Dinos said:
The key I found was to have complete belief in your system, therefore, it has to be robust, tried and tested over and over again before going live, I place my market trade at £pp, immediately place limit order to close the trade and go away and don't look at my charts, account until the evening. If successful, I will trade again, if not I simply go away and wait.
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Total Belief in a verified System (setup, with trading rules of entry, exit etc) whether based on any price based indicator or volume is the HOLY GRAIL OF TRADING.
A trading friend sent me this:
"
1. This is based on a Dax Chart Analysis by Tom Williams, however the comments on Belief are by a friend of mine
2. Now in the present chart of the week, most would focus on the chart , however there are a few gem of comments by Tom on "Belief"
a) You have to believe these underlying principles
b) You have to believe that these markets work on supply and demand.
c) You have to believe that these markets reflect consensus of professional opinion at that time.
Also in his seminars many times he remarks "If you don't believe me check it out for yourself"
Now hardly anybody pays attention to these words, but I can assure you if you go through the interviews of supertraders in Market Wizards, it will be become evident that a total belief in a particular strategy and having the discipline to implement that strategy and accepting the probability of the strategy with every cell in the body is at the heart of the success of these super traders.
These guys have stuck to simple strategies and their response have become automatic, there is no conflict in their mindset.
Just like driving, initially we have that fear of accidents coupled with the motivation to learn , hence the anxiety, stress , however with pratice, this conflict is resolved.
Trading which is the most unique profession in the world is ofcourse in a different league. Humans are just not hard wired for trading, period, (to deal with uncertainty continuously)
3. Every trading strategy based around any indicator with say over 50% probability would work if a trader totally believed in it and applied it with discipline, however in 90% of the case this will not happen simply because that crucial transformation based on belief has just not happened, hence as soon as we are in front of the screen, anxiety, conflict sets in. With indicator based strategy, we don't know "WHY" it is working and that causes conflict, deep down there is that nagging disbelief. Right from birth we have always been seeking answers to "WHY" and this is carried into the trading arena
4. There is nothing like emotion free trading. The right belief structure has to be in place to resolve the conflict in the mind, uncertainty against total belief in our ability to read the market.
5. This right belief structure can be gained by understanding VSA principles which governs all the price patterns, price action and the derivative indicators thereof. i.e that is the truth of the market. It provides the answer to "WHY" which is what the human mind seeks. Once that is fully accepted into the psyche, the conflict is resolved, emotions can be managed,(e.g during driving , we still have emotions, we do not drive around like zombies, but we manage them, mind you nowadays this could be argued, with all that evidence of road rage
) on our streets) trading would then become like driving a Bentley, and this is the only software in the world which allows a trader to acheive that mindset.
