[jonbig04]

According to Michael Douglas (author of Trading in the Zone, and The Disciplined Trader) trading is 80% mental and 20% your edge.

If this is true, or even if its 50-50, isn't it strange that the vast majority of threads, books, and everything else related to trading is about refining your edge? Don't get me wrong, I know having an edge is very important...I am not discounting its importance at all...but should more we focus more on, or at least as much, on our mental state while trading? 95% of futures traders blow their account in the first year...could this be because 95% of people focus only, or mostly, on an edge rather than their mentality?

[brownsfan019]

The mental part of this business is incredibly difficult at times. You are truly your own worst enemy and it's b/c of what's between your ears.

[DbPhoenix]

Traders most often blow their accounts because they don't have a consistently profitable trading strategy. Without that, all the mental health in the world won't save them.

[jonbig04]

Interesting. Thanks guys. More to the point, from Douglas:

"...I sincerely feel that success in trading is 80% psychological and 20% one's own methodology, be it fundamental or technical. For example, you can have a mediocre knowledge of fundamental and technical information, and if you are in psychological control, you can make money. Conversely, you may have a great system, one that you have tested and has performed well for a long period of time, yet if psychological control isn't there, you will be the loser"

This makes me think....hard.

[MidKnight]

Originally Posted by DbPhoenix »

Traders most often blow their accounts because they don't have a consistently profitable trading strategy. Without that, all the mental health in the world won't save them.

I agree 210%!

[JBWTrader]

Some excellent points....

Have you ever heard the saying you marry your OWN worse problem....?

Well substitute the Married object with trading one and there you have it...

PS my apologies if anyone takes this the wrong way without thinking about it some more...In no way am I downplaying marriage or blaming the other in all of this. Quite the opposite ... minus the blame ! lol...

All the Best
John

[jonbig04]

Oops sorry, I typed Michael instead of Mark...but you get the idea haha

[jonbig04]

Originally Posted by DbPhoenix »

Traders most often blow their accounts because they don't have a consistently profitable trading strategy. Without that, all the mental health in the world won't save them.

First off I would like to say thanks for all the great info you provide, and I will be buying your e-book whenever paypal get their stuff straight. Anyways, I just don't think I can agree with you. There are SO many people out there trying to trade. Sure some of them are dopes who thought it would be an easy way to make money from home, but it's also true that many of them are very bright people. People that, to me, can formulate an edge. They study everything they can get their hands on and they come up with some complex and effective strategies...but they still don't make money. The stats, to me, just don't add up. The vast majority of traders lose...yet every trader I've met is trying only to refine their edge. What does that mean? To me, with so many people focusing only on their edge, it can't be the lack of an edge that impedes almost all of them being profitable...it seems like more than 5% would have something consistent figured out. I hope that makes some kind of sense.