Fundamental performance fallacy
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  1. #1
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    Fundamental performance fallacy

    Hi traders! Today I want to talk about thing that Dr. Brett Steenbarger (author of the book «Enhancing trader performance») has called «fundamental performance fallacy». It’s an idea that «the harder you work, the better you become in your chosen field».

    Many aspiring beginner traders ask: «Can I become an expert trader?». They want to hear motivational answer such as «Yes, you can – if you put enough time in learning process and will be consistent with your efforts». But let’s face the truth – it’s unrealistic. Expert traders belong to pretty small universe.

    Let’s also remember that trading is a highly competitive performance activity, there are no shortcuts there and learning somebody’s trading system itself will not give the edge – ability to beat the market. So, becoming an expert is not about formal learning but is more about combination of skills, proper mindset, market understanding, understanding big picture as well as market conditions/sentiment and other elusive things. Amount of data can be overwhelming, and experts are those who can sustain attention and commitment to this process at very high level.

    We all know that best performers in any field are hard workers, but have they become experts because of hard work or something else?
    Ability to concentrate that much can’t be just a function of intention only. To have this commitment to process of trading, we should feel that this process appeals to our strengths, gives challenge and opportunity to grow and become the best of what we can be. If there are no strengths, there is no commitment and therefore – it will be impossible to build expertise.

    Trading is a very large world that can offer various trading styles, markets and possible opportunities. Not every person can become a daytrader, but probably your strengths can be applied to systematic mechanical trading, pair trading, spread trading e t.c.

    So, idea is that you should find some niche in trading that will fully absorb your attention and leave you no choice other than to master it. Do you feel this now applied to your trading style or market you currently trade?

    I will give you example from my own trading. Several years ago I was trying to master medium term strategy with options. But actually, it required completely new set of skills that were not my strengths – I should have been involved in fundamental analysis, understand seasonal tendencies and most of the time I had to fade the price action.
    But I’m a breakout trader – I have ability to find particular patterns that can lead to a breakout. So, as you see, options trading could not touch my strengths and eventually it leaded to losses. I realized this as a lesson and decided to switch back to my breakout momentum trading and results became much better – now my strengths were involved and I was back on the road to expertise.

    So, ask yourself – does you trading attracts your attention completely, are your strengths involved? Or maybe you are just «trying to trade»?

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  2. #2
    Registered user Hukam's Avatar
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    According to me I think learning is very important part of our success in this business without any learning no body can do better trade in this market there is no end of learning in this business every trader learn daily something in new in this business and I also think that a better knowledge, hard work, experience is much essential in this business.

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    Hello sir that's a true statement a very good learning and hard work is much necessary in forex until we will not able to learn where we have to trader in the market and which is good or bad for us till then we can't gain anything from this market a proper learning and knowledge are basic need of a new trader in forex.

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    Rookie Sascha's Avatar
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    i guess i don't want to beat the market but try to follow its movement whenever it want to go. we can't force market to do what we want. anybody who fight against market will be ended up in failure. yes we can get more experience in forex trading if we spend more time here. i also agree that forex trading is a competitive business, everybody want to success with different way from one to another.

    took more than a year for me to know more things about forex. now i know how to manage my trade or things like controlling my emotions, unlike when first time i joined in this business. sometime that motivational words really helpful, and i proved it myself. when i know this business, my mentor told me to keep learning and stay on my current strategy. everything i've done is worthy now.

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    Thanks for the great thread Value trader I like your one point that we should fully know about our niche in trading that's why I am learning daily in demo trading as a new trader my goal is to just focus on daily learning and practice I don't want to do any mistake right now by doing trade on real market.

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    Sir as you have mentioned about break out strategy I am also struggling to have consistent profit so I would like to learn your break out strategy so please share your strategy in next thread as I find your thread very knowledgeable and informative.

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    fundamental is about the shifts with the consecrating objects of a visibles or value by the further recognition of name and capital to define the use withthe good customs to left the relatives with chance of perceting and appreciating with the entry by the scenes of the field that is the finance business.
    that further recognition with the distinct of visibles should left the differences to act as the mean of delivering profit but mentioned here as economics legitimated capital as finale ( to compare with the Symbolics by the mean as they meant)
    (bourdieu)

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    Indeed, many of the beginners want to know how to become professionals in a little time and I see that it takes time and experience to many factors required to be available in order to become a rolling of professionals and needs time not just

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    Quote Originally Posted by lawners1791 View Post
    fundamental is about the shifts with the consecrating objects of a visibles or value by the further recognition of name and capital to define the use withthe good customs to left the relatives with chance of perceting and appreciating with the entry by the scenes of the field that is the finance business.
    that further recognition with the distinct of visibles should left the differences to act as the mean of delivering profit but mentioned here as economics legitimated capital as finale ( to compare with the Symbolics by the mean as they meant)
    (bourdieu)
    if you want to do an analysis with fundamental analysis in trading it will be very important to learn how to trade with economies that are often read reviews launched every day by some economic news websites or other sources in the internet so that there is indeed a trader must understand the news release to see the impact on the market

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    Every day various news are published. These influenced market & many traders trade targeting these news. But we should not trading on all news. All news do not have the same impact. High impact & Medium impact news effect the market mostly. But many times market turns against news impact
    i think Forex trading news is very help full and Forex trader and Forex trade good and Forex trader will profited and he will make some money.when the market has a big news, it moves so fast, it will blow your account. my advice is you should advoid the times is released

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