Random musings ...

[niftychance]

HAPPY DASHERA​

Hello Friends

Wishing all the friends of Traderji Family a very Happy Vijaya Dashmi Festival

Dashera or Dassara is a day for

i.e. crossing of boundaries or overcoming limitations ...

As a trader, we need to cross the limitations that we have placed on ourselves ...

Thanks

 

[Capricorn]

Seasons greetings to all the folks out there. Have a great time.

 

[niftychance]

Hello

List of 10 Limitations we face as we start trading...

1. IGNORANCE
   
2. NO MENTOR / GUIDE
   
3. FOLLOWING TIPS or
   
4. SNAKE OIL GURUS
   
5. FEAR
   
6. GREED
   
7. NO METHOD
   
8. UNPREPAREDNESS
   
9. INDICIPLINE
   
10. TRYING TO BEAT THE METHOD

At the start of our journey we are 'Ignorant' to know right from wrong, everything looks so easy, trading seems like picking up money from the street.
Don't they say "Ignorance is Bliss".

Lack of a proper 'Mentor/Guide' at this stage leads us to clutches of 'Tips Providers' and 'Snake Oil Salesmen' with their 100% Successful Systems and Magic Indicators. i.e. 100% success before we use it, 100% failure after we start using it

Then as we learn more, we have to deal with our own emotions oscillating between 'Fear' and 'Greed' ...
Emotions play a big role in our trading decisions as we have 'No Method'

If we are fortunate we may get a helping hand and or other wise finally settle on a Method to use, but we go into the trades "Unprepared", lack of preparation even after we have a method makes us fall prey to emotional decisions.

Once we have done loads of back tests and forward tests and are confident of the method we have to trade we have to content with 'Discipline' or lack of it ...

After the method is in place and we are trading it properly, we start thinking about the what we are leaving on the table and then comes in the ego to do better than the method or "Beat the Method" ...

For everyone the journey may be a bit different, so the list will be slightly different, do share your lists of 10 demons…

Thanks

 

[niftychance]

Top Ten Reasons Traders Lose Their Discipline

Losing discipline is not a trading problem; it is the common result of a number of trading-related problems.
Here are the most common sources of loss of discipline, culled from my work with traders:

10) Environmental distractions and boredom cause a lack of focus;

9) Fatigue and mental overload create a loss of concentration;

8) Overconfidence follows a string of successes;

7) Unwillingness to accept losses, leading to alterations of trade plans after the trade has gone into the red;

6) Loss of confidence in one's trading plan/strategy because it has not been adequately tested and battle-tested;

5) Personality traits that lead to impulsivity and low frustration tolerance in stressful situations;

4) Situational performance pressures, such as trading slumps and increased personal expenses, that change how traders trade (putting P/L ahead of making good trades);

3) Trading positions that are excessive for the account size, created exaggerated P/L swings and emotional reactions;

2) Not having a clearly defined trading plan/strategy in the first place;

1) Trading a time frame, style, or market that does not match your talents, skills, risk tolerance, and personality.


by Brett Steenbarger at TraderFeed

Thanks