Author Topic: Trading psychology vs. statistical edge  (Read 899 times)

Kaitsu

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Re: Trading psychology vs. statistical edge
« Reply #15 on: October 20, 2020, 01:04:58 PM »
I think this discussion has been stimulating and I hope I did not come across as proselytising in any way.
Not at all! It is very relevant to discuss these kinds of topics and they raise issues that would not necessarily come to mind. Anything that makes one reflect on how one is carrying out one's trading business is pertinent. Thank you for that!
indeed such software is for deep pockets.

As with most things, there is price and there is value. These are very different things. If employing such a system can produce better results, and sufficiently so, then it could even be considered cheap! And, of course, for companies and more active retail traders this is not a large cost at all and is a very suitable cost offset against taxes. That is why it is critical for a prospective purchaser to understand what it does and what they stand to potentially gain from it. Even carrying that that assessment is a worthwhile process!:D
Ships are safe in harbour - but that is not what ships are for......

eddieb

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Re: Trading psychology vs. statistical edge
« Reply #16 on: October 21, 2020, 10:52:09 AM »
this discussion has been stimulating
Totally agree with that.
Its only when we discuss things like this, even if we are poles apart on our preferences/experience levels, etc. that we can begin to gradually understand aspects of trading that we may otherwise not have considered.
True, some things may just fly over our heads, but if we can learn something or how better to apply something then it is a very worthwhile exercise.


Namaste
Disclaimer. Posts are just my thoughts,  not recommendations.  Do your own due diligence before trading

BWS

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Re: Trading psychology vs. statistical edge
« Reply #17 on: October 22, 2020, 12:38:31 PM »
The first video from PipMeHappy has some excellent points and is logically sound.
I have a few issues (nothing new there), some of which others have already alluded to. We are all different and likely to make different interpretations even when presented with the same data. So long as we are using our own discretion rather than automating our trades we will be affected by influences outside of trading itself - our mood, how tired/alert we are, our real understanding (or lack) of what we are looking at, even if we are on a good winning streak or if every recent trade has turned against us, deflating our confidence.
Good topic, well worth discussing.  :)
"I wouldn't say I'm the best manager in the business, but I'm probably in the top 1" - Brian Clough