Floor reflections on trading


Take two traders. Put them next to a POS. Give them the same program, the same strategy, the same signals. And you get two completely different and, most likely, the opposite result. So, perhaps we need to fix something in the traders?

Why and why people trade

So, why, and why people trade in shares?

"In order to earn."
"I trade because I like the feeling of independence and the challenge to my abilities, which makes trading" (yes, that's the reason, it is found in the vast majority of responses).
"Because you can work from home."
"In order not only to earn, but to fully control the process."
"Trading gives you the freedom of time and makes my own boss."
"Trading is always giving something new for my development."
"Success in trading gives me extra strength and impetus for my life."
"I am attracted to the task of working with such a complex and uncertain system, as the market."
"There is hardly exist yet something as profitable."
"The big risk, but also very rewarding."
"Trading is never boring, every day something new."
"The trading unlimited opportunities to improve."
"He is independent, free, mobile."
The answer choices are fairly typical for both professional traders and for strangers - they are a certain scale of values of trading.

Of course, all these causes and reasons seem relevant and attractive, which, in particular, explains the popularity of professional traders.

But the facts are somewhat different. According to recent research, more than 90% of day traders lose money, and two thirds of these losses exceed $ 100,000. So what's the problem?

Primarily in the fact that most traders do not have a clear plan or trading method, jump from one plane to another, from one system to another. It is clear that under these circumstances the implementation of a particular system of values - a very difficult task. And it's not just a problem of education (the plans, methods, financial management, etc.). The matter is more underlying causes, often directly related to the choice of the person trading as the main activity.

It should be noted that today in our society money was a factor psychologically powerful, more powerful than any other. What does this mean? This means that when the case involves money, you are required to complete and return a complete psychological concentration. And this is very different from working in the office or at the company that pays a predetermined fee. In trading, you see the float away your own money, and it is intertwined with your sense of self-sufficiency, self-esteem and a range of other psychological factors.

When you lose, and lose money in the case enters the so-called "Psychology of shame and anger," and every time it happens, psychology tends to repeat the act as a way to stop the abuse of your sense of self-sufficiency. These repeated factors gradually lead to addiction, to a kind of addiction. And as soon as the trader is drawn into a habit, it starts to lose money all the time.