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analyst75

Insights into the Mindset of Super Traders – Now Almost Free of Charge

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“One of the things that amazes me most about trading is that the longer I do it the more I admit that I don’t know. For a very long time I have been convinced that I have no idea where the price of instrument is going. I certainly know a lot about market dynamics, the history of markets (which is something everyone should study) and about my own reactions to events. But I have sold all idea about where the market is going. Granted I can create a narrative in my own head to justify my own positions but at the end of the day I simply make a bet on the direction of an instrument and I am consciously aware of my own behavioural short comings.” – Chris Tate (an expert veteran of the markets, more than 30 years of experience)

 

Anyone can learn to be a trader – but making a success of it involves more than just pushing Bid and Ask buttons. You need good strategies that will allow you to deal with the vagaries of the market.

 

It’s no secret that the majority of traders lose. But some succeed and become rich, even super-rich. These are the super traders.

 

Insights into the Mindset of Super Traders reveals the life stories of 20 selected master traders: how they think, how they view the markets, and how they make their fortunes. The book gives an overview of their careers and explains what lessons can be drawn from their success.

 

 

“THREE QUESTIONS TRADERS WOULD LIKE TO ASK RIGHT NOW.”

 

Why is trading so difficult?

Answer: What makes trading appear very difficult is the fact that the market can never be predicted. When we predict, we’re sometimes wrong or right. However, having an impression that the market can be predicted is the single most important reason why most traders end getting frustrated. No matter the analytical method you use (Monte Carlo, Neural Networks, Horology, robots, Gann, news, Ichimoku, etc), you can’t predict the future. Your frustration will continue as long as you think you can predict the market. Once you admit you can’t do this, your frustration ends, because you’ve aligned yourself with the reality in the market.

 

What benefit can I get from trading?

Answer: Freedom. Freedom is everything. You master your financial destiny, growing richer and richer gradually. Very soon, you’ll realize that trading is the best vehicle for financial freedom; plus the greatest game on earth. Sadly, many people don’t believe this fact.

 

How can I experience permanent success in the markets?

Answer: You will attain permanent success once you devise a way to make money in the market without being able to predict the market – without knowing what the market will do next. This kind of strategy isn’t hard to devise. You’ll then see each new trade as a potential loser until you’re proven otherwise. This mindset will enable you to activate stops and use a small position size. You’ll know trading is simply a game of probability and with a good RRR, the odds will eventually come in your favour. This is what’s called positive expectancy. With this simple approach, you’ll no longer see trading as difficult. More importantly, you will attain permanent success without the ability to know the future, which begins from your mind.

 

 

This piece is ended with 2 quotes:

 

“Talking about trader psychology may stir intellectual debate, but the real work of trader psychology is about re-working the beliefs are you projecting onto the markets about your capacity to manage uncertainty (with your trading account as the arbiter). Simply being knowledgeable is never enough. It is the hard, but satisfying, work of examining the beliefs that drive your performances in trading that matter.” - Rande Howell

 

“The complete trader is able to combine all or parts of the above approaches with his own style. Trading mastery combines observation, scientific knowledge, good judgment, intuition, and creative instincts with decisive action.” – Joe Ross

 

 

Tap the secret here (almost free of charge): Advfnbooks.com/books/insights/index.html

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My unwelcome reality from ~30 years experience is that 90%+ of traders’ ultimate success level is revealed very early at the beginning their trading. For these traders, the adaptive and maladaptive patterns and insight into those patterns are set. These are the losers that drift away, etc etc. And these are the trading successes that get it very early in the game... the Tom Baldwins, etc. who beat it up the first day and keep going.

 

The remaining ~10% have a shot at making ‘changes’ / adjustments to their bodybrains and finding and polishing a method that matches their aptitudes and talents.

From this perspective, how are the traders in your book distributed?

 

 

 

“THREE QUESTIONS ...”

 

Why is trading so difficult?

Answer: What makes trading appear very difficult is the fact that the market can never be predicted. When we predict, we’re sometimes wrong or right. However, having an impression that the market can be predicted is the single most important reason why most traders end getting frustrated. No matter the analytical method you use (Monte Carlo, Neural Networks, Horology, robots, Gann, news, Ichimoku, etc), you can’t predict the future. Your frustration will continue as long as you think you can predict the market. Once you admit you can’t do this, your frustration ends, because you’ve aligned yourself with the reality in the market.

 

How about this? You can’t not predict. You can predict. You must predict. But, you also must bring a neural detachment from the prediction and its outcome. Fear-reactivity in the limbic system sets up a neurotransmitter mess and that interferes with frontal lobe ‘groundedness’. By the time a trader gets to “frustrated”, he has way already lost the game. Note the differences - instead of “frustration ends” because you don’t predict, “frustration ends” because your system is structured not to become attached to the predictions. What would your supertraders say about that?

 

What benefit can I get from trading?

Answer: Freedom. Freedom is everything. You master your financial destiny, growing richer and richer gradually. Very soon, you’ll realize that trading is the best vehicle for financial freedom; plus the greatest game on earth. Sadly, many people don’t believe this fact.

I love your answer!

I’ve encountered a lot of traders who do “believe this fact” and simultaneously do not “believe this fact”. Sadly the results of this ambivalence is the same as the results for those that “don’t believe this fact”. Few ‘believe’ (a better word is ‘know’ - belief is what you do when you don’t know) this wholly from the center out, not “Very soon”, but before their first trade is ever made.

 

How can I experience permanent success in the markets?

Answer: You will attain permanent success once you devise a way to make money in the market without being able to predict the market – without knowing what the market will do next. This kind of strategy isn’t hard to devise. You’ll then see each new trade as a potential loser until you’re proven otherwise. This mindset will enable you to activate stops and use a small position size. You’ll know trading is simply a game of probability and with a good RRR, the odds will eventually come in your favour. This is what’s called positive expectancy. With this simple approach, you’ll no longer see trading as difficult. More importantly, you will attain permanent success without the ability to know the future, which begins from your mind.

 

A trader never experiences permanent success in the markets. He finds a way to blow up or his luck run runs out or he loses interest or he loses his flow edge or his trading edge / pos. expectation stops working or he gets old and retires or he gets sick and dies. A ‘career’ is not permanent in any field, particularly in performance work. Please rephrase the question to “How can I experience a long rewarding vocation in trading?”

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analyst75, do any of your super traders really not predict ?

 

Coincidentally since ‘discussing’ “predicting” in this thread, I have encountered two traders who were really on the ‘not predicting’ shtick.

 

The first was easy to talk trading with so I asked him some questions and it turns out all he had done was design himself a miniature Long Term Capital Management (... and he’s currently in its ~ ‘3rd year’...)

 

The second one fully insists he doesn’t predict... but also fully believes in applying normal distributions to his trading methodology... practically / in effect, he is predicting ‘normalcy’... with plenty skinny tails, ... he even said so in so many words... without realizing it...

 

...I’m still waiting for someone to show us how they never ‘predict’ ... ie never project...

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