Ron (speaker) describes a personal shift in trading driven primarily by emotional regulation. He states that trading psychology accounts for roughly 90–95% of his trading success, and credits tools learned (observer stance, mindfulness) with helping him slow impulsive responses, follow rules (including placing stops), focus on market structure, reduce fear, and treat mistakes as learning opportunities rather than catastrophic failures.
Questions this video answers
October 22, 2013
About 90–95%
The biggest change in my trading really falls under the subject of emotional regulation. I used to think that trading psychology was maybe 50%, 75% of my makeup as a trader. Actually, I was very incorrect on those numbers. The number for me personally is probably 90 or 95%. So trading psychology is very important. What's different in my trading now and what I mean by emotional regulation is I've been able to.
Employ the tools that I've learned through trader state of mind, such as that of observer and mindfulness, to slow my trading down so that if something comes into my mind, I don't respond impulsively, I give it consideration. Just because it's an idea or a thought or a feeling or something that I notice doesn't mean that it needs to be immediately acted upon. And that's very significant. Impulsiveness is probably something we all have to deal with. Another area, which I'm almost embarrassed to admit it, but I had a real situation of not sitting stops and again getting behind the psychology and understanding.
How to manage my emotion. I'm following my rules, whereas before rules were consistently broken. And the other thing that I think is really significant is that I keep my focus on the market structure. Fear is just about eradicated. Do I make mistakes? Sure, I still make mistakes trading, but I learn from them. It's not fatal. It's not the last trade in the Forex.
