The Psychological Paradox

^ awesome book on trading psychology

No need to explain here, but make sure you have thoroughly investigated what you mean by this. Be sure not to fall into the trap of conflating psychological issues with a plain lack of process.

Generally, the process/psychology curve looks roughly like this:

It’s a trap as you say, but working on the Mental game is the goal.

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Mental game is huge in this. I agree Trading In The Zone is a great book. I’m part way through it myself. Started reading it last winter and plan on finishing it soon. Seasonal business pulled me away until now.

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100% agree. What I was cautioning is that if you want a chance of consistent output you need to have consistent inputs. In the early stages it is very easy to blame psychology when really what is lacking is skill development and methodology. Now, a lacking methodology undoubtedly will create psychological issues, as you internally/subconsciously do not have confidence in what you are doing.

This can be why trading can take a longer time to learn than most skills. Time to learn the specific methodology (assuming you are not hopping around like a mad man looking for the secret sauce). Then time to learn the various permutations these setups take under different market regimes. Then finally comes confidence in the expected value of this methodology as well as confidence in your ability to execute it in a demo/low risk setting. THIS is the stage where the tables turn and now you have to start treating psychology with a heavy hand to allow yourself to execute the methodology under standard trading pressures.

All too often the freedom of markets can kill traders who do not want to burden themselves with rules. They say they have process yet can justify any trade they want to take and then will only criticize it after the fact if it was a looser.

A lack of process will induce psychological issues. However, the solution is not to work on psychology, the solution is methodology.

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