Trading psychology and TA - page 2. | Bitcointalksearch.org

Lakai01

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Quote from: nelson4lov on March 27, 2024, 06:54:53 PM

That said, I've taken that as a cue to start building mental toughness and strong psychology to execute my trades based on my rules. Either TP or initially set SL. No impromptu trade closes, etc.

A tip at this point: Use a bot to execute your trades (or your trading strategy). This way, you won't be embarrassed to end a trade too early or to add capital to poorly performing trades.

It may take some time to set up, but it will save you an incredible amount of nerves - and above all money. Bots are a dime a dozen these days anyway, both paid and free.

Ahli38

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Quote from: Bravut on February 13, 2024, 05:02:21 AM

I have observed great number of traders debate on the issue of having a solid psychology and right approach to trading better pay off than just relying on some Strong Technical Analysis but others don't believe in psychology they base there points on having a winning strategy and proper risk management
What's your take guy's...
Does Psychology exist or is just an illusion of you not having the right approach and risk management, fundamentals...that affect your trades

Psychology in trading is really an important issue that must be studied. Because all of this concerns sentimental or emotional issues for every trader in the market. In fact, we are all familiar with the fear and greed indicator which is used for sentimental market analysis. And this sentimental market analysis is proof that understanding trading psychology is quite important. And actually technical analysis, fundamental analysis, sentimental analysis, emotional management, risk and money management. All of that cannot be separated. Everything a trader must own and master if they want to be serious and successful in trading. All of them are needed and one cannot be ignored.

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Quote from: tyz on March 27, 2024, 06:04:15 PM

A trader can have both a solid psychology and the right approach towards trading as well as the ability to perform technical analysis. Having a solid psychological foundation and a good trading mindset can be essential for successful trading, as it can help traders manage their emotions, avoid impulsive decisions, and stick to their trading plan. So, it is not a question of choosing between technical analysis and a solid psychological foundation, but rather recognizing the importance of both and integrating them into a holistic trading strategy.

Very often the psychological state of a trader is ignored or thought as not important by the sources traders use to learn, but this is incorrect, since it does not matter how skilled a trader may become, if when the time comes they are unable to make use of their skills to trade the markets effectively because they have lost the control they must have over their emotions, and in fact it could be argued that the majority of the losses a trader will suffer during their careers, come directly from losing control over their emotions.

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Quote from: tyz on March 27, 2024, 06:04:15 PM

A trader can have both a solid psychology and the right approach towards trading as well as the ability to perform technical analysis. Having a solid psychological foundation and a good trading mindset can be essential for successful trading, as it can help traders manage their emotions, avoid impulsive decisions, and stick to their trading plan. So, it is not a question of choosing between technical analysis and a solid psychological foundation, but rather recognizing the importance of both and integrating them into a holistic trading strategy.

This couldn't have been said any better. Both Technical analysis and solid Psychology is very important as both of them compliment each other. For instance, you could be very good at technical analysis — you have the right setups, you have good entries but you will end up fumbling the bag. This is from my personal experience because I had a trade that was doing well lately but then I fumbled the bag during the last crypto short term market dump last week that saw BTC hit $60K and ETH below $3.1K. My stop loss was much lower but I took it higher because I panicked. What happened this week? Almost 100% move of the price in my original direction. If my psychology was right to execute the trade to the latter regardless of any short term market scare, I would be eating good now.

That said, I've taken that as a cue to start building mental toughness and strong psychology to execute my trades based on my rules. Either TP or initially set SL. No impromptu trade closes, etc.

tyz

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Quote from: redsun114 on February 21, 2024, 11:09:22 AM

Quote from: Bravut on February 13, 2024, 05:02:21 AM

I have observed great number of traders debate on the issue of having a solid psychology and right approach to trading better pay off than just relying on some Strong Technical Analysis but others don't believe in psychology they base there points on having a winning strategy and proper risk management
What's your take guy's...
Does Psychology exist or is just an illusion of you not having the right approach and risk management, fundamentals...that affect your trades

Can't a trader doing technical analysis have solid psychology and the right approach towards their trades so that they are making the trades with proper risk management? I don't think we should compare these two things because a trader can have both. Someone who doesn't know how to do technical analysis can have a solid psychology and the right approach, so why someone having these can also do technical analysis if they are capable of doing that?

Psychology exists, of course, how can that be an illusion? Every person has a psychology, whether it's solid or not, and when it comes to trading, a person who doesn't have the right mindset and psychology might not be able to gain enough success even if they have all other skills.

A trader can have both a solid psychology and the right approach towards trading as well as the ability to perform technical analysis. Having a solid psychological foundation and a good trading mindset can be essential for successful trading, as it can help traders manage their emotions, avoid impulsive decisions, and stick to their trading plan. So, it is not a question of choosing between technical analysis and a solid psychological foundation, but rather recognizing the importance of both and integrating them into a holistic trading strategy.

Mahanton

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Quote from: Bravut on February 13, 2024, 05:02:21 AM

I have observed great number of traders debate on the issue of having a solid psychology and right approach to trading better pay off than just relying on some Strong Technical Analysis but others don't believe in psychology they base there points on having a winning strategy and proper risk management
What's your take guy's...
Does Psychology exist or is just an illusion of you not having the right approach and risk management, fundamentals...that affect your trades

It could everything and this is something which is really that standard on which you cant really just that make yourself that be able to deal up with trading without having those qualities or those kind of skills and other aspects on which we know that this is something which is really that relevant. You would really be the ones who would really be able to fine out on which method or conditions which you would see yourself that able to
be that sustainable. We do know that even if you do try others analysis and trying out to copy but ended up still on a losing trade then this does basically means that not everyones method or ways would be also working for you. This is why it would be relevant that you are the ones who would really be that making out such adjustments.

Psychology, emotions, risks management etc... will be all that really needed along the way. You wont really be finding yourself that effective here on this space if you are someone whose really
that always loving on following others and doesnt formulate on your own.

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Any factor can affect our trades. Trading psychologies will vary to how you look at it. Emotions are also factors for your decisions and that's why it can affect you straightly. TAs are sometimes wrong and doesn't line with the actual market but at most times, they're good if you prefer to have it. Actually, any ways for you to be good at this market, do it because if that's what makes you survive on this market and have some winning trades then that's all what you have to do.
With all of the factors that you have encountered, combining them with your experiences will make you a better trader.

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Quote from: redsun114 on February 21, 2024, 11:09:22 AM

Psychology exists, of course, how can that be an illusion? Every person has a psychology, whether it's solid or not, and when it comes to trading, a person who doesn't have the right mindset and psychology might not be able to gain enough success even if they have all other skills.

Am not saying psychology doesn't exist, having the right skill set is important before it.
You can't expect to go over your emotions as a trader when you don't have a tested and proven approach because you will continue to lose in the market.
You saying a trader without the right mindset can't gain enough success in the market is true, but as far you have the right approach it builds your confidence about your trades, and subdues your emotions then the right mindset can come in.
The mindset we are talking about is you accepting and taking full responsibility of any outcome in the market knowing you can't predict the market but only react with past and present datas.

Having an edge + emotions = profitability.

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Quote from: Bravut on February 13, 2024, 05:02:21 AM

I have observed great number of traders debate on the issue of having a solid psychology and right approach to trading better pay off than just relying on some Strong Technical Analysis but others don't believe in psychology they base there points on having a winning strategy and proper risk management
What's your take guy's...
Does Psychology exist or is just an illusion of you not having the right approach and risk management, fundamentals...that affect your trades

Can't a trader doing technical analysis have solid psychology and the right approach towards their trades so that they are making the trades with proper risk management? I don't think we should compare these two things because a trader can have both. Someone who doesn't know how to do technical analysis can have a solid psychology and the right approach, so why someone having these can also do technical analysis if they are capable of doing that?

Psychology exists, of course, how can that be an illusion? Every person has a psychology, whether it's solid or not, and when it comes to trading, a person who doesn't have the right mindset and psychology might not be able to gain enough success even if they have all other skills.

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Quote from: Saint-loup on February 18, 2024, 02:57:32 PM

The mindset is very important in trading because even if you have defined a trading strategy and decided a game plan, you have to be strong enough to respect it without panic selling or panic buying by fear of missing out. FOMO is common feeling known by most traders, but it mostly leads to make mistakes, because whalesand exchanges know how to trigger this feeling in small investors and traders heads, and trap them at the end. Some people depict that as the enrichment of the smart money by the dumb one.

The markets are driven by emotions, however the trader that lets themselves be dominated by them will never succeed, since those that have great influence over the market are experts at pushing the right buttons so people take decisions that go against their own interests.

And FOMO and FUD are two perfect examples of this, as we see traders buying and selling at the worst possible time, when in fact they should be taking the opposite decision.

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Quote from: Bravut on February 13, 2024, 05:02:21 AM

I have observed great number of traders debate on the issue of having a solid psychology and right approach to trading better pay off than just relying on some Strong Technical Analysis but others don't believe in psychology they base there points on having a winning strategy and proper risk management
What's your take guy's...
Does Psychology exist or is just an illusion of you not having the right approach and risk management, fundamentals...that affect your trades

What do you mean by psychological trading and the way you used it is somehow confusing. You mentioned it alongside technical analysis, making it look like (technical analysis and psychological analysis), while in the real sense, it is technical and fundamental analysis. We need to understand that whether technical analysis or fundamental analysis, psychology is both required. You cannot be successful in trading by only reading the charts and candlesticks without using your consciousness. In the real terms, psychology exists and not an illusion.

Quote from: JayTrain on February 15, 2024, 11:29:18 AM

From my experience as a trader, I believe that both psychology and technical analysis play a crucial role in successful trading. Psychology helps control emotions and make informed decisions, but without a winning strategy and risk management, results can be unpredictable. Thus, it's essential to strike a balance between psychological resilience and technical knowledge.

Where then is the position of fundamental analysis. All these while, I have always read about fundamental and technical analysis debate and not technical and psychological.

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Quote from: Bravut on February 13, 2024, 05:02:21 AM

(....)
Does Psychology exist or is just an illusion of you not having the right approach and risk management, fundamentals...that affect your trades

Psychology is important in trading, crypto or non-crypto.
For example is a market cycle, which can be driven by psychological phenomena like greed, fear, overconfidence, etc. which can result in bubbles and crashes.

although psychology plays a significant role in cryptocurrency trading, it is not a massive barrier if you want to do trading.

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Quote from: Bravut on February 13, 2024, 05:02:21 AM

I have observed great number of traders debate on the issue of having a solid psychology and right approach to trading better pay off than just relying on some Strong Technical Analysis but others don't believe in psychology they base there points on having a winning strategy and proper risk management
What's your take guy's...
Does Psychology exist or is just an illusion of you not having the right approach and risk management, fundamentals...that affect your trades

YUP, Psychology exists bro this is why the market shows many swings in every zone, With every skill in the market you need one as mandatory the Price Action understanding because without analysing the price action you cant execute even basic trade.

Psychology exists, and that's the reason people take trades against the trending whether they lose or win is another debate but they trade in the opposite direction and mostly lose because the common phycology is if the price is already appreciated high now it will make some correction and that's a fact but against the trend traders with their weak phycology ignore that, they dont know how much more capital is coming in next frame, and they get an SL hit.

Explaining the whole this trade scenario was an idle situation to prove that we make trades based on phycology and that you need to master to be a big trader... hehe good trader...

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Quote from: Oshosondy on February 13, 2024, 05:14:23 AM

First of all, explain what you meant as psychological trading.

Is it a type in which a trader will trade without having any bases of analysis? If that is it, it means the person is just gambling. Or does it mean a trader will not trade at all until the price of bitcoin has fallen so significantly? That is a good type of trading if that is what you mean.

But this would be good only for swing traders and holders. As for scalpers and day traders, technical analysis is very important.

According to what he wrote, yes that is what he mean by that but even when there are analysis included, there is still a risk so we are still gambling here although that is much better because at least we did an extra effort. If the price of BTC is falling, it's only best to buy it and not sell because we can't be able to profit there but that approach was like investing already, not trading. Swing trading is a type of trading so analysis might still be needed there and for investing/hodling, there is also for them but it was not mostly technical rather it was fundamental. Maybe there are traders too who use fundamental analysis apart from technical.

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The mindset is very important in trading because even if you have defined a trading strategy and decided a game plan, you have to be strong enough to respect it without panic selling or panic buying by fear of missing out. FOMO is common feeling known by most traders, but it mostly leads to make mistakes, because whalesand exchanges know how to trigger this feeling in small investors and traders heads, and trap them at the end. Some people depict that as the enrichment of the smart money by the dumb one.

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Quote from: Sebas.tian on February 18, 2024, 12:52:06 AM

Crypto trading required psychology to know your direction like when to trade in the market to be comfortable with what you are going to achieve at the end of your trading, and when not to trade not to engage yourself in lost in the market. As a newbie in the system, try your possible best to acquire solid psychology which are part of some of the things that is giving some potential traders wisdom to continue doing well in their crypto trading. Having a winning strategies is very important, but how to make it function whenever you trade in the market is the major challenge many traders in the community are facing today, and if you want it to function on the time try to always exercise patience.

What about knowledge? Technical analysis is a part of knowledge that one needs to acquire before they get into trading because no matter how strong your psychology is, you can't get success alone with it and you need knowledge alongside a strong psychology to become an effective and successful trader.

Your psychology will help you decide what time is best for making a trade and your knowledge will help you determine which cryptocurrencies you should focus on and then you can do your analysis on those cryptocurrencies to see if they are in a comfortable trading zone or you need to wait or look for other options. So, it's a combination of psychology and knowledge that can make you an effective trader.

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Psychology in trading is important, but it is still of secondary importance. After all, this is just what we need to execute our strategy. No matter how clever your strategy is, once you stop following it, it will not bring you profit. Putting a strategy into practice requires discipline. Discipline allows you to manage your emotions. If emotions control your discipline, then sooner or later losses will come. It's unavoidable. Thus, we often understand trading psychology simply as emotional discipline. Of course, the very concept of psychology is very broad and, in addition to the emotional sphere, it includes a lot of things, for example, worldview, but it is emotions that prevent us from trading.

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Crypto trading required psychology to know your direction like when to trade in the market to be comfortable with what you are going to achieve at the end of your trading, and when not to trade not to engage yourself in lost in the market. As a newbie in the system, try your possible best to acquire solid psychology which are part of some of the things that is giving some potential traders wisdom to continue doing well in their crypto trading. Having a winning strategies is very important, but how to make it function whenever you trade in the market is the major challenge many traders in the community are facing today, and if you want it to function on the time try to always exercise patience.

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Quote from: Bravut on February 13, 2024, 05:02:21 AM

I have observed great number of traders debate on the issue of having a solid psychology and right approach to trading better pay off than just relying on some Strong Technical Analysis but others don't believe in psychology they base there points on having a winning strategy and proper risk management
What's your take guy's...
Does Psychology exist or is just an illusion of you not having the right approach and risk management, fundamentals...that affect your trades

op never mind this is kind of funny to me because when i buy bitcoin the price will be low and when i want to sell bitcoin the bitcoin market will be up it's absolutely ridiculous. It is never possible in bitcoin investment psychology trend will depend on something good or bad. Of course we need to have enough knowledge about bitcoin and have enough understanding about bitcoin market so that we can profit through bitcoin. If we invest bitcoin at wrong time then we must suffer a lot for that if we patience is very important in bitcoin we always have long term plan and if we invest patiently we will be successful one day.

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Quote from: Bravut on February 13, 2024, 05:02:21 AM

I have observed great number of traders debate on the issue of having a solid psychology and right approach to trading better pay off than just relying on some Strong Technical Analysis but others don't believe in psychology they base there points on having a winning strategy and proper risk management
What's your take guy's...
Does Psychology exist or is just an illusion of you not having the right approach and risk management, fundamentals...that affect your trades

Can you elaborate what you mean by psychology existing there?

The whole ta revolves around psychology and reason we use charts to predict the markets, is that humans and their emotions are predictable and repetitive. We can see fear from the charts as well as greed, trust and hesitance.

There's a whole trading principle build around crowd psychology that studies the repetative patterns we see on the charts, that are reflecting market mood swings. You might have heard about it. I am talking about The Elliott wave principle. I see every TA indicator doing the same thing. Only difference that elliot wave theory is openly admitting it's purely representing crowd market behavior psychology.

Topic: Trading psychology and TA - page 2. (Read 674 times)