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.

nhallett

You've Got a Great Trading System. So Why Are You Losing?

Recommended Posts

You've done your homework. Countless hours of

seeking out the right guru (or piecing together

your own system). Weeks of monitoring your

guru's daily trade picks (or paper-trading and

back-testing your homemade system). You've done

it by the book. No seat of the pants trading

for you!

 

OK, now you're confident. It's time to put your

money where your homework is.

 

You've had your coffee and your first trade

signal is before you. Confidence high. Trade made.

First loss. Not a problem. You understood before

you started that successful traders both win and

lose and “losing is part of the overall winning”.

 

You've also heard more then once that “successful

traders don't win on every trade.” Moving on,

still confident. Next trade made. Another loss,

but this one hurt your pride a little because

you got stopped out early in the trade, and then

the market rebounded and would have hit your

profit target if you weren't stopped out.

 

You double check. Yep, you placed the stop where your

trading system told you to place it. You kind of

had a feeling that the early weakness in the market

was just profit-taking from the previous day's

trading, but you're trading a system and you must

stick to it. Wounded, but resilient.

 

After a good night's sleep and a few mouse clicks,

your new daily trades are in front of you. Hey,

this one looks good! It's a little bit more risk

than yesterday's trades had, but look at that profit

potential! With a smiling face, the trade is executed.

 

With a nice start to the trade, you're feeling good

and you've moved your stop to breakeven, just like

your system said. Surprise piece of news - market

reverses - blows through your stop - an “unexpected”

loss. Is something wrong with the system? Has the

overall market “personality” changed, affecting your

system to the Core, rendering all your back-testing

irrelevant? Your confidence turns to doubt.

 

You decide to “watch” the next trade… I mean, isn't

it wise to make sure the system gets back on track

before you “throw good money after bad?” Isn't that

what a conservative trader does? Trade watched.

It wins!

 

In your head, you beat yourself up a little because

you know that when you started your “live” trading,

you made an agreement with yourself to take the

first 10 trades “no matter what”… and here you

wimped-out and missed a big winner that would have

gotten you even.

 

What's happening?!!

 

What's happening is that you are out of control.

Your emotions are ruling your trading. The above

scenario plays out in every trader from time to

time.. newbee and veteran alike.

 

The winning trader senses what is happening and

nips it in the bud. The winning trader spend time

EVERY DAY, working on “the discipline of trading”.

Reads a chapter in his favorite psychological

trading book, scans the “ten commandments of

trading” that hangs on the wall over his/her desk,

listens to his/her mental training software for

futures traders… Something… Every Day… before

trading begins.

 

There are many more losing traders than winning

traders… and it's seldom about the trading system.

In my career, I've come across at least 50 systems

that I consider A+, yet I know for a fact that MOST

traders that have traded on these systems have lost.

Why? They were not in control of their emotions.

 

Are you?

 

 

My best,

 

Norman Hallett

Share this post


Link to post
Share on other sites

Spot on Norman, I've found that becoming a consistently profitable trader is so much more about your ability to detach yourself from the money and the emotions to trade 100% objectively, as apposed to focusing on the system. Great post.

Share this post


Link to post
Share on other sites
Norm, let's have a chat about Quantum Mechanics and Masaru Emoto.
Jack - I had never heard of Masaru Emoto until now - thank you.

 

After Googling and reading, I was amazed at the similarity between his ethereal and unsubstantiated theories and those of the trading support group known as trading psychologists.

 

I won't write one of my famous long essays on this topic at this time.

 

But I would simply like to ask a couple of rhetorical questions to psychologists and those who purport to belong to the erudite "Traders Support Fraternity":

 

1) Where are the successful students with their testimonials ... real ones?

2) Where are the students' yachts?

 

Kind regards, and tirelessly in pursuit truth,

 

Ingot

 

PS - It might be that Psychologists belong in a group with Dermatologists.

 

Their clients' conditions:

1) Never get better;

2) Never get worse:

3) Never ring up in the middle of the night;

4) Always remain in need of therapy

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

    • Forex trading is the best way to make some good money online, but you need to have proper skills to achieve success and for that you should practice trading with small capitals.
    • Forex Trading is the best way to make some good money online, but it could only work if you have the proper experience and skills, and knowledge which requires to achieve success in their trades.
    • MASTER TRADER JOE ROSS PASSES ON Dear Traders, We are sad to inform you of the passing of Master Trader Joe Ross on the morning of Tuesday, September 7, 2021 at the age of 87. He went peacefully doing what he loved, by taking care of Loretta, his wife of 62 years of marriage and teaching his students from every continent how to trade. Joe has always been a free spirit and loved the trading world being his own boss. He quickly learned that teaching others was his true passion. The joy of educating those about a system in which he had true confidence and to see others come into their own. That was his greatest pleasure. He was proud to be a devoted Christian and combined spirituality with trading. Our condolences to our traders and students for the loss of a mentor and close friend, some would even go as far as saying a “father-figure” and he wore that title proudly. Master Trader Joe Ross’ passing came upon us unexpectedly and suddenly. Again, we would like to send our condolences to those who lost a mentor and a friend. Joe, you will forever be in our hearts. Who is Joe Ross? Joe Ross is the creator of the Ross hook™, and has set new standards for low-risk trading with his concepts of “The Law of Charts™” and the “Traders Trick Entry™.” Joe was a private trader and investor for much of his life, but a serious health situation in the late 80’s caused him to shift his focus, and that is when he decided to share his knowledge. After his recovery, he founded Trading Educators in 1988, to teach aspiring traders how to make profits using his trading approach. Joe Ross has written twelve major books and countless articles and essays about trading. All his books have become classics, and have been translated into many different languages. His students from around the world number in the thousands. His file of letters containing thanks and appreciation from students on every continent is huge: As one student, a successful trader, wrote: “Your mastery of teaching is even greater than my mastery of trading.” Joe Ross holds a Bachelor of Science degree in Business Administration from the University of California at Los Angeles. He did his Masters work in Computer Sciences at the George Washington University extension in Norfolk, Virginia. He is listed in “Who’s Who in America.” After 5 decades of trading and investing, Joe Ross still tutors, teaches, writes, and trades regularly. Joe is an active and integral part of Trading Educators. He is the founder and contributor of the company’s newsletter Chart Scan™. “Master Traders Joe Ross was one of the most eclectic traders in the world. And he remains one of the few best mentors I have, alongside, Dr. Van. K. Tharp (may he live long), and one or two others. His teachings and insights into the markets have contributed to making me who I am today. He also talks about the spiritual side of trading, concluding that trading is no sin.” – Azeez M. “The trading world has lost a unique and passionate trader. He explained to me that his material will never go out of date, only the technology. Recently, we updated several of his hardback books into eBooks and he was right. From making trades over the phone to the “pit” then to opening an online account, my how things have changed. But he is correct about his methods, they will continue to apply to the markets regardless of how technolgy advances.” – Martha Ross-Edmunds (Joe’s daughter) Joe Ross’ Trading Philosophy: “Teach our students the truth in trading — teach them how to trade,” and “Give them a way to earn while they learn — realizing that it takes time to develop a successful trader.”   IN MEMORIAM: Joe Ross (RIP)   Source: https://learn2.trade   
    • BITCOIN PRICE ANALYSIS: LONG-TERM HOLDERS REMAIN UNSHAKEN BY PRICE ACTIONBITCOIN PRICE ANALYSIS: LONG-TERM HOLDERS REMAIN UNSHAKEN BY PRICE ACTION Azeez Mustapha 14 October 2021 | Updated: 14 October 2021 New reports from Glassnode show that despite the recent price surge in Bitcoin (BTC), long-term holders have shown no intention to liquidate and realize profits yet. The blockchain analytics provider also revealed that the percentage of BTC supply held for at least three months reached 85%, a new all-time high. Citing data from Glassnode, famous Chinese crypto analyst Colin Wu illustrated the recent behavior of Bitcoin holders and their attitude towards the benchmark cryptocurrency. The analyst detailed that the percentage of long-term holders that have not moved their coins in over ten years stands at 12.3%. These tokens are deemed dormant for this reason. The analyst further noted that the percentage of long-term holders that have not transferred their coins between two to three years and three to five years stands at 10% and 12.26%, respectively. Finally, the highest percentage of long-term holders were those who have refused to move their coins between the last six months to twelve months, standing at 19.5%. That said, 85.14% of BTCs have not exchanged hands for at least three months, a new record high. In July, Bitcoin struggled to keep its head above the $30,000 mark. Today, it has almost doubled this number, but investors remain steadfast in holding their coins. Key Bitcoin Levels to Watch — October 14 As predicted in our previous analysis, BTC witnessed a sharp correction to the $55,000 – $54,000 pivot axis from the $57,500 level over the last 48 hours. This correction found immediate support from the $54,000 level, which triggered a rebound to a new five-month high at $58,500 earlier today. BTCUSD – 4-Hour Chart While the price currently rests around $57,500, we expect a bull run to the $59,000 resistance over the coming hours and days. Meanwhile, our resistance levels are at $58,000, $59,000, and $60,000, and our key support levels are at $56,700, $56,000, and $55,000. Total Market Capitalization: $2.40 trillion Bitcoin Market Capitalization: $1.07 trillion Bitcoin Dominance: 44.9% Market Rank: #1 Source: https://learn2.trade 
    • Date : 15th October 2021. Market Update – October 15 – Stronger equities dampened the safe-havens! Q3 earnings season has gotten off to a strong start, with big banks largely shooting the lights out on revenues and earnings. Incoming data was constructive as well, with jobless claims coming in at pandemic lows, while the rate of PPI growth slowed. All 11 S&P sectors are higher. Bulls are in control, both in the bond market and on Wall Street. – Overlooked the hawkish Fed implications from the record strength in PPI and the lowest claims readings since before the pandemic. Yields declined and Treasuries are in the green on short covering and dip buying, recovering from the recent aggressive selloff. US Treasury yield has lifted 1.8 bp to 1.53%. China: will loosen restrictions on home loans and boost lending & bank added enough medium term funds to keep liquidity in the system steady. Equities up. JPN225 managed a 1.6% gain and US futures are also higher, led by a 0.4% rise in the USA100. Oil lifted above $81.99. – Prices quickly backed up after a larger than expected stock build in the US. Improved market sentiment, which has lifted global stocks, commodity prices and bond yields, is also weighing on the safe-haven Dollar. FX markets – USD dropped, Yen declined. EURUSD retests 1.1600 mark, Cable at 1.3689, USDJPY touched 114.16. European Open – The December 10-year Bund future is slightly higher, US Treasury futures slightly in the red, as stock futures move higher in both Europe and North America after a good session for equities across Asia overnight. Market sentiment improved and GER30 and UK100 futures are currently up 0.4% and 0.3% respectively, while a 0.4% rise in the USA100 is leading US futures. EGB yields had dropped back markedly yesterday, but in the UK money markets are still bracing for an earlier than expected lift off on rates, which ironically is actually helping long rates to come down. Today – Today’s data calendar is unlikely to change the overall picture, with only eurozone trade data for August and some final HICP readings on the agenda. Biggest FX Mover @ (06:30 GMT) NZDJPY (+0.60%) Breached 80.55. Up for 7 days in a row. Currently faster MAs keep pointing up, MACD signal line is at 0 & histogram trending higher. RSI at 82 & Stochastic at 94 but both sloping down, all indicating further upwards move in the medium term but possible pullback in the short term. H1 ATR 0.123, Daily ATR 0.810. 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 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.