Are You a Objective or Subjective Trader

During my Earlier trading days when I was getting trained by my Guru A common mistake I used to make is trying to mimic the “intuitive” trading styles of My Guru in order to achieve similar levels of success but used to failed miserably. I still remember very vividly My Guru used to Smile when i used to discuss my Losses, I was frustrated but he will just listen and tell me try harder next time and never try to copy my trading style.

He will not use any indicator just look at plain chart and his Gann and Astro knowledge to take trade and 80% of his trade were successful. When i used to do copy him I will mostly buy near days top and Sell near days low. 

One fine day he sat with me and explained me about Intuitive Stage of trading and I am thankful to him for teaching me this.

This is the stage when you have mastered your emotions. You can execute flawlessly and without fear. You will have develop a mindset of thinking in Probabilities.

In this article, I Will explain why Subjective trading can be a grave and costly mistake for new traders and why objective trading  is an absolute must if you wish to succeed in the long term in trading.

Subjective Traders :  Traders who trader by personal feelings or opinions.

Subjective traders are basically emotional traders. They hear news on Blue channels watch Global Market and mostly active on Social Media.  Their signals are generally entering out of greed,catching a big rally and entering at the top and exiting based on their own fear, will mostly Exit at bottom.

They believe in their opinions more than the actual price action.

  • They Mostly trade on “GUT or INSTINCT”
  • Opinion Based Traders
  • Keep Jumping for 1 system to another

Objective Traders : Traders not influenced by personal feelings or opinions . Having a trading system and trading rules

Is it possible to be completely objective while trading?

Trading forces us to interact with the market, where price is objective – everyone can see the same thing. But we do have different interpretations. Why?

Human nature makes us subjective, that’s just part of being human, seeing the world through our own beliefs, hopes, fears, expectations, etc.

Objective Traders are

  • Guided by Rules
  • Have Defined Entry,Exit
  • Conviction on System
  • Happy to take Loss

Objective trading methods often provide for clear-cut reasons of why the trade worked or did not work.  An objective trader can potentially categorize trade setups as high or low quality that could take out the stress of random guessing. Again, this type of categorization may take traders years to observe.

A trade that was not successful can perhaps easily be traced to a specific rule of the system that was erroneously not followed. In fact, over a large sample of trades, the trader can actually even deduce the validity of the rules of the system and tinker them accordingly for a revamped and improved trading method.

4 thoughts on “Are You a Objective or Subjective Trader”

  1. A big thank to u.. You proved me that i m a subjective trader clear cut subjective trader this is d blunder which i was not aware of d only reason for my daily loss in intraday now new jouney will start towards objective one. Once again a big thanks to u

  2. Brahmesh Ji, brilliant article, your website is such a rich encyclopedia of knowledge and it’s FREE. if one spends time to go through all the information content here and absorbs that will the be corner stone for success in Trading. Thanks!!

  3. So true. Thanks for sharing very useful knowledge. But i think there is a very thin line between subjectivity snd objectivity in trading

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