Trading Psychology Podcast Episode 43: Anchoring

[@n8t4short]

hi vp this is my old notes from 2021 about your psychology , u will need discipline, keep training and getting better at what u do to keep trading discipline is everything and money management is discipline EXAMPLE u always do trades at 10:00pm 15 min and no distractions no phone and normally the phone will be in the other room but now today the phone Is with u and someone calls u at 10:00 and u think u been on the phone for about 10 minutes but no u was on it for 1 hour and u took the trade anyway at that time the time was 11:02 and then the market goes bad but when u take the trade normally,u wait till 5:00 till u close the trade and the trade was -900 it hit your stop loss that what u call discipline. thank u vp

[@cole4987]

I just wanna say thanks for all you've done. I've been trading your way for the past 5 months and my knowledge of forex and trading in general has skyrocketed. I'm still demo trading and testing indicators and so far I've been profitable, but I won't touch a live account until I've found a perfect setup for myself. Thanks again VP, you as well Robb.

[@ThetaHunter]

Options trader here. Thank you both for this Podcast. Listened to every one of them so far and will be relistening over and over until I get it.

[@jessicawagner3794]

My anchoring bias kicks in when I'm long in options mid term on SPY and I'm shorting the ES future intra day. Thanks for the podcast, you guys are doing a great job. I'm a big fan.

[@rmhsmith2453]

Thanks for this episode, gentlemen. Long-term forex trading profitability is one of the toughest challenges I've encountered. Despite the great blueprint VP provided with NNFX, balancing algorithm tweaking and avoiding over-optimization is tricky. Occam's Razor principle has been my guiding light, emphasizing simplicity in reasoning. As Rob wisely said, it's about making money, not being right.

[@KyleBaran90]

I work at Walmart and this happens all the time in retail. For example, your TVs and phones and tablets are sold at break even or a small loss or profit. The real money is from the accessories. TV mount for $150? We'll have an 80% margin on it. I've accidentally become the guy from your math textbook that buys groceries based on the price/gram for something. I think another great example of this (and you mentioned it) is also *when* you started trading. That's the market you know. How many people jumped into it in 2020 like I did? Funny line only goes up. That's your anchor, your context. But having experienced losses during a bear market and several pump and dumps, you learn and adapt and change your style and make yourself more resilient.

[@paulbucklebuckle4921]

Listen up folks , it doesn't get much better , thanks Gentlemen .

[@jsilvat]

Thanks for this episode! It is funny you say "change your system". Maybe I understood it wrong, but I thought one of the main reasons of failure in trading is actually not being disciplined enough to follow your system and start tweaking it or moving to a new one whenever its perfomance starts to degrade.

[@KyleBaran90]

You design the system and iterate it and improve on it. Change for the sake of change is bad; but you don't want to use the same system for your entire trading journey. Markets change too, and move in cycles. Maybe you learn how to hedge better or find that you have a better ROI by tweaking an indicator or something. You're growing and adapting, and so should your system

[@NoNonsenseForex]

Improve for sure. Change if it actually needs changing.

[@sybentley6675]

Price isn't important to me. I took this into everything from the way you described the Forex pricing, and it's irrelevance . I don't use options, but that seems the same. Value comes from another place. Repeating discrepancies etc. Big numbers sometimes catches me out but only because I didn't give it any importance: I never will. IHOO is the inverse Jim Cramer ETF, by the way!

[@NoNonsenseForex]

Is it new? I know SJIM went away.