Winning and consistent winning are two different animals.
Very well said. And amateur traders run after winning, specially consecutive winnings.
Why you should not keep making backtest better?
Trying to improve a backtest is deliberately trying to fit inside the curve. A lot of people keep trying to improve the backtest after their trades. Adding few rules now and then. This leads unnecessary elimination of many variables.
Realising when a backtest is good enough, and resisting the urge to make it better is extremely important. One of the best solution is to accept the fact that, I don’t need to be right with every trade.
Brilliant!
We rarely give much importance to trading psychology. We are more focus on profits and strategies. But at the end of the day, it’s one’s mental state that ll drive the strategy to success or failure.
Maybe that’s the reason why all successful people hire a psychology coach. To push the boundaries that they can’t push themselves.
Thanks for this trading psychology 101. It’s a gem.
Thanks for your honest feedback. I am keeping this page alive, for 2 things:
- To remind that I am a human, and I need to keep my emotional shit under control.
- And maybe in these process, if it helps others, then all for the greater good.
Candlestick patterns most often reflects psychology of traders. If the price couldn’t break below the
previous bull run, the mindset is still bullish…
Another gem @ronin_sha.
One great American trader said, minimize your living standard during the learning years. Cuz if you won’t never profit in the learning years. If you profit during these years, then God help you!
I am glad you found it valuable. Trading psychology is most undervalued but nevertheless falls on the top priority list of being a trader.
People focus most on the short term aspects. The screen profits. But the real one’s know how deep psychology runs and make you stick for the long term.
That’s why forums are more inclined on I made profit, I made loss, i want to quit, how to make decent profit etc but neglecting a huge pivotal part.