Psicología de Trading – La clase más importante para todo trader


The Trading Psychology is the most
critical aspect that should be taken into account who decides
to devote this activity, however, tends to be the part
most ignored by beginners. Next you will see the most important
class of your entire career as a trader, regardless of the strategy
or technique you use, regardless of whether you are educating
with TradingEfectivo or with another investment academy
or with another instructor; Understanding and accepting
how financial markets work and having clear the real expectations
of this activity will save you the biggest
headaches for newbies. This class is part of the
Advanced Level II Trading Course that is available at
www.tradingefectivo.com Financial Education Trading Level II
Trading Psychology The reason why this activity
has such a high failure rate is because this part of the equation
has been ignored. Remember that statistically more than 95%
of those who invest in the financial markets sooner or later lose all their money, and
only 5% is truly profitable in the long term. And the reason for that, even though I always tell
you that the main reason is because that 95% is not educated, does not take the trouble
to find out how to do good trading, how markets work,
how to make a good analysis, how to develop a good investment system…
Certainly all this you have to do to have the opportunity to belong to the profitable
5% but it is not enough to educate yourself. Having the knowledge in your head is not enough,
you have to put them into practice, you have to apply them and
be disciplined with that trading plan. The problem with that is that to
achieve it you have to defeat your ego. And that is the really difficult
part of this activity, most underestimate
this part of the trading. The psychological part is the one that is
most ignored when it should be your priority. Trading is an almost spiritual activity,
and please do not confuse it with religion or superstition… I say spiritual
because it requires you to surpass yourself, it is the conquest of your own self,
it is to overcome your ego and adopt discipline
as a lifestyle. Trading requires that you be honest
with yourself, that you fulfill your promises that you do what
you said you were going to do. But, how many people are
really honest with themselves? How many people really do
what they promise? How many say things like, “I’m going to start
the diet on Monday,” and do they really do it? Or if they do, how long is that diet?
For how long can average people hold a promise
they have made to themselves? In this activity the reward comes when
you have achieved that necessary self-control. Trading is not complicated,
financial markets are not complex, prices go up, down and move on the side.
What’s complicated about that? The tricky thing is to overcome yourself
and change, defeat your ego and keep it from
controlling your actions. The hard part of trading,
the reason why so many fail… It’s because they fail
to control their emotions, they fail to impose
the self-discipline required to execute your
investment plan to the letter, regardless of whether
you win or lose. That discipline to not change the rules
of the game because you feel fear, discipline to not change the rules
of the game because you feel lucky, or if greed
invades you. But this important part of the activity
is so despicable for some that I am sure that many of
those who are doing this course are going to ignore
this class just for the title, with reading the title they will say:
“Nah! I’m not going to see that”. And that’s the reason why I’m trying to highlight
this class by inviting you to look at it, inviting you not to overlook it… I know
that many only want to see the technique, just want to know the details
of the strategy… And to think about wasting time
listening to a class on psychology seems absurd to them,
many say: “Well, what about that? I just want to know
open an operation and how to close it, where to put the Stop Loss,
how to identify the change of trend… I want to know the graphic
patterns, the setups… I want to know the trailing stop methods, I want
to know the size of the lot that I have to operate, How to close the operation in layers?…
That’s what I’m interested in! Why am I going to see
a psychology class? And those are
the traders that fail! But even if you had
those thoughts, even if you felt the impulse
to skip this class… The important thing is that
now you are seeing it! And accept the invitation to listen to me
so that you understand the importance of psychology in trading…
Change your predisposition in this regard and begin to pay attention
to your internal voices, so that you begin to listen
and identify the voice of your ego. You can silence it, begin to make a good
trading and trade like a true professional, separating yourself from the 95%
that fail in this activity. So one of the things that many
new traders find hard to accept is that this is not an activity in which
a 100% success rate can be achieved. That is simply not
possible! I’m going to repeat it…
It’s not possible! Nobody, absolutely nobody, regardless of their
level of expertise, regardless of their experience, regardless of their technique,
their strategy, their skills. Not even the most professional
in the world have a 100% success rate. Nobody guesses the totality
of its trades because it is… Impossible! This is not an activity
where perfection can be achieved… So do not look for
perfection. But this is something that demotivates, disappoints
the majority, this demotivates many and others it causes them as a strange
sensation, almost a passion… That makes it a
purpose of life! And they decide to create
a 100% effective strategy. Some people, perfectionists perhaps,
or with too much ego… They believe that they can break
what for them are paradigms or myths, and they give themselves to the task
of creating, believing that they can do it, a technique with
100% effectiveness. Or they refuse to believe that
there is no 100% effective technique… And they lose countless amounts
of valuable time and money, searching, surfing the internet, testing
trading robots, testing strategies, reading one book after another, attending one
seminar after another, one course after another gathering information, changing the rules,
adjusting, testing and failing again and again. And from that pile of failures
accumulate frustration, until they end up exploding in disappointment
and almost hate for trading. So the first and most important fact
that you have to accept is that you will not win
100% of the time… And that’s fine! Still you can earn a living trading,
you can live a good life trading and you can even get to earn
vulgar amounts of money trading, without winning
100% of the time. But if you are not willing
to lose even once if you are not able to accept
even one mistake, you do not want to see
your balance diminish even one dollar in your career as a trader…
Let me tell you my friend, that you have chosen
the wrong profession. Trading is not
for you! And it is better that you continue
doing what you have been doing until now. Do not continue doing this course or any other
because you will be wasting your time. However, before you leave,
let me give you one last useful tip… And do not waste money buying systems
or courses that promise 100% effectiveness because that
does not exist. They are cheating you, and you will end up
more frustrated and with less money. Now, if you stayed, it is because you are willing
to accept that you are going to fail. Good trading, professional trading
is not about not failing, it is about your earnings exceeding,
overcoming your losses enough so that your months
are always positive. A good trading plan is one
that quickly cuts your losses and lets
your profits grow. When your profit and loss
ratio is 2 to 1 or higher, that is, when for each dollar
you lose, you win 2… Then you can say that you have conquered this
profession and you are a profitable trader. Now, the ideal relationship is 5 to 1 or more…
But when you reach a ratio of 2 to 1, you can already consider
yourself a successful trader, you already belong to 5% of the trader
population that are successful. You have separated yourself from the 95% of failures
that only come to the market to lose their money. Now those traders
are necessary. That relationship is what keeps
trading as a profitable activity, if the relationship were the other way around
the market would collapse and disappear. If 95% won while only 5% contributed
the money… Trading would cease to exist! It is not a
sustainable equation. Not even 50/50
is sustainable. 60/40
is not sustainable. The current relationship is perfect, but it is up to you
to place yourself in the winning group of this activity. But for that you have to accept
that you are going to have losses. In fact, not only will you have negative trades,
you will have negative periods, and that’s fine. You do not have to give up for that, you do not
have to believe that you have failed as a trader to have a bad period. And notice
that I said bad period, not bad luck… Because trading
is not a game of chance! It is an activity
that requires skill, but most take it as a casino,
believing that luck is what will help them, and that is why
they lose their money. But you will have periods in which,
although you do everything right, even though you apply the rules to the letter,
even though your techniques are perfect, your entries are correct, even though
you trade in the direction of the trend, even if you enter long when an affordable
event occurs in a key location, even if you enter short when a salable
event occurs in a key location… The trade will go wrong,
you will lose money you will have
to close in negative… And that is not a reason
to change the rules of the strategy! Losing money is not a reason
to adjust the system. You have to resist the feeling of believing
that something is wrong with the rules and that they have to be adjusted.
The rules are the rules, and they are fulfilled
whether they work or fail. Because those are the rules that will keep
your losses small and your profits big. The rules do not have to change, you are the one
who has to change, you have to silence your ego that thinks it’s smarter, and it
tells you that you have to change things, and give them your personal,
special touch, to improve tactics. Novices believe that it can design a
strategy that works 100% of the time, but you just can not cover
all the holes in a fishing net. Think of a fisherman who
throws a net to the sea to fish, the net has holes so that the water
can escape and only bring fish, but some fish also escape
through those holes. Now, imagine that the fisherman decides that
he is not willing to let a single fish escape and start plugging
the holes in the net. What do you think
is going to happen? He will bring a lot of water
every time he goes up the net, which is not a net now but
a plastic fabric without holes, and the space
that the water occupies it will prevent him from
catching more fish. Climbing the net will be much more difficult
because of the weight of the water and the result of fishing
will be much less. The ocean is too big, too vast,
and you will not fish all the fish. There is enough for everyone and it is
impossible for you to master the whole sea. Accept it! Accept the losses because they will
allow you to increase the results of your fishing. That is part of the game and
will always be part of the game. What you have to learn
is to survive the losses because the periods
of loss will never go away. Are you going to learn to
control them better? Yes. You will reduce the frequency
of your loss period as you progress. Your loss periods
will be more and more distant, losses will be
smaller each time. But you will not reach zero losses,
your losses will not disappear… And when you accept that you will be one step
closer to achieving success in this activity. As you become more expert,
as you train better, your skills develop…
You will get your winnings to outweigh the losses. And that’s what trading
success is based on! Learn to identify the voice of your ego
that thinks itself superior, your ego believes that it can do better
trading than professional traders, your ego is going to say things like:
“The trade is already positive… close now to do not lose
what you have won”. That is your ego! The problem is that it is going to tell you when
you still do not have the two candles in benefits, it is going to tell you when you still do not
have the 25 cents advance in the price that the rules
dictate. It will invite you to break the rules using
excuses based on previous experiences like yesterday something similar
happened to you and you ended up losing. But the reality is that each trade
is unique and different from any other, it is your ego that tries to connect them
as if they were related in some way, as if today’s trade would behave
the same as yesterday’s trade. But the reality is that they have
nothing to do with each other. That the rules have
failed yesterday does not mean that you must
transgress the rules today… But your ego is going to
convince you of that, your ego is going to tell you that those
rules do not work… “Make your own
rules!” “Close the trade now
even if you do not have the 25 cents” “You have 20, that’s enough,
secure your earnings” and the day after tomorrow or next week when
the price reaches 20 cents and is returned and you end up losing
by Stop Loss… Your ego is going to tell you that now you have to close
the transaction when you have advanced 18 cents. And when the 18 fail, you’re going to be closing
the 15 cents… And that’s how you get lost! That’s how everything falls apart, that’s
how you end up trimming your profits and letting
the losses run. This is how your ideal profit
and loss ratio is reversed and losses become larger
than profits. Because your ego, in addition to telling you
that you have to cut the profits, will also tell you, when you are losing…
That last week, for example, the price went down much more
and then it was returned. And if you had not closed the trade
you would have ended up winning. So: “Well, yes, the price has already
passed the Stop Loss level… But do not close yet, those rules
are wrong, let it go back in. Wait a little longer, it’s gone down too much,
it can not keep going down, It will be returned. We are already close to changing the trend,
do not close the position, you will lose in vain”. And the price keeps falling,
and you keep accumulating losses. But your ego tells you: “You have waited for
all this, are you going to close now? Are you going to close just when it is
going to be returned? It will recover”. And that’s how your profit and loss ratio
becomes 20 to 1 against you, that’s how your capital disappears,
that’s how you stay in the 95% group. Your ego is the enemy, your ego
is what you have to overcome. It is not the market that you have
to conquer, you have to conquer yourself. You have to overcome yourself,
you have to develop a steel discipline and comply with the rules
as if you were a machine. Learn to recognize
the class 3 affordable events, learn to identify
the key locations of class 4, define the sizes of your lots
that you learned in class 7 and trade according to the rules, place
the Technical Stop in its place and respect it. When appropriate apply the rules of
trailing stop that I teach you in class 6. Close the position in layers, increases
and decreases when you should do according to rules
that are well defined. The rules are to protect
you against any eventuality. They are very specific!
The rules tell you exactly what to do for each market movement.
The rules tell you when to enter it tell you how to stay
in the trade and when to leave. it tell you how to get out
and how much to get out… Follow the rules every time!
And if the trade fails… Following the rules to the letter will
allow you to cut that loss to be minimal. In the same way when
the trade goes well… Those same rules will allow you
to extend those profits to provide you with a healthy
relationship of gains and losses. And that’s how it makes you
a professional trader! Trust the rules! Test them for 90 days in a demo
account so you do not lose money and look at the result
at the end of the period. Observe how you have progressed
and convince yourself that you should not modify
a comma or a point in the rules of this trading plan
that you are learning. Keep in mind that this set of rules
are nothing more than a fishing net that will allow you to achieve
the results you need to be successful. These set of rules are designed to take
advantage of certain market conditions. Keep in mind that the market has no order,
the market has nothing predefined. The market is an endless collection of
electronic transactions of purchases and sales that are executed because people give
the instruction to execute. The transactions appear
when someone like you clicks on their computer
wanting to buy or sell… Or, because a computerized system
executes a purchase or a sale. But the computerized system was made
by a human being, is not it? So ultimately the transaction is
carried out according to the technique of a person who decides
to buy when he feels optimistic and sells when
he feels pessimistic. Prices can only go up,
down or move laterally. And these movements are produced
by people when they feel greedy or when they are
afraid. The market is driven by two
main emotions: fear and greed. But people go through different
moods during the day, and every day they go through a different process
of emotions, no day is equal to another… And that is reflected
in the market. So the prices do not behave
the same on two different days. Then, as the market has no order,
as the market is random… An investment system what it does
is take a common piece of that chaos of transactions
and take advantage of it. When that particular piece
of transactions appears in chaos, when that fragment, when that pattern
shows itself inside the chaos, it’s time to throw your net into the water
and take out your catch of the day. These patterns that we have seen,
the candlestick charts, the periods of time, the line graphs
or the bar graphs… They are simply the human method to give
order to that chaos that is the financial market. But the market does not know about graphics,
the market does not know about setups, the market does not know
what a Bear 180 is, the market does not know what it is to cancel a candle,
the market does not know what a candle is. These are graphic representations that
we have designed to help us see and interpret market transactions but
internally the market has no order. It is how it is how the stars,
we have given names to the stars and we have identified star formations
to which we call them constellations. And we differentiate one constellation
from another and we put names to it, but the stars do not know
they have that name, the stars did not decide
to form a constellation, they did not organize themselves
on purpose to look nice those formations we invented ourselves to
help us visualize the chaos of the universe and locate us in
the galaxy. And we said: “Ah, well, if I connect
this point with this and this… Ah, look, it looks
like a Ursa Major”. The financial markets are the same,
but within that chaos we can apply a template, we can identify
patterns that repeat randomly, and when they repeat themselves,
we can enter with our set of rules and act to
take advantage of them. That’s what the rules are for and
that’s why you can not change them. That the system fails does not
mean that the system is wrong, what it means is simply that
the pattern was not repeated. We thought we had seen
the same setup but it was not. Simply on this occasion the price
behaved in a different way. However, the rules have
been narrowed enough to exclude most of
the false setups. It does not exclude
all but excludes a good part. It’s going to fail, of course.
But it’s the exception… And that exception is no reason
to say that the system does not work. Think of it this way… If you have identified a behavior that is
fulfilled 80% of the time and 20% fails… It is obvious that from time
to time you will see it fail. But the ratio is 80/20. Why are you even
going to stop to consider the exceptions? There is no need
for that! Do you prefer to pass to the group of 20%
when you can take advantage of 80%? Out of every 10 trades
you will fail 2. You already have that predefined, but when
those 2 negative trades appear… Then you decide to get frustrated, bother
yourself against the system and reverse it to win that 20%
of the time, so that you do not
miss the 20%. No matter that with your actions you are wasting
the other 80% that you already had insured. Moreover, even if
the ratio is 60/40, out of every 10 trades
you gain 6 and you lose 4… Do you think it’s a good idea to change the rules
and take advantage of 40% instead of 60%? It’s stupid! But many do it even
if it sounds illogical. And this happens because of that psychological
impossibility of accepting losses, because of that effort to
get it right 100% of the time. Now, there is another aspect
that you have to consider and this is something that I have already told you in
other videos and I also told you in the basic course of investment for
beginners… And you have to take into
account the size of the loss and not necessarily
the amount of losses. That is, your investment system
can be 90/10 in your favor… That is, out of every 10 trades
you make you win 9 and fail 1 time. And even then
you may be losing money. Can not you think
of how? Imagine that every time you win,
you win 1 dollar. And every time you lose,
you lose 20 dollars. Then, after 10 trades you have
earned $9 but you lost $20. That means that at the end of
the period you lost $11. You win more times
than you lose! And still you are failing as a trader, and that
happens because you have bad trading management. With good trading management
you can reverse that formula, and have an investment system
that loses 9 times out of 10… Being profitable! Because a proper trading management
is almost magical. It is the magic that offers you
the fact of keeping losses controlled and extending your
profits. Quickly cut your losses and know how to take
advantage of the maximum advance in your favor, allows you to be profitable even
if you lose 9 times out of 10. For that reason I will never tire of
telling you that the management of trading is more important
than the strategy. Proper trading management forces you
to stop losses as quickly as possible and give room for profits
to stretch as much as you can. Now you have to know that
when you are starting you can not trust your results to determine
if you are doing things right or wrong. When you are beginning
your failures and your successes do not come from experience
because you have no experience. It does not come from knowing
what you are doing wrong or good. Closing a negative trade
does not necessarily mean you did the wrong thing
and vice versa. Closing a positive trade does not
necessarily mean that you acted well and followed the rules
as you were supposed to. Remember that the market
can only go up or down… And when you open a trade
in whatever direction you have a 50/50 chance of things
going well… It’s simple statistics! Things can go well and close in
profits even if you have done wrong. Really your good or bad results,
at first, do not come from your abilities. You may be following the rules
but you do not know if things went well
for that or pure luck. That is why the guide or mentor
is so important in the early stages
of your training… Until you win
your own experience, until you mature
as a trader, until you are able to recognize
the true correct actions in your trade and keep firmly attached to your
investment plan and your trading management. And it is important that you have
this clearly because your progress is not necessarily going
to be seen in results, you will not necessarily see a considerable
increase in your balance… In fact, it is possible that at the beginning
it is more what you lose than what you you win, and even then you
may be making progress. Your experience does not necessarily
translate into profitability at the beginning of your
career as a trader, and for that reason
many of us have found ourselves lacking in support
of our environment when we are starting because externally it is not
seen as an advance. Your family, your friends,
your surroundings tell you things like: “Look, but you’re not
making money, you’re losing your talent” “You should look for a real job,
you’re not learning anything” “Because you’re still wasting
your time and money in that’s if you’re not seeing
the results”. But that advance, that progress,
you can feel it inside you. Just as a seed in a glass jar
under a wet cotton takes many days to
show a change, it will take a long time for even
a bit of root to be visible… But internally many things
are happening. That seed is not the same,
it is changing inside, but from the outside
you can not see the change. Your skills
can feel them, you are the only one who can see and feel that
you are able to recognize events more easily, that you are even able to anticipate the setups
of those events with a high success rate, that you are more skilled
in reading the graphs, that you better identify
the location of the events, that you better understand
the movements of the prices, that you understand better
how the actions affect your trade… You can see how you are faster
to execute your transactions, how you are every time better to recognize
the Stop Loss method that you have to use and apply it in
a better way. And you must turn a deaf ear,
not only to your surroundings, but to your own internal voice, to the voice of
your ego that invites you to renounce, to surrender, and to dedicate something else because
the balance does not reflect your progress. So, the system you are learning in this
course is designed and optimized to identify profitable
patterns of price movements, and is also backed by
a robust trading management, which will keep your losses to a minimum
and your profits to the maximum. Your job is to learn
the system and dominate your ego so that
you are honest with yourself, so that you fulfill
your word to yourself, and execute the trading plan
no matter what happens, no matter what your
internal voices say, no matter what the failures
or the successes. The trading plan is the one
that makes the decisions, it is not you who makes
the decisions. The actions on your platform come from
the trading plan, not from you, not from your ego. And when you get that discipline, when you
achieve that attitude and that mentality, your rewards will
begin to arrive. Financial Education

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