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.

analyst75

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

Recommended Posts

“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

Share this post


Link to post
Share on other sites

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?”

Share this post


Link to post
Share on other sites

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...

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now

  • Topics

  • Posts

    • NZDUSD: Retains Recovery Threats, Eyes The 0.6726 Zone NZDUSD: With the pair still retaining its upside pressure on correction, more strength is envisaged in the new week. Support lies at the 0.6650 level. Further  down, the 0.6600 level comes in as the next  downside target. Conversely, resistance resides at the 0.6750 level where a break will aim at the  0.6800 level. A break of here will have to occur to create scope for a run at the 0.6850  level. Further  out, resistance stands at the 0.6900 level. Its daily RSI is bullish and pointing higher suggesting further recovery higher.  All in all,  NZDUSD faces further upside pressure.
    • $BDX (BDX) Becton Dickinson stock narrow range breakout watch, see also $MRK ,


      analysis https://stockconsultant.com/?BDX
    • Meet the Broker in Cyprus Dear Client, The HotForex VIP Contest returns for one more year with exciting rewards for our valued clients!
      Enter the contest to claim monetary prizes from a $10,000 pool!  We are relaunching the HotForex VIP Contest this year too! The lucky 1st Prize Winner and his/her companion will enjoy an all-expenses-paid trip to the beautiful Mediterranean island of Cyprus! 1st Prize > An all-expenses-paid trip to the amazing Mediterranean island of Cyprus, including:
      $5,000
      Two air tickets to Cyprus
      Five-star hotel stay
      Limousine transfers
      One-to-one forex training 2nd Prize > $3,000 3rd Prize > $1,500 4th Prize > $500
      If you have any questions about this or any of the other trading platforms available with HotForex, please do not hesitate to contact our support team, which is available 24/5 in a variety of languages. Kind regards, 
      The HotForex Team
    • Date : 21st September 2018.

      MACRO EVENTS & NEWS OF 21st September 2018.



      FX News Today

      Asian Market Wrap: Stock markets continued to rally during the Asian session after a record close on Wall Street yesterday. Risk appetite is back after robust US data yesterday added to hopes that the fallout from the latest round of US-China tariffs can be contained and that there will eventually be deals on trade and Brexit, despite little progress at the informal EU summit yesterday. Improvements in emerging market assets have also helped to underpin confidence with investors buying back into the rout. 10-year Treasury yields moved up 1.3 bp to 3.076%, 10 year JGB yields jumped 1.6 bp to 0.125% and 30-year yields rose 4.4 bp as BoJ cut bond purchases. Topix and Nikkei are up 1.01% and 1.06% respectively underpinned by a weaker Yen, the Hang Seng has gained 1.13% so far and the CSI 300 is up 1.80%. US stock futures are equally broadly higher, Oil prices are slightly lower and the November WTI future is trading at USD 70.25 per barrel. Today’s calendar includes Eurozone PMI readings as well as public finance data for the UK.

      FX Action: USDJPY has lifted to a fresh two-month high at 112.80 amid a backdrop of a coursing risk-on theme in global markets. The USA30 and USA500 hit record highs yesterday, and Asian stocks have rallied robustly across the board. JP225 hit a 4-month high, and the Shanghai Composite a two-week high, with both showing gains of 1% or more. Expectations for China to turn the fiscal stimulus tap, among other measures, have been helping underpin sentiment in Asia, while the unexpectedly low starting tariff rate of 10% in Trump’s latest move on Chinese imports this week, along with tech sector exemptions, have helped buoy sentiment Global fundamentals are otherwise solid, despite the threat from the trade war escalation (with Beijing not expected to negotiate until after the mid-term elections in the US).

      Charts of the Day



      Main Macro Events Today Eurozone Sep. PMI – Expectations – The Eurozone manufacturing PMI is expected at 54.5, down from 54.6 in the previous month, and expect the services reading to improve slightly to 54.5, which should leave the composite unchanged from August at 54.5. This still suggests ongoing expansion, but would also confirm the decelerating trend. Canada CPI & Retail Sales – Expectations – CPI is expected to hold steady in August after the 0.5% surge in July. The CPI is projected to grow at a 2.9% y/y pace in August, easing slightly from the 3.0% pace in July that was the top of BoC’s 1-3% target range. Canada retail sales values are expected to rise 0.5% in July after the 0.2% drop in June.
      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 HotForex Economic calendar.

      Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding on how markets work. Click HERE to register for FREE!

      Click HERE to READ more Market news.

      Andria Pichidi
      Market Analyst
      HotForex

      Disclaimer: This material is provided as a general marketing communication for information pThis 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.
    • There are many Horrible trading situations occurs in traders life and some are very serious.
×

Important Information

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