welcome
Are you living a trading lie??
Are you living a trading lie or trading honesty?
Living a trading lie is all about having a gap that exist about what you should do versus what you actually do.
This Gap can originate from two sources:
Execution gap – Where there is an inability to do the right thing due to lack of knowledge, lack of organisation of self including time, or the absence of a plan
Integrity gap – where you have the knowledge, ability and plan yet fail to take responsibility for implementing your trading as you should
Irrespective of which gap exists it is the difference between the trader you are now to the trader you could, should and MUST become.
Often it is fine tuning required as many things you need will already be in place.
Signs that a gap may exist are many but may include:
- Placing the blame for trades that dont go your way on your system or the market rather than looking at your decsion making
- Not adhering to your plan in the heat of the market
- telling stories about the great trade rather than trades that went wrong - do this enough and sometimes you start to believe you are an awesome trader even your results dont demonstrate that.
- when you take a hit you move onto the next system/market vehicle
The challenge and NECESSITY is to develop honesty and awareness
Awareness of self is the first stage in taking your trading to the optimum level. It is this awareness that will create a choice and this choice that can create potential growth. you will only get this from recording all that you do in yoru trading in the form of a journal or diary..at least for a while rather than just view profit loss.
I met a guy yesterday bragging about the fact he didnt need a plan nor a trading diary..Are are you just to damn cool to have a written trading plan or keep a diary??
If you are living a trading lie, its OK most traders do or have done, moving towards this defined ‘choice-point’ to awareness and beliefs in possibilities is what will make a difference in achieving that which you hope to achieve.
Ask yourself the question..”what part of my trading practice am I no longer willing to tolerate from NOW?” ....and follow through on your decision
Living a trading lie is all about having a gap that exist about what you should do versus what you actually do.
This Gap can originate from two sources:
Execution gap – Where there is an inability to do the right thing due to lack of knowledge, lack of organisation of self including time, or the absence of a plan
Integrity gap – where you have the knowledge, ability and plan yet fail to take responsibility for implementing your trading as you should
Irrespective of which gap exists it is the difference between the trader you are now to the trader you could, should and MUST become.
Often it is fine tuning required as many things you need will already be in place.
Signs that a gap may exist are many but may include:
- Placing the blame for trades that dont go your way on your system or the market rather than looking at your decsion making
- Not adhering to your plan in the heat of the market
- telling stories about the great trade rather than trades that went wrong - do this enough and sometimes you start to believe you are an awesome trader even your results dont demonstrate that.
- when you take a hit you move onto the next system/market vehicle
The challenge and NECESSITY is to develop honesty and awareness
Awareness of self is the first stage in taking your trading to the optimum level. It is this awareness that will create a choice and this choice that can create potential growth. you will only get this from recording all that you do in yoru trading in the form of a journal or diary..at least for a while rather than just view profit loss.
I met a guy yesterday bragging about the fact he didnt need a plan nor a trading diary..Are are you just to damn cool to have a written trading plan or keep a diary??
If you are living a trading lie, its OK most traders do or have done, moving towards this defined ‘choice-point’ to awareness and beliefs in possibilities is what will make a difference in achieving that which you hope to achieve.
Ask yourself the question..”what part of my trading practice am I no longer willing to tolerate from NOW?” ....and follow through on your decision
Tags: emotion, market, pyschology, stock, trading
Replies to This Discussion
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Permalink Reply by DailyForex on -
You make a strong point, which really forced me to take a moment and think not just of my trading strategies, but of my overall behavior when it comes to trading. Thanks!
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Permalink Reply by ebooktsar on -
Good points, answer to discipline is pretty simple - take the emotion out of the trade. Set your rules, enforce using a semi-automated plan.
The only indicator that counts is the bottom line, opinions and 'big fish' stories are so much bs.
Prepare plan - stick to the plan, adjust and relaunch.
This article reminds me of some of the best advice that I was offered starting out.
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Permalink Reply by Vince Manzello on -
Copied your post and hung it next to my computer screen and on the cover of my trading journal!!
Thanks
Vince
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Permalink Reply by Mike Smith on -
thats awesome vince...great action taken. Many of our clients have there trading purpose laminated and stick it where they trade to have it front and centre while making every trading decsion. same concept once again great work mate
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Permalink Reply by Simon Gatuna on -
This is honestly very genuine and good advise to any trader. Self evaluation and awareness can only be done based on a defined plan and records thus we definitely need to keep a trading journal.
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Permalink Reply by Lance Carson on -
To me a " Trading Lie" is the same as deceiving yourself as when you think or don't see any room for improvement when it is actually the opposite. This leads to overconfidence and eventually a big loss.
Before I started trading live, I practiced for two years in simulation mode taking notes of not only the bad trades but also the THOUGHT PROCESS behind my desicions.
In following the Thought Process while trading , you will discover what really precedes each wrong desicion and what biases or opinions plays out in your mind that is clouding the realities of price action.
The bottom line is that as traders we are all looking for the edge or a system were we don't have to think too much when we see a setup. But in reality all setups are different and each requires some intuition and some desicion making
My particular experience with the trading thought process was that I started with an obssecion with trying to guess the very bottom of a downtrend or the very top of an uptrend or better known as " Picking a Top/Bottom" That process was very frustrating and many bad trades in paper mode. I took me several months to realize , that objective was almost impossible.
Sometimes when we see a huge GAP in prices like the one in Thanksgivings thursday nigh we as traders start to develop a bias, in this case a bearish mindset because of the news or whatever plays out in our mind. In this particular case the US market had dropped through many key support levels overnight due to an overseas foreing ( Dubai ) financial news.
The first thing that went to my mind when I saw this was that on Friday after the open I would look for a short entry.Then my THOUGHT PROCESS started to look for previous similar events and I started to realize that in my experience ,US markets usually don't continue to drop after a foreign finansial crisis and that there is a great possibilty of a retracement of more than 62% when it opens on Friday Nov 27. The other reason for the retracement call was the low volume during Globex session.
So the market did exactly as expected, alhough I was tempted to sell on the open due to reading that many traders in $ES_F StockTwits were already short and were placing new short positions after the open. They were ALL wrong ! My experience paid off handsomely.
The though process can be misleading if you don't challenge it enough or don't have enough experience to draw a different more accurate conclusion.What part of your THOUGHT PROCESS are you willing to change while trading?
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