Psychology of trading – Why traders fail

Psychology of trading – Why traders fail



My view on why you can show people exactly the same set up to trade and why they will come out with two entirely different results!

I started from the same place as most traders but have worked through the problems that made me a hopeless trader when I first started.

This video is linked to the ‘hotel analogy’ video betfair

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December 7, 2014 / 8 Comments / by / in
  • Its getting away from the mentality that you have when backing horses to win. Pushing hundreds of pounds through the market to win five quid seems pointless, especially when you get it wrong and lose 2 or 3 quid on a succession of races. Most people are playing on a small bankroll so they set conservative stop loss limits because if they get caught in a situation where the market breaks ten ticks in the wrong direction that's a significant percentage of their bankroll gone. Also most people can't read a market, no matter how much guidance and great examples you show them, they just place trades based on the last up or down movement on the ladder.

  • Hi Peter ,quick question.Is there any way that you know of to predict the rought area a horse will trade at,ie a range of 3.5-4.0 etc.I have come across a way to get an almost 70/1 risk free bet but i must know where the starting range is.Any help would be greatly appreciated

  • I couldnt agree more with the sentiment of this video. It si something, which despite years of trading I still struggle with. I am a successful trader in that I make a living from it but am aware that my gains are limited by my fear of losing. I have gone some way to improving my attitude though. You have to allow markets to move against you sometimes as you are not always going to enter a trade at the top/bottom of a range. Some advice for coping with fear is as follows:

    1. Have a clear exit strategy – if you cant see an exit close to your entry point reduce your stake or wait for a better opportunity

    2. When you have entered the trade use breathing techniques to stay calm (a bit "zen" but it does work! – fear is physiological)

    3. Record your trades. if you exit early record it. If you exit late record it. Doing this will show you the potential of a strategy even if you are not trading it quite as you should. If a spreadsheet shows it to be a successful system this is great for the confidence and will help you to trade with less anxiety.

    4. Use meaningful stake sizes  – but not too big.

    I would go on but have to go. I hope this helps.

  • Deffo worth trying to read a few books on our anxiety levels to ..As we all no were built with it in us its a good thing .But can be a bad thing ,if we feel relaxed in a trade/bet situation then it will work sometimes but if its turned into a negative anxiety our minds tell us to do other things or we think of other things to do (Make bad judgement)All links with gambling in a way ..So being relaxed is key ..And a great video may i add

  • Thank you for this nice video. My book, Paradigm Shift, talks about the importance of self-knowledge in any high performance endeavor – trading included. This self-knowledge is attained with some kind of spiritual practice. Sprituality does not have to have religious connotations. Sitting in contemplation of your body, breath, mind is a spiritual practice in and of itself.
    http://www.amazon.com/Paradigm-Shift-cultivate-equanimity-uncertainty/dp/1511877839/ref=tmm_pap_title_0?ie=UTF8&qid=1429890199&sr=8-1

  • Why? Because trading is for a select few.

  • "It's how you deal with failure that determines how you achieve success"

  • Hi!!

    A question about Preracing trade: How much of your bankroll should you use as a percentage?

    Sincerely

    Roger

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