Presumption – one of the most common psychological problems of traders. All people are prone to arrogance, but for some, it may reflect deep psychological conflicts.. Sometimes, but, presumption – just a matter of how difficult it is to break old habits. It happens, trading strategies are executed by us “too automatic”, even if their rules are not quite correct. Sometimes it is necessary to learn different behaviors or “relearn” Trading. It is vital to hone your trading skills this way., so that you can make transactions freely and intuitively. Thinking is limited, and with practice, you can do many tasks at the same time and “to expand” thinking framework. Best example of automatic task completion – car driving. When you first learned to drive, it was very slow: You pressed the brake with concentration, when anticipating potential danger and focusing on the gas pedal, when everything was going well. As you gain experience, but, a lot in your driving has become “automatic” and you no longer needed to pay attention to the routine. Now, as an experienced driver, You can easily handle many tasks on the go: radio tuning, look in the mirrors, speed tracking.
A similar psychological process occurs when you gain experience in trading.: You no longer need to carefully evaluate any opportunities. You can now act “intuitively” and turn out to be right most of the time. This form of automatic operation allows you to trade effectively. You can do more with less mental energy..
But what happens, when trading on “autopilot” does not work any more? Market conditions are constantly changing and strategy, which worked last week, can't work today. When it happens, You must learn to use a new strategy. but, it can be harder, what it seems.
Have you ever tried changing your approach after, how did you develop the skill? Have you tried to improve the swing of your golf club or use a new way of using an item after years of practice? Sometimes it's harder, than start over. You must learn the competing method and try to stop using the old one.. For example, look at the person, who is learning to drive a car with a manual transmission after several years of driving with an automatic. In many ways, it looks like a re-run education driving. You need to press the clutch pedal, without taking your feet off the brake pedal, engage first gear and gently release the clutch as you drive. But there is also a big difference., when you learned to drive at the very beginning: Years have passed, and there is a strong tendency to forget about focusing on a new skill and do it the old way. I.e, You may forget to squeeze the clutch, when slow down, or you will change gears without a clutch. This – form “conceits”. Everybody forgets, what they don't know, how to drive with a manual transmission and return to “to the old man” automatic way. The same can happen, when you try to learn a new approach to trading; You can trade “automatically”, if you forget about being careful. When learning a new skill, you need to be focused and unhurried.. Pay attention and focus to every action, until you replace the old method with the new one. Remember, old habits are hard to break, but if you focus and practice, You can replace the old approach with a new one.
