose the set ups, how they hold/fold and etc..

 

I think there may be some connection between past business success and interpersonal relationships to a small extent only in that it might reveal some emotional maturity but we all know its not uncommon for very successful people in other endeavors to fail at trading..

 

Trading is an individual endeavor and self awareness is clearly more important than social skills.. True emotional maturity and immaturity can be seen in the way people respond emotionally.. Often you will see that those who appear humble in presentation are often very egocentric in reality.. A sure way to see this in trading forums is when another trader does not focus on content but on the person, wanting to be right and etc.

 

The way we respond emotionally in our interactions may be telling in how we might respond in our trading decisions when reading the market and seeing it the way we want to see it rather than what it is in its totality..

 

I've seen this many many times in trading forums and I'm sure others has as well..

[jim2000 10]

Why do traders fail? Why did I fail?

 

It's really very simple, in the attached chart you see thousands of times on thousands of charts, look on any chart and find this pattern. It pertains to any market that goes up and down. In any time frame.

 

When price is doing this, i.e. going up, be long. Have a position.

 

When price stops doing that, get out.

 

You have to determine where to get in, (context), when to get out, (when price reverses momentum), and whether or not to get back in, rinse and repeat. This is not hard to figure out just by looking at any chart, even though it took me years to realize.

 

All anyone has to do is just look at this chart and emulate it with your own trade. If the chart does not look like this then don't be there and find one that does.

 

It took me many years and many dollars to figure this out.

 

And yes PATIENCE is a virtue. And yes don't treat trading like a slot machine or the next trifecta. Be CALM and don't pull the trigger until you're at ease and confident. Being calm and picking your spot will breed confidence. Trust me.

[sergso 10]

Traders fail because they select the best system they backtest after applying data-snooping. This is very important to understand. Here are a few must read articles:

 

JSTOR: An Error Occurred Setting Your User Cookie

 

Data-Snooping, Technical Trading, Rule Performance and the Bootstrap

 

Selection and Data Mining Bias in Trading System Development | Price Action Lab Blog

 

backtesting - What are the popular methodologies to minimize data snooping? - Quantitative Finance Stack Exchange

[Rashedbgd 10]

Very useful articles. Loved it.

[Tommog 10]

I have been a professional trader for 8 years and I say this not to be argumentative but helpful. The reason most traders fail is not psychological. They fail because they dont have an edge, This whole notion of "just follow the rules and you will make money" makes it easy for people to sell worthless systems and claim "the system is the least important part, just follow it and all the riches in the world are yours, the system isnt broken you are"

 

I have been involved in the development of numerous trainee classes. Within 3-4 months their discipline is spot on. We have risk managers monitoring their positions, they have strict daily limits that the company wont let them breach and all manner of other tools to keep discipline and control in check. I know a lot of people trading from home dont have this, but that only proves my point further, that even with 100% perfect discipline some people still dont make money,

 

You need to have an edge in the market. It is as simple as that, You need to exploit an inefficiency and these inefficiencies are always changing. The reason why most people fail is trading is one of, if not, the most competitive industry in the world and there are programmers running every possible variable you can imagine to find patterns yielding profits.

 

I would love to be proven wrong an have someone show me they make consistent money month in month out with a simple moving average system or such like but my 8 years in this industry have resulted in me making money by constantly adapting and finding new edges and my bad periods have come when they stop working, not when i need some discipline check.

 

My advice to any trader going through a rough patch is do more research, start building new approaches and cut back size until you find your groove again. Dont just keep trading some gurus system and let him tell you "its your discipline"

[Rande Howell 10]

I have been a professional trader for 8 years and I say this not to be argumentative but helpful. The reason most traders fail is not psychological. They fail because they dont have an edge, This whole notion of "just follow the rules and you will make money" makes it easy for people to sell worthless systems and claim "the system is the least important part, just follow it and all the riches in the world are yours, the system isnt broken you are"

 

I have been involved in the development of numerous trainee classes. Within 3-4 months their discipline is spot on. We have risk managers monitoring their positions, they have strict daily limits that the company wont let them breach and all manner of other tools to keep discipline and control in check. I know a lot of people trading from home dont have this, but that only proves my point further, that even with 100% perfect discipline some people still dont make money,

 

You need to have an edge in the market. It is as simple as that, You need to exploit an inefficiency and these inefficiencies are always changing. The reason why most people fail is trading is one of, if not, the most competitive industry in the world and there are programmers running every possible variable you can imagine to find patterns yielding profits.

 

I would love to be proven wrong an have someone show me they make consistent money month in month out with a simple moving average system or such like but my 8 years in this industry have resulted in me making money by constantly adapting and finding new edges and my bad periods have come when they stop working, not when i need some discipline check.

 

My advice to any trader going through a rough patch is do more research, start building new approaches and cut back size until you find your groove again. Dont just keep trading some gurus system and let him tell you "its your discipline"

 

It is very common for traders, as they their mind where it needs to be, to really look at their methodology and realize there are problems in it that they had not seen before. Overall, I find very few traders come equipped with a mind suitable for trading -- it has to be built. The way I understand the structure of your training, you are doing this.

 

Rande Howell

[jim2000 10]

I have been a professional trader for 8 years and I say this not to be argumentative but helpful. The reason most traders fail is not psychological. They fail because they dont have an edge, This whole notion of "just follow the rules and you will make money" makes it easy for people to sell worthless systems and claim "the system is the least important part, just follow it and all the riches in the world are yours, the system isnt broken you are"

 

I have been involved in the development of numerous trainee classes. Within 3-4 months their discipline is spot on. We have risk managers monitoring their positions, they have strict daily limits that the company wont let them breach and all manner of other tools to keep discipline and control in check. I know a lot of people trading from home dont have this, but that only proves my point further, that even with 100% perfect discipline some people still dont make money,

 

You need to have an edge in the market. It is as simple as that, You need to exploit an inefficiency and these inefficiencies are always changing. The reason why most people fail is trading is one of, if not, the most competitive industry in the world and there are programmers running every possible variable you can imagine to find patterns yielding profits.

 

I would love to be proven wrong an have someone show me they make consistent money month in month out with a simple moving average system or such like but my 8 years in this industry have resulted in me making money by constantly adapting and finding new edges and my bad periods have come when they stop working, not when i need some discipline check.

 

My advice to any trader going through a rough patch is do more research, start building new approaches and cut back size until you find your groove again. Dont just keep trading some gurus system and let him tell you "its your discipline"

 

I think you're correct that a trader needs an edge. The edge imo needs to be the trader doing what needs to be done.

 

The smaller size is good too for rough patches and newbies. Oh, and don't be greedy.

[BRichard 10]

I believe Hoping for Big Successes also contributes a great deal....Keeping very high expectations from forex market and the urge to become a millionaire overnight can hurt the traders' future than most things. Big successes need big position size of trades and/or very high leverage and/or high risk trades of not so liquid currency pairs and/or very complex trading strategies that involve many currency pairs or derivatives. Actually this greed can lead traders to a state of gambling. Betting for unrealistic gains and forgetting the risk-tolerance levels and lack of patients can quickly make your investments disappear.

[sergso 10]

I have been a professional trader for 8 years and I say this not to be argumentative but helpful. The reason most traders fail is not psychological. They fail because they dont have an edge, This whole notion of "just follow the rules and you will make money" makes it easy for people to sell worthless systems and claim "the system is the least important part, just follow it and all the riches in the world are yours, the system isnt broken you are"

 

Absolutely true and well said.

[Rande Howell 10]

I believe Hoping for Big Successes also contributes a great deal....Keeping very high expectations from forex market and the urge to become a millionaire overnight can hurt the traders' future than most things. Big successes need big position size of trades and/or very high leverage and/or high risk trades of not so liquid currency pairs and/or very complex trading strategies that involve many currency pairs or derivatives. Actually this greed can lead traders to a state of gambling. Betting for unrealistic gains and forgetting the risk-tolerance levels and lack of patients can quickly make your investments disappear.

 

There really does need to be an attitude adjustment in preparing the mind for trading. The mind needs to be focused on execution without focus on outcome. Many bring their notions of "need for success" into the trading mind as it executes in the moment of the trade. It's all about outcome at this point.

 

Like you say, traders need to really examine their money narrative.

 

Rande Howell

[Rose K. 10]

When traders are successful, they practice a patient discipline where they calmly lie in wait (ambush really) until the market comes to them – and then they strike. How different this is from our vignette at the beginning of this article! His trading is based on urgency while successful trading is based on patience. The notion of work is different between the two. Rather than work with urgency to action to achieve a goal, work takes on new meaning to the evolving trader. The new paradigm becomes patient observation, allowing the conditions to come to you. The trader is no longer chasing the trade (an urgency mentality), but is waiting for the trade to come to him so he can strike. This is the successful mind built for trading.....this is indeed the bitter truth about trading in currencies as well as other business ventures. Patience pays and it pays big time at the end of the day

[Guest OILFXPRO]

Rande Howell

 

I want you to solve my problem , I am from a family of immense wealth , I have a set of systems that makes 500 % a year without compounding , add compounding and I am a billionaire or trillion in a few years.

 

I know how to make money in the markets , it took me over 15 years practice and to learn the skills .I can not sit in front of computers and screens ,and follow my money management /position size plans.

 

My systems involve multiple instruments indices and fx,So to eliminate or reduce Phsyche problems , I hired a few assistants to follow a system ,.they too had emotional problems to execute .

 

I am lost with these idiots that I hired .They do screw up with their phsyche.

 

How can I win?and how can I make idiots perform?

[Guest OILFXPRO]

There really does need to be an attitude adjustment in preparing the mind for trading. The mind needs to be focused on execution without focus on outcome. Many bring their notions of "need for success" into the trading mind as it executes in the moment of the trade. It's all about outcome at this point.

 

Like you say, traders need to really examine their money narrative.

 

Rande Howell

 

I am trying to detach emotions from trading execution , by employing 2 different assistants for two tasks in execution.One assistant looks for signals and passes them to the other assistant , the second enters the trades and manages the trade and exits.It becomes a mechanical execution , still with some emotions but less emotions and clearer minds.

 

Will it work?