What is the Psychological make-up of trading success? And what is the biggest “no-no” regarding trading decision-making? Darren argues for one characteristic as being the most critical “success barrier” for most traders, and new traders in particular.

Walter and Darren also play “the numbers game” and talk about algo trading. And — when should you say goodbye to a trading system? And how collecting data *this* type of data can really help you to leap over the psychological walls holding your back. All this and more, in this episode of the 2 Traders podcast.

Download (Duration: 21:37 / 24.7 MB)

In this episode:

01:08 – more expensive, the better?

03:25 – moment of truth

06:10 – locked on

08:10 – is it part of the record?

11:25 – flaw in personality

13:19 – two levels

15:25 – straightforward and simple

18:17 – statistical anomaly

20:19 – should that change?

Tweetables:

You need to know what your weaknesses are. [Click To Tweet].

How do you become a better trader? [Click To Tweet].

People get overconfident and change their risk parameters. [Click To Tweet].

Download The Full Episode 92 Transcript Here

Darren: Sometimes we avoid the fact that the system is failing it’s most likely going to be you or a change in the market conditions or you shouldn’t be trading the system in the first place…

Announcer: Two Traders, Darren and Walter, pull back the curtain on profitable trading systems, consistent money management, and profitable psychological triggers. Welcome to the Two Traders Podcast.

Walter: Welcome to the Two Traders Podcast. It’s Walter here and I’ve got Darren on the line. Hello, Darren.

Darren: Good evening, Walter.

Walter: I’ve got this idea and it came from a book called “The Intuitive Trader”. I am going to post a link on this in the show notes for this episode so that you guys can check the book if you want.

This is not even from the book. It’s from the preface of the book and the idea here is that — I’ll read you a quote here. It says:

“Too often traders lose sight of the key to success in trading. They convince themselves that success can be found in a head and shoulder pattern or a black box system. The more expensive, the better or over the daily hotline or the latest trading guru. What these traders start forgetting or choosing to ignore is that successful trading begins and ends with self-awareness and most traders, particularly novices, resist this notion.”

So, what are your thoughts on that? I think that brings up a whole huge pile of ideas.

Darren: I agree with these on one level. This idea of self-awareness is really important because you need to know what your weaknesses are, where you’re going to make your mistakes.