Readers who have experience of practical work in the market, began with that faced a question: <what to=”" do=”" when=”" affairs=”" go=”" worse=”" than=”" ever?=”"> . It, certainly, still is necessary to beginners. Because it is one of the most important for the trader of psychological questions.
Let’s understand for a start that such <worse than=”" ever=”"> – understanding of the trader. Poll of traders on this subject was carried out at a forum. Here incomplete list of answers:
<i bought=”" too=”" highly=”">.
<i didn’t=”" leave=”" on=”" foot=”">.
<i lost=”" too=”" much=”" money,=”" i=”" couldn’t=”" get=”" enough=”" profit=”">.
<any external=”" force=”" prevented=”" me=”" to=”" leave=”" on=”" foot,=”" and=”" now=”" my=”" paper=”" very=”" far=”" below=”">.
<constantly i=”" am=”" in=”" a=”" condition=”" of=”" the=”" strongest=”" stress=”">.
<i tried=”" to=”" leave=”" a=”" trade,=”" and=”" communication=”" with=”" the=”" broker=”" is=”" broken=”">.
<i opened=”" a=”" long=”" position=”" on=”" maximum=”">.
<i feel=”" a=”" depression,=”" others=”" make=”" money,=”" and=”" i=”" -=”" no,=”">.
<i behave=”" incorrectly,=”" but=”" i=”" can=”" do=”" nothing=”" with=”" myself=”">.
<didn’t stop=”" when=”" reached=”" the=”" day=”" goal,=”" i=”" continued=”" to=”" trade,=”" everything=”" missed,=”" finished=”" with=”" a=”" minus=”" of=”" $15,000=”">.
<i have=”" two=”" weeks=”" only=”" negative=”" trades,=”" i=”" it=”" is=”" simple=”" in=”" despair=”">.
<i repeat=”" the=”" same=”" mistakes=”">.
<unsuccessful trades=”" affected=”" decision-making=”" in=”" the=”" subsequent=”">.
Also it is only little bit. We tested all this repeatedly. And it everything is very serious. The American association of psychiatrists considers <a syndrome=”" of=”" a=”" deytreyder=”"> as the frustration causing accustoming. And in general public at the same time idea of trading as the simplest way to earn is cultivated. Such unfounded statements various chats and forums on trading – with an indispensable emphasis on <good luck=”">, <guess>, <luck>, etc. are full. All these forums as we perfectly know, are created only for involvement of new clients.
And these new clients come, start trading, to anything plainly without having learned, and continue to trade, despite losses in money and in life. Simply because in these forums and chats to them go on: tomorrow everything has to change.
But tomorrow changes nothing. And the day after tomorrow too. Eventually the only change is that one more <trader> loses all the capital and leaves the market. Partly such result happens due to the lack of education and due training. The Deytrading is a profession. Well, as a last resort, occupation. It is impossible to succeed in it without serious efforts. Now with all these reasons <in mind=”"> let’s consider again the answers of poll given above and we will sort them on degree <gravity>.</gravity></in></trader></luck></guess></good></a></unsuccessful></i></i></didn’t></i></i></i></i></constantly></any></i></i></i></worse></what>
We qualify technical problems as the least serious. To this category we will refer type answers <computer freezes=”">, <communication with=”" the=”" broker=”"> broke, <electricity disconnected=”"> and so forth. Let’s note that these problems by the nature are unpredictable and casual. They can cause uncertainty, the instant confusion, essential losses, etc., but ways of overcoming of such problems are simple and obvious:
- always have reserve channels and systems;
- considering the cost of the computer equipment and infrastructure today, it is absolutely inexcusable to have the computer with insufficient random access memory, a network with an insufficient capacity and т.п;
- you remember that losses even on the only transaction can easily move the cost of all equipment necessary for trading.
The following category of problems – method problems. Here cases when the trader has no accurate plan belong or trades impulsively, or doesn’t know that to do to it, why, etc. All these problems are connected with lack of a method or a set of methods. What is the method in the most general view? It something that gives out signals which instruct the trader to arrive in one way or another. And here we face at once the very first problem of a method. The matter is that the method itself generates intensity between your aspiration to independence and dependence on a method. Trade without a method and the plan often designates a situation when the trader believes that he feels the market and can trade on the basis of this feeling, an instinct or intuition. Sometimes such situation if to penetrate into it more deeply, means that the trader actually follows a certain method, but simply doesn’t identify it. But ignoring of a method and the plan is unfortunately much more often is derivative of very dangerous delusion of the trader: <i know=”" it=”" better,=”" than=”" the=”" market=”">. Traders with such stereotype very quickly leave the capital. At the heart of similar delusions very widespread psychology <anticipation> lies. <anticipation> gives rise to <belief>, the belief sets emotional predefiniteness, and it, in turn, gives rise to reality denial. At the end of this process only one reality reaches the trader – lack of finance. So, how to fight against lack of a method? To catch a method. In the most general sense. The choice of the party of a trade on color of the dropped-out card is already a method. Transactions which you dream, – an excellent method. To me only successful applications of this method are personally known. On Tuesday to do everything on the contrary to that you did on Monday, is too a method. Trade on mentions of the announcer of CNBC of Maria Bartiromo is, certainly, a method (in the sense that it is followed by a huge number of people in the USA).</belief></anticipation></anticipation></i></electricity></communication></computer>
To methods несть numbers. You have to be convinced first of all that you have a method. Perhaps, you have too many methods. Perhaps, you actively don’t like methods which you used still. In any case to you not to avoid a question of a method. You are obliged to have a method. Only one it will already resolve many problems in our list of possible accidents. Further. The method which suits you is necessary to you. For example, you want to take shares and to get multidollar profits, a scalp to you definitely doesn’t suit. Perhaps, trade in a week interval will suit your purpose more.
In any case you at first have to solve a problem of search of a method and then start its studying. You have to understand a method and those bases on which you use it. Why it works and as you learn that it doesn’t work. It all the same what to learn to use the main tool in your profession. Your method can represent a combination from several it is normal. The main thing – to have a method and to know it thoroughly. The nobility when the method will serve you and when – No.
Following to a method
It is time to pass to the following category of problems – a problem of following to a method. This problem become serious two previous. Let’s begin it again with poll of traders: <what prevents=”" you=”" to=”" follow=”" a=”" method?=”"> . Typical answers (in brackets – our comments):
emotions (impossibility to follow a method because of fear or greed);
the knowledge of the market is better than a method;
disbelief in a method (the concrete method doesn’t suit the specific trader);
trade out of a method (the knowledge of the market is better than a method);
any shift of the foot/the purpose (foot/the purpose installation depending on psychological comfort, instead of realities of the market or indications of a method that in fact same);
entrance on a method, but an exit earlier, in fear of a turn (the knowledge of the market is better than a method + greed + fear);
absenteeism on a method signal because of greed.
It is obvious that the same reason forces the trader to trade out of a method, to jump from one method on another within one transaction, to use a method only partially (only for an entrance or an exit) and the mass of variations. We can formulate a question simply and clearly: <why the=”" trader=”" doesn’t=”" follow=”" a=”" method=”" which=”" he=”" chose?=”"> . Here it is necessary to add a dependence problem (unwillingness to depend on a method) and <star fever=”"> (the knowledge of the market is better than a method).</star></why></what>
At last, the majority of difficulties – in an anticipation problem. The Neznayemy nature of the future, fear before it motivate extra conscious mechanisms <knowledge> of the future, anticipation psychology. The anticipation conducts to belief, belief – to a selective filtration of perception and attention. The belief always looks for and finds confirmations. It doesn’t need denials and doesn’t suffer them. She never asks that can stop your belief. When you start trusting in something, you start inevitable process of denial of reality: <yes, the=”" price=”" fell=”" below=”" my=”" stop,=”" but=”" it=”" will=”" surely=”" return=”">; <yes, the=”" price=”" succeeded,=”" but=”" it=”" has=”" to=”" rise=”" still=”">; <yes, the=”" method=”" advises=”" to=”" enter=”" into=”" a=”" short=”" position,=”" but,=”" look,=”" price=”" goes=”" up=”" and=”" i=”" feel=”" that=”" it=”" has=”" go=”">.Проблема anticipation At last, the majority of difficulties – in an anticipation problem. The Neznayemy nature of the future, fear before it motivate extra conscious mechanisms <knowledge> of the future, anticipation psychology. The anticipation conducts to belief, belief – to a selective filtration of perception and attention. The belief always looks for and finds confirmations. It doesn’t need denials and doesn’t suffer them. She never asks that can stop your belief. When you start trusting in something, you start inevitable process of denial of reality: <yes, the=”" price=”" fell=”" below=”" my=”" stop,=”" but=”" it=”" will=”" surely=”" return=”">; <yes, the=”" price=”" succeeded,=”" but=”" it=”" has=”" to=”" rise=”" still=”">; <yes, the=”" method=”" advises=”" to=”" enter=”" into=”" a=”" short=”" position,=”" but,=”" look,=”" price=”" goes=”" up=”" and=”" i=”" feel=”" that=”" it=”" has=”" go=”">.
You start believing that has to occur. You start expecting. The bigger anticipation gives rise to big belief, closing this vicious circle. And as the divergence meanwhile that actually occurs, and that you do, increases, – definiteness turns into hope, and this hope generates imaginations that will occur (again anticipation). Then the hope regenerates in fear, the fear gives rise to despair, and in a condition of despair you, at last, you act. As a rule, in a condition of despair you carry out the most unsuccessful action from all possible – for example, you close a long position in a minimum.
Why? Simply because you on this painful way not one and therefore that the threshold of despair is approximately equal at the most different people. At this moment your method starts signaling that it is necessary to tear off a long position. But you aren’t able to open it because just suffered terrible defeat. You can’t act according to being distributed signals. You are completely paralyzed.</yes,></yes,></yes,></knowledge></yes,></yes,></yes,></knowledge>
Anticipation – one of the most serious problems which are heaviest for overcoming. The anticipation underlies almost all difficulties in following to a method. In a condition of fear you are afraid of that can occur. When you hope for something, you have a confidence that it will occur…
Thus, not following to a method contains withdrawal in the basis of the present and cycling on the past (<again the=”" same,=”" same=”" unprofitable=”" transaction,=”" as=”" well=”" yesterday=”">) or future (<no, now=”" it=”" is=”" impossible=”" to=”" leave,=”" the=”" price=”" will=”" surely=”" go=”" up=”">). Everything that helps you to support attention (and, I hope, actions) focused on the present, is medicine for this problem.
Medicine for problems
I developed methods which in the combination always inform the trader on where he is now. And which unambiguously say that the trader has to do now. Nothing bigger can be demanded from a method. The method only can do the work. To do it it is passionless and without all your personal problems. Therefore you have to subordinate yourselves to a method. Exists many ego structures and functions which feel huge discomfort from such submission. And there are a lot of deep psychological problems. Therefore <follow a=”" method!=”"> much easier to say, than to make. You can have the best method on light (I am sure that all methods which you use, are very good) – but you will have all the same the most serious problems when following to the method. You have to realize accurately that all your psychological problems will inevitably affect your result in trading.
As we know, the majority of traders are ruined. The reasons of it are simple. Absence of the plan, method, bad money-management, not following to a method, etc. But basis of all these reasons almost always the purely psychological. Education, studying of a method will help to overcome only 50% of problems of following for a method. The others lie in the field of personal psychology, and each trader will face them.
Some simple councils
Here some simple councils which can help you.
1 . Use sound opportunities of your computer to receive signals of achievement of the purpose or stop.
2 . Every day provide the report on results of day to your partner or someone else. You don’t keep your transactions a secret. Surely tell about them to somebody.
3 . Think up a form of the report of the transaction and surely fill it for all transactions in a day. The more points and details in the report – the better. It, of course, needs to be done after market closing. Every day many traders carry out absolutely silly quantity of time behind any analysis (better to say, guessing). You receive much more advantage if instead reflect and you will analyse your own problems in trading.</follow></no,></again>
4 . If you can, try to express orally your problems комунибудь. Such expression fine helps. Such things from strangers instinctively try to hide the majority of us. Say, it is our failures, things which leave feeling of humility and shame and therefore as though put us in vulnerable situation before the outside world. For this reason it is extremely important, on the contrary, to try to make all problems open.
5 . Surely analyze all the transactions from the point of view of following to a method. Your purpose – to have no more than 10% of transactions with method violation. It is very good result of which very successful trader (certainly can be proud even, all specified figures are approximate, but also it is enough of them to try to estimate objectively the level). You received 15-50% – you can significantly improve results in trading if you find ways more accurately to adhere to the chosen method. It also a signal that this method, probably, not absolutely suits you. In any case it is necessary to sit down and think. If you received 50% and more – you have serious problems, and you have to act immediately. Understand, with such indicator you at a full speed seek for ruin.
Remember one more very important thing. Money never has to be the purpose, focus of your trading. It sounds, maybe, диковато, but… Being focused on money, you are focused on the wrong object on the purpose. Your focus has to be concentrated on development of inevitability of your action in reply to signals of the chosen method. All are focused only on money, and it is absolutely wrong. If you act on a basis of signals of the chosen method – money will come then. This one of the few good properties of money. Therefore so crucially the nobility, why and why you trade. If your answer: money, – you will inevitably lose. The Deytrading is the fine piece, the most interesting and most fascinating occupation. Probably, the only work in the world, capable to bring is at the same time so much moral and material satisfaction. But, as boring Americans tell, no pain no gain. And in trading of this pain (pain) suffices on all and much.