Trading Psychology and profitable, stress-free trading


#1

Just an opinion here but IMHO the ingredients of successful trading follow this sequence and have the corresponding % impact on results.

IMHO - Psychology, 55%. Risk management, 25%. Trading System efficiency, 20%.

Most losing traders (Myself included), have had this sequence backwards, thinking that it’s the system that is so important while practically dismissing the other two as nice to have but not really necessary for success.

I think Apex is the best system available but without an effective trading psychology and a prudent Risk Management concept I don’t know that you can trade effectively or without stress in the long run.

If you find yourself stressed in any way by your trades than you need to address the Psychology and Risk management factors. The best approach I’ve seen to Psychology is Mark Douglas’ “Trading in the Zone”. It was recommended to me and it works if you make the effort to apply it.
A further psychology factor is thinking in probabilities - the very substance of a traders edge.

Risk management is applying math based risk parameters to your trading account and needs to be set at levels that are personally acceptable.

I think getting these elements in place is essential to trading well especially if you expect to do this for a living.

I endorse Apex as a great trade system but there is no free lunch in trading. Address the psychology and develop a “Traders Mindset”. With that in place you’ll automatically apply proper Risk parameters (your “traders mindset” won’t let you do otherwise) and be able to benefit from the Apex systems to their fullest potential.

Just my humble opinion, Rob


#2

Very well said, Rob. But being Yogi I must say trading is 90% mental and the other half physical (or fiscal) lol>