How to change trader's mind set?

Discussions about the psychology of the markets and the masses as it relates to trading.
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oem7110
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How to change trader's mind set?

Post by oem7110 » Sat Feb 20, 2010 10:47 am

When trader is on losing position, he is willing to take more risk in order to cover the original equity, so he will invest more on average.
When trader is on winning position, he is afraid to lose his existing profit and not willing to take more risk, so he will take profit quickly.

Trader should take less risk on losing position, and take more risk on winning position.

Knowing this issue is not helping any trader, only understanding this issue and doing it will help.

Do anyone have any suggestions on how to change trader's mind set?
Thanks in advance for any suggestions
Eric

RedRock
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Post by RedRock » Sat Feb 20, 2010 10:11 pm

Imagine you are up on the moon. Sitting there. Looking back on yourself here, from afar. What would you tell yourself to do?


"Turn on, tune in, drop out" Or your own version of that...

sluggo
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Post by sluggo » Sat Feb 20, 2010 10:31 pm

RedRock wrote:Imagine you are up on the moon. Sitting there. Looking back on yourself here, from afar.
Get high...
Get above yourself
Look down upon yourself
Until you're inside o' yourself
Look to the front or the back o' yourself
To the back or front of yourself
It's inside yourself
And then you see your own head

And know yourself is yourself
'cause when you find yourself
You're gonna find that yourself is only yourself
And the self that can only be yourself
So when you're infront of the back of yourself
You're gonna find that your mind is in the centre of yourself
And God is nothing but yourself


1967

alp
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Re: How to change trader's mind set?

Post by alp » Sun Feb 21, 2010 12:44 pm

oem7110 wrote:When trader is on losing position, he is willing to take more risk in order to cover the original equity, so he will invest more on average.
When trader is on winning position, he is afraid to lose his existing profit and not willing to take more risk, so he will take profit quickly.

...

Do anyone have any suggestions on how to change trader's mind set?
It's not clear what's between you and this trader. Could you possibly re-write your post using 1st person singular, verb in present tense and object?

Gordon Gekko
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Post by Gordon Gekko » Thu Apr 22, 2010 9:49 pm

I have this problem,
if I get up $50 in a trade, I start thinking about all the times I had a $50 profit and let it turn into a loss. Then I usually just try to get any profit I can at that point.

On the other hand if I am in a losing trade, I will let it go $400 against me hoping that it will somehow get back to even so I can just get my money back.

ecritt
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Re: How to change trader's mind set?

Post by ecritt » Fri Apr 23, 2010 1:13 am

oem7110 wrote:When trader is on losing position, he is willing to take more risk in order to cover the original equity, so he will invest more on average.
When trader is on winning position, he is afraid to lose his existing profit and not willing to take more risk, so he will take profit quickly.

Trader should take less risk on losing position, and take more risk on winning position.

Knowing this issue is not helping any trader, only understanding this issue and doing it will help.

Do anyone have any suggestions on how to change trader's mind set?
Thanks in advance for any suggestions
Eric
Write an algorithm that does what you want it to do. Fire the trader.

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