[mslk]

as a newbie just starting out in day\active trading, i found this and thought it was pretty handy to print out and stick on my wall.

#1: Trading without education or training.
- seems obvious but trying to trade without the proper knowledge is like going to a gun-fight with a knife (pardon the cliche)

#2: Allowing emotions to influence your trading decisions.
- that's why you need an automated system (i think?)

#3: Failing to realize that trading has little to do with luck.
- but i rather be lucky than good! just kidding ...

#4: Thinking that losing is bad when trading.
- riding losers down ... mistake of every inexperienced trader

#5: Neglecting to recognize that learning to trade is an unending process.
- darn i was hoping to find a system and set it on auto-pilot!

-mslk

[Tradewinds]

Originally Posted by mslk »

#2: Allowing emotions to influence your trading decisions.
- that's why you need an automated system (i think?)

Technically, I don't have an automated system. But I have all custom indicators that give me information on every single bar of the chart. Given the signal, and the price conditions, I want my response to be automatic. If I get a strength signal and price has moved substantially, my strategy is to take profit. I don't want any doubt, or any heavy thinking, or any indecision.

As my signals, and my strategy get better, I gain more confidence. I'm not trying to gain control of my emotions. As a result of developing a better strategy, the consequence is that my emotions are more well controlled.

Consider the following possible scenarios:

• Fear is successfully removed or suppressed, your trading skills do not improve
• Fear is not successfully dealt with, your trading skills do not improve.
• Fear is successfully removed or suppressed, your trading skills improve
• Fear is not successfully dealt with, your trading skills improve

Depending upon which of those four situations a person is in, the response should be very different. The worst case is the first one. The traders skills don't improve, but they have no fear. What is going to happen in that situation? They may just keep loosing money unnecessarily.

When there is talk of emotions affecting trading, the assumption is that scenario 4 is happening; the trader is getting better, but the emotions haven't been dealt with. My concern, is that people may suppress or try to ignore their emotions when they should be allowing their emotions to stop them from trading because it just isn't working.

In the above four possible scenarios, FEAR is at the front of the sentence and the focus of the attention.

What I'm saying is this:

• Your trading skills improve, as a consequence the fear diminishes.
• Your trading skills do not improve, you still have a lot of fear

I think that the perspective is different when we are talking about fears diminishing as a consequence of knowing how to trade well. Getting rid of the fear will not necessarily make anyone a better trader. I think it's beneficial to make these distinctions.

[steve46]

Originally Posted by mslk »

as a newbie just starting out in day\active trading, i found this and thought it was pretty handy to print out and stick on my wall.

#1: Trading without education or training.
- seems obvious but trying to trade without the proper knowledge is like going to a gun-fight with a knife (pardon the cliche)

#2: Allowing emotions to influence your trading decisions.
- that's why you need an automated system (i think?)

#3: Failing to realize that trading has little to do with luck.
- but i rather be lucky than good! just kidding ...

#4: Thinking that losing is bad when trading.
- riding losers down ... mistake of every inexperienced trader

#5: Neglecting to recognize that learning to trade is an unending process.
- darn i was hoping to find a system and set it on auto-pilot!

-mslk

Only 5?


Well in truth most beginners are making only one (1) mistake.......trading....

If they would simply "not trade" until they had completed a reasonable educative process the lists and the endless advice from other amateurs would not be necessary.

Now if you don't care about capital preservaton, or you think that YOU are beyond the beginners's category and can ignore this advice well then...please continue as you were....

Those who may want to take that advice seriously may want to start with the thread "advice for struggling traders" and move forward from there....at least you will have something to work with

If I can be of help please ask...I do teach a class (it is not open to newbies)...but I will do my best to provide other resources that might help.

Best Regards
Steve

[mslk]

Originally Posted by Tradewinds »

As my signals, and my strategy get better, I gain more confidence. I'm not trying to gain control of my emotions. As a result of developing a better strategy, the consequence is that my emotions are more well controlled.

so this is almost like how an athlete 'do reps' right? can i ask why don't you automate it? is it because you are not comfortable with a computer executing the trade or is it something else?

Originally Posted by Tradewinds »

In the above four possible scenarios, FEAR is at the front of the sentence and the focus of the attention.

thats interesting, but i think for me its rather *indecision* because of lack of experience\knowledge. a deer-in-headlights situation.

thanks - mslk

[mslk]

Originally Posted by steve46 »

Only 5?

haha the thread would be unreadable then

Originally Posted by steve46 »

Well in truth most beginners are making only one (1) mistake.......trading....

Those who may want to take that advice seriously may want to start with the thread "advice for struggling traders" and move forward from there....at least you will have something to work with

interesting idea ... probably a macho guy thing, jumping in with the confidence he'll figure it out. stupid but its engrained in the male psyche!

here is the thread steve is referring too: http://www.traderslaboratory.com/for...g-traders.html

thanks steve for the great thread ... now i need to spend the rest of the day reading it ...

- mslk

[Tradewinds]

Originally Posted by mslk »

can i ask why don't you automate it? is it because you are not comfortable with a computer executing the trade or is it something else?

I'm just starting to get to the point where I have a strategy good enough to consider automating. If I ever do that, it's still a long way off.

Right now I have 6 indicators, and support and resistance lines. I'd need to put all of that programing into one program. It's doable, but it's a time commitment.

I've done a lot of programing, but no automation, so that's a whole other road I haven't been down. My strategy and my custom studies make an automation system a serious consideration, but everything is still a "work in progress". My "house" is only half way built.

[Cosa Nostra]

Originally Posted by steve46 »

Only 5?


Well in truth most beginners are making only one (1) mistake.......trading....

Best Regards
Steve

Hahaha)))
Real answer))
But if not trying how to trade?
Sometimes a lot of begginers win a lot of money on the first steps - may be lucky?
I think that without loss you can't win, it gives you the power!