How Storng is Your Conviction?

[Dismally]

I get a lot of emails from a few beginner traders. On Tuesdays, I am putting together the Textbook Trader. I will try and answer any questions on the actual "how to" of trading. If you have any questions, please feel free to send me an email, and I will try and answer them and post them here.

How strong is your conviction? How strong should it be?

These are some important questions. How strong should it be, could be answered with one simple thought: How good do you want to be. Now, before I go on with that question, lets head back to the first.

How strong is your conviction. Let's use an analogy to take a look at this question. To begin, I will assume that your intention for wanting to trade is to be successful. As well, it is just as important that as a trader, you are here to improve, and be the best you can be. If you don't have these two goals, then.... what are you doing here?

Read the rest at my site: Dismally.com

[psytrader]

This may be better off in the classifieds.

[Dismally]

It would, if I were actually selling something. But, I don't. My fund is closed.

Nothing is being sold on my site. I just didn't want to post a whole book on my site. Also, there is more on my site than just that post that is helpful to traders.

But, thanks for your opinion anyway.

[MickMason]

Originally Posted by Dismally

If you don't have these two goals, then.... what are you doing here?

To answer posts like this one of course, why else would I be here?

.....oh, and to annoy psy by hijacking all his threads!

[Truville]

Originally Posted by Dismally

www.dismally.com

Garbage. Pure, and dangerous garbage. How much conviction do I have in a trade? 100%! This trade will succeed, because I believe in it! And yes, I realize that people taking the other side believe in their trade too, but I believe in it more!

Dismal, do you honestly think that how you feel about a trade determines its outcome? Do you really think that "conviction" to the trade is what determines success? All I have to do is out hope the other guy?

[MickMason]

Hmmm, just read some of the site, I think the idea is to psyche yourself up to win. That tactic is fine for sport but can it enhance one's trading performance? I would think if you need psyching up to make a trade it's probably time to check in somewere!


Mick

[ash71]

This idea seems more aimed at new traders who have had their confidence eroded by over-leveraged bad trades, etc, and are now gun shy and have a problem pulling the trigger even if their set up has been achieved. IMHO, "conviction" comes when one has eliminated the emotional component of trading/price chasing ( to the best of his/her ability) and has the discipline and patience to wait for their system to demonstrate a specific confluence of criteria that initiates a trade, and have a tested money management routine once in the market. Over time as we know, profits speak for themselves and one's psychology becomes far less effected by a string of losing trades as long as one's system was followed and not mismanaged during the trade(s). So, conviction as defined in this case would have to be in your trading methodology. I am not a believer in Market Mojo, or whatever. The issue is self trust. Maybe that's what David is getting at?

[JR97]

Originally Posted by Truville

Garbage. Pure, and dangerous garbage. How much conviction do I have in a trade? 100%! This trade will succeed, because I believe in it! And yes, I realize that people taking the other side believe in their trade too, but I believe in it more!

Dismal, do you honestly think that how you feel about a trade determines its outcome? Do you really think that "conviction" to the trade is what determines success? All I have to do is out hope the other guy?

LOL. nice. It can work in poker when you either bust a bluff or out bluff someone. But you can't exactly bluff in forex. I mean, who has a big enough bank roll to stare down the BOJ?