Denise Schull advice - Psychology and Money Management | futures trading

Go Back

> Futures Trading, News, Charts and Platforms > Psychology and Money Management

Denise Schull advice
Started:January 21st, 2010 (05:56 AM) by Shivaya Views / Replies:2,087 / 0
Last Reply:January 21st, 2010 (05:56 AM) Attachments:0

Welcome to

Welcome, Guest!

This forum was established to help traders (especially futures traders) by openly sharing indicators, strategies, methods, trading journals and discussing the psychology of trading.

We are fundamentally different than most other trading forums:
  • We work extremely hard to keep things positive on our forums.
  • We do not tolerate rude behavior, trolling, or vendor advertising in posts.
  • We firmly believe in openness and encourage sharing. The holy grail is within you, it is not something tangible you can download.
  • We expect our members to participate and become a part of the community. Help yourself by helping others.

You'll need to register in order to view the content of the threads and start contributing to our community. It's free and simple, and we will never resell your private information.

-- Big Mike

Thread Tools Search this Thread

Denise Schull advice

Old January 21st, 2010, 05:56 AM   #1 (permalink)
Elite Member
Futures Experience: Advanced
Platform: NinjaTrader
Broker/Data: IB and Kinetick
Favorite Futures: ES
Shivaya's Avatar
Posts: 114 since Jun 2009
Thanks: 58 given, 458 received

Denise Schull advice

The following from Denise Schull has really helped me focus on what it really is to be a trader.

I have been a broker, analyst, software developer, educator, and trader. I have seen absolutely no one increase the odds of success. It still stays at 95% fail. The blind still think they can lead the blind.

The best traders have the strength of their convictions and can sit thru the pain until proven right or wrong. Most of the rest just fail to make a proper analysis of the market and reach a conviction and then back it till it is proven profitable or totally wrong.

Here's the story from Denise.



Ever heard a hedge fund guy talk about "conviction"? Ever heard some very well known trading coaches also talk about "conviction". It is a common concept in both hedge fund strategy, tactics and performance coaching. For example John Paulson of Paulson and Co went short the subprime mortgage market starting in at least 2005 if not 2006. He lived through a LOT of "pain" as that market kept rising at least through late 2006 if not early 2007 before he started counting in the billions on his tax form!

Yet how does that jive with the ubiquitous advice given to independent traders to "have no opinion"? Furthermore, how does it work with the idea that you have to be confident, have no opinion and just trade "what you see, not what you think"?

Does it ever occur to you that these supposed pieces of accepted trading wisdom conflict with each other? And then does it become obvious that by trying to act/behave/trade under the cloud of conflicting messages actually decreases your confidence?

Is it any wonder that 95% of independent traders can't make a living off of their trading results when the foundation of doing the job is so off kilter?

So where does this leave us? How about a reality check - and then a commitment to trade within reality? But "what is that" you say?

1. The markets are always uncertain (anything can and will happen!) and never give you the exact confluence of factors in exactly the same way twice.
2. This makes us nervous and we try to deny it (ambiguity aversion). If we accept it, however, we can work and profit within it.
3. The brain knows that it is in the jungle of the markets and not solving an algebra problem so it tries desperately to use context to understand what is the best thing to do.
4. This means that a trader's perception of what is happening and the judgment required to make a decision is going to have a feeling/sensory element - the very dimension of your psyche that for the most part you have been taught to avoid.
5. The illusive solution to being in the 5% (or 2.5%) and to solving the riddle of conviction, confidence and "trade what you see" lies in learning the SPORT of trading... in developing the muscles, the judgment, the reflexes of trading... NOT in becoming a computer who does the same thing every time over and over.

Deliberately and systematically working towards increasing your skills in perception, judgment and decision making will improve your bottom line. We are 100% convicted and confident of that!

Reply With Quote
The following 14 users say Thank You to Shivaya for this post:

Reply > Futures Trading, News, Charts and Platforms > Psychology and Money Management > Denise Schull advice

Thread Tools Search this Thread
Search this Thread:

Advanced Search

Upcoming Webinars and Events (4:30PM ET unless noted)

An Afternoon with FIO trader bobwest

Elite only

NinjaTrader 8: Programming Profitable Trading Edges w/Scott Hodson

Elite only

Anthony Drager: Executing on Intermarket Correlations & Order Flow, Part 2

Elite only

Adam Grimes: Five critically important keys to professional trading

Elite only

Machine Learning Concepts w/FIO member NJAMC

Elite only

MarketDelta Cloud Platform: Announcing new mobile features

Dec 1

NinjaTrader 8: Features and Enhancements

Dec 6

Similar Threads
Thread Thread Starter Forum Replies Last Post
Denise Shull/Trader Psyches - Any opinions? Zen Trader Vendors and Product Reviews 8 September 5th, 2014 06:23 AM
More marital advice kbit Jokes 2 July 19th, 2011 08:59 AM
Advice - joke kbit Jokes 0 June 10th, 2011 12:01 PM
Could you advice me on this DOM. gracepips NinjaTrader 1 March 27th, 2011 07:33 AM
Slippage - need advice on reducing it jackyd Traders Hideout 7 July 6th, 2009 02:24 AM

All times are GMT -4. The time now is 11:35 PM.

Copyright © 2016 by All information is for educational use only and is not investment advice.
There is a substantial risk of loss in trading commodity futures, stocks, options and foreign exchange products. Past performance is not indicative of future results.
no new posts

Page generated 2016-10-23 in 0.08 seconds with 20 queries on phoenix via your IP