Is Market a Battlefield for You?

Is Market a Battlefield for You? by Reality Trader

Have you ever heard something like “The market is a battle, be ready to fight with all you’ve got,” or “The market is a war,” or any variation of this theme? I bet you have, it’s a fairly common theme. But is it true, or better question might be: is this a mindset that you want to adopt?

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Don’t get me wrong – by no means do I want to present a marketplace as a happy place where refined gentlemen high-five your each win (hmm, do refined gentlemen high-five at all? or they back-slap only?) and console you with fine whiskey and cigar after each loss. No, they are out to get you just as much as you – them. In that sense, anyone in the market is an enemy of anyone else. But that’s not really the point. The point is, is kind of attitude toward the marketplace and its happenings going to help you survive it, navigate it successfully? Or is it going to undermine your success?

If the market is war for you, you are going to be in the fighting mode all the time. Can you function well for long in a constant fight mode? It’s extremely tense mode which is going to wear you out rather quickly. Instead, allow me to offer you a very different attitude – one where a market is a natural environment for a trader – environment where certain patterns govern all the comings and goings. Is it a dangerous place for a trader? Of course it is. Think of it as of ocean. It’s a dangerous place to be and swimming in it is a dangerous thing to do – just as trading the markets.

But is it practically useful to think of ocean as a battlefield and sharks as enemies? Try to approach it this way, and you start making your decisions based on emotions, anger, frustration, feeling of being powerless and moving to inevitable defeat.

Instead, try to think of it as a place that is indifferent to you – not friendly, not hostile – but simply a natural environment where incorrect behavior gets you killed. Now instead of emotions you focus on studying patterns – which current goes where, whether it will take you where you need to be, where the sharks are and what the signs of them circling are, how you recognize their approach, how you spot fish that you can catch and eat… That’s your cold-blooded trading approach where you act accordingly to the patterns and not to what your emotions would have you do.

Those who you may want to dub as enemies out of concept of fairness and other similar ideas (which are not the nature ideas but entirely man-made) are those who create these patterns and are part of them. Consider them enemies – and you find yourself fighting those patterns. Consider them part of the environment – and you start studying and following those patterns.

Reread this paragraph above before you start your next trading day. See if it puts you in a calm confident state of mind where you feel in control of your emotions and actions.

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Best Forex traders worldwide, give you advice for FREE to buy or sell. ZuluTrade converts this advice to a live trade in your broker account automatically, again for FREE! Unique service, I have already opened an account!

http://moonlightforex1.zulutrade.com

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About the Author

RealityTrader, lead by seasoned trader Vadym Graifer, is dedicated to provide traders with a solid understanding on how the market functions and how to implement time-proven techniques in a step-by-step and consistent manner.

Vadym is the author of Techniques of Tape Reading (McGraw Hill 2003), How to Scalp Any Market (2005),Master Profit Plan (Trafford, 2005) and A Taoist Trader (2010). Vadym is a frequent featured speaker at International Trader’s Expos, private seminars and Financial Forum Conferences.

Realitytrader provides a community where traders can refine their trading skills with helpful hints and tips from those that trade the market everyday in a safe, affordable and non-threatening environment.

RealityTrader is dedicated and committed to teach you everything about this evolving market. Evolve with us, not after us.

Trading Psychology – Stage 1. Blissful Unawareness.

Trading Psychology – Stage 1. Blissful Unawareness. by Reality Trader

As we mentioned in the previous article, first stage is usually the one where a newer trader doesn’t acknowledge the role of psyhcology in his trading. It happens out of ignorance or arrogance.

In a former case (ignorance) it’s simply lack of knowledge and mistaken notion that one can trade succeffully if given “right” system or indicator or tip or whatever causes one to enter and exit his/her positions. It usually takes a while before a trader starts seeing how his mindset influences his trading and how his personal traits shine through his trading decisions. It comes as a surprize realization that different traders will get different results while trying to apply the same system. It is counter-intuitive, isn’t it?

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Best Forex traders worldwide, give you advice for FREE to buy or sell. ZuluTrade converts this advice to a live trade in your broker account automatically, again for FREE! Unique service, I have already opened an account!

http://moonlightforex1.zulutrade.com

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In a latter case (arrogance), a trader shows some kind of denial – it’s “not me” attitude, thinking that goes along the lines “maybe it’s a problem for some but I am in control of myself,” “this stuff is for weak-minded” etc. Needless to say, it’s rarely the case… and even more importantly, it’s not so much about weak vs. strong mind as it is about influence one’s personality has over one’s trading.

In any case, the important thing at this stage is to come to appreciate this aspect of trading. It happens when one sees how much truth there is in saying “everyone gets what they want out of market” (Ed Seykota I think?) Again, seems counter-intuitive, right? After all, don’t we all want to succeed, to make winning trades, to make money? Sure… but it’s not about what our conscious mind wants, it’s about what our inner core dictates, and that is not always easy to realize and control.*

Simple example to illustrate the idea: do you know people who repeat certain behavior patterns harmful to themselves? Getting themselves into relationships with the types that make them miserable, over and over again? Repeating the same mistakes in their interaction with others, obviously not learning from the past? I bet you do (although you personally never act like this, right?) So, why do we do it even though we see (or could see if we looked) that these behavioral patterns hurt us? Because those patterns are not just some easy to break habits; rather they are a part of our personality, of who we are, and it takes much more than simple decision not to do that anymore to change our ways. Pretty much the same thing happens in trading – we know what not to do yet we continue doing it.

As soon as one realizes all this, the first stage is completed. The role of psychology in trading is acknowledged, denial is over – and this forms the foundation for a change.

*My favorite example of this phenomenon is the Russian movie Stalker. The plot line briefly: there is a certain machine granting wishes (stalkers in the movie are the people who take clients to it through the many dangerous traps). The machine grants wishes alright but there is catch: it’s not a wish that you stand in front of the machine and announce that will be granted… it’s a wish that constitutes your essence, your core, your deep desire – and it’s not necessary the one you realize and announce to yourself and to the world. Pretty much what happens in trading and pretty much what the author of that saying (everyone gets what they want in trading) meant.

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Best Forex traders worldwide, give you advice for FREE to buy or sell. ZuluTrade converts this advice to a live trade in your broker account automatically, again for FREE! Unique service, I have already opened an account!

http://moonlightforex1.zulutrade.com

————————————————————————————————-

About the Author

RealityTrader, lead by seasoned trader Vadym Graifer, is dedicated to provide traders with a solid understanding on how the market functions and how to implement time-proven techniques in a step-by-step and consistent manner.

Vadym is the author of Techniques of Tape Reading (McGraw Hill 2003), How to Scalp Any Market (2005),Master Profit Plan (Trafford, 2005) and A Taoist Trader (2010). Vadym is a frequent featured speaker at International Trader’s Expos, private seminars and Financial Forum Conferences.

Realitytrader provides a community where traders can refine their trading skills with helpful hints and tips from those that trade the market everyday in a safe, affordable and non-threatening environment.

RealityTrader is dedicated and committed to teach you everything about this evolving market. Evolve with us, not after us.