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What was your biggest misconception?


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What was your biggest misconception?

  #11 (permalink)
 
Zwaen's Avatar
 Zwaen 
Netherlands, Blaricum
 
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But one of them was thinking trading was something which could be learned from books ( or any other informational medium). While offcourse books/websites can give a lot good information, ultimately you have to trade the market, not books. As a result I made some beautiful comprehensions of a lot of trader books, instead of studying the market itself. I didn't realize then that I was more polishing my editorial skills than learning about the markets and instruments.

One of my worst enemies are my own false assumptions
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  #12 (permalink)
 
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 deaddog 
Prince George BC Canada
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I believed the market was out to get me.

I believed that cut your losses short and let your profits run was too simple and too easy.

I believed that I didn’t need a comprehensive written trading plan.

I believed a paper loss was different than a realized loss.

I believed I knew my tolerance for risk.

I believed the pundits and the talking heads.

I had to change my beliefs.

"The days when I keep my gratitude higher than my expectations, I have really good days" RW Hubbard
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  #13 (permalink)
 
teamtc247's Avatar
 teamtc247 
Fairburn, Georgia
 
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I need to trade every day. I thought news and upgrades and downgrades made the market move, when good news would come out the market would go down and when bad news would come out the market would go up, so that confused me. I thought emotions were other peoples and not my own, had to learn what loss felt like, and to learn what winning felt like. I thought all I needed to learn was technical analysis. I thought I didn't need a written plan. I thought I would be banging out 50 million and driving my Lamborghini Aventador.

My thoughts now:
Don’t listen to the news
Focus on my written trading plan and follow it
I don’t need to trade everyday
I’m still working thru my psychology

Process oriented goals #1.
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  #14 (permalink)
 Itchymoku 
Philadelphia
 
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Exiting manually in the green before my targets were hit and taking a full stop every time the market moved against me. Doing this I'd have clusters of wins which amplified my ego making me think that all I had to do was cut my losers even shorter lol. This has got to be the number one most illusive part of trading I see just about every new trader make.

R.I.P. Joseph Bach (Itchymoku), 1987-2018.
Please visit this thread for more information.
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  #15 (permalink)
 skoa 
Wolfsburg, Germany
 
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I came into trading believing that you need ultra complicated models, e.g. web-based sentiment analysis, to predict future price action.

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  #16 (permalink)
 
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 teee 
Sydney Australia
 
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I thought what's written on trading books are always rights

I thought I would learn what's written in the trading book just by reading them

I thought I would never repeat my mistakes

I thought trading was purely an IQ game and if one is smart enough he/she can control his/her psychological state easily

I thought I don't really need a trading plan, I can just wing it

I thought risk can be controlled with certainty

I thought luck played a minimal part of trading

biggest misconception, i thought it was easy

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  #17 (permalink)
sledmt
Kalispell montana
 
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teee View Post
I thought what's written on trading books are always rights

I thought I would learn what's written in the trading book just by reading them

I thought I would never repeat my mistakes

I thought trading was purely an IQ game and if one is smart enough he/she can control his/her psychological state easily

I thought I don't really need a trading plan, I can just wing it

I thought risk can be controlled with certainty

I thought luck played a minimal part of trading

biggest misconception, i thought it was easy

Do you believe you now have a handle on these issues?

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  #18 (permalink)
 
teee's Avatar
 teee 
Sydney Australia
 
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sledmt View Post
Do you believe you now have a handle on these issues?

I definitely have different conceptions and I believe I will continue to develop better understanding of these conceptions and misconceptions.

I'm sure in a few years time and I look back I will consider some of my current thinking misconceptions.

Odds are that I might never have "correct" conceptions, and I can live with that, as I am at a much better place knowing I knew nothing.


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  #19 (permalink)
algorithmic
 
Posts: 29 since Feb 2015
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in the past i thought market reacts to news, but after a while ,now i know that market reacts to "hidden" news and the way to access them is looking accurately into volume and volume derivatives .

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  #20 (permalink)
SPYtrader
Brussels, Belgium
 
Posts: 7 since Jan 2015
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My biggest misconception was that I need to move my stop to breakeven as soon as possible.

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