Trading Pschology - The Battle Between the Individual and the Group

SymphonyTrading

Active Trader
Sep 9, 2019
41
5
34
Every trader behaves in accordance to their own emotional makeup. Fear, Greed, Hope and Regret drives trading behavior. We all know them! Trading the markets is a battle. The ups and downs are inevitable! Our mindset before, during, and after each battle needs to be correct. There are many discussions regarding on how to eliminate emotions with trading plans/trading systems and I have participated in my share. Some of the aspects include discipline, risk management, etc... but one behavioral perspective not talked about a lot is that people love to join groups and act like everyone else. Herd mentality... It's such behavior that can cloud your mind. It's human nature! How do you Traders eliminate that behavior or combat that in your trading?? All opinions welcome!
 

johnbrown_01

Newbie
Aug 7, 2019
26
4
4
53
Never trade on the basis of what others tell you. Your trading style and strategy is not going to match 100% with anyone else. Be yourself, create your own plans, use your own strategy and then trade. That’s what I do atleast.
 
Every trader behaves in accordance to their own emotional makeup. Fear, Greed, Hope and Regret drives trading behavior. We all know them! Trading the markets is a battle. The ups and downs are inevitable! Our mindset before, during, and after each battle needs to be correct. There are many discussions regarding on how to eliminate emotions with trading plans/trading systems and I have participated in my share. Some of the aspects include discipline, risk management, etc... but one behavioral perspective not talked about a lot is that people love to join groups and act like everyone else. Herd mentality... It's such behavior that can cloud your mind. It's human nature! How do you Traders eliminate that behavior or combat that in your trading?? All opinions welcome!


This is not true.You know nothing , most traders know nothing.

Most traders suffer from the Dunning Kruger effect

Why incompetent people think they're amazing - David Dunning

 

SymphonyTrading

Active Trader
Sep 9, 2019
41
5
34
This is not true.You know nothing , most traders know nothing.

Most traders suffer from the Dunning Kruger effect

Why incompetent people think they're amazing - David Dunning

LOl my intent with thread wasn't to show how much I know, I'm wise enough to know that I don't know it all... but it looks like you do...
 

hayseed

Master Trader
Jul 27, 2010
1,014
258
149
usa
Every trader behaves in accordance to their own emotional makeup.
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hey symphony...... that is true, at least for me it is..... it is why trading appeals so much to me...... my true nature is reflected not only in my trades but in my manner of trades..... the adjectives and adverbs i feel best reflect my trading are quite different than the norm.....

for me, words and terms like Fear, Greed, Hope and Regret, battle, combat and such never come to mind when thinking of trading..... there are of course traders that have become the very best in their markets by mastering those words...... traders whom i have utmost respect for ..... but can you imagine the stress for them..... what kind of life is that.....
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oddly enough my heart beat, already slow, slows down more when trading..... my view of trading is like the guy selling fruit on the roadside..... he's peacefully and quietly siting there by himself, watching the chaotic world pass by.... worry free..... he bought some watermelon's yesterday for a dollar, is asking 2 today and might settle for 1.50..... some days he does good..... some days he does not.....

there is no fear, greed, hope, regret, battle or combat..... just a unknown hayseed in the middle of nowhere peacefully buyin and sellin watermelons....

that's me.... right now..... peacefully and quietly planing my trades for this week, with the help of mq4.... i'm a buyer here and a seller there..... the only exception is, thanks to renat fatkhullin, i don't have to watch the chaotic world pass by.....h
 
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hayseed

Master Trader
Jul 27, 2010
1,014
258
149
usa
Some of the aspects include discipline, risk management, etc... but one behavioral perspective not talked about a lot is that people love to join groups and act like everyone else. Herd mentality...
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hey symphony..... forgot to mention...... just as you suggest, in my experience both discipline and risk management are crucial to long term survival.....

as for groups, i have been a member of private groups in the past..... these were for pool of knowledge and division of labor.... i had posted this below on forex factory last year.......h
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we all can learn from others if those others are genuinely serious.... and each of us might have something of value to say..... our views on trading might be polarized but if genuine are still of value.....

i firmly believe in andrew carnegie's master mind principle..... and equally in the paulo coelho's book the alchemist...... my life is proof of those things......

i have often wondered of the potential of hand full forex factory members if they could form such a group.... in no particular order...... zznbrm, kenny hubbard, sangmane, iya, enivid, xahpod, mladen, phy, maryjane , stringo , bandung and a couple more that few would recognize.........

i'd very much like to meet each of those, and more, in their home country even if they did not allow me in their group.......h
 

SymphonyTrading

Active Trader
Sep 9, 2019
41
5
34
My perspective is based on short to midterm position trading. I find that if once I put on a trade and I’m watching prices non stop, I’m being sucked into the group. If I’m happy or sad based on a winning or losing trade I’m being sucked into the group. Making impulsive trades based on what prices are doing, I’m being sucked into the group… and I lose my independence! Groups can be powerful in nature and be responsible for massive trends so it would be beneficial to ride the coattails… but, when it comes to Turning Points, the remaining group gets Crushed. So it would be of utmost importance to analyze the group but think Independently of the group and know your Entrances and Exits! Like the song goes, “Know when to hold them, know when to fold them” … And then there is the Contrarian. If everyone else is doing it then it is wise to do the opposite… but you have to identify if the crowd has gone too far in one direction, measuring if too bullish or too bearish. These are generally the turning points. Certainly it would help if one has deep pockets to absorb risk like a Warren Buffet deep pockets. Basically if there are a greater number of Bulls the greater the risk of market decline. The more Bears that exist the bigger the upside.
 

georgequayle

Active Trader
Feb 16, 2019
97
13
29
25
Every trader behaves in accordance to their own emotional makeup. Fear, Greed, Hope and Regret drives trading behavior. We all know them! Trading the markets is a battle. The ups and downs are inevitable! Our mindset before, during, and after each battle needs to be correct. There are many discussions regarding on how to eliminate emotions with trading plans/trading systems and I have participated in my share. Some of the aspects include discipline, risk management, etc... but one behavioral perspective not talked about a lot is that people love to join groups and act like everyone else. Herd mentality... It's such behavior that can cloud your mind. It's human nature! How do you Traders eliminate that behavior or combat that in your trading?? All opinions welcome!
both have cons
 

Deara11

Trader
Apr 12, 2019
42
0
12
37
Maybe you need to change the group then, what do you say really about it ? As for me it should really go that way and no other cases like some group should really really bother you here totally and completely. See my point ? So do I.