Perfect Trading System and Trader Psychology

I spoke with one of the traders who read my trading blog. It was a good communication and also served as a reminder for me to stay focused in what I am currently trading. This trader was talking about few markets that he wanted to trade …

I tried doing the same idea when I first started my trading journey. Later I realized that each market had its own “personality” which is shaped , to a great extent , not only by the inherent characteristics of the market , but by the combined personalities and mass psychology of the major players who were involved in the market , both from the speculative as well as the hedge standpoint.

Staying focused and seeing the markets and ourselves from the psychological point of view is the key to success in trading. We have lots to learn about our own psychology as a trader.

I am sure most of us had came across what we once thought was a “perfect system“. Every trading seminar we attended , or every training video we bought seemed to make us believe we had found the “perfect trading system”. Agree ?

When all of the research and back-testing is over , when the “perfect system” has failed , when theories have been reduced to false hopes , the one thing that remains still intact is trader psychology and what it can teach us about ourselves and others.

Trading systems prosper or fail as a function of consistency in implementation. And consistency in implementation is a direct function of the trader. There is no such thing as ” perfect trading system”.