35. Master the Psychology of Trading: The Effect of Losses

[chess1302]

I only have to disagree with the absolut way you are putting this subject, as if the system 1 were more likely to be profitable than the system 2. The best system is actually a hybrid between this two systems.

[2011bilaal]

lose is good thing..

[hailkayy]

What's the point of this video i didnt learn nothing at all just heard a promotion of a website, jeez all that story for nothing LOL That's a Joke

[mrhuge815]

I strongly suggest spending as long as possible using simulated money to develop the mindset needed to be a successful trader. Set a strict set of rules for losses(lost $500 and out for the day) and profits(made $1000 and out for the day) and always completing a checklist before EVERY entry despite the urge to 'get in'. There is nothing worse than jumping into a trade and then realizing its not all you thought it was.

[DayTradersWin]

I like your video - subscribe to my channel and friend to have day trade videos

[gogo12able]

hey Dave awesome videos i was looking for something like this to educate myself and this is perfect , you are like a teacher! very simple lessons and i been learning so much and i open already a micro to start trading and these videos are helping to improve everytime i need info i just come here or your chanel and the forex daily. keep it up and thanks God bless you !

[FreeFOREXautoROBOT]

i can share Free Forex EA- works perfectly fine for me.

[purplepatchforex]

You can have a system 2 that works though, but yes the gains will be very small.

[Marron714]

Hi Dave. Thank for spending a lot of time to educate others about trading. I have the question about % gain annually the professional active traders, not on floor, expect to make for living ?! Several experts said around 20% annually ?! What is your opinion ? Thank in advance. (Professional active traders whom I mean have own strategies, Tradstation WealthLab Pro ... , discipline, money management in tact ).

[mattymac12345]

Dave thank for your video The area that im coming up short is in the Psychology. I have been trading for 6 month and i seem to have the fear i am goin lose what i have already made.

I have read the psychology book and by the end of it all it looks like is words on a page. Your video has helped me so much. Before i start my night i watch your video and it getting me on track. Books are all good but when you can visually see something and someone explaining it too you it help so much more

Matt

[lti12]

it all depends what you are trading, you wont blow your account if you trade a big company like wmt

[headlocal]

It's hard top avoid thinking that SYSTEM 2 consists of selling CDS contracts.

Or "investing" with Bernie Madoff.

[rbonilla18]

Dave, how much pips do you recommend as the stop loss point????. I used to trade @ 3 pips per transaction but after seen your video. I'm giving a long pips profit a chance over 50 pips per transaction. Whats your view on short transaction. Thank you, keep the good work.

[InformedTrades]

Hi rbonilla18, Glad to hear from you. There really is not one right answer for what is the correct stop loss level as this depends on your trading style, money management strategy, and what is going on in the market when you place your trade. I do however cover different strategies for placing stop losses in the videos that follow this one. Best Regards, Dave

[zencv]

i learned this lesson for €5000. All it took was 3 losses to blow my account.

[InformedTrades]

hi zencv, sorry to hear that it happens to the best of us. Best Regards, Dave

[MikefromMadrid]

@zencv you over leveraged fool

[kinghitz]

Can I suggest that when make the videos that you think about the colors that will used. Currently wearing a sweater that matches the featureless wall is ineffective. A lot teachers will say the use of colour aides in the teaching process.

[InformedTrades]

Hi Kinghitz, Good point I will look into changing that. I notice from your channel that you have some photoshop stuff there, would you happen to know how to add a background into videos like mine? I currently use camtasia to edit the videos. If not no worries I will look into it. Thanks again for the feedback. Dave

[kinghitz]

Unfortunately I am a "still man" and video ain't my game but I will check for you.

Meanwhile I have subscribed and I think your videos are cool for a intending trader.

[InformedTrades]

much appreciated and thanks again for the comments.

[chasleo]

Hey Dave - thanks for the awesome videos. I really give you a lot of credit for sharing your knowledge with the community.

If you want to edit out the colored background, your best option is getting a green or blue background - then you would have to 'chromakey' the bg in an app such as After Effects. Still, this isn't an easy task for even the most skilled video professional - I even have troubles with my 3d work.

The simplest and cheapest option is to hang a sheet/curtain in the bg.

[InformedTrades]

Hi Chasleo, My pleasure thanks for watching. I am using a black background in my latest video which I think works a little better. Have a look and let me know what you think. Best Regards, Dave

[AirelonTrading]

ABSOLUTELY! Money management is where it's at. Market calls and accuracy only counts for about 1/5th of successful trading.

[InformedTrades]

yep, funny how so many people miss that. Glad to see another video blogger out there focusing on the subject. Best Regards, Dave