Mind Games
Today I was not able to trade. I didn’t have time to try till the evening, and then I had again internet connection problems. I phoned the Transact support, and they told me to speak with my internet provider. The internet provider refered me back to Transact support. Finally they did some reset of my internet connection, but till that was finished the stock exchange was closed for the day, so only tomorrow I will find out if it really helped. Agghhhh!
I wrote here about a book I ordered, on trading psychology. I got it about a week ago, but since we were on vacation with the kids I didn’t have time to read it. Now I am finally reading it, and it is very interesting.
Mind Games
The name of the book is the title above – Mind Games, written in Hebrew by Zvika Bergman and Arnon Schachar. Unfortunately, I don’t think it was translated into English.
I think I will give her in the next few days some of the insights I am getting from this book. One interesting things the authors claim is that your chances to succeed in trading are only very partially dependant on your technical knowledge and trading systems. They give it only 10% of the influence on your success. 30% they see as dependant on your money management or risk management methods, and 60% on your psychology as a trader.
Actually, from my experience, I also feel that the psychology is the most important factor. I don’t know if I would give only 10% to trading methods, but actually it is anyway very difficult to divide percents of success like that.
Another interesting thing they write is that in order to become a professional trader, you have to pass through 3 stages, each one takes about a year:
Stage 1: Survival for a long period of time
Stage 2: Growth of your capital
Stage 3: Making money
In the course I took on trading the teacher gave the impression that after a few months of working on the demo system, one can go straight to live trading as an expert. But, as I found out, as the main part of trading is a matter of psychology, and trading on the demo cannot really give a true taste of trading psychology, it seems the apprenticeship period is much longer.
I hope give some more insights from this book in the next few days.
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[...] do want to write more about the book I am reading. I feel I am getting many insights from it, and I will have to reread it a few times. I will write [...]
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[...] – Debs@Futures Trade – Mind Games – As a stock trader, psychological reads are necessary to understand and control your urges. [...]
I enjoyed your article on trading and found it quite interesting that the book you read stated the most important part of trading is psychology 60%. I guess that is why I lost money when I dabbled in the market back in the early 2000′s!! Anyway thanks again for the article and the recommendation on the book! I’ve bookmarked your site and will visit again soon!
Yes, it is surprising at first. When you start trading you are sure you must find the best trick or method to win. Then you see that what you are looking for is the right method for you. You have to understand your own trading and see what works for you.
In this book they say they interviewed many successful traders. Each one had a different method. What was common to all was the attitude.