Trading psychology and TA

[Bravut]

I have observed great number of traders debate on the issue of having a solid psychology and right approach to trading better pay off than just relying on some Strong Technical Analysis but others don't believe in psychology they base there points on having a winning strategy and proper risk management
What's your take guy's...
Does Psychology exist or is just an illusion of you not  having the right approach and risk management, fundamentals...that affect your trades

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[PytagoraZ]

I have observed great number of traders debate on the issue of having a solid psychology and right approach to trading better pay off than just relying on some Strong Technical Analysis but others don't believe in psychology they base there points on having a winning strategy and proper risk management
What's your take guy's...
Does Psychology exist or is just an illusion of you not  having the right approach and risk management, fundamentals...that affect your trades

In my opinion, bitcoin is something sophisticated and phenomenal, and for some reason every time I buy bitcoin the price goes down and when I sell it the price goes up. it's so magical. 

Long term guys, this is the best of the best. Of course, if you have strong finances, so you don't need to sell when you have suddenly need money

[Oshosondy]

First of all, explain what you meant as psychological trading.

Is it a type in which a trader will trade without having any bases of analysis? If that is it, it means the person is just gambling. Or does it mean a trader will not trade at all until the price of bitcoin has fallen so significantly? That is a good type of trading if that is what you mean.

But this would be good only for swing traders and holders. As for scalpers and day traders, technical analysis is very important.

[Xal0lex]

I have observed great number of traders debate on the issue of having a solid psychology and right approach to trading better pay off than just relying on some Strong Technical Analysis but others don't believe in psychology they base there points on having a winning strategy and proper risk management
What's your take guy's...
Does Psychology exist or is just an illusion of you not  having the right approach and risk management, fundamentals...that affect your trades

It doesn't matter what your trading is based on, whether you use technical analysis or fundamental analysis. Psychology is present in any kind of trading. Psychology is an integral part of any kind of trading. A trader must use psychology because without it he will not be able to react adequately to losses and will not be able to use risk management adequately.

[Inwestour]

I have observed great number of traders debate on the issue of having a solid psychology and right approach to trading better pay off than just relying on some Strong Technical Analysis but others don't believe in psychology they base there points on having a winning strategy and proper risk management
What's your take guy's...
Does Psychology exist or is just an illusion of you not  having the right approach and risk management, fundamentals...that affect your trades

You only need to lose money a few times in trading to understand how much psychology can influence you. Someone tries to control their emotions with the help of clear rules, and does not allow themselves to break them, while someone really has a very strong character and is not influenced enough that it could harm him. Results can only be achieved using an integrated approach.

[Julien_Olynpic]

Trading psychology is, first of all, the ability to not succumb to destructive emotions when following your trading system. But if there is no trading system, then destructive emotions are inevitable. If you don't have working trading setups, you will experience FOMO when an asset rises, or you will have panic selling when an asset drops sharply. It's unavoidable. Of course, psychology will not replace knowledge of technical analysis if your strategies are based on it. But if you have some very simple strategies like rebalancing, then control over emotions, that is, psychology, is important. But if you know technical analysis, then a lot will become clearer to you. And unnecessary emotions arise precisely because of misunderstanding.

[TheUltraElite]

Its the mindset - being a person who does not sell when the market is falling and does not buy when the market is rising is important. The majority of people who enter crypto are with a get-rich-quick mindset, because of which they will follow this mistaken line of trading.

If your mindset is not like that you will be able to make profits be it short or long term, provided you keep yourself limited to bitcoin. I cant talk about altcoins, they are not my cup of tea.

TA is going to show you the trend, but do not depend on TA fully, the market has a bad habit of reversing itself before you know it.

[EarnOnVictor]

I have observed great number of traders debate on the issue of having a solid psychology and right approach to trading better pay off than just relying on some Strong Technical Analysis but others don't believe in psychology they base there points on having a winning strategy and proper risk management
What's your take guy's...
Does Psychology exist or is just an illusion of you not  having the right approach and risk management, fundamentals...that affect your trades

What you just said is one of the reasons why traders often fail in the market, they are not properly informed in most cases, while some do not even believe that "what is right is worth doing." I don't know if you are privileged to read my posts about this in the past that traders need a lot in the market before they can be successful. If they lack any of such criteria, they will never be successful.

Traders need;

1. Good trading strategy which they can use to form a timeproof trading system.
2. Proper money and risk management.
3. Balanced trading psychology
4. Great trading plan that will coordinate all that they know about the market trading.

However, the knowledge of one or some without the knowledge of all is bad, not to mention the application of them. All must be known, established and applied rightly before success can be made in trading.

[Husires]

It exists, and it is closer to the experience that is gained through experiments, and these experiences come from more daily trading, which makes you have a better ability to know the points of support and resistance and how to enter and exit the market at the appropriate time. It is similar to a mechanic who works in car repair for many years, and through sound you can He knows the malfunctions, which is a feature that no one can know if he is a beginner.

[jaberwock]

Its the mindset - being a person who does not sell when the market is falling and does not buy when the market is rising is important. The majority of people who enter crypto are with a get-rich-quick mindset, because of which they will follow this mistaken line of trading.

If your mindset is not like that you will be able to make profits be it short or long term, provided you keep yourself limited to bitcoin. I cant talk about altcoins, they are not my cup of tea.

TA is going to show you the trend, but do not depend on TA fully, the market has a bad habit of reversing itself before you know it.

Not depending on the TA as a whole is the best advice ever, because I know for a fact that it is not going to be true at all times, it is going to have some bad results if you are not careful at all. I believe that we are going to end up with something that should benefit them all, and because of this the result may end up with not getting great returns eventually. This of course is not that easy to handle, and we may end up with easy solutions.

The best thing to do would be checking the TA, and hoping that it would be a good result but if we are not careful then it's fine, we could just ignore the TA result that we saw and focus on something else. Do not trade without TA, but do not trade just because of TA neither, that's solid advice.

[wxa7115]

I have observed great number of traders debate on the issue of having a solid psychology and right approach to trading better pay off than just relying on some Strong Technical Analysis but others don't believe in psychology they base there points on having a winning strategy and proper risk management
What's your take guy's...
Does Psychology exist or is just an illusion of you not  having the right approach and risk management, fundamentals...that affect your trades

It is real and it has a massive effect on whether you succeed or not as a trader, you can have the most perfect strategy ever devised by any trader, but all of that does not matter if you are not willing to put it into practice, because you are afraid of losing money or you got scared due to the extreme movements of the market.

Without working on yourself and your mentality you have no chance at all to make profits on the markets on your own, so you will have to either find someone else to do this for you or code a bot which can trade in your place.

[Olatundespo]

I have observed great number of traders debate on the issue of having a solid psychology and right approach to trading better pay off than just relying on some Strong Technical Analysis but others don't believe in psychology they base there points on having a winning strategy and proper risk management
What's your take guy's...
Does Psychology exist or is just an illusion of you not  having the right approach and risk management, fundamentals...that affect your trades

The trading strategy employed effective risk management is critical to survival in the markets.Fundamental analysis involve evaluating value of an asset based on economic financial and qualitative factor.

[Faisal2202]

Does Psychology exist or is just an illusion of you not  having the right approach and risk management, fundamentals...that affect your trades

Psychology does exist but first, you have to make sure what is the definition of psychology in your knowledge or mind. Different people have different ideas, my idea is a mindset about the market that it can make me rich over night, over halvings, or a get-rich scheme, etc. Besides this, emotions also come in this category, and believe me they are the worst factors that make you lose money on your small decisions. But also helps you sometimes to make some good money too.

They work both ways, a control on psychology is necessary as necessary as the right approach and risk management is, because if you are not minimizing your risk, and diversifying your portfolio, don't applying DCA for accumulation and for profit, and other many techniques to increase the profit and minimize the loss then you are making a big mistake, because we can't make profit on the basis of psychological factors only, we need proper TA to make some money. Otherwise we are all depend on our fortune.

[passwordnow]

I have observed great number of traders debate on the issue of having a solid psychology and right approach to trading better pay off than just relying on some Strong Technical Analysis but others don't believe in psychology they base there points on having a winning strategy and proper risk management
What's your take guy's...
Does Psychology exist or is just an illusion of you not  having the right approach and risk management, fundamentals...that affect your trades

It's what works for you.
If those people or other traders don't believe in psychology then so be it and let them believe what they want to believe. As long as they're not hurting you and your strategy, that's no biggie. And if what works for them is technical analysis, many are going to agree and won't argue with that because that's how many traders are earning with their trades.

You do TA or FA, whatever it is or combining both of them together with psychology or anything on how you read the market. That's what make sense. There's no need to stomp on others strategies if they're making and wins on it and they're not affecting you. This is why we've been telling to mind our own business because it's the same with trading. If your strategy is profitable for you and you only does candle stick reading and technical analysis, who are we to argue with your proven effective strategy with your trades?

Others are even lucky and just trades when necessary. They just simply buy at low and don't do anything but to wait, and we never hear any argument with that because most of us are doing it and only selling at the top or when we're already in profit.

[dzungmobile]

Traders need;

1. Good trading strategy which they can use to form a timeproof trading system.
2. Proper money and risk management.
3. Balanced trading psychology
4. Great trading plan that will coordinate all that they know about the market trading.

You mentioned what traders need so let's me mention what traders don't need.

• Pressure to trade too much (over trade) to gain profit. This pressure will force traders to open more inaccurate, unsafe trades that eventually result in loss, not profit.
• Pressure to gain money from trading for using in life like daily expenses. It is another kind of pressure and traders don't need to force themselves opening trade positions, because of this pressure.

It means traders must have other money reserve to use and should never completely rely on trading for income.

[husencoe]

I have observed great number of traders debate on the issue of having a solid psychology and right approach to trading better pay off

What do you mean by solid psychology? Honestly, I have never heard of psychology on trading. If you think it's like hype or fomo, it's something fundamental.

Do you mean here about emotions? If so, I think good emotions are really needed by a trader. He must be able to think clearly about what he should do about the situation.

About technical analysis, I think this is mandatory for all traders. Because without a good TA, he will only find dead ends and darkness. I experienced this when I first entered trading, and it made me some loses. TA can provide an overview of curve predictions. If bullish, he will enter and if bearish he will exit to avoid losses.

Fundamentals are also important. It's usually for long-term trading. And should also have more money so that he not need to sell his assets when he has financial crisis.

[crwth]

I believe it works hand in hand when it comes to trading because having  the right psychology towards trading will lead to the right decisions and will pay off in the long run, on the other hand, it's the part where you don't know what you are going to do but just know all the knowledge but not in the right mindset, making the wrong decisions. It's definitely not an illusion but the correct risk management and right mindset would lead to better win percentage. We all know that we cannot always win 100%.

[SamReomo]

Does Psychology exist or is just an illusion of you not  having the right approach and risk management, fundamentals...that affect your trades

Yes, Psychology and our emotions exist and they play a very important role in life of a trader. No matter if a trader has a 80% winning strategy and 100% effective trading plan but without control of emotions it would be not possible for a trader to earn some good profits.

There are many traders who have developed their own strategies which are very workable and give profits from time to time and if they give the same strategy to other traders then they won't be able to make profit out of it. You know why? Because the one who has made the strategy also has some level of control over his emotions and can effectively execute the strategy than the ones who don't have such control over their emotions.

If someone really wants to be profitable as a trader then I believe that they should keep in their mind that trading is 80% a game of technical analysis and 20% a game of psychology and emotions. If someone achieves perfection over the 80% of it which's technical analysis and leaves the remaining 20% which game of psychology and emotions then such traders will end up losing money instead of making any profits. Even if they make some profits but they will lose those profits again if emotions like fear and greed attack them.

[Assface16678]

I believe it works hand in hand when it comes to trading because having  the right psychology towards trading will lead to the right decisions and will pay off in the long run, on the other hand, it's the part where you don't know what you are going to do but just know all the knowledge but not in the right mindset, making the wrong decisions. It's definitely not an illusion but the correct risk management and right mindset would lead to better win percentage. We all know that we cannot always win 100%.

Exactly, why have a debate on which is more important when the truth is both psychological and technical analysis is related or a combination, you see in order to plot a good technical analysis with small margin of losses and a good profit potential you will need knowledge and also your strong psychological, because when it comes to execution you will contradict yourself by being afraid to take the risk or questioning yourself if you can take the risk, that's when the psychology part comes, if you can manipulate or control your mind then you can think straigj you can decide where you are going to earn or things will be on your way and also because of the markets volatility it is necessary to have a strong mind and psychological mindset in trading. Try doing a trade without a strong and built-up psychology; I'm sure you will panic and find it hard to decide as your mind will think of other scenarios or be an overthinker.

[alastantiger]

Does Psychology exist or is just an illusion of you not  having the right approach and risk management, fundamentals...that affect your trades

Yes, trading psychology exist. Psychology in trading is what determines wins/ profits/gains from losses. Losses which often time occurs when the traders allows their emotions becloud their judgement. No one is saying that you should be a keyboard-tapping robot programmed to only follow instructions on impulse without thinking. What we mean is that you should carry your head along with your heart. If you don't, then you will mess up you risk management, entry and exit, position sizing and others. Do your analysis well, and have a good strategy.