"This forum is where successful traders spend most of their time and were struggling traders never visit. The psychology and money management forum is where you learn to become a profitable day trader"
The Psychology Of Trading is about understanding the difference between how a "winner" and a "loser" thinks and acts when trading.
The most important aspect of trading is "Profit".
Too many traders spend too much time talking about things that have no real bearing on "Profit".
This section is to discuss the "differences" with a view to understanding why they exist.
Take 1 quarter.
10 imaginary Dollars.
Start flipping the coin, and call head or tails and try and get it right before it hits the table.
The First flip a 1 dollar bet.
After that you can double your bets if you win or lose according to your guess.
You add/subtract from the imaginary $10 bill.
You MAY double your wins or loses any time, but you don't have to as you can play 1 dollar bets.
Let's say you are up 3 dollars, then you can bet the whole $3 on the next flip.
If you are down $3 you can also bet the whole 3 again to make it back. if you lose you are down 6 now,etc.
Goal: Get to $40 with the minimal amount of flips and if you get to Zero or minus..Game Over.
The idea behind the game is to illustrate the psychology of adding leverage, randomness, greed and the "revenge trade".
It's the same ingredients we tackle day to day in trading.
PM with any questions about optimusfutures (800) 771-6748 (561) 367 8686. THERE IS A SUBSTANTIAL RISK OF LOSS IN FUTURES TRADING.
Last edited by mattz; October 23rd, 2010 at 08:36 PM.
Reason: Further Explanation.
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I have a much better game for anyone who is serious about daytrading!
We will take it that one has sufficient funds to meet the minimum requirements set by the brokerage firm, and the pattern trader rule, if applicable (not applicable to CFD accounts).
Take $2,000, and tell yourself that this $2K has to last you as long as possible - the "target" is to find out how many trades you have done by the time you lose your $2K.
When your $2K is gone, if your "target" is long, you are well on your way to learning what is required, but if your "target" is short, it may be wise to reconsider taking up daytrading as a full time job!