Taking On Discipline In StagesOnce you have decided that you need discipline in your trading, knowing where to start can be difficult and overwhelming. There are many pieces to a trading plan, and it's easy to feel overwhelmed.
You can break the task into manageable sections and master one discipline at a time, or focus on the the discipline you need. This approach makes the process more manageable and ensures that each aspect of your trading strategy is given the attention it deserves.
Trading Plan Components: Each of these sections should have objective rules so there isn't any escape room.
Method Rules
Entry Rules
Stop Rules
trailing Stop Rules
Exit Rules
Journaling
Trade Plan for TME, COIN
Shane
Trading Psychology
Mindset and Beliefs: The Foundation of Successful TradingAfter 16 years of trading, I have come to realize that mindset and beliefs are critical to achieving consistent success in the markets.
Through personal experience and countless hours of market analysis, I've discovered that the psychological aspect of trading often makes the difference between consistent gains and recurring losses.
Today we will explore how your mindset and beliefs shape your trading performance and provide practical exercises that I've personally used to develop a winning trading mentality.
Understanding Mindset and Beliefs - The Role of Mindset in Trading
Your mindset encompasses your attitudes, beliefs, and emotional responses towards trading. It influences every decision you make, from the trades you choose to enter to how you react to losses and gains.
A positive, growth-oriented mindset helps traders navigate the volatile nature of the markets, while a fixed, fear-driven mindset can lead to poor decision-making and emotional trading.
Reflecting Beliefs in Trading Results
One of the most profound realizations I've had is that the market will reflect your limiting beliefs back to you in the results you achieve. If you have negative beliefs about money, success, or your self-worth, these beliefs will manifest in your trading outcomes.
For instance, if you subconsciously believe you are not deserving of success or wealth, you may find yourself making decisions that lead to losses, reinforcing those beliefs.
Key Beliefs for Successful Trading
To become a consistently profitable trader, it's crucial to cultivate empowering beliefs. Here are the key beliefs that have transformed my trading journey:
The Market is Neutral: - The market does not act against you personally. It moves based on the collective actions of all participants. Believing the market is neutral helps you stay objective and not take losses personally.
Accepting Uncertainty: - Embrace the uncertainty of trading. Each trade's outcome is unknown and should be viewed as part of a probability game. Accepting this uncertainty reduces emotional reactions to market movements.
Deserving of Success and Wealth: - Develop the belief that you are deserving of success and allowed to make money. This positive self-concept can shift your actions and decisions, aligning them with wealth creation.
Focus on Process Over Outcome: - Successful traders focus on following their trading process rather than fixating on individual trade outcomes. This helps in maintaining consistency and emotional stability.
Practical Exercises to Develop a Positive Trading Mindset
These techniques are not just theoretical. They are exercises I have practiced over the years, transforming me from a consistently losing trader to a consistently profitable one.
Self-Awareness Journaling - Objective: Identify and challenge limiting beliefs.
Exercise:
Step 1: At the end of each trading day, write down any negative thoughts or beliefs you had during trading. For example, "I always lose money on Fridays" or "The market is out to get me."
Step 2: Challenge these beliefs by questioning their validity. Ask yourself, "Is this belief based on facts or emotions?"
Step 3: Replace negative beliefs with positive affirmations. For example, "I am continuously improving my trading skills" or "The market offers opportunities every day."
Frequency: Daily - This exercise helped me recognize and reframe the negative thoughts that were sabotaging my trading efforts.
Visualization Techniques - Objective: Build confidence and a positive mental image of trading success.
Exercise:
Step 1: Sit in a quiet place and close your eyes.
Step 2: Visualize yourself successfully executing trades. Imagine each step, from analyzing the charts to placing the trade and seeing it reach your target.
Step 3: Feel the emotions associated with successful trading, such as confidence and calmness.
Frequency: Daily for 5-10 minutes - Regular visualization has ingrained a sense of confidence and calm, enabling me to approach each trading day with a clear and focused mind.
Cognitive Reframing - Objective: Change negative trading experiences into learning opportunities.
Exercise:
Step 1: Reflect on a recent trading loss.
Step 2: Write down the negative emotions and thoughts associated with the loss.
Step 3: Reframe the experience by identifying what you learned from it. For instance, "I learned the importance of setting stop-loss orders."
Frequency: After every significant trading loss - By reframing losses as learning opportunities, I've been able to grow and improve my trading strategies continuously.
Meditation and Mindfulness - Objective: Enhance focus and emotional regulation.
Exercise:
Step 1: Find a comfortable sitting position.
Step 2: Close your eyes and focus on your breathing.
Step 3: If your mind wanders, gently bring your focus back to your breath.
Frequency: Daily for 10-15 minutes - Meditation has been a game-changer for maintaining emotional control and staying calm during volatile market conditions.
My Transformation in Trading Mindset
Early in my trading career, I struggled with a fixed mindset, believing I wasn't cut out for trading due to a few early losses. I often felt the market was against me and reacted emotionally to trades, resulting in a cycle of poor decisions and further losses.
My beliefs about money, success, and self-worth were reflected in my trading results. The market seemed to mirror my negative beliefs back to me, causing me to lose money consistently.
By incorporating the exercises above, I gradually shifted my mindset:
Self-Awareness Journaling helped me identify and challenge my belief that I would never be a successful trader. I replaced negative thoughts with affirmations of continuous improvement and opportunity.
Visualization Techniques built my confidence by allowing me to mentally practice successful trades, which in turn manifested in real trading scenarios.
Cognitive Reframing turned my losses into valuable learning experiences, reducing my emotional reactions and helping me grow as a trader.
Meditation and Mindfulness enhanced my focus and emotional control, helping me stay calm during volatile market conditions.
Over time, I developed a more positive, growth-oriented mindset. I started to see losses as part of the learning process and focused on following my trading plan diligently.
This transformation in mindset led to more consistent trading performance and increased profitability. The market began to reflect my new, positive beliefs back to me in the form of consistent trading gains.
Conclusion
Your mindset and beliefs form the foundation of your trading success. By developing a positive, growth-oriented mindset and challenging limiting beliefs, you can enhance your trading performance.
The practical exercises outlined above provide a roadmap for transforming your mindset and achieving greater consistency and success in trading.
Remember, the journey to mastering trading psychology is continuous. Stay committed to these practices, and you'll gradually build the mental resilience and confidence needed to thrive in the markets.
These techniques have been instrumental in my journey from a consistently losing trader to a consistently profitable one. I believe they can do the same for you.
Thinking about system hopping while learning to trade?Thinking about system hopping while learning to trade? Here are some of the thoughts I transmit to my students on the implications:
1️⃣Consistency is key: Jumping from one trading system to another can hinder your progress. Developing expertise requires time, practice, and disciplined execution of a proven strategy. Stick to a system that resonates with you and give it a fair chance. Trading is all about probabilities and you need to allow for enough data to let the edge manifest itself over time.
2️⃣Understanding market dynamics: Each trading system is designed to capitalize on specific market conditions. By frequently switching systems, you might miss out on understanding the nuances of different market environments and the system's effectiveness within them.
3️⃣Emotional roller-coaster: Constantly switching systems can lead to emotional turmoil and indecision. Building confidence in your trading approach takes time. Sticking to one system allows you to master it and navigate market fluctuations with a steady mindset. If you keep changing you will eventually lose your money, your mind... and your way.
4️⃣Learning curve delays: Switching systems resets your learning curve. Consistently studying and fine-tuning one strategy helps you grasp its intricacies, identify potential pitfalls, and develop strategies to overcome them. Embrace the learning process. Think about how long it takes to learn something properly. Now imagine resetting constantly back to zero.
5️⃣Data-driven evaluation: Rather than system hopping, analyze your trading performance systematically. Keep a trading journal, review your trades, identify areas for improvement, and make adjustments within your chosen system. Data-driven decisions yield better results.
Remember, finding success in trading requires discipline, persistence, and a well-executed plan. Avoid the temptation of quick fixes and stay committed to mastering your chosen system. 📈💸
Discover How Thinking Like a Consultant Can Improve Your Trades█ Self–other decision making and loss aversion
You might think that I have discussed this topic in depth before, and you would be right. However, there is still much more to explore. This article delves into an excellent research paper by Evan Polman, which examines changes in decision-making behavior when choices are made for oneself versus for others. By studying self-other decision-making, we can uncover varying degrees of loss aversion and gain insights to enhance trading strategies and risk management practices.
█ Results
Polman's research reveals that individuals exhibit lower levels of loss aversion when making decisions for others compared to themselves. The study found that people are more willing to take risks and are less sensitive to potential losses when the consequences affect others rather than themselves. This reduction in loss aversion is attributed to increased psychological distance and a more abstract level of thinking when making decisions on behalf of others.
█ How Understanding Self–Other Decision Making Can Enhance Your Trading Strategies
In the dynamic world of trading, making the right decision at the right time is crucial. Yet, how often do we consider the psychological underpinnings that influence these decisions? Recent research on self-other decision making and loss aversion offers valuable insights that can transform our approach to trading and investment management.
█ Making Decisions for Yourself vs. Others
A study by Evan Polman from New York University found that people make different decisions for themselves compared to when they make decisions for others. The study showed that we tend to be less afraid of losses when deciding for others. This is known as having less "loss aversion."
Loss aversion means that people usually fear losing money more than they enjoy gaining the same amount. For example, losing $100 feels worse than gaining $100 feels good. This fear can make us overly cautious and miss out on good opportunities.
█ Psychological Distance and Construal Level Theory
According to the construal level theory (CLT) proposed by Trope and Liberman, the psychological distance between an individual and an event affects how they mentally construe that event. Greater psychological distance leads to higher-level, more abstract thinking, while lesser distance results in lower-level, more concrete thinking.
When making decisions for others, the increased psychological distance can lead to more abstract thinking, reducing the emotional impact of potential losses. This shift in perspective can decrease loss aversion, as decision-makers focus more on long-term outcomes and broader goals rather than immediate losses.
█ What This Means for Traders
Less Fear of Losses When Trading for Others:
When you trade for someone else, like giving advice to a friend, you’re less likely to be overly cautious. This can help you make more balanced decisions and potentially increase profits.
Psychological Distance:
When deciding for others, you think more abstractly and are less emotionally involved. Try to create this psychological distance when trading for yourself by imagining you’re making the decision for someone else. This can help you stay calm and make better choices.
Better Risk Management:
Knowing that you’re less afraid of losses when trading for others can help you manage risks better. Use this awareness to avoid being too conservative and missing out on profitable trades.
█ Practical Tips for Traders
Think Like a Consultant: When trading for yourself, pretend you’re advising a friend. This can help you stay objective and make better decisions.
Collaborate: Discuss your trading ideas with others. Getting different perspectives can help reduce individual biases and improve your strategy.
Review Your Trades: Regularly look back at your trades to see if you’re being too cautious. Learn from your mistakes and successes to improve future decisions.
Use Tools: Use trading tools and software that help you analyze risks and rewards clearly. These tools can support your decision-making process.
█ Reference
Polman, E. (2012). Self–other decision making and loss aversion. Organizational Behavior and Human Decision Processes, 119(2), 141-150. doi:10.1016/j.obhdp.2012.06.005
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Disclaimer
This is an educational study for entertainment purposes only.
The information in my Scripts/Indicators/Ideas/Algos/Systems does not constitute financial advice or a solicitation to buy or sell securities. I will not accept liability for any loss or damage, including without limitation any loss of profit, which may arise directly or indirectly from the use of or reliance on such information.
All investments involve risk, and the past performance of a security, industry, sector, market, financial product, trading strategy, backtest, or individual's trading does not guarantee future results or returns. Investors are fully responsible for any investment decisions they make. Such decisions should be based solely on evaluating their financial circumstances, investment objectives, risk tolerance, and liquidity needs.
My Scripts/Indicators/Ideas/Algos/Systems are only for educational purposes!
Managing Portfolio Drawdowns EffectivelyDrawdowns, or peak-to-trough declines in portfolio value, are inevitable in investing and portfolio trading. However, managing these drawdowns effectively can significantly enhance long-term returns and reduce stress for investors and traders alike.
1️⃣ Implementing Stop-Loss Strategies
Stop-loss orders are one of the most straightforward and effective ways to manage drawdowns on long term investment portfolios. These orders automatically sell a security/asset when its price falls to a predetermined level, thus limiting potential losses.
Example: If you hold a long position in EUR/USD at 1.2000 and set a stop-loss order at 1.1950, your maximum loss is limited to 50 pips. By consistently applying stop-loss orders, you can prevent small losses from escalating into significant drawdowns.
2️⃣ Utilizing Trailing Stops
Trailing stops are a dynamic form of stop-loss orders that adjust as the price moves in your favor. This allows you to lock in profits while still providing downside protection.
Example: If you set a trailing stop 100 pips below the current market price for a long position in gold futures, the stop price will move up as the market price increases. If gold rises from $2,300 to $2,350, the trailing stop will adjust from $2,200 to $2,250, thus protecting your gains.
3️⃣ Damage Control Hedging
Hedging involves taking offsetting positions in different assets (or sometimes on the asset itself) to mitigate risks. For mixed portfolios, this can include using instruments across forex, commodity, or indices to hedge against adverse price movements on any given position.
Example: If you have a substantial long position in crude oil and expect short-term volatility, you can buy put options on crude oil futures or take a position in an inversely correlated asset. This hedge will protect you from downside risk while allowing you to benefit from potential upside movements.
4️⃣ Risk Parity Allocation
Risk parity aims to allocate capital based on the risk contribution of each asset, rather than traditional capital allocation. This approach ensures that each asset contributes equally to the portfolio's overall risk, thereby reducing the impact of any single asset's drawdown.
Example: In a portfolio containing forex, commodities, and indices, you would adjust the position sizes so that the volatility of each position contributes equally to the portfolio's total risk. This might mean reducing exposure to more volatile assets like commodities and increasing exposure to less volatile indices.
5️⃣ Diversification Across Uncorrelated Assets
Diversification is a fundamental risk management strategy that involves spreading investments and trades across different assets to reduce the overall risk. Including uncorrelated assets in your portfolio can significantly reduce drawdowns.
A portfolio diversified with forex pairs, commodities like gold and crude oil, and equity indices can weather market turbulence better than a concentrated portfolio.
6️⃣ Volatility Targeting
Volatility targeting involves adjusting portfolio allocation to maintain a consistent level of volatility. This strategy helps in managing drawdowns by scaling exposure up or down based on market volatility.
Example: If market volatility increases, you reduce your positions in forex, commodities, and indices to keep overall portfolio volatility at a target level, such as 10%. Conversely, if volatility decreases, you can increase your exposure. This approach helps in avoiding significant drawdowns during volatile periods.
7️⃣ Regular Portfolio Rebalancing
Regular rebalancing involves adjusting the weights of assets in a portfolio to maintain a desired allocation. This ensures that no single asset class disproportionately affects the portfolio’s performance, reducing unwanted overexposure. You can do the same within asset classes themselves, by looking at currency exposures individually within the FX portion of your portfolio.
Example: If your target allocation is 40% forex, 30% commodities, and 30% indices, and forex performs exceptionally well, growing to 50% of the portfolio, rebalancing would involve selling some forex positions and buying more commodities and indices to restore the original allocation. This practice not only locks in profits but also reduces the risk of drawdowns from overexposure to a single asset class.
Effective drawdown management is crucial for maintaining a resilient and profitable investment portfolio. By implementing techniques such as stop-loss strategies, trailing stops, hedging and washing, risk parity allocation, diversification, volatility targeting, and regular rebalancing, you can significantly mitigate risks and enhance long-term returns.
Looking to start your day with an edge in trading?Good morning FX traders! 🌍 Looking to start your day with an edge in currency trading? Here's the best way to read market sentiment every morning:
1️⃣Economic calendar: Begin by checking the economic calendar for scheduled releases of important economic indicators, such as interest rate decisions, employment data, inflation figures, and GDP reports. These events can shape currency sentiment. Compare overnight data to your previous session's baseline bias.
2️⃣Central bank communications: Monitor upcoming and review overnight statements, speeches, and press conferences from central banks, especially those of major economies. Central bank actions and policymakers' comments can heavily influence currency market sentiment. Here too, compare your new bias to previous baseline to see if anything has changed.
3️⃣Technical analysis: Utilize technical tools like support and resistance levels, trendlines, and Fibs to analyze currency pairs' price action. Patterns and key indicators like RSI, Stochastics or MACD can offer insights into market sentiment. Reading price action momentum is important in order to come up with the best trade ideas. TradingView makes this extremely easy!
4️⃣Sentiment indicators: Keep an eye on sentiment indicators specifically tailored for currency markets, such as the COT report (Commitments of Traders), which reveals the positioning of large traders in futures markets. It can indicate prevailing sentiment. You can also use Central Banks odds trackers (such as FEDwatch), the FEAR/GREED meter and your own risk reading markers (I mostly use equities, Yen, commodity currencies and bond yields).
5️⃣News wires and social media: Follow trusted news wires and forex-focused social media accounts to stay updated on geopolitical developments, breaking news, and market chatter. This can provide valuable context and sentiment analysis, especially if you cannot afford a squawk service.
Remember, currency market sentiment is influenced by a multitude of factors. Stay well-informed, evaluate various sources, and trust your own analysis. Adapt swiftly and make prudent trading decisions. Wishing you profitable trades this week!
Incorporating Alternative Investments into Portfolio BuildsIncorporating alternative investments such as private equity, hedge funds, and real assets can be a rewarding strategy for diversification and enhancing returns. These alternative assets provide unique risk-return profiles that can complement traditional investments in forex, commodities, and indices.
1️⃣ Understanding the Role of Alternative Investments
Alternative investments can play an important role in diversification due to their low correlation with traditional asset classes. By including assets like private equity, hedge funds, and real assets, you can reduce overall portfolio volatility. For example, during the 2008 financial crisis, many hedge funds and private equity investments outperformed traditional equities, providing a buffer against market downturns. Understanding the unique risk-return characteristics of each alternative investment is essential for effective integration.
2️⃣ Analyzing Historical Performance and Risk
To effectively incorporate alternative investments, it's important to analyze their historical performance and risk profiles. For instance, private equity has historically offered higher returns than public equities, but with greater risk and illiquidity. Hedge funds, on the other hand, provide diverse strategies such as long-short equity, market neutral, and global macro, each with different risk-return dynamics. Real assets like real estate and infrastructure provide stable cash flows and inflation protection, but come with their own set of risks.
3️⃣ Diversification Strategies
Diversification is the cornerstone of portfolio construction. When integrating alternatives, consider spreading investments across different types of alternative assets. For example, combining private equity with hedge funds and real assets can help mitigate the risk associated with any single asset class. A diversified portfolio might include a mix of growth-oriented private equity, income-generating real estate, and tactical hedge fund strategies.
4️⃣ Assessing Liquidity Needs
One of the main challenges with alternative investments is liquidity. Private equity and real assets typically have long lock-up periods, whereas hedge funds may offer more liquidity but still not as much as traditional assets. Assess your liquidity needs and time horizon before allocating significant portions of your portfolio to these investments. For example, an investor with a long-term horizon might allocate more to private equity, while those needing shorter-term liquidity might prefer hedge funds.
5️⃣ Evaluating Manager Expertise and Due Diligence
The success of alternative investments often hinges on the expertise of the fund managers. Conduct thorough due diligence by evaluating the manager’s track record, investment strategy, and risk management practices. For example, when selecting a private equity fund, consider the fund’s history of successful exits, management team’s experience, and alignment of interests. Similarly, for hedge funds, assess the manager's ability to generate alpha across different market conditions.
6️⃣ Tactical Asset Allocation
Integrating alternative investments requires a dynamic approach to asset allocation. Tactical asset allocation involves adjusting the portfolio mix based on market conditions and opportunities. For instance, during periods of low interest rates and high equity valuations, increasing exposure to private equity and real assets might provide better returns. Conversely, in volatile markets, hedge funds employing market neutral or global macro strategies can offer downside protection.
7️⃣ Monitoring and Rebalancing
Regular monitoring and rebalancing are essential to maintain the desired risk-return profile of the portfolio. Set predefined thresholds for rebalancing to ensure the portfolio stays aligned with your investment goals. For example, if the allocation to private equity exceeds the target due to strong performance, consider rebalancing by allocating more to underperforming or undervalued assets like certain commodities or forex positions. This disciplined approach helps in maintaining the optimal balance between traditional and alternative investments.
Incorporating alternative investments into a portfolio that includes forex, commodities, and indices offers a pathway to enhanced diversification and potential returns. By understanding the unique characteristics of private equity, hedge funds, and real assets, investors can craft a balanced and resilient portfolio. Remember to conduct thorough due diligence, assess liquidity needs, and regularly monitor and rebalance the portfolio to adapt to changing market conditions.
Unlock the Secrets of Gold Trading: Pericles' Ancient WisdomIn this video, we explore the profound perspectives on fear from historical figures like Pericles and modern thinkers like Ryan Holiday. Pericles, the esteemed Athenian statesman, saw fear as a natural emotion that should not paralyze us. He believed in confronting fear with courage, rational thought, and strategic planning, using it as a tool for effective decision-making.
Ryan Holiday, drawing on Stoic philosophy in his works, echoes these sentiments with stories of historical figures who turned fear into fuel for success. He recounts how John D. Rockefeller faced market crashes with calm calculation and how Theodore Roosevelt overcame health challenges by embracing adversity.
Both Pericles and Holiday teach us that fear, when managed correctly, can become a powerful ally. By acknowledging fear, confronting it with rationality and courage, and using it to sharpen our focus and strategy, we can transform challenges into opportunities for growth and success. This approach is especially relevant in the realm of trading, where mastering fear can lead to better decision-making and greater resilience.
Key Levels and Patterns:
Higher Highs (HH) and Higher Lows (HL):
The chart shows a series of higher highs (HH) and higher lows (HL), indicating an overall uptrend. This pattern suggests that the bullish momentum is still in play.
Ascending Channel:
There is a well-defined ascending channel where the price has been moving upwards within parallel trendlines. This channel can act as a guide for potential support and resistance levels.
Reversal Points (LQZ):
1-Hour LQZ / Reversal Point: Located at 2,429.190. This level is a potential area where price may reverse or find support.
4-Hour LQZ / Reversal Point: Located at 2,391.394. This level also serves as a significant support zone.
Take Profit (TP) Levels:
TP 1: 2,319.385
TP 2: 2,288.085
TP 3: 2,265.369
Recent Price Action:
The price recently reached a higher high at around 2,458.755 and then pulled back slightly, indicating a potential short-term correction within the overall uptrend.
The ascending channel suggests that if the price remains above the lower boundary of the channel, the uptrend is likely to continue.
If the price breaks below the 1-hour LQZ / Reversal Point at 2,429.190, it could test the 4-hour LQZ / Reversal Point at 2,391.394. A further breakdown below this level might lead to the next support at TP 1.
Analysis Summary:
Bullish Scenario: The price could bounce from the current levels or the lower boundary of the ascending channel, aiming for new highs. Traders might look for buying opportunities near the support levels of the channel and reversal points.
Bearish Scenario: If the price breaks below the identified reversal points and the ascending channel, it might signal a deeper correction, potentially heading towards the TP levels for possible buying opportunities at lower prices.
By applying Pericles' wisdom of confronting fear with rationality and Ryan Holiday's insights on turning fear into strategic advantage, traders can approach these levels with a clear, disciplined mindset, making informed decisions even in volatile market conditions.
How to start Trading!We (the discord mods) are trying to get a document going where people can look for advice on how to get started in trading, its not an easy question and certainly not an easy answer, but here we go :)
Be prepared that to becoming a profitable trader you will need months (even years) of training and learning, but its worth the time!
The beauty of Tradingview and its tools (Paper trading) is that you can learn it all for free. (All you need is time). You can demo trade for free, learn and experiance how the market moves, learn what you want to do later in life and learn all the nessessary tools you will need!
We realize that certain information is maybe something that you dont agree first or you say "what? that cant be real?", but bear with us for the time being, go through this document and then decide!
So, lets start with the first question for you:
What lifestyle do you have at the moment?
Why is that important? well, for each trade you need a few hours of preparation, and if you are a daytrader (intraday trader or scalper) then you trade each day (even multiple times) and each time you need preparation, can you do that? can you sit 4-6h infront of the computer everyday to analyse a trade?
If not, we have other options for you.. for example swing trader or investor.
What type of person are you?
For example: if you decide to do scalping, be prepared to get more stressful situations then a daytrader.
So it's important to figure out how you want to trade and what you can actually handle (the psychology in trading has a HUGE impact of your trading life.)
If you go and test out some strategies and you realize that this is not for you, then you have a clear sign that you shouldnt explore this further.
What type of assets can you trade?
There are local laws that you have to follow in your country that may be restrictive to certain assets so you have to figure out what you can actually trade. There are plenty of assets outthere, you just have to explore them and search for a broker you can actually sign up with a KYC.
For this, the best option is to go to Brokers and check them out until you find one that is allowed in your country.
(Be careful with brokers not on tradingviews list, for example if you want to trade crypto but its not allowed in your country but you find some broker you can sign up, the problem comes once you want to withdraw and use the money in your country. your local bank is most likely not letting you do that.)
Basics of Trading
No matter what you decide to be (daytrader, scalper, investor..), you will need to learn the basics of all of them.
Learn all the basic Terms such as:
- Long / Short (Bullish / Bearish)
- Bid / Ask (combined with spread below)
- Crypto, Forex, CFD, Stocks, Options (Bonds, Shares, Indices...)
- Market Order / Limit Order (Stoploss (SL), Profit Target (TP), Trailing)
- Leverage
- Margin / Balance
- Spread / Slippage
- Gaps
- Ranges
- Timeframe / Sessions
And then there are the major Indicators:
- RSI
- MACD
- Stochastics
- Moving Averages (simple, exponential, smoothed, and so on..)
- Price trends
- Support and Resistance (Supply & Demand)
- Volume
I know, alot of you reading this go like "What? indicators are useless, price action is the real deal.." but thats not the point here, we are learning the basics of trading. The more you know the better you will be at trading. Knowledge is power.
Also i would advice you to study the math behind them too, while you do that you learn how and why they act the way they do!
Journal
Yes, we all hate it but we all know why its good to do! :)
The simplest method i find is to use the long/short tool of tradingview, write down the notes in a textfield and then hide it in the control-center of your drawings (rightclick into chart -> Object Tree)
Do it! you won't regret it!
Risk Reward
This topic is something so many of you ignore and its one of the most important part of trading.
You all heard the sentence "there is no trading without SL" and some of you may think "yeah, thats not true", but in the Risk Reward section you learn how and why this sentence is as true as it gets. you never, ever trade without SL because otherwise you cant calculate your risk.
There is also the golden rule "Never risk more then 1% of your Money" and with an SL you can manage this sentence, without it, how can you even begin to manage this? you can't.
(Yes, i know some of you risk 2-5%, but not me, im a firm believer you should never break this rule).
If you risk 1% and lose 10 times in a row, you lost 10%. if your RR is 1:3, you need 4 wins to regain your losses.
If you risk 2% and lose 10 times in a row, you lost 20%. if your RR is 1:3, you need 7 wins to regain your losses.
... you see where this goes, right?
For this, and any other topic above, the best thing to use is the Search function on tradingview, input the title and read it all. (yes, all, yes it will take weeks, yes tahts what its all about)
Psychology
Okey, this one is a big one. not gonna lie, that will take the most time because we are all humans.
you will experiance FOMO (fear of missing out), greed, rage, and so on... thats just normal.
Thats the biggest reason to start journaling your trades, write down what you felt, why did you take a trade that you realize you shouldnt have in the first place?
So, in psychology everyone needs to figure out how he/she is obviously, i can just tell you how i do it right now and what steps made the biggest impact:
I do only 1:2 RR trades.
- Yes, after 1:2 im out, i dont care if he goes to the moon, all i care is that im no longer in a trade (my mind plays all kinds of tricks while in a trade.)
- Big impact!
I only trade 1 asset.
- I trade EURUSD all day long for years now. No, i dont look at others while im actively trading.
- Big impact!
I set and forget.
- i put in my SL and TP and once im in the trade (or even set the limit order) im semi-afk from the charts.
- I have 2 alerts on my tradingview, one for the TP and one for the SL. thats it.
those few steps helped me a ton in my trading, and yes, they may not be for everyone but it is just a showcase of hwo you need to find something that works for you.
Social Media - and its danger!Social Media... the part of the Internet that is very dangerous when it comes to promises, money, and wealth.
We've all seen it: on social media, you can supposedly make millions in under 15 minutes. Pictures with a Lamborghini and a TradingView chart above it...
Let's go through some thoughts new traders may not be aware of and how to look at them with a critical mind!
(🚩 -> Red Flag)
📍 MetaTrader / Think or Swim / NinjaTrader / cTrader 📍
There are more, but let's focus on the more popular ones.
Pictures of winning trades are useless when it comes to trading. Trading is done over years in a consistent manner, not over a few trades.
Pictures of MT5, NT, or any other platform can easily be faked.
You can set up your own little server for MetaTrader, play it out, and you have your fake trades.
📍 Fancy Cars / Travels / Houses 📍
Showing a fancy lifestyle is another big 🚩.
All those people with fancy cars have leased or rented them for the image of being successful. It's to lure you in with false promises!
(Although trading can be very fulfilling if you are willing to put in the work!)
📍 New Setup Every Few Weeks 📍
If a channel has a new setup every few weeks, this is only made for scamming new traders, not to have a setup that works.
(Think about it, if you have a setup that works, why would you change?)
Explore their profile, look for this pattern, and sometimes you will find it. Simple step :)
📍 Selling Courses / Mentorship 📍
You can learn all of trading for free.
TradingView has a very nice paper trading feature that you can use and a very unique ideas section where you can find all the information you need!
Here we come to a golden rule when it comes to starting trading: NEVER buy a course or mentorship. Never! You don't need it!
(And also, TradingView's paper trading is free!)
📍 Very Basic Information Available Only 📍
Trading is hard; trading needs a lot of concepts fitting together like RR-System, Money Management, Multi-Timeframe Analysis.
If you see a social media post with 1 chart with some boxes and another picture with a money screenshot, this is 100% fake.
You need A LOT more than 1 chart and a lot more knowledge than you can ever show on even 3 charts.
📍 AI 📍
Oh, we all love AI, but I'm afraid that AI is not in the picture (yet).
Pine can't code it, and the current state of "AI" is a "guessing" game.
(AI just guesses what comes next, in the form of vectors... it's extremely complex, but it doesn't exist in trading.)
📍 Indicators 📍
Indicators are a very nice thing to have AFTER you have your strategy down, not before.
There is no indicator that works on its own; you plug it in and it makes money... that doesn't exist!
(Think about it critically: if that existed, why wouldn't we solve world hunger?)
📍 Typical Selling Point Sentences 📍
"Learn trading in 15 minutes" or "This is all you need" or "Only trade for 10 minutes a day" are the typical scam titles that you see, and with those, you know 100% they are fake.
Trading is not done in 15 minutes, trading is hard work, and trading takes a long time to learn. There are no shortcuts.
📍 Things You Can Ask Them 📍
Typically speaking, they will not answer any of these questions because they can't.
Like "How do you calculate your position size with your current RR setup?" This means they studied this, and you can be sure they didn't :)
Or "How does leverage exactly work?" and like 99.99% of the YouTubers got it wrong.
But a very nice thing to ask is a simple "Can I have a broker statement of your account?" and boom, they are gone.
🏆 Golden Rules 🏆
Never buy anything (you can learn 100% everything for free).
Ask critical questions and follow up on them.
Trading is hard; there is no 15-minute setup.
Trading can't be 100% automated.
What's in a Trading Plan? Here's All You Need to Include.Ready, set… plan? In this guide, we discuss why you need to plan your trading before trading your plan. Let’s roll.
Table of Contents:
»Importance of a Trading Plan
»The Successful Trading Plan Doesn't Exi...
»What's in a Typical Trading Day?
»Markets, Strategies and Styles
»Summary
Venturing into trading without a plan is akin to setting sail on the ocean without a compass. Or taking the leap without looking first 😉. We can keep the metaphors rolling but if there’s one thing you must remember from this word salad of an article, it’s this: success in trading is possible with a plan. Without a plan, not so much.
In this guide, we'll talk about the importance of creating a trading plan, what you should include in it, and how to follow it.
📍 Importance of a Trading Plan
A trading plan is not just a list of dos and don’ts; it's the roadmap to trading success. Here's why it matters:
➡️ Streamlines Your Actions : Much like a roadmap, a trading plan outlines your objectives, time frames, strategies, and risk management techniques, and offers a clear path forward.
➡️ Limits Emotional Swings : By defining rules and parameters in advance, a trading plan helps to keep emotions in check, limiting impulsive actions that could lead to financial pitfalls.
➡️ Fosters Discipline : Sticking to a plan holds you accountable for your actions and allows you to see where you jump out of your rule book and into undisciplined FOMO-driven pump-chasing revenge trading.
📍 The Successful Trading Plan Doesn't Exi...
Many traders believe that you can be successful by buying and selling random selections of stocks, forex pairs, or commodities. However, the reality is that the most — if not all — successful traders have one thing in common: a well-defined trading plan. Here's what makes for a successful trading plan:
☝🏽 Adaptability : A successful trading plan is not rigid but flexible, allowing for adjustments in response to changing market conditions.
☝🏽 Consistency : A plan helps you stay on track toward your goals as a trader, allowing you to stick to predefined rules and strategies, especially when things get hot and volatile.
☝🏽 Continuous Improvement : A successful trading plan is a work in progress. The more time you use it, the higher probability you will have to refine it as you drift along diverse assets, all swayed by different factors.
📍 What's in a Typical Trading Day?
A typical trading day is a blend of preparation, execution, and reflection. And while you should leave room for new ideas, fresh approaches, and some surprises, there are mainstay components that you need to have in your trading plan.
📰 Reading the News : Staying in the know is always a good idea. For many successful traders, the first thing to do is check what’s the latest on the news front. Known as fundamental analysis, reading the news and doing your research will help you get a sense of investor sentiment.
Moreover, you can stay ahead of the curve and anticipate big market moves by following the economic calendar. Lots of those sharp swings you see in forex or stocks are caused by regular data dumps such as the monthly US nonfarm payrolls report. The Federal Reserve’s decisions on interest rates or the monthly Consumer Price Index are also keys to anticipating volatility.
And what better place to follow all that’s moving markets than the TradingView News section ?
📈 Following the Charts : if you’re here, this one won’t be too new to you. Chart reading, known as technical analysis, is one of the oldest ways to analyze anything — from stocks to crypto and even frozen orange juice.
Think of a chart as your trading canvas. It’s your space to be creative, draft ideas, look for technical patterns and formations, and anticipate potential moves. Observing the chart and watching how prices behave will help you spot where a trend may form, extend, or reverse.
Some of the most popular technical formations include double tops and bottoms, head and shoulders, cup and handle, and more. And some of the most popular technical indicators include the Simple Moving Average (SMA), the Relative Strength Index (RSI), and the Fibonacci sequence.
All of that, and much more, is readily available for you almost anywhere you click on the TradingView platform.
⚒️ Work on Your Skills : Trading doesn’t have to glue you to the screen in constant monitoring of every blip. If you don’t see anything to trade, don’t trade just for the sake of it. Sometimes the best trading position is no position at all.
Instead, use some of your idle time to build out your knowledge base. Grab some books on technical analysis or trading psychology. Or watch interviews of successful traders and investors and gain that educational edge to help you become a more aware, informed, and confident trader.
🏖️ Take a Break : Not everything you do needs to be related to productivity gains and trading improvement. Stare into space or read a great novel. Take your mind off trading and unwind, let the steam off, and recharge your batteries.
Go out, enjoy a walk or do some people-watching. Taking time to zone out every now and then will help you get back to trading sharper, smarter, and more balanced.
📍 Markets, Strategies and Styles
The world of trading is as diverse as it is dynamic, offering a flurry of markets, strategies, and trading styles to explore. Here's a glimpse into the landscape:
💹 Markets : Traders can choose from a variety of financial markets, including stocks , forex , and cryptocurrencies , each with its unique characteristics and opportunities.
When you set out to create your trading plan, think carefully whether you want your portfolio to be concentrated into any one market or asset class. Or maybe you’d like to go for a diverse approach to trading and pull in assets from several markets.
Knowing what your asset preference is will help you phase out markets so they don’t distract you.
🎯 Strategies : From technical analysis to fundamental analysis, you can adopt various strategies to identify trading opportunities and manage risk, ranging from trend following to mean reversion.
News trading is a popular approach to markets as it allows you to bet on economic reports, geopolitical events, central bank updates, and more. On the other hand, technical traders tend to stick to the chart in efforts to gauge price movements and trends. Every chart tells a story. Deciphering it is the tough part.
🌈 Styles : Trading styles are equally important and they’re all tied to a specific time frame of holding your positions. If you’re more into short-term trading, you may pick scalping and target a few pips of gains before jumping out of your trade.
Day trading and swing trading are two popular time-sensitive trading strategies that you may want to explore when building out your trading plan.
📍 Summary
Your trading plan should be exactly that — yours. Tailor it to your specific goals, risk orientation, asset preference, and find out how it stacks up against market conditions.
That way, you can navigate the markets with confidence and direction, instead of letting markets sway your decision making and lead you into uncharted waters. Embark on your trading journey armed with a well-crafted plan, and let it be your roadmap to trading success.
📣With that said, let us know in the comments: do you have a trading plan? What’s the most important element of it and are you always sticking to it?
Embracing Failure: The Key to Unlocking Trading SuccessIn the pursuit of trading mastery, the path is often littered with setbacks and failures. However, it's essential to recognize that these hurdles are not just obstacles but invaluable learning opportunities. Learning how to fail – and more importantly, learning from failure – is a critical step towards enhancing your trading success. This article explores the significance of embracing failure as a vital component of your trading education.
➡️ The Role of Failure in Trading
Trading, by nature, involves uncertainty and risk. Even the most seasoned traders face losses; it's an inherent part of the game. However, the difference between successful traders and those who struggle lies in their response to failure. Successful traders view failures as feedback, using them as a springboard to refine strategies, hone skills, and fortify mental resilience.
➡️ Failing Forward
The concept of "failing forward" means using setbacks as a catalyst for growth. Instead of letting failure deter your progress, it involves analyzing what went wrong, understanding the factors at play, and adjusting your approach accordingly. This mindset shift is crucial in trading, where the same mistake can be costly if repeated.
➡️ Lessons from Losses
Every loss carries a lesson. It could be a flaw in your strategy, a gap in your market knowledge, or even an insight into your psychological biases. By meticulously reviewing your failed trades, you can uncover these lessons and apply them to avoid similar pitfalls in the future. Remember, in trading, experience is measured not just by your wins but also by how you navigate and learn from losses.
➡️ Some famous quotes
Thomas A. Edison : " I have not failed. I've just found 10,000 ways that won't work. "
Winston Churchill : " Success is stumbling from failure to failure with no loss of enthusiasm. "
Michael Jordan : " I've failed over and over and over again in my life and that is why I succeed. "
Henry Ford : " Failure is simply the opportunity to begin again, this time more intelligently. "
J.K. Rowling : " It is impossible to live without failing at something, unless you live so cautiously that you might as well not have lived at all—in which case, you fail by default. "
Oprah Winfrey : " Failure is another stepping stone to greatness. "
Theodore Roosevelt : " The only man who never makes mistakes is the man who never does anything. "
Albert Einstein : " A person who never made a mistake never tried anything new. "
Coco Chanel : " Success is most often achieved by those who don't know that failure is inevitable. "
Johnny Cash : " You build on failure. You use it as a stepping stone. "
James Joyce : " Mistakes are the portals of discovery. "
Samuel Beckett : " Ever tried. Ever failed. No matter. Try again. Fail again. Fail better. "
Robert F. Kennedy : " Only those who dare to fail greatly can ever achieve greatly. "
John C. Maxwell : " Fail early, fail often, but always fail forward. "
Arianna Huffington : " Failure is not the opposite of success; it's part of success. "
Abraham Lincoln : " My great concern is not whether you have failed, but whether you are content with your failure. "
Dale Carnegie : " Develop success from failures. Discouragement and failure are two of the surest stepping stones to success. "
Mary Kay Ash : " When you fail, you have to be able to say, 'I believe in myself enough to try again. '"
Steve Jobs : " Remembering that I'll be dead soon is the most important tool I've ever encountered to help me make the big choices in life. Because almost everything — all external expectations, all pride, all fear of embarrassment or failure — these things just fall away in the face of death, leaving only what is truly important. "
Richard Branson : " Do not be embarrassed by your failures, learn from them and start again. "
As you can see, you're not the only one who fails, the famous people quoted all had their fair share of fails. The fact that they did not give up is testimony to their eventual success.
➡️ Building Resilience
Repeated exposure to failure, coupled with a constructive response, builds resilience. This mental toughness is invaluable in trading, helping you maintain composure and clarity in the face of market volatility. Resilient traders are better equipped to stick to their strategies, manage risks effectively, and seize opportunities without being swayed by emotional extremes.
➡️ Practical Steps to Learn from Failure
☝🏽 Keep a Trading Journal : Document every trade, including the rationale, outcome, and any emotions felt. Review this journal regularly to identify patterns in your failures.
☝🏽 Seek Feedback : Engage with a trading community or mentor. External perspectives can offer insights you might overlook.
☝🏽 Educate Continuously : Use failures as a cue to fill knowledge gaps. Whether it's technical analysis, market fundamentals, or trading psychology, there's always more to learn.
☝🏽 Develop a Growth Mindset : Cultivate the belief that your abilities and intelligence can grow with effort. This mindset encourages resilience and a positive attitude towards learning from failure.
➡️ Conclusion
In trading, failure is not the opposite of success; it's part of the journey to success . By embracing your failures, analyzing them, and extracting lessons, you can continually improve your trading performance . Remember, every great trader has faced setbacks; what sets them apart is their ability to learn, adapt, and evolve from those experiences. So, next time you encounter a setback, see it as an opportunity to grow and inch closer to your trading goals.
❓How do you deal with failure? Do you let it get the best of you or do you dust yourself off and continue with renewed drive and energy?
Share your experience in the comments below 👇🏽👇🏽👇🏽
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Thanks for reading, meet you in the comments.
Mindfulness : The Zen approach to Trading SuccessMindfulness is a practice that involves being fully present and engaged in the moment, aware of your thoughts and feelings without judgment. It originates from ancient Buddhist meditation practices but has been adopted widely in various forms across the world for its mental health benefits. In this post, we'll dive a bit deeper into what it is, where it comes from, and how it can help you when trading. Some practical tips and where to start are included as well, so keep on reading till the end.
❔ What is mindfulness?
Mindfulness is like having a special tool that helps you pay close attention to what's happening right now, in this very moment, without wishing it was different. It's about noticing the little things - how your breath feels going in and out, the way your body feels sitting or standing, or even the sounds around you. It's all about being fully present and aware, like watching a movie and noticing every detail on the screen without getting distracted by thoughts of what you will do later.
When you practice mindfulness, you're training your brain to focus on the present moment. It's like when you use a magnifying glass to look at something closely; you see a lot more detail than you would if you were glancing at it. Mindfulness works the same way, but instead of looking at something outside, you're paying close attention to your thoughts, feelings, and sensations.
By practicing mindfulness, you learn to respond to situations with more calmness and less knee-jerk reactions. Instead of getting immediately upset or stressed by something, you give yourself a moment to decide how you want to react. It's like pressing a "pause" button, giving you the chance to choose your response.
In simple terms, mindfulness changes your mindset by helping you live more in the "now," handle your emotions better and be kinder to yourself. It's like having a secret garden inside your mind where you can go to find peace, no matter what's happening around you.
❔ Where does it come from?
Mindfulness, originating over 2,500 years ago within Buddhist meditation practices, transcends its ancient spiritual roots to address a universal human need: the desire to be fully present and aware in our lives. This practice, once cultivated in the serene landscapes of ancient India, has evolved beyond its religious confines, finding a place in various Eastern traditions such as Taoism and Zen Buddhism . Each culture enriched the concept, emphasizing awareness, intention, and compassion, and highlighting mindfulness's universal appeal and applicability.
The late 20th century witnessed a significant cultural bridge as mindfulness made its way into the Western world, largely thanks to pioneers like Jon Kabat-Zinn . His approach through the Mindfulness-Based Stress Reduction (MBSR) program at the University of Massachusetts Medical School showcased mindfulness as a powerful tool for psychological well-being, stress reduction, and enhanced quality of life, irrespective of its religious origins. Today, mindfulness is embraced across diverse fields for its profound benefits, embodying a timeless practice that enhances the human experience by promoting a deeper connection with the present moment.
❔ Why Mindfulness for Trading?
Why is mindfulness important for trading? Think of trading like a big room full of buttons. Each button can make you feel something different – happy when you win, sad or scared when you lose. Mindfulness is like having a special guide in this room. This guide helps you walk through without hitting every button by accident. It teaches you to notice the buttons (your feelings) without having to press them all. This way, you can feel happy about the good things and not feel too bad about the not-so-good things, keeping your mind steady no matter what happens.
Mindfulness helps you stay calm and clear-headed. When you're trading, it's easy to get caught up in the excitement or worry a lot. Mindfulness is like putting on a pair of glasses that helps you see everything more clearly. You learn to pay attention to what's happening right now, instead of getting lost in thoughts about what might happen next or what happened before. This can help you make better decisions because you're thinking clearly and not just reacting to your feelings. It's like having a secret weapon that keeps you feeling good and thinking smart, no matter how wild the trading world gets.
❔ How does it help in trading?
Emotional Regulation : Trading can be an emotionally charged activity, with the potential for high stress, anxiety, and strong emotional reactions to wins and losses. Mindfulness helps traders recognize their emotional states without becoming overwhelmed by them, promoting a balanced approach to decision-making.
Improved Focus and Concentration : Mindfulness enhances the ability to concentrate on the task at hand. For traders, this means being able to focus on analyzing markets, monitoring trades, and making decisions without being distracted by irrelevant information or internal chatter.
Reducing Impulsive Behavior : By fostering an increased awareness of thoughts and feelings, mindfulness can help traders avoid impulsive decisions driven by short-term emotions such as fear, greed, or frustration. This can lead to more disciplined and considered trading strategies.
Stress Management : The practice of mindfulness has been shown to reduce stress levels. Given that trading can be a high-stress occupation, particularly during volatile market conditions, mindfulness can help traders manage stress, maintain clarity, and avoid burnout.
Enhancing Decision Making : Mindfulness promotes a state of calm and clarity, allowing traders to evaluate situations more objectively. This can improve decision-making by reducing the likelihood of decisions being clouded by emotions or cognitive biases.
Learning from Mistakes : Mindfulness encourages an attitude of non-judgmental observation. This perspective can help traders view losses or mistakes as learning opportunities rather than personal failures, cultivating a growth mindset that is crucial for long-term success.
Incorporating Mindfulness into Your Trading Routine
Here are a few things you can do to build in mindfulness routines in your trading day.
🧘🏽♀️Daily Meditation : Start with just 5 minutes a day. There's a plethora of apps like Headspace or Calm to guide you.
🤯Setting Intentions : Each morning, remind yourself of your trading goals and how you want to approach the day mindfully.
😤Mindful Breathing : Feeling overwhelmed? Pause and take ten deep breaths to reset your mental state.
⏸️Mindful Pauses : Before you click that trade button, take a moment to ensure this decision feels right in the gut.
✍🏽Reflective Journaling : End your day by jotting down your emotional journey alongside your trades. You might be surprised by the patterns you find.
📚 Get started:
Interested in expanding your mindfulness repertoire? Here are some resources to get you started:
Jon Kabat-Zinn's " Wherever You Go, There You Are " for mindfulness 101. ISBN 978-0-7868-8070-6
The Headspace Guide to Meditation and Mindfulness by Andy Puddicombe for those looking to integrate mindfulness into everyday life. ISBN-10 1250104904
10% Happier for meditation skeptics who want practical insights. ISBN-10 0062265423
✅ Takeaway
Who knew that the path to trading success could involve a bit of Zen? By embracing mindfulness, you're not just becoming a better trader; you're investing in your overall well-being. So, here's to trading mindfully and finding that inner peace amidst the market's chaos. Remember, in the world of trading, the best investment you can make is in yourself.
📣 Join the Conversation!
Now, it's your turn! Have you tried integrating mindfulness into your trading routine? Notice any shifts in your decision-making or emotional resilience? Or maybe you've got some mindfulness tips and tricks of your own to share. Drop your stories, insights, or even your skepticism in the comments below. Let's build a community of mindful traders, learning and growing together. Can't wait to hear about your experience!
What is the secret of success? 🌴 Being Wrong is OKAY!Here is the 5 TIPS TO DO with your mistakes:
1. Acknowledge Your Errors
So often, we say things like, “It’s unfortunate, but market goes opposite me” or "SEC lawsuit crashed prices, so I lose" But blaming other people or minimizing your responsibility isn’t helpful to anyone.
Before you can learn from your mistakes, you have to accept full responsibility for your role in the outcome. That can be uncomfortable sometimes, but until you can say, “I messed up,” you aren’t ready to change.
2. Ask Yourself Tough Questions
While you don’t want to dwell on your mistakes, reflecting on them can be productive. Ask yourself a few tough questions:
• What went wrong?
• What could I do better next time?
• What did I learn from this?
Write down your responses and you'll see the situation a little more clearly, sometimes from different side. Seeing your answers on paper can help you think more logically about an irrational or emotional experience.
3. Make A Plan (checklist)
Beating yourself up for your mistakes won’t help you down the road. It’s important to spend the bulk of your time thinking about how to do better in the future.
Make a plan that will help you avoid making a similar mistake. Be as detailed as possible but remain flexible since your plan may need to change.
Creating checklist of trading criterias (for entry, for stop loss, for target etc) can be very helpful. Make sure you have it in front of your eyes before open a trade or close it.
4. Make It Harder To Mess Up
Don’t depend on willpower alone to prevent you from taking an unhealthy choice or from giving into immediate gratification. Increase your chances of success by making it harder to mess up again.
To prevent yourself from having instant loss split your deposit to several accounts and make sure you using only small part of it for "intraday" or "scalping" trading. Additionally split your deposit for Savings account and Spot trading. And if you new to trading use only about 15% of your investment to learn, and don't touch other part untill you gain good experience.
5. Create A List Of Reasons Why You Don’t Want To Make The Mistake Again
Sometimes, it only takes one weak moment to indulge in something you shouldn’t. Creating a list of all the reasons why you should stay on track could help you stay self-disciplined, even during the toughest times.
Create a list of all the reasons why you shouldn’t enter the market, it could be your emotional state, willing to revenge on the market or might be a price action setup, fundamentals or something else.
It will help to resist the temptation to enter bad trade.
Self-discipline is like a muscle. Each time you delay gratification and make a healthy choice, you grow mentally stronger.
Cycle of Trading Psycology tips:
HOW TO BALANCE YOUR LIFE AND TRADING
5 TIPS FOR SMALL ACCOUNTS
Savings Account GAINS explained
Simple Investing Strategy, Affordable for all!
Best regards,
Artem Shevelev
5 TIPS FOR SMALL ACCOUNTSHey! When we start trading we want to make a lot of money and became millionaires by the end of month. This awesome motivation could be cut off easily without following simple plan and strategy.
When I started trading I entered only with 100$ account and loose it all within a month. I didn’t payed attention to my personal financial plan and rules, which cost me a lot of losses during my first steps in trading.
Knowing this 5 tips will help you out if you just started trading and run small account.
So, 5 TIPS FOR SMALL ACCOUNTS
1. Follow financial plan, do not go all in. Yeah, to make financial plan you need to study it first, if you are without financial education. DO NOT GO ALL IN, this is not joke, stop it right now! Small is Big in trading, and watch your trades carefully.
2. Trade less instruments, trade less often. Focus. Once again, small is big. Learn one or two assets, learn their nature and regular chart behaviour. This will help you focus and start open profitable trades.
3. Avoid highly volatile assets, trade high volumes. Take one or two big volume assets and start trading on them only. Do not run into forgotten stocks or coins just because they low cost.
4. Use higher timeframes, do not scalp. Most of new traders lose money in first months just because they trying scalping, your emotions going crazy and risks increasing rapidly. Start taking one-two trades per week and see how it will go, this will release pressure and relax.
5. Accept losses, plan how much you can lose. The biggest problem of all traders is to think in percentages about losses, this way will only increase losses. Think about money and plan you affordable loss amount.
👍I appreciate your likes and comments below this post, lets discuss our problems in trading! 💬
100% TRADERS START WITH DREAM TO GET RICH QUICKHey guys! Do you agree with me?!
It's easy to become charmed by the prospect of making rapid money in the financial markets, yet trading makes almost no one rich – in fact, many individuals lose money*
If you like my graphics, please use Like button 💙💛
* 90% of traders losing money, only 10% get profits. Why?
Here is 3 reasons:
1) Most traders Enter A Trade Too Early
2) Most traders Exit Too Late
3) Most traders Don’t Follow a Risk Management
Here is list my tips to help you to get in profit:
4 Steps To Improve Your Trading PerformanceYou've probably experienced this
A negative trading performance. A spiral of bad trading decisions. A strategy that is not performing as expected.
A helpful practice to overcome these situations is to focus on having a better process. Because results are a consequence of actions, and negative actions lead to negative results.
So here's a framework to create a better process:
1. Map out the series of steps and activities that led to the negative result (Start from the very beginning)
2. Build a Dataset of all the times that the process was implemented and led to a negative result.
3. Troubleshoot and identify the possible drivers of the negative result
4. Map out a new process that's focused on eliminating and improving those negative drivers.
This can be a trial and error process and it can be an extensive process. Sometimes even frustrating. But it'll be insightful and helpful.
If something is not working and you try to solve it randomly, you might feel overwhelmed. If you have a clear process and set of steps to solve it, it is easier to push forward.
Why is it easier?
Because you have a specific target to hit and a map to follow.
DAY TRADING WHILE HOLDING A 9-5 JOBDAY TRADING WHILE HOLDING A 9-5 JOB
Embarking on the exciting journey of day trading while managing the demands of a full-time job is indeed a challenging yet achievable endeavor. Thanks to the rise of user-friendly mobile applications offered by trading platforms, individuals now have the power to execute trades seamlessly from various locations. This creates an opportunity for those with traditional 9-5 jobs to actively participate in the dynamic world of day trading.
Let's explore the practical aspects of day trading while maintaining a 9-5 job, discovering strategies and considerations that can enhance your ability to strike a harmonious balance between your professional life and the enticing financial markets.
Day Trading With A 9-5 Job:
Engaging in day trading while juggling a full-time job is not only feasible but also a thrilling adventure. The availability of robust mobile applications has made it possible to trade conveniently from different locations, allowing individuals with office hours to participate in the excitement of day trading.
Several factors contribute to the viability of day trading alongside a regular job. Firstly, the accessibility of markets on a 24/7 basis provides flexibility. The forex market operates continuously from Monday to Friday, enabling individuals with office hours to trade after work. Additionally, cryptocurrencies trade around the clock, and some platforms have introduced extended stock trading hours from Monday to Friday.
Strategies like swing trading and position trading offer alternatives for individuals unable to actively day trade. These approaches involve setting predetermined Stop Loss and Take Profit levels, allowing traders to initiate trades and await favorable outcomes over longer periods.
For stock traders, focusing on pre-market and extended-hours trading is a viable strategy. The pre-market session, beginning at 4 AM ET, extends until the regular session commences at 9 AM, and extended-hours trading continues beyond the regular session.
Why You Should Not Day Trade At Work:
While day trading with a full-time job is plausible, certain pitfalls make it less than ideal. Successful day trading demands substantial time, concentration, and dedication, aspects often hindered by professional commitments. The need for consistent market analysis, risk evaluation, and timely trade execution can be challenging to fulfill amidst the demands of a 9-5 job.
Engaging in day trading during working hours may also impact productivity and mental well-being. Maintaining a high level of workplace productivity and a positive demeanor is crucial for professionals, and day trading disruptions, especially in the face of losses, can adversely affect these aspects.
Mental fatigue, stress, and depression are significant concerns for day traders. The demanding nature of the activity, coupled with potential losses, can contribute to a negative impact on one's mental health. This, in turn, may lead to reduced workplace productivity and strained personal relationships.
Furthermore, the comprehensive research required for effective day trading, including technical and fundamental analysis, and sentimental and price action analysis, may be challenging to undertake alongside a demanding job. Professions such as healthcare, finance, and real estate may leave little room for the in-depth analysis needed for successful day trading.
Best Strategies For Day Trading With A 9-5 Job
Successfully managing day trading alongside a 9-5 job requires a strategic approach to ensure optimal results without compromising professional responsibilities. Here are some effective strategies for individuals seeking to seamlessly integrate day trading into their daily work routine:
After-Hours Trading:
Leverage the extended trading hours available in the evenings after the regular workday. Focus on markets like cryptocurrencies, which operate 24/7, or utilize platforms offering extended stock trading hours.
Swing Trading:
Embrace the swing trading strategy that allows traders to capture short to medium-term price movements. This approach requires less frequent monitoring, making it suitable for those with limited time during the workday.
Algorithmic Trading:
Explore algorithmic trading using automated systems or expert advisors. While demanding thorough testing, these systems can execute trades on your behalf, freeing you from constant market monitoring.
Pre-Market and Extended Hours Focus:
Concentrate on pre-market and extended-hours trading, especially if dealing with stocks. This allows you to engage in market activities before and after regular working hours.
Strategic Breaks:
Schedule breaks during the workday for brief market check-ins. Use this time to assess market conditions, manage existing trades, and stay informed about potential opportunities.
Set Clear Trading Goals:
Establish realistic trading goals that align with your work schedule. Define specific time frames for market analysis, trade execution, and review to maintain a disciplined and organized approach.
Utilize Limit Orders:
Reduce the need for constant monitoring by implementing limit orders. Set predetermined entry and exit points, allowing trades to execute automatically when market conditions align with your strategy.
By incorporating these strategies, individuals can strike a balance between day trading and a 9-5 job, optimizing opportunities while minimizing the impact on professional responsibilities.
In conclusion..
In the intricate dance between day trading and the demands of a 9-5 job, finding equilibrium is an art. Technological strides have offered a bridge, enabling individuals to traverse the realms of financial markets while anchored in full-time employment. Yet, the fragility of this balance necessitates a nuanced understanding of its implications. The potential trade-offs — be it in productivity, mental well-being, or the relentless demand for in-depth research — underscore the gravity of this endeavor. As we navigate the dual responsibilities of day trading and professional life, thoughtful consideration and strategic planning emerge as our guiding lights. In this dynamic landscape, success lies not just in seizing market opportunities but in orchestrating a harmonious symphony between financial aspirations and the structured cadence of a 9-5 routine.
I hope this article will give you some nice thoughts before opening your charts while you are working.
Happy trading!
How to Become a Professional Trader!The Triad of Successful Trading:
Strategies, Psychology, and Risk Management.
Introduction:
In the dynamic world of trading, achieving success is a multifaceted challenge that requires a comprehensive approach. While many enthusiasts focus primarily on trading strategies, it is crucial to recognize that a holistic approach, incorporating trading psychology and risk management, is indispensable for sustained success. This article delves into the three pillars of successful trading: trading strategies, psychology, and risk management.
Trading Strategies (25 Marks):
A robust trading strategy serves as the foundation of a trader's success. This section explores the importance of having a well-defined and tested trading strategy. Investors must understand that possessing the same strategy as others does not guarantee success; execution and adherence are key. Points will be awarded based on the clarity and effectiveness of the chosen strategy, as well as the ability to adapt to changing market conditions.
Trading Psychology (35 Marks):
Trading psychology plays a pivotal role in determining success or failure in the financial markets. This section emphasizes the significance of maintaining a disciplined and rational mindset. Factors such as emotional control, patience, and the ability to handle losses are crucial components of a trader's psychological makeup. The article will explore techniques to cultivate a resilient mindset, addressing the common pitfalls that novice traders often encounter.
Risk Management (40 Marks):
Arguably the most critical aspect of successful trading, risk management deserves the lion's share of consideration. This section delves into the methodologies and practices that traders should adopt to protect their capital. Key areas of discussion include position sizing, setting stop-loss orders, and diversification. The article will emphasize the importance of preserving capital and preventing catastrophic losses, assigning points based on the thoroughness and effectiveness of the risk management approach.
Conclusion:
In conclusion, the path to becoming a successful trader hinges on the harmonious integration of trading strategies, psychology, and risk management. While a strong trading strategy provides direction, a disciplined mindset ensures adherence to the plan, and prudent risk management safeguards against significant setbacks. Traders must recognize that neglecting any one of these pillars compromises the overall structure of their trading endeavors. By assigning marks to each component, this article underscores the balanced significance of these three elements and emphasizes their collective role in achieving success in the complex world of trading.
I'm Shaw, a seasoned forex trader with 14+ years of success. Whether you're new or experienced,
I'm here to help you achieve long-term profitability.
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Navigating Moving Averages: Decoding Simple vs. Exponential 📊📈
Moving averages (MA) serve as foundational tools in technical analysis, offering insights into market trends and potential entry/exit points. This article delves into the comparison between two primary types: Simple Moving Averages (SMA) and Exponential Moving Averages (EMA), providing traders with a comprehensive understanding of their differences, applications, and advantages.
Differentiating Simple and Exponential Moving Averages
1. Simple Moving Averages (SMA):
- Calculate by averaging closing prices over a specified period, providing a smooth representation of price trends.
2. Exponential Moving Averages (EMA):
- Prioritize recent prices, assigning more weight to the latest data points, leading to quicker responses to price changes.
Understanding the differences and applications of Simple and Exponential Moving Averages empowers traders with versatile tools for analyzing trends and making informed trading decisions in various market conditions. 📊📈
Do you like this post? Do you want more articles like that?
Untangling the Web of Confirmation Bias in Trading 🕵️♂️🔄💭
Confirmation bias is a common psychological phenomenon that can significantly impact trading decisions. This article delves into the depths of confirmation bias in trading, unraveling its influence, implications, and strategies to mitigate its effects.
Understanding Confirmation Bias
Confirmation bias occurs when traders favor information that confirms their existing beliefs or biases, ignoring contradictory data, thereby influencing their decision-making process.
Selective Perception:
Disregarding Contrary Signals:
Mitigating Confirmation Bias
Strategies to counter confirmation bias include maintaining an open mind, seeking diverse sources of information, and critically evaluating one's analysis.
Understanding and addressing confirmation bias is crucial for traders to make informed decisions, fostering a more objective and balanced approach to trading. This article sheds light on this psychological hurdle and offers strategies for a more discerning trading mindset. 🕵️♂️🔄💭
Please, like this post and subscribe to our tradingview page!👍
10 LESSONS EVERY TRADER SHOULD LEARN!Embarking on the thrilling journey of trading? Gear up with these invaluable lessons to empower your trading expertise:
1. Knowledge Empowers: Embark on your trading journey equipped with knowledge as your most powerful weapon. Delve deep into the intricacies of the markets, understanding their nuances with precision. Grasp the ever-changing trends, and recognize that information is your ultimate asset in navigating the complex world of trading. Let your commitment to continuous learning be the cornerstone of your success in the dynamic realm of financial markets.
2. Rule Crafting Mastery: In the intricate landscape of trading, sculpting your trading rules with finesse is akin to crafting a masterpiece. These rules serve as more than just guidelines; they become your reliable compass, expertly navigating you away from the tumultuous journey of emotional roller coasters.
Precision in Craftsmanship:
Much like a skilled artisan meticulously shapes every detail of their creation, take the time to precision-craft your trading rules. Define each element with clarity, from entry and exit criteria to risk management parameters. The more precise and well-defined your rules, the more effectively they guide your trading decisions.
Guardians of Discipline:
Your trading rules stand as stalwart guardians of discipline in the chaotic realm of markets. They stand firm against impulsive decisions, emotional reactions, and the siren call of market noise. Embrace the discipline instilled by your rules, providing a structured framework for your trading activities.
Stability in Turbulent Waters:
In times of market turbulence, your well-defined rules act as pillars of stability. While market conditions may fluctuate, your rules remain steadfast, offering a reliable foundation for decision-making. This stability becomes particularly crucial when external factors attempt to sway your judgment.
Emotional Resilience:
Trading is a journey filled with emotional highs and lows. Your rules act as a buffer, shielding you from succumbing to the emotional roller coaster that often accompanies market fluctuations. By adhering to your carefully crafted rules, you cultivate emotional resilience, ensuring that your decisions are rooted in strategy rather than sentiment.
Adaptability and Evolution:
Just as a sculpture adapts to its surroundings, your trading rules should possess the flexibility to evolve with changing market conditions. Regularly review and refine your rules to ensure they remain aligned with your trading objectives. This adaptability allows you to navigate diverse market scenarios while maintaining the core principles that guide your trading journey.
Empowerment through Structure:
Sculpting your trading rules empowers you with a sense of structure and purpose. They provide a roadmap for your trading activities, reducing uncertainty and fostering confidence in your decision-making. This structured approach enables you to navigate the complexities of the market with greater clarity and purpose.
In essence, the art of sculpting your trading rules is an ongoing process of refinement and adaptation. As you hone this craft, your rules become a dynamic force, propelling you towards consistency and success in the ever-evolving world of trading.
3. Consistency Reigns: Consistency is the silent architect of success in the dynamic realm of trading. It is the steady hand that shapes your journey, ensuring that each step aligns with your plan and strategy. To harness the true power of consistency, one must commit to the principles of unwavering dedication and disciplined execution.
Foundation of Trust:
Consistency forms the bedrock of trust in trading. When you stick to your meticulously crafted plan, you build a foundation of reliability that both you and the market can depend on. Trust in your strategy, trust in your decisions, and trust in the cumulative impact of your consistent efforts.
Ripple Effects of Diligence:
Success in trading is not a sprint but a marathon. It is the cumulative result of diligent and consistent efforts over time. Each trade executed in alignment with your strategy sends ripples into the vast pool of market dynamics, contributing to the overall success you aim to achieve.
Guard Against Impulsivity:
In the face of market volatility and unpredictability, consistency acts as a shield against impulsive decision-making. When emotions run high and external pressures mount, the consistent trader remains anchored to their plan, immune to the erratic waves of market sentiment.
Compound Your Efforts:
Much like compound interest in the financial world, consistency in trading leads to the compounding of your efforts. Every trade executed according to plan contributes to the growth of your trading prowess. Over time, this compounding effect manifests as a formidable force, propelling you toward sustained success.
Cultivate Discipline:
Consistency and discipline are inseparable companions in the trader's journey. Staying true to your plan requires discipline in the face of temptations and distractions. The disciplined execution of your strategy reinforces the habit of consistency, creating a powerful synergy that defines your trading approach.
Resilience Amid Challenges:
Trading is a landscape peppered with challenges and uncertainties. Consistency serves as your resilient armor, helping you weather the storms of market fluctuations. When faced with setbacks or unexpected events, the consistent trader remains steadfast, ready to navigate challenges with poise.
Long-Term Vision:
Consistency encourages a long-term perspective in trading. It shifts the focus from short-term gains to the enduring impact of sustained efforts. By keeping your eyes on the long-term vision, you cultivate a patient and calculated approach that is less susceptible to the whims of momentary market fluctuations.
In essence, consistency is the thread that weaves the fabric of success in trading. It is the daily commitment, the unwavering adherence to principles, and the patient accumulation of experiences that ultimately lead to a prosperous and enduring trading journey.
4. Unique Style, Unique Triumph: The journey to mastery involves cultivating a unique trading style—one that harmonizes with your individual strengths and aligns seamlessly with your preferences. Embracing the philosophy that no one-size-fits-all, traders can unleash their full potential by crafting a distinctive approach tailored to their own characteristics.
Individuality in Approach:
Every trader is a unique amalgamation of skills, temperament, and experiences. Recognizing this individuality is the first step toward developing a personalized trading style. Instead of adhering rigidly to predefined strategies, traders can embrace the freedom to experiment and discover what resonates most with their personality.
Strengths as Guideposts:
Your strengths are valuable guideposts in shaping your trading style. If you excel at analyzing macroeconomic trends, a fundamental approach might be your forte. Alternatively, if technical analysis is your stronghold, a chart-centric strategy could be your chosen path. By aligning your style with your strengths, you enhance your ability to make informed decisions.
Preferences as Pillars:
Understanding your preferences is crucial in designing a trading style that stands the test of time. Whether it's the time of day you prefer to trade, the types of assets that resonate with you, or the risk tolerance you are comfortable with, incorporating these preferences into your style ensures a more sustainable and enjoyable trading experience.
Adaptability for Growth:
A distinctive trading style is not static; it evolves over time. Cultivating adaptability is a key component of successful trading. Markets change, circumstances shift, and embracing a style that can flex and adapt ensures resilience in the face of evolving market dynamics.
Risk Management Tailored to You:
Risk management is a cornerstone of trading success, and tailoring it to your individual circumstances is paramount. Your risk tolerance, financial goals, and overall portfolio strategy should seamlessly integrate with your trading style. This personalized approach ensures that risk is managed in a way that aligns with your unique situation.
Psychological Harmony:
Trading is as much a psychological endeavor as it is a technical one. Your trading style should foster psychological harmony rather than induce stress. By aligning your approach with your psychological makeup, you create an environment where you can navigate the emotional highs and lows of trading more effectively.
Continuous Refinement:
A distinctive trading style is a work in progress. Continuous refinement based on self-reflection, performance analysis, and market feedback is essential. Traders should view their style as a living entity that grows, adapts, and refines itself over time, always in pursuit of optimal performance.
5. Safeguard Your Capital: Your capital is the lifeblood of your trading journey—a precious treasure that demands vigilant protection. Just as a skilled captain safeguards their ship in tumultuous waters, you, as a trader, must ensure your accounts sail close to highs and navigate storms judiciously. Here's a deeper exploration of the significance of treating your capital with utmost care in the world of trading:
Capital as the Bedrock:
Think of your capital as the bedrock of your trading endeavors. It is the foundation upon which your success is built. Every decision you make, every trade you execute, has a direct impact on the health and growth of your capital. Recognizing its value is the first step towards responsible and sustainable trading.
Guardian of Financial Well-being:
Your capital is not merely a numerical figure on your trading platform; it represents your financial well-being. Guarding it vigilantly is akin to safeguarding your financial future. By adopting a vigilant stance, you protect yourself from significant setbacks and position your accounts for long-term growth.
Strategic Risk Management:
Protection begins with strategic risk management. Define your risk tolerance, set stop-loss orders, and establish a risk-reward ratio that aligns with your overall trading strategy. These measures act as the shields that safeguard your capital from the inherent uncertainties of the market.
Weathering the Storms:
In the dynamic world of trading, storms are inevitable. Market fluctuations, unexpected news events, and sudden shifts in sentiment can create turbulent conditions. Your ability to navigate these storms judiciously—without exposing your capital to unnecessary risks—determines your resilience as a trader.
Learning from Losses:
Losses are an inherent part of trading, but treating them as valuable lessons rather than insurmountable failures is key. When a trade results in a loss, view it as an opportunity to learn and refine your approach. Analyze what went wrong, adjust your strategy if needed, and use these experiences to fortify your capital against future challenges.
Conservative Position Sizing:
The size of your positions plays a crucial role in capital protection. Adopt a conservative approach to position sizing, ensuring that no single trade has the potential to significantly erode your capital. Diversification and prudence in allocating your funds contribute to a robust defense mechanism.
Long-Term Sustainability:
Guarding your capital is not just about preserving it in the short term; it's about ensuring its long-term sustainability. A disciplined and vigilant approach to risk management, combined with a strategic outlook, contributes to the enduring health of your trading capital.
Psychological Well-being:
Beyond the numerical value, your capital has a profound impact on your psychological well-being as a trader. A well-protected capital fosters a sense of confidence, allowing you to approach the markets with a clear and focused mindset. Conversely, recklessness with capital can lead to stress and emotional turmoil.
6. Self-Sufficiency Leadership: Rely on your analysis, trust your instincts, and make decisions in harmony with your trading objectives. Stepping into the role of captain in the vast sea of financial markets requires a unique blend of skills, confidence, and strategic thinking. Here's a deeper exploration of what it means to assume the captaincy of your trading ship:
Navigation through Analysis:
As the captain of your trading ship, navigating the markets begins with thorough analysis. Equip yourself with the necessary tools and knowledge to read the market winds and currents. Technical analysis, fundamental analysis, and market sentiment become your navigational instruments, guiding you through the complexities of financial waters.
Instincts as the Compass:
While analysis provides a structured approach, your instincts act as the compass that helps you navigate uncharted territories. Trusting your gut feelings, honed through experience and observation, is an essential aspect of effective decision-making. The interplay between analysis and instincts forms the basis of a well-rounded captaincy.
Decision-Making Aligned with Objectives:
Every decision you make as a captain should be in harmony with your trading objectives. Define your goals, risk tolerance, and overarching strategy. This clarity becomes your navigational chart, ensuring that each course correction and strategic move contributes to the fulfillment of your trading mission.
Risk Management as Sails:
Just as sails harness the wind's energy to propel a ship forward, risk management harnesses market dynamics to drive your trading journey. Implementing effective risk management strategies, setting appropriate stop-loss orders, and diversifying your portfolio act as sails that propel your trading ship while safeguarding it from potential storms.
Adaptability in Changing Conditions:
Successful captains are adept at adapting to changing conditions, and the same holds true in trading. Markets are dynamic, and conditions can shift rapidly. As the captain of your ship, embrace adaptability. Be ready to adjust your sails, change course, or even anchor in turbulent times—all in pursuit of your trading objectives.
Leadership in the Face of Challenges:
Leadership is a hallmark of effective captains. In trading, this translates to maintaining composure in the face of challenges. Whether it's a series of losing trades, unexpected market events, or periods of heightened volatility, your leadership as a trader involves navigating challenges with resilience and a clear-headed approach.
Continuous Learning as Nautical Charts:
Nautical charts guide captains through unfamiliar waters, and continuous learning serves the same purpose in trading. Stay abreast of market trends, explore new strategies, and learn from both successes and setbacks. This ongoing learning process becomes your set of nautical charts, helping you navigate the ever-evolving landscape of financial markets.
Self-Reliance and Independence:
Captains are known for their self-reliance and independence, and these qualities are equally vital for traders. While seeking insights from others can be valuable, the ultimate responsibility for your trading decisions rests with you. Be self-reliant in your analysis, decisions, and overall approach to trading.
Charting Your Course with Discipline:
Discipline is the compass that ensures you stay on course. As the captain of your trading ship, maintain discipline in adhering to your trading plan, following risk management principles, and executing strategies with consistency. This disciplined approach helps you weather storms and stay on track toward your objectives.
Weathering the Storms with Resilience:
Every captain faces storms, and traders are no exception. Resilience in the face of adversity is a defining characteristic of successful captains. Understand that losses are part of the journey, and your resilience will determine how effectively you navigate through challenging periods.
7. Confidence: Confidence is not arrogance; it's the unwavering belief in your meticulously crafted plan. As a trader, staying the course is a testament to your commitment, especially when the markets throw unexpected challenges your way. Let's delve deeper into the significance of confidence and steadfastness in the world of trading:
Crafting a Meticulous Plan:
The foundation of confidence lies in the creation of a meticulous trading plan. This plan is not hastily put together but is a result of careful consideration, analysis, and strategic thinking. It encompasses your trading goals, risk tolerance, preferred strategies, and a well-defined approach to various market scenarios.
Belief in Well-Thought-Out Strategies:
Confidence is rooted in the belief that your strategies are well-thought-out and backed by a thorough understanding of the markets. Whether you're engaged in technical analysis, fundamental analysis, or a combination of both, the confidence in your chosen methodologies becomes the driving force behind your trading decisions.
Staying the Course Amid Challenges:
Markets are dynamic, and unexpected challenges are inevitable. It's during these challenging times that the thin line between confidence and arrogance becomes evident. Confidence allows you to stay the course, sticking to your plan even when faced with adversity. It's a measured and composed response to market fluctuations, rather than a reckless insistence on a predetermined path.
Learning from Setbacks:
Confidence doesn't mean immunity to setbacks; instead, it involves the resilience to learn from them. Every trade, whether successful or not, is a lesson. Confident traders view setbacks as opportunities to refine their strategies, enhance their skills, and adapt to changing market conditions. This continuous learning process is an integral part of maintaining confidence over the long term.
Adapting to Market Dynamics:
Confidence should coexist with adaptability. Markets evolve, and successful traders are those who can adapt to changing dynamics. This doesn't imply a wavering commitment to your plan but a strategic adjustment when market conditions necessitate it. The ability to adapt showcases a confident, yet pragmatic, approach to trading.
Avoiding Complacency:
Confidence should not be mistaken for complacency. Complacency can lead to overlooking market nuances or becoming resistant to adjusting strategies. Confident traders remain vigilant, continuously reassessing market conditions and ensuring that their trading plan is aligned with the current landscape.
Respecting Risk Management Principles:
One of the hallmarks of a confident trader is the adherence to risk management principles. Confidence doesn't translate to reckless risk-taking; instead, it involves a disciplined approach to managing risk. This includes setting appropriate stop-loss orders, diversifying portfolios, and ensuring that each trade aligns with overall risk tolerance.
Balancing Conviction and Open-mindedness:
Confident traders balance conviction with open-mindedness. While you may have strong convictions based on your analysis and plan, remaining open to alternative viewpoints and adjusting your approach when necessary is a sign of adaptability and intellectual humility.
Building Confidence Over Time:
Confidence is not an overnight achievement but a trait built over time through experience, learning, and consistent application of sound trading principles. As you witness the positive outcomes of your well-executed plan, your confidence naturally grows, reinforcing your ability to navigate the complexities of the financial markets.
In conclusion, confidence in trading is a delicate equilibrium between self-assurance and a humble acknowledgment of the dynamic nature of markets. It's about crafting a meticulous plan, staying the course amid challenges, learning from setbacks, and adapting to market dynamics. True confidence in trading is a journey, and each successful trade becomes a milestone, contributing to the development of a seasoned and confident trader.
8. Record Wins and Losses: Every trade is a valuable lesson in the journey of a trader. Maintaining a meticulous record, analyzing both wins and losses, and extracting insights from each experience are crucial aspects of the continuous evolution of your trading skills. Let's delve into the significance of treating every trade as a learning opportunity:
Lesson in Every Trade:
Approaching every trade with a mindset of learning transforms each transaction into a potential lesson. Whether a trade results in a profit or a loss, there are insights to be gained. Successful traders view their trades as part of an ongoing learning process rather than isolated events.
Meticulous Record-Keeping:
Keeping a detailed record of each trade is akin to creating a trader's journal. This journal becomes a repository of crucial information, including entry and exit points, the rationale behind each trade, market conditions, and any unexpected developments. This historical record serves as a guide for future decision-making.
Insights from Wins:
Analyzing winning trades provides insights into the effectiveness of your strategies. What worked well? Was it the result of technical analysis, a keen understanding of market fundamentals, or a combination of factors? Understanding the components of successful trades allows you to replicate positive outcomes.
Learning from Losses:
Losses, while inevitable in trading, offer some of the most valuable lessons. Analyzing losing trades helps identify areas for improvement. Was there a flaw in the analysis, a misjudgment of market conditions, or a deviation from the trading plan? Learning from losses is essential for refining strategies and minimizing future errors.
Evolving Trading Skills:
The cumulative effect of learning from each trade is the evolution of your trading skills. As you glean insights from both successes and failures, you become a more seasoned and resilient trader. Continuous learning ensures that you adapt to changing market dynamics and refine your approach over time.
Identifying Patterns and Trends:
By maintaining a comprehensive record, you can identify patterns and trends in your trading behavior. Recognizing recurrent themes, whether positive or negative, allows you to consciously reinforce successful strategies and address areas that may need improvement. This self-awareness contributes to long-term success.
Improving Risk Management:
Analyzing past trades aids in refining your risk management approach. Understanding how different risk levels impact overall portfolio performance helps in setting appropriate stop-loss orders, position sizes, and overall risk tolerance. Effective risk management is a cornerstone of successful trading.
Enhancing Decision-Making:
The insights gained from analyzing past trades enhance your decision-making process. This is particularly crucial in moments of uncertainty or when faced with similar market conditions. A well-documented trading history serves as a reference point, providing guidance and confidence in decision-making.
Adapting to Market Changes:
Markets are dynamic, and strategies that were effective in the past may need adjustments over time. Learning from each trade allows you to adapt to changing market conditions, ensuring that your trading approach remains relevant and effective in different scenarios.
Cultivating a Growth Mindset:
Approaching trading with a mindset of continuous improvement fosters a growth-oriented perspective. Embracing the learning opportunities presented by each trade contributes to personal and professional growth as a trader.
In conclusion, every trade is a chapter in the story of a trader's journey. Keeping a detailed record, extracting insights from wins and losses, and consciously applying these lessons contribute to the continuous evolution of trading skills. By treating each trade as a valuable learning opportunity, you lay the foundation for long-term success in the dynamic and challenging world of financial markets.
9. Defend Your Success: Embrace a defensive trading stance, strategically executing trades only when market conditions align seamlessly with your established strategy. Safeguard your gains like a fortress, adopting a protective approach to secure your financial interests. Let's delve into the significance of adopting a defensive trading stance:
Strategic Decision-Making:
A defensive trading stance involves strategic decision-making based on a thorough analysis of market conditions. Rather than entering trades impulsively, traders assess various factors, including technical indicators, fundamental data, and overall market sentiment. This methodical approach helps in making well-informed decisions aligned with the trading strategy.
Risk Mitigation:
One of the primary goals of a defensive trading stance is risk mitigation. Traders carefully evaluate potential risks associated with each trade and implement risk management techniques to minimize adverse impacts. Setting appropriate stop-loss orders, diversifying portfolios, and managing position sizes are integral components of this risk mitigation strategy.
Preservation of Gains:
A defensive trading stance prioritizes the preservation of gains achieved through successful trades. Traders are cautious not to jeopardize accumulated profits by exposing themselves to unnecessary risks. Implementing effective exit strategies and securing profits at opportune moments contribute to the overall goal of wealth preservation.
Discipline and Patience:
Defensive trading requires discipline and patience. Traders resist the urge to chase trends impulsively or engage in speculative activities. Instead, they patiently wait for market conditions that align with their predefined criteria, fostering a disciplined approach to trading.
Adaptation to Market Conditions:
Markets are dynamic, and a defensive trading stance acknowledges the need to adapt to changing conditions. Traders are flexible and adjust their strategies based on evolving market trends, economic developments, and geopolitical events. This adaptability is crucial for long-term success.
Avoidance of Emotional Reactions:
Emotions can be a significant factor in trading decisions. A defensive stance involves avoiding emotional reactions to market fluctuations. Traders remain objective and stick to their predetermined strategies, mitigating the impact of fear, greed, or impulsivity on their decision-making process.
Focus on Consistency:
Consistency is a key element of a defensive trading approach. Traders aim for a steady and sustainable performance over time rather than seeking high-risk, high-reward scenarios. By focusing on consistency, traders reduce the likelihood of significant losses and contribute to long-term financial stability.
Risk-Reward Ratio:
A defensive trading stance emphasizes maintaining a favorable risk-reward ratio in each trade. Traders assess the potential rewards against the associated risks, ensuring that potential losses are proportionate to the anticipated gains. This meticulous evaluation enhances overall risk management.
Prevent Overtrading:
Overtrading can erode profits and expose traders to unnecessary risks. A defensive trading stance involves refraining from excessive trading, especially during periods of heightened market volatility. Traders carefully select trades that align with their strategy, preventing the negative consequences of overtrading.
Continuous Learning and Improvement:
A defensive trading stance fosters a mindset of continuous learning and improvement. Traders regularly assess their strategies, analyze past trades, and identify areas for enhancement. This commitment to ongoing improvement contributes to the refinement of trading skills over time.
In conclusion, adopting a defensive trading stance is a strategic and disciplined approach that prioritizes risk mitigation, wealth preservation, and long-term consistency. Traders embracing this mindset navigate the dynamic financial markets with a focus on making informed, prudent decisions that contribute to sustained success in the complex world of trading.
10: Lifelong Learning: The market is a dynamic force. Stay hungry for knowledge, embrace change, and perpetually evolve. Staying ahead in the market is intertwined with personal and professional growth. Continuous learning contributes to the development of a growth mindset, where challenges are viewed as opportunities to learn and improve. This mindset enables individuals to adapt, innovate, and excel in the dynamic landscape of financial markets.
In conclusion, the mantra of staying hungry for knowledge, embracing change, and perpetually evolving is foundational for success in the dynamic realm of financial markets. Continuous learning is not merely a strategy; it is a mindset that positions individuals to thrive amidst market complexities, seize opportunities, and navigate challenges with resilience and expertise.Continuous learning is the key to staying ahead!
The ONLY Way to Become a Successful Trader
Hey traders,
Like any discipline, consistently profitable trading requires many years of practice.
In this post, we will discuss the only proven way to become successful in trading.
🔰First, let's start with the axiom: there are no inborn traders, trading is a skill, a skill that can be learned. Though talent may help you in some manner it does not guarantee your success.
One more axiom that is logically derived from the first one is the fact that trading is a complex skill.
The one that can be split into dozens of subskills.
Making that statement we may assume that our success in trading directly depends on mastering each subskill, each domain that it consists of.
But how do we master these skills?🤔
The only way to do that is to practice. Practice means doing something regularly in order to be able to do it better.
With your first attempts, you are doomed to fail. Inevitable you will suffer and you will feel miserable because of your incompetence.
Trying and doing the same thing again and again, at some moment you will feel the progress and growth. Your perseverance will bear fruit.
Knock, and it shall be opened to you.
And as a consequence, with some attempt, you will feel that finally the skill is mastered, that one more stage in your journey is passed.
Polishing the entire set of subskills and learning to apply that as a single unit will make you a consistently profitable trader.
Just stipulate the domains properly, name them and be ready to work hard.
Hey traders, let me know what subject do you want to dive in in the next post?
