iCharts Discussions

[yesican]

let ur profits run

[vinay28]

good one yesican! who has written this, you or is it a quote?

[vishyvaranasi]

Hi yesican,

Superb. This is the case of 99.9% traders i feel(incl. myself). We tend to book profits fearing that we might be loosing the same nad will wait for our SL to be hit once the trade goes against us.Honestly i feel ( if this was written by you) even u too might be doing the same mistake as above. If not then KUDOS to you.

Vishy

[pkholla]

Edited Entry:
Please post original stuff written by you OR acknowledge the source from where u r copying
Regards, Prakash Holla

[GHAISAS]

yesican,

THANKS

ghaisas

[vinay28]

prakash, if he wrote it, I would give him double credit that's why.

[GHAISAS]

ICHARTS MOTTO: YESWECAN

[yesican]

i cannot become a good painter or singer easily, because i think i dont have natural talent in both..... if i try i may be able to sing and paint some wat ok , but not the best way

trading is different from the above.... natural talent is not needed... because no one is a born trader.... every one became so with hard work and patience..... so i believed some one else can make money, i can also make money if i follow him, the way he doing trading or if i find a better way and practice,,,,,, one more thing in trading we are not competing with any.... so we dont have to worry about sachin or sharukh...( some local players do believe that it is sachin who spoiled their dream to reach indian team)..... in trading field one has to fight only with him self.... he has got no enemies from outside....
i always believes in trading field if u can , i can also and if i can , u can also............. YES WE CAN

[GHAISAS]

yesican,

Thanks again for the underlining sentences - to be read and re-read, understood - till they become a part of our life. Great.

ghaisas

[raghva]

Can you please explain briefly your trading method.Appreciate your comments.

[yesican]

Five Guiding Principles of Trading Psychology


I recently participated in an online chat presentation for RK Malhotra where I assembled my ideas
into ten basic principles that have guided my thinking about the psychology of traders and the
psychology of markets. In the very near future, if my testing continues to be promising, I hope to
present a market indicator for swing traders that rests firmly upon these principles. In the interim,
here are the five principles that pertain specifically to trading psychology and in future I will also
give five principles for trading the markets.

Principle #1: Trading is a performance activity

Like the playing of a concert instrument or the playing of a sport, trading entails the application of
knowledge and skills to real time performances and this is the core idea behind my most recent
book. Success at trading, as with other performances, depends upon a developmental process in
which intensive, structured practice and experience over an extended time yield competence and
expertise. Many trading problems are attributable to attempts to succeed at trading prior to
undergoing this learning process. My research suggests that professional traders account for well
over three-quarters of all share and futures contract volume. It is impossible to sustain success
against these professionals without honing one's performance--and by making sure that you don't
lose your capital in the learning process. Confidence in one's trading comes from the mastery
conferred by one's learning and development, not from psychological exercises or insights.


Principle #2: Success in trading is a function of talents and skills
Trading, in this sense, is no different from chess, Olympic events, or acting. Inborn abilities
(talents) and developed competencies (skills) determine one's level of success. From rock bands to
ballet dancers and golfers, only a small percentage of participants in any performance activity are
good enough to sustain a living from their performances. The key to success is finding a seamless
fit between one's talents/skills and the specific opportunities available in a performance field. For
traders, this means finding a superior fit between your abilities and the specific markets and
strategies you will be trading. Many performance problems are the result of a suboptimal fit
between what the trader is good at and how the trader is trading.


Principle #3: The core skill of trading is pattern recognition
Whether the trader is visually inspecting charts or analyzing signals statistically, pattern
recognition lies at the heart of trading. The trader is trying to identify shifts in demand and supply
in real time and is responding to patterns that are indicative of such shifts. Most of t he different
approaches to trading--technical and fundamental analysis, cycles, econometrics, quantitative
historical analysis, Market Profile--are simply methods for conceptualizing patterns at different time
frames. Traders will benefit most from those methods that fit well with their cognitive styles and
strengths. A person adept at visual processing, with superior visual memory, might benefit from
the use of charts in framing patterns. Someone who is highly analytical might benefit from
statistical studies and mechanical signals.


Principle #4: Much pattern recognition is based on implicit learning
Implicit learning occurs when people are repeatedly exposed to complex patterns and eventually
internalize those, even though they cannot verbalize the rules underlying those patterns. This is
how children learn language and grammar, and it is how we learn to navigate our way through
complex social interactions. Implicit learning manifests itself as a "feel" for a performance activity
and facilitates a rapidity of pattern recognition that would not be possible through ordinary
analysis. Even system developers, who rely upon explicit signals for trading, report that their
frequent exposure to data gives them a feel for which variables will be promising and which will not
during their testing. Research tells us that implicit learning only occurs after we have undergone
thousands of learning trials. This is why trading competence--like competence at other
performance activities such as piloting a fighter jet and chess--requires considerable practice and
exposure to realistic scenarios. Without such immersive exposure, traders never truly internalize
the patterns in their markets and time frames.



Principle #5: Emotional, cognitive, and physical factors disrupt access to patterns we
have acquired implicitly
Once a performer has developed skills and moved along the path toward competence and
expertise, psychology becomes important in sustaining consistency of performance. Many
performance disruptions are caused when shifts in our cognitive, emotional, and/or physical states
obscure the felt tendencies and intuitions that lie at the heart of implicit learning. This most
commonly occurs as a result of performance anxiety--our fears about the outcome of our
performance interfere with the access to the knowledge and skills needed to facilitate that
performance. Such performance disruptions also commonly occur when traders trade positions that
are too large for their accounts and/or do not maintain sound risk management with their
positions. The large P/L swings cause shifts in emotional states that interfere with the (implicit)
processing of market data. Cognitive, behavioral, and biofeedback methods can be very useful in
teaching traders skills for maintaining the "Yoda state" of calm concentration needed to access
implicit knowledge.
The most important question I can ask an aspiring trader is: Are you engaged in a structured
training process? Education--simply reading articles in magazines, websites, blogs, and books--is
important, but it is not training. Training is the systematic work on oneself to build skills and hone
performance. It requires constant feedback about your performance--what is working and what
isn't--and it requires a steady process of drilling skills until they become automatic. No amount of
talking with a coach or counselor will substitute for the training process: not in trading, not in
athletics, and not in the dramatic arts. Training yourself to proficiency is the path to a positive
psychology.
yesican

[rk_a2003]

Yesican,

I must say your presentation is really impressive. You said "My research suggests that professional traders account for well over three-quarters of all share and futures contract volume”. For saying this you must be relying on some authentic data. In this above 3/4 share institutions are also included, I guess. Can we say that only less than 1/4th are not professional traders (Either Investors or new traders.)Please clarify.


"Many performance problems are the result of a suboptimal fit between what the trader is good at and how the trader is trading.”“Traders will benefit most from those methods that fit well with their cognitive styles and strengths."What you are saying is right and these can be boiled down to famous saying in traders world “chose the right trading style that fits you”. That’s why numerous trading styles, methods, tactics, indicators evolved.

[veerappan]

i dont have much experience in stock market... but a bit experience is there for 22 years... l learned it ... only two three things... just be alive ... be conscious.... profit things also shd be with trailing stop loss and money management.... each trade shd be with stop loss... [ if u r a day trader or investing basis also].... first step decide the loss... risk reward... u shd calculate on live market on running basis... suppose u took 7 rupees risk and u r getting 7 rupees... and the culprit mind watching tv... mikki donkey nasdogs cows cracking... in the thought process ... it will kill u... still u have plus... dont be with that ... just throw it out and take the money .... bcoz if u hold... and trig happen at cost also ... next trade u will recover that profit of 7 rupees automatically u will increase the volume or ... try make that... the problem starts here only....

1. just use any indicator.... let it be anything ...if u say to any one people will laugh that type of indicator that time ... dont worry... just stick on to that.... just use that.... just follow that...whatever it says just do that....

2. if the system says buy ... and sl u knew well... suppose sl is too long and u feel its not worth or i cant pay this much then wait... or reduce the qty ... and do that... decide the loss first.... it will help u many ways... bcoz u knew where u r going to stand... and u wont loose ur entire capital....

3. dont be with mind and mind sets... mind is always culprit.... mind will watch and do wrong things always... just u watch the mind ...it will help u....u r system says sell just sell ... within 7 points system given buy just close the sold posn... after buying or not that is diff.. but u shd close the sold posn... in this place only problem will starts.... just go back and test on your trades... u knew well....

4. 7 rupees risk u r getting 7 rupees... risk reward is 1:1... u feel enough and safe then just take it or change the tsl to cost... what is there... u r risk is reduced.. and suppose goes up change the tsl... or let them hit...

5. most important thing... money management... and for small profits and small losses dont carry to next day... u will be carried away from the stock market...

6. there is not a bit of diff between thought and action... that is most important...

this is what i learned....if anything is there further i will post it later... [ suppose if i forget on this time ... bcoz time time time ... time is most important]....

veeru chennai boy

[amitsaraf21]

arre bahut books available hain psychology par, padhne par kaafi clarity mil sakti hai.

[amitsaraf21]

Veera anna bahut khoob bahut khoob.