Category Archives: 4 ) Trading Psychology

How Professional Trader,s Cheat

Did you know third-party like Business Wire sells hedge funds an early, albeit split-second, look at corporate earnings, before retail traders see it ?
it’s perfectly legal.

The University of Michigan, for example, sells the rights to its Survey of Consumers to Reuters for $1 million a year. Reuters then sells early access to it either five minutes before the public gets it or five minutes and two second before‚ÄĒfor the HFT crowd that wants to frontrun the frontrunners.

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Trading a Mental Game .

Trading is a mental sport you have to approach it like that.

Its a well known fact that many retail traders don’t have the mental preparation to confront trading markets . Patience discipline simplicity the missing qualities.

Needing to be sure is what really kills traders. They seek a certainty that can’t be found, and end up on the completely wrong path.

Weather you are just starting out in the world of trading , coming to terms with your own trading system , right through to the mental aspects of trading or simply a Professional trader looking for a new perspective and fresh mindset to your trading Transitiontrader.com can help you .

Transition will ensure that the changes you want to make will be the right ones and will leave your trading business in better shape than ever.

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The Rallying Cry Of Amateur Trader,s

The¬†rallying cry¬†of the losing¬†trader¬†“I’ll get out when I’m even” ¬†Marty Schwartz¬†¬†

Freshly Squeezed Pips view

Those who get out at Break even do so because they can then say to themselves i was not wrong i did not make a big mistake .  

This is totally the wrong way of thinking and approaching Trading .

Letting your Ego Rule versus Ruling your Ego is the First steps in the battle of your Psychology issues toward Trading  .

The Irony is People loss¬†because¬†they¬†don’t¬†want to lose , they just want to feel they¬†weren’t¬†wrong because¬†in there minds ¬†Right= ( Win ) // Wrong= ( Loss )¬† .¬†

The truth is Pros know they have to take losses in order to win its part of the process :  There is no Right= ( Win ) or Wrong  = ( Loss ) in Trading just wins and losses .

 

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Proper Mind Set for Past and Present Trading

Image Extract from Trading in the Zone by M Douglas

The Dynamics of Precept-ion

Extract from ¬† ” Trading in the Zone “

Traders Poll answer – Gambler’s fallacy

For a fair coin, the answer sho uld be that both outcomes are equally lik ely.

If you Believed that the next flip is more likely to be tails because ‚Äútails is due to come up‚ÄĚ this is whats is known as gambler‚Äôs fallacy, a great example of availability bias. i.e availability bias occurs when our estimates of probabilities are influenced by what is most ‚Äúavailable‚ÄĚ .

The purpose of the quiz is simple .

As traders assess new information, all observations must be appropriately weighted in prices or estimates of probabilities. If traders are unduly influenced by availability bias, the resulting estimates may not be accurate.  You must at all time in your approach be equally fair, balanced objective and dispassionate while gathering your analysis toward trading .

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Traders Poll

 

I,m starting a new section on the Blog¬† “Trading Psychology” I,d be grateful if you would take part in the above poll .

I,ll Follow Up with the answer in a weeks time .

Participation much appreciated.

Freshly Squeezed .