25/08/2020
BLIND SPOT IN FOREX
☛ Lack of discipline Kurang displin
☛ Lack of patience Kurang sabar
☛ Lack of focus
☛ Lack of resilience ( unable to bounce back after losses )
☛ Lack of composure/nerve ( afraid to "pull the trigger" )
☛ Lack of stamina (quit too quickly)
☛ Lack of dedication ( failure to put in the required number of hours of study / analyst )
☛ Lack of knowledge and experience
☛ Fear of Missing out
☛ No trading plan
☛ Failure to accept losses ( causes recovery systems, irrecoverable open losses, revenge trading )
☛ Poor or non-existent risk management ( i.e. focusing on the return over everything else )
☛ Making decisions based on P/L rather than market probabilities/behavior ( focusing on the money, rather than the process )
☛ Undercapitalization ( causes greed, over-trading, over-leveraging ) -- NOTE: according to many brokers, this is the most common cause of failure.
☛ No money management
☛ Complacency: a lack of respect for the market
☛ Laziness: trying to find a color-by-number shortcut to riches (i.e. make the most money in the shortest time with the least effort)
☛ Adherence to "$10 to $1000 in 1 week" type notions
☛ Adherence to trading myths
☛ Failure to understand the importance of statistical validity, and the nature of statistical fluctuation
☛ Failure to keep a journal
☛ Exiting too early ( should take higher RR trades )
☛ Exiting too late ( should take lower RR trades )
☛ Hindsight bias
☛ Confirmation bias
☛ Apophenia
- tendency to mistakenly perceive connections and meaning between unrelated things
☛ Curve fitting
☛ Strategies that test profitably, but are not grounded in real market inefficiencies
☛ The randomness of price movement
☛ Letting outside noise affect your decision making
☛ Underestimating the effect of broker costs
( spread, commission, swap etc)
☛ Underestimation of the amount of expertise that is required
