Art of fighting with myself

As far as I could see, in section <Psychology> write not professional psychologists, but mainly - practicing (or not practicing) traders. After reading the article by Alexander Bryuzgin <indecision and paralysis trader> at number 9 in 2002 there were some comments and additions to the affected subject.

The dictionary beginner

For a start it is still necessary to define the concepts. I propose the following interpretation: indecision - inaction trader in a situation where, for whatever their own rules, he should enter the market, as well as action trader, leading to the untimely closure of profitable and unprofitable positions; paralysis - the next stage of indecision, occurs usually after non-compliance with the order <protect the loss> an avalanche-like increase of losses. In the end, should be closing a losing position broker (for lack of funds) or spontaneous emotional closing position by the trader.

In my view, these problems are more characteristic still beginners, because if a person has worked for two or three years on the market, he is faced with psychological problems of a different kind. Therefore, all subsequent arguments are, rather, to beginners who are just planning to go public or have recently plunged into this environment.

From my observations trader indecision appears most often in the first period after the market launch. The problem of indecision as to the definition, involves two aspects: the first - the entrance to the market, the second - out of the market. The most interesting is that with all the evidence of the second aspect often overlooked by the general description of trading strategies.

Novice trader at first quite difficult to understand the ever-expanding variety of indicators - and the examples in the book, not on a demo account, and with his own money - and to evaluate the significance of interactions and variations of these indicators. During this period, it is important to understand that psychological comfort trader - to hold a position between days or to work only within the day. It is with this sense of inner peace and should be selected to work not only a combination of <his> indicators, but also the time scale of work.

As rightly observes A. Bryuzgin in his article, limiting the number of methods and indicators used much easier life trader. I would like to draw attention to the fact that the simultaneous use of trend indicators and oscillators in the initial stage and can complicate the work of the trader, especially considering that the last time a large number of analytical reports on market terms <overbought / oversold> occur unnecessarily often. The transition to the study of trade practices on the basis of Elliott waves, with their variety of treatments, only after successful completion of the simpler methods.

An ounce of practice or poods theory?

Just as with the choice of indicators, the restriction of <time slices> market makes life easy. I have seen traders who are trying to work on exotic time intervals, such as 23-minute combined with 36 - and 53-min. Then select the other time intervals, all over again. Naturally, in the process of studying the interactions of basic 23-minute chart with a 48-minute completely lost the purpose for which any person coming to the market - to trade and make money. If the theoretical refinements trader clearly prevail over the work directly in the market, the only thing I can think chto in this situation - get a job analyst. So people do not help and mechanical trading systems, because after receiving a signal from the MTS still need to act and not to engage in its regular setting, comforting themselves with the thought that MTS also wrong and this signal <exactly> - false.