tag:blogger.com,1999:blog-2847890102780597763.post7972701862759705515..comments2023-10-30T05:35:52.421-07:00Comments on Reviewing Everything Forex: The Reality is, Most People are Terrible Losers... Are you a Good or a Bad Loser ?Danielhttp://www.blogger.com/profile/00940108413648645894noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-2847890102780597763.post-36718347952523059892010-07-09T04:43:28.157-07:002010-07-09T04:43:28.157-07:00Hello PC,
Thank you for your comment :o) It is in...Hello PC,<br /><br />Thank you for your comment :o) It is indeed much harder to trade long term than short term ! There are many reasons why this is the case but psychological reasons are some of the strongest.<br /><br />When you want to be a long term profitable trader you absolutely need to understand your systems and their draw downs since failure to do this will make you feel uneasy and that your "system is no longer working" when you face a losing period.<br /><br />When a trader starts to move into long term profitable trading they face many challenges and perhaps the most important one is the first extended draw down period. Getting across that 100-400 day draw down period will be very important for a trader's long term success since - after this experience - they will be a LOT more confident about their systems and their knowledge.<br /><br />To answer your question I would say that traders that do not make this change don't have ANY chance of being successful while the ones who do attempt to change to a long term mindset have a fighting chance (it is important here not to confuse long term profitability with long term/ short term systems both of which can -in theory- achieve success!)<br /><br />I hope I have answered your questions :o) Thanks again for your comment,<br /><br />Best Regards,<br /><br />DanielDanielhttps://www.blogger.com/profile/00940108413648645894noreply@blogger.comtag:blogger.com,1999:blog-2847890102780597763.post-27617858071120293882010-07-09T01:56:25.991-07:002010-07-09T01:56:25.991-07:00Good article. It highlights the effect psychology ...Good article. It highlights the effect psychology plays in trading. It got me thinking, is it harder to trade long term vs. short term because of psychological impact caused by draw downs?<br /><br />As you have mentioned, when the draw downs do come, traders do jump from one system to another. If these short term traders do then move to a long term strategy, automated/mechanical or manual/discretionary, are they more or less likely to succeed? <br /><br />Answers on a post card :)<br /><br /><br />PetePChttps://www.blogger.com/profile/01043228276656328744noreply@blogger.com