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Become a Trading Machine - 11 ways!If you want to trade well and consistently. You have to be more mechanically orientated. The weekend is about to begin so I'll be literally quick and brief. Saying "literally" was unnecessary and made it longer. Sorry. Here are the pointers: 1. Stay committed 2. Cultivate patience 3. Avoid herd mentality 4. Be long-term oriented 5. Stop crying over losers 6. Review your performance 7. Stop celebrating winners 8. Adapt to market conditions 9. Keep your emotions in check 10. Don't think of quick success 11. Adapt and advance with technology
JSE:J200Education
by Timonrosso
Finding Balance as a Forex Trader and Nurturing Your FamilyDo you ever feel like your life is a constant juggling act? As a 33-year-old female, I understand the challenges of maintaining balance between trading forex and taking care of a family. It's a question I often get asked: "How do you create balance in your life while pursuing your passion for forex trading?" Today, I want to share some insights that may resonate with you and help you find that much-needed equilibrium. You may already live a well-balanced life more than you know. Think about your daily routine: waking up, preparing for work, spending time with your loved ones, and getting some well-deserved "me" time. These tasks may seem simple, but they contribute to the overall balance of your life. The key is to recognize that this balance is not set in stone and can be adapted to accommodate new endeavors. However, when you decided to become a forex trader, your life may have shifted from being balanced to unbalanced, causing confusion and chaos. There are three primary reasons for this shift: Learning a new skill: Forex trading is a skill that requires time and dedication to master. It's natural to feel overwhelmed when you're navigating unfamiliar territory. No guaranteed income: Unlike a traditional job, forex trading doesn't come with a fixed paycheck. The uncertainty surrounding your earnings can add stress to your life. The need for guidance: When you had a boss, coworkers, teachers, or family members supporting you, you had clear instructions and a sense of direction. Without this guidance, you might feel lost and uncertain about your trading journey. The secret to restoring balance lies in seeking help, asking for guidance, and implementing the knowledge you gain. By doing so, you create a path towards balance that supports your growth as a trader and as an individual. So, what does balance as a trader look like? It's about integrating trading into your daily or weekly routine in a way that aligns with your energy levels and priorities. Find your passion peak hours, the times of the day when you feel most aware and energized. This is when you should dedicate time to learning and trading. On the other hand, avoid trading or learning during your low energy times, as it can throw off your balance and hinder your performance. Remember, trading should become a simple addition to your life, not a burdensome chore. It's crucial to find a pace that suits you. For some traders, placing 1-3 trades a week is sufficient. And it's perfectly okay if there are weeks when you don't make any trades at all. Embrace the concept of making money doing the bare minimum in trading. We're fortunate to have technology that allows us to achieve significant results without the need for countless trades. Imagine the satisfaction of making substantial profits with just a few minutes of work. This is the kind of mindset that can make trading an invaluable addition to your life. It's worth the effort to learn and master this skill. To integrate trading into your already balanced life, follow these steps: Visualize the addition: Imagine how trading will fit into your routine and how it will complement your current lifestyle. Determine your trading frequency: Decide on the number of trades you want to place and visualize yourself executing those trades confidently. Embrace the highs and lows: Picture yourself experiencing the emotions that come with making or losing money. Reflect on how often you want to feel those emotions. Take action: Now that you have a clear vision, it's time to take concrete steps towards making it a reality. Implement your plan and adapt as necessary. Finding balance takes time, and it's important to be patient with yourself. Give trading at least 1-3 years to see true growth. The first year is for learning and establishing a foundation. The second year is about building repetition and consistency. By the third year, you'll be ready to implement and evolve your trading strategy further. Throughout each year, document your journey through notes and videos, and share your experiences with others. Your story can inspire and encourage those who are on a similar path. Remember, blessings come to those who persist and inspire others. Share your journey, even when you're not yet where you want to be. Your insights and encouragement can make a significant impact on someone else's life. Wishing you many blessings on your journey, SHAQUAN
by ShaquanLopez
2
A Profitable State of ConsciousnessA daring trader prepares for the epic battle he performs each day against the evil markets; those remorseless monsters who always seem hungry for money and ready to strip the poor traders of their modest capitals. Armed with his analysis, our brave trader steps into the dangerous mercantile ground and eagerly studies the sharp and treacherous price spikes, waiting for the exact moment to slay the bears and bulls that guard his beloved treasure. Just like yesterday, his adventure drains all his strength. It is the inevitable result of a turmoil of excitement and disappointment, which alternate along with his successes and failures. Elliot's uncertain waves control his emotions as much as the price; but our heroic trader, intoxicated with this cocktail of cortisol and epinephrine (stress hormones), cannot see how his mood is enslaved by the price flux. I decided to launch this series of psychological articles, as I think many trading professionals could greatly appreciate the opportunity to break these subjective patterns that prevent our minds from any clarity, calmness or wisdom when facing the markets. Attachment, blindness and madness If our emotional variability is directly dependent on the market tides, always dragged by our fallible expectations, we must realize that our minds are not working as the best tools we have to get the desired results. In fact, such mind has become our worst enemy and its chaos will lead us to a financial catastrophe. The essential hallmark of such state of mind is an absolute inability to stay detached, to maintain an honest view that distinguishes between our analysis of the market and the hopes we place upon it. Our minds become so subjected to the expectations of favorable outcomes that soon we see nothing more than the drama of our desires confronted with the price action. Trading profitably in any market requires clarity of vision —which is not omniscience—; lucidity to make good, responsible, sound and clever decisions. To risk less or more, to hold our position or to avoid further losses, to await a bigger profit or to settle for a humble one; these are everyday dilemmas that demand our highest degree of gravity and intelligence. But it is unreachable if our relationship with the market is just a stormy marriage. We have all witnessed or suffered the curse of emotional dependency in interpersonal relationships. Our hopes on the relationship and the beloved one weigh so much that soon we get blinded, completely unable to identify the true nature of our bond with the other. We don't understand what happens because we don't really want to. We prioritize our hopes and despise the truth because we fear that it won't indulge our desires. That's the same whimsical stance that damages our trading system and blinds us every day to the market's risks and opportunities. Pretty much like in a conjugal hell, this blindness comes from our disdain for the real thing and turns us into bitter warriors , challengers of a market where our role should be different: the role of analysts, researchers, observers... sages . Our financial belligerence is the reflection of our contempt against reality. But just as we despise objective truth, it correspondingly despises our whims. In the ancient symbology of Tarot there is a card that portrays accurately this typical mindset of an immature trader: The Fool —sometimes called “The Madman”—. It's the only card without number (it represents the zero) because it symbolizes the vagueness, the lack of values, the nothingness. Nevertheless this vacuity could be as well the beginning of everything... the starting point for a satisfactory future —because there lies a limitless potential. In order for this naive and dreamy wanderer to reach a good fate —in spite of his disorientation— he must first become aware of the wisdom he carries (unknowingly) in his bag, and he must commit to it. Otherwise, this poor dreamer will only continue to move merrily toward the abyss in front of him (because of his blindness). A madman is someone who persistently rejects his reality. Sadly, we all do that whenever we operate greedily in the markets, pretending that our dreams are more vital than the facts that must be studied and understood. Our anxiety is just the symptom of an awful state of mind that drives us merrily onward to the abyss. A venture of honesty Profitable trading is a luxury of the sober, even if others may enjoy some exciting strokes of luck in their intoxication —the same way they suffer strokes of bad luck—. The state of consciousness we need for consistent profitability contains virtues like patience, foresight, common sense and a mature kind of boldness that invites us to welcome calculated risks, admitting always in advance the possibility of losses. The foundation of this mindset is a radical, absolute, merciless honesty. We cannot deceive ourselves or dodge the essential questions if we really want to nurture a state of mind that moves us to a relative stability within the financial mayhem of the world. First and foremost, our stability is mental; then it gives rise, as a consequence, to the possibility —not the promise— of financial stability. Therefore, in psychological terms, the first step towards profitability in trading implies assessing (introspectively) whether we have to any degree these psychological traits that are undeniable signs of emotional maturity. How honest I tend to be with myself in my daily life? Am I distinguished by my patience and sound reasoning? Am I wisely cautious or just a coward? When I reveal bravery... is it just an impulsive recklessness or, instead, the self-confidence of knowing what I am facing and the maturity of responsibly exposing myself to that? If we don't possess these qualities in our ordinary life, it's useless to force their emergence when we operate in the markets. We have them or we don't. However much he fakes gravity, sooner or later the fool gets tired of his theater and starts breaking the plates, behaving in accordance with his true feelings. Psychic repression is not a real solution. However, if we acknowledge our lack of the necessary virtues, we are practicing already the most critical of them: honesty. It's the starting point for everything, the limitless potential always available to us —as long as we use the wisdom contained in our bag When we allow dreams of wealth to invade our minds, we don't care anymore about the practical managing of our opportunities. But trading may be a incentive to cultivate the psychological conditions we need in every area of our lives, in order to dissolve the dangerous infantilizing effect of our (unchecked) desires . If the first step is to examine ourselves, the second is to acknowledge our shortcomings: Maybe I am courageous, but I don't measure the consequences of my acts. Maybe I am patient, but not enough. Every psychic weakness is a source of future frustrations, because it always overrides the decisive factor of profitability: our lucidity. We work with uncertainties and probabilities. Those are the raw materials of our craft. That's why it's paramount to have a clean vision for our decisions: a sober and factual sight, protected against our own desires. We know, in our statistical adventure, that such sight cannot ensure the ultimate success; but it does ensure the optimum performance of our human faculties... that is already a great edge. In the worst case —in the case of losses— a clear advantage always arises from cultivating our emotional maturity: spiritual fortitude . We'll always be strong enough to accept losses (even the worst ones) with relative inner peace. In fact, we would always accept that possible outcome before it occurs. We won't be like those who fall from the heights following the crash of their dreams; because our dreams don't belong to mythic heights but here, within our hands... small and practical; comprehensible, manageable, human and fallible —just like us. ____ In next articles, we'll delve deeper into these psychological dynamics that strengthen or hinder the clarity of our judgment, and we'll explore practical proposals (mainly based on the Adlerian philosophy) that could help us reach a profitable state of consciousness.
Education
by adleriantrader
The Psychology Of Trading: How To Manage Your Emotions.The significance of psychology in trading cannot be overstated, as it serves as a cornerstone for achieving success. Failure to acknowledge its importance can have disastrous consequences. A notable example is the case of Nick Leeson, who single-handedly caused the downfall of the venerable 200-year-old Barings Bank, a financial institution of such stature that even Queen Elizabeth II entrusted her funds to it. The losses incurred amounted to a staggering 2 million pounds, highlighting how the lack of emotional control in trading can lead to catastrophic outcomes. Understanding and managing one's psychological state is crucial for traders at every level, without any exceptions. It holds true for beginners who may be working with a modest capital of a few hundred dollars, as well as for seasoned professionals who operate with million-dollar deposits. The ability to control emotions, maintain a disciplined mindset, and make rational decisions amidst market fluctuations are vital components for long-term success in trading. By recognizing the impact of psychology and taking steps to develop a strong mental framework, traders can navigate the complexities of the financial markets with greater resilience and achieve their desired outcomes. What Is Trading Psychology? Trading psychology encompasses the behavioral aspects that shape an individual's actions within the realm of financial markets. These actions range from identifying optimal entry points to executing profitable trades. Renowned trader and fund manager William Eckhardt once remarked that intelligence is largely unrelated to success in trading. Based on his observations, individuals of average intelligence, yet diligent in their approach and possessing discipline and self-control, consistently achieved trading success. This observation underscores the crucial role of psychology in trading. Only through complete control over one's actions can traders earn stable profits, rather than relying on occasional wins. The development of trading psychology is a process that unfolds over time. Beginners often find themselves prone to making repetitive mistakes, but with a focus on self-control, they can cultivate these necessary qualities. The key lies in the ability to learn from one's own mistakes and grow from them. By recognizing and addressing psychological factors such as fear, greed, and impatience, traders can enhance their decision-making abilities and gain a deeper understanding of market dynamics. Through continuous self-reflection and a commitment to personal growth, individuals can refine their trading psychology, leading to more consistent and successful outcomes. How Do I Handle My Emotions As A Trader? Indeed, while constant practice and self-control are essential components of addressing psychological challenges in trading, a more detailed approach is necessary for effectively resolving these issues. Below are some key strategies that can contribute to overcoming psychological obstacles in trading: 1) Self-awareness: Develop a deep understanding of your own psychological tendencies, strengths, and weaknesses as a trader. Recognize the emotions and biases that may influence your decision-making process. 2) Journaling: Maintain a trading journal to record your thoughts, emotions, and actions during trades. This practice can help you identify patterns, errors, and areas for improvement. Regularly review and reflect on your journal entries to gain valuable insights into your psychological state while trading. 3) Emotional regulation: Learn to manage emotions such as fear, greed, and impatience. Implement techniques like deep breathing exercises, meditation, or mindfulness practices to cultivate emotional stability and prevent impulsive decision-making. 4) Risk management: Establish and adhere to a well-defined risk management plan. Determine the maximum acceptable level of risk for each trade and set stop-loss orders accordingly. This approach can help mitigate the negative impact of emotional decision-making during turbulent market conditions. 5) Positive reinforcement: Celebrate your trading successes, regardless of their magnitude. Acknowledge and reward yourself for following your trading plan and executing disciplined trades. This positive reinforcement can strengthen your confidence and reinforce desirable trading behaviors. 6) Continuous education: Invest in expanding your knowledge and skills through ongoing education. Attend trading workshops, webinars, and seminars to enhance your understanding of both technical and psychological aspects of trading. Engaging with a community of traders can provide valuable support and insights. 7) Seeking support: Consider joining trading forums or finding a mentor who can provide guidance and support. Discussing challenges and sharing experiences with fellow traders can offer fresh perspectives and encourage personal growth. Remember, addressing psychological challenges in trading is an ongoing process that requires dedication and perseverance. By implementing these strategies and adapting them to your individual needs, you can develop a robust psychological toolkit to navigate the complexities of the market and enhance your trading performance. Learn To Rest Trading is undoubtedly associated with stress, and it is crucial to find effective ways to alleviate psychological pressure. No one can sustain constant worry about open trades or missed opportunities without experiencing negative consequences. Just as athletes prioritize physical and mental preparation before important games or competitions, traders can benefit from a similar approach. Taking care of both physiology and psychology is essential in achieving a balanced state of mind. To effectively manage stress in trading, consider the following recommendations: Establish a routine: Create a structured daily schedule that includes not only trading activities but also time for physical exercise, relaxation, and leisure. This routine helps maintain a sense of balance and prevents trading from becoming the sole focus of your life. Physical activity: Incorporate regular exercise into your routine. Engaging in activities such as going to the gym, taking walks, or participating in sports can help reduce stress, improve overall well-being, and promote mental clarity. Healthy lifestyle: Pay attention to your diet, sleep patterns, and overall self-care. Eating nutritious meals, getting sufficient sleep, and practicing relaxation techniques like meditation or deep breathing exercises contribute to a healthier physiological state, which in turn positively impacts your psychological well-being. Maintain social connections: Engage with friends, family, and fellow traders to maintain a support network. Sharing experiences, discussing challenges, and seeking advice from trusted individuals can alleviate feelings of isolation and provide valuable perspectives. Take breaks: Allow yourself regular breaks from trading to recharge and rejuvenate. Stepping away from the screen, engaging in hobbies, or spending time in nature can help reduce stress levels and provide a fresh perspective when you return to the market. Mindfulness and stress management techniques: Incorporate mindfulness practices into your daily routine. Techniques such as meditation, deep breathing exercises, or visualization can help calm the mind, increase self-awareness, and improve resilience in the face of stress. Remember, trading should be a part of your life, not the sole focus. By nurturing a well-rounded lifestyle that includes physical activity, relaxation, and maintaining social connections, you can effectively manage stress, enhance your psychological well-being, and ultimately improve your trading performance. Don't Focus On The Problem And Find Unconventional Solutions Trading is inherently dynamic, and challenges are bound to arise. Profitable strategies can lose their effectiveness over time, and market conditions evolve, rendering old analytical methods obsolete. It is important to recognize the risk of becoming fixated on a specific problem without finding a guaranteed solution. One common example is the endless pursuit of optimizing a trading strategy. Traders may dedicate days or even weeks attempting to fine-tune a strategy, only to find their efforts in vain. In such situations, it is crucial for traders to possess the ability to recognize when to let go and seek alternative approaches. If attempts to optimize an existing strategy prove futile, it may be time to explore new strategies or even consider a shift in trading style altogether. Adaptability and the willingness to embrace change are essential qualities for traders. Instead of becoming overly attached to a single approach, being open to non-standard solutions can be immensely valuable. This might involve exploring different trading methodologies, incorporating new indicators, or even considering alternative markets. Finding a new strategy or adjusting one's trading style requires a combination of self-reflection, continuous learning, and experimentation. Being proactive in seeking innovative solutions ensures that traders can navigate evolving market conditions and maintain a competitive edge. Remember, trading is a dynamic endeavor, and the ability to adapt and explore new possibilities is key to long-term success. By embracing change and being open to new strategies, traders can navigate the challenges that arise and continue to thrive in the ever-changing landscape of the financial markets. Fearless Analysis Brett Steenbarger's analogy between trading analysis and the principles of Alcoholics Anonymous highlights an important aspect of personal growth and development in trading. Just as it takes courage for individuals to admit their problems and seek help in recovery programs like Alcoholics Anonymous, traders must also be willing to acknowledge their mistakes and take responsibility for their actions. In the trading world, it is common for individuals to deflect blame onto external factors such as the market, market makers, or indicators, rather than accepting their own errors. However, true progress can only be achieved when traders are mentally capable of saying to themselves, "I made mistakes, and that's why I lost money. The external factors played a minimal role." By embracing this mindset, traders can take ownership of their actions and begin the process of self-improvement. Accepting personal responsibility for mistakes allows for self-reflection and learning from past experiences. It enables traders to identify areas for improvement, refine their strategies, and develop a more disciplined and effective approach to trading. Acknowledging the problem is indeed the first step toward finding a solution. This fundamental principle holds true not only in trading but in all aspects of life. By confronting our shortcomings, we open the door to personal growth and development. It empowers us to make necessary changes, learn from our mistakes, and ultimately enhance our trading performance. In summary, having the courage to admit mistakes, taking responsibility for one's actions, and acknowledging the role of personal accountability are crucial steps in the journey toward becoming a successful trader. Evaluation Of Hypothetical Scenarios Being prepared for all possible scenarios is a crucial aspect of successful trading. Relying solely on one scenario and assuming a 100% guarantee is unrealistic and leaves traders vulnerable to unexpected market movements. For instance, in the case of a well-established downtrend where a currency pair consistently breaks through support levels, it may appear likely that the trend will continue. However, it is important to acknowledge that no outcome can be guaranteed with absolute certainty. While the probability of a reversal might be relatively low, it is still essential for traders to evaluate this scenario and consider potential levels where the downward movement could potentially halt, as well as identify potential targets in case of a reversal. By considering multiple scenarios, traders are prepared for different market outcomes. If one scenario fails to materialize, they can quickly shift to their backup plan of action. This approach avoids panic and ensures a clear understanding of the unfolding market conditions. It benefits traders both emotionally, by maintaining a composed mindset, and practically, by helping to recover from any potential drawdowns. If losses occur according to the first scenario, the backup plan allows for swift recovery and helps compensate for the incurred loss. Having multiple scenarios and contingency plans not only provides traders with a more comprehensive approach but also fosters adaptability and resilience in navigating various market conditions. It enables traders to effectively manage risk and make informed decisions based on evolving market dynamics. In summary, a trader's ability to embrace multiple scenarios and swiftly switch to alternative plans when necessary contributes to emotional stability, risk management, and the potential for recovering from losses. Being prepared for all possibilities strengthens a trader's overall strategy and increases the chances of achieving consistent profitability. Detached Attitude To Trading In the world of trading, the psychology of the quiet trader refers to the ability to approach trading with a calm and detached mindset, devoid of intense emotional reactions. While it may be unlikely to experience intense emotions in a typical day job, achieving a similar state of detachment and routine in trading is a valuable skill to develop. At the beginning of their trading journey, it is natural for traders to experience a range of emotions that can interfere with decision-making. However, with consistent practice and experience, the trading process can become more routine and automatic. Placing orders and managing positions should become a habitual process that no longer elicits strong emotional reactions. Larry Hite, a renowned trader featured in Jack Schwager's book "Stock Market Wizards," highlighted the importance of trading being utterly boring. Hite's trades were devoid of captivating stories that interested his colleagues. This perspective underscores the idea that successful trading involves striving for consistency and routine in every trade. The art of trading lies in developing a disciplined approach where all trades become similar to each other. This means treating each trade as part of a well-defined strategy, adhering to predetermined rules, and executing trades without being swayed by emotional highs or lows. By cultivating this mindset, traders can maintain a calm and objective perspective, making sound decisions based on analysis and strategy rather than being influenced by fleeting emotions. It is important to note that achieving the psychology of the quiet trader requires ongoing practice and self-awareness. Emotions may still arise, especially during challenging market conditions, but the goal is to minimize their impact on trading decisions. Through continuous learning, self-reflection, and discipline, traders can strive for a state of emotional detachment and routine in their trading activities. In summary, the psychology of the quiet trader emphasizes the importance of approaching trading with a calm and detached mindset. By striving for routine and consistency, traders can reduce the influence of emotions and make objective decisions based on their trading strategy. Developing this skill requires practice, self-awareness, and a commitment to ongoing improvement. Keeping Track Of Your Actions Keeping a trader's journal is often overlooked by many beginners in the trading world. It may initially appear unnecessary, as the signals and trades seem clear in the moment, leaving no room for the perceived time wastage of jotting down notes. However, this approach ultimately deprives traders of a valuable foundation for future trade analysis and improvement. While trading reports can be downloaded from the trading terminal, they are not an adequate substitute for a trader's journal. Trading reports typically only include basic information such as trade details (entry and exit times), closed position results, and expenses incurred. On the other hand, a trader's journal goes beyond these raw data points, allowing traders to record the reasons behind their trading decisions and evaluate their emotional state during each trade. By maintaining a journal, traders can gain insights into their decision-making processes and learn from past experiences. It provides an opportunity to review trades and analyze the effectiveness of their strategies. Additionally, tracking emotional states throughout trades helps traders identify patterns and better understand how emotions can impact their performance. In addition to the journal, it is recommended that beginners create a checklist to ensure the adherence to their trading rules. Writing down and assessing the filters used to evaluate trade signals on a sheet of paper, assigning points to each filter, and evaluating entry points can be effective techniques. Over time, traders may become adept at mentally checking these criteria, but the act of physically documenting them helps reinforce consistency and discipline. Both the trader's journal and checklist serve as valuable tools for self-assessment and improvement. They provide a structured framework for traders to reflect on their trades, identify strengths and weaknesses, and refine their trading strategies. By consistently using these techniques, beginners can develop a deeper understanding of their trading approach and enhance their overall performance over time. In summary, while it may seem unnecessary at first, maintaining a trader's journal and utilizing a checklist can greatly contribute to a trader's growth and improvement. These practices offer valuable insights into decision-making processes, emotional states, and the adherence to trading rules. By incorporating these techniques into their routine, traders can refine their strategies and make informed adjustments to achieve greater trading success. Regular Practice As mentioned earlier, taking breaks in trading is important for maintaining a balanced approach and managing stress. However, it is crucial to clarify that taking breaks does not mean completely giving up trading for an extended period. Consistency and regular practice are key to developing and refining trading skills. In the event of a challenging period or a losing streak, it is necessary to pause and take time to normalize one's psychological state. This break allows traders to step back, reassess their approach, and work on addressing any mistakes or weaknesses. Taking the time to reflect and learn from past experiences can contribute to personal growth and improvement as a trader. However, it is essential to emphasize that the break should not transform into a long-term avoidance of trading. Once the trader has regained their psychological equilibrium and made necessary adjustments, it is important to resume trading. Consistent practice is vital for maintaining trading skills and staying in shape, similar to how weightlifters need regular training to retain their form. Drawing a parallel to sports, just as weightlifters would lose their physical form without regular practice, traders need consistent engagement in the markets to hone their skills and adapt to changing conditions. By regularly participating in trading activities, traders can stay sharp, stay updated with market dynamics, and refine their strategies. In summary, while breaks are valuable for maintaining psychological well-being and addressing trading challenges, it is important not to abandon trading for an extended period. Regular practice and engagement in the markets are necessary for traders to stay in shape and continuously improve their trading skills. By striking a balance between taking breaks when needed and consistent practice, traders can navigate the markets effectively and increase their chances of success. Trading Will Be Unprofitable From Time To Time Indeed, it is crucial for beginners to understand that not every trade will be profitable. It is unrealistic to expect a 100% success rate in trading, and even the most successful traders experience losses along the way. What matters is the overall statistics and performance of their trading strategy. Successful trading is not about winning every single trade, but rather about having a strategy that generates a greater number of profitable trades and/or profits that exceed the losses. Traders should focus on the bigger picture and assess the effectiveness of their strategy based on the cumulative results over a period of time, such as a day, week, or month. Instead of fixating on the outcome of each individual trade, it is more important for traders to pay attention to whether their trades adhere to their predetermined rules. If a trade is closed based on the application of a stop-loss order, and the decision was in line with their strategy, then it can be considered a successful trade, regardless of the actual outcome. By shifting the focus from the outcome of each trade to the consistency and adherence to the trading plan, traders can maintain discipline and objectivity in their decision-making. It allows them to evaluate the effectiveness of their strategy based on a broader perspective and make informed adjustments as needed. In summary, it is crucial for beginners to understand that not every trade will be profitable. The key to successful trading lies in the overall performance of the strategy, with a focus on the compliance with predetermined rules rather than the outcome of individual trades. By adopting this mindset, traders can maintain discipline, manage risk effectively, and increase their chances of long-term profitability. Possible Failure Is Not Related To Your Personal Qualities Absolutely, the outcome of the first attempt in trading does not define a person's intelligence or talent. It is important for beginners to recognize that initial failures are a common part of the learning process. In fact, even intellectually developed individuals may face challenges in trading, and there is no direct correlation between intellectual capacity and trading success. Famous traders have observed that intellectually developed individuals may find trading more difficult. This could be due to various factors such as overanalysis, overthinking, or struggling to detach emotions from their decision-making process. However, it is crucial to remember that trading skills can be developed through discipline, persistence, and a willingness to learn from mistakes. Mistakes are not a disaster but rather opportunities for growth and improvement. They serve as valuable lessons that can be used to refine decision-making methods and trading strategies. With dedication and a commitment to learning, traders can make corrections and progress in their trading journey. Success in trading relies more on discipline and persistence than innate talent or intelligence. Developing the ability to stick to a trading plan, manage risk effectively, and maintain emotional control are critical factors in achieving long-term success. By cultivating these qualities and learning from mistakes, traders can enhance their trading skills and increase their chances of success in the markets. In summary, the outcome of the first attempt in trading does not determine a person's intelligence or talent. Mistakes and challenges are part of the learning process, and success in trading is not solely dependent on innate abilities. By emphasizing discipline, persistence, and a commitment to continuous improvement, traders can overcome obstacles, learn from mistakes, and increase their chances of achieving trading success. Conclusion Losing a trading deposit does not indicate a lack of intelligence or suggest that trading is not suitable for an individual. It is important to understand that losses are a natural part of the trading journey and can provide valuable lessons for personal growth and improvement. Instead of viewing a lost deposit as a failure, it should be seen as an opportunity to learn from mistakes, gain experience, and continue working towards success. Learning from other people's mistakes is indeed beneficial in trading. By studying the experiences and insights of successful traders, one can gain valuable knowledge and avoid making similar errors. However, personal experiences and mistakes also play a crucial role in the learning process. Analyzing one's own trades, identifying what went wrong, and drawing conclusions from those experiences can lead to valuable insights and improvements in future trading decisions. It is essential to approach trading with a growth mindset, understanding that setbacks and losses are temporary and can be stepping stones to success. Rather than being discouraged by mistakes, it is important to embrace them as opportunities for growth and development. By learning from both personal and others' mistakes, traders can refine their strategies, strengthen their decision-making skills, and increase their chances of achieving success in the markets. In summary, a lost trading deposit does not determine an individual's intelligence or suitability for trading. It is a chance to learn, grow, and refine one's approach to trading. By utilizing personal experiences and drawing lessons from both personal and others' mistakes, traders can enhance their knowledge, skills, and ultimately increase their potential for success in the world of trading.
FX_IDC:XAGUSDEducation
by FOREXN1
23
Forex Trading Key FactorsImportant factors that if well approached, will ensure your long term success. Forex trading is a popular form of investing that involves buying and selling currencies in the foreign exchange market. As with any form of trading, success in forex trading requires a deep understanding of the market and the key factors that impact profitability. In this blog post, we'll discuss some of the most important factors that traders need to keep in mind when trading forex. Liquidity: The Lifeblood of Forex Trading Liquidity refers to the ease with which a trader can buy or sell an asset without affecting its price. In forex trading, liquidity is crucial because it ensures that traders can enter and exit positions quickly and at a fair price. Traders should look for currency pairs that have high trading volumes and low bid-ask spreads to ensure they have access to liquid markets. Void Gaps: Managing Risk and Protecting Profits Void gaps occur when there is a sudden and significant change in the price of a currency pair due to unexpected news or events. These gaps can be dangerous for traders because they can cause losses or missed opportunities. To avoid void gaps, traders should use stop-loss orders and other risk management strategies to protect their positions and profits. Mindset: Discipline and Focus are Key Forex trading requires a disciplined and focused mindset. Traders must be able to control their emotions, avoid impulsive decisions, and stick to their trading plan. Common psychological traps that traders should be aware of include fear, greed, and overconfidence. By developing a disciplined and focused approach to trading, traders can improve their chances of success. Selecting the Right Trading Sessions: Timing is Everything Forex markets are open 24 hours a day, five days a week. However, not all trading sessions are created equal. Traders should select the sessions that align with their trading style and goals. For example, traders who prefer short-term trading strategies may find the London and New York sessions to be the most active and volatile, while those who prefer longer-term strategies may focus on the Asian session. Patience: The Virtue of Successful Traders Patience is a virtue in forex trading. Traders should avoid the temptation to jump into trades too quickly or exit them too soon. Impatience can lead to costly mistakes, such as entering trades that don't meet the trader's criteria or closing profitable positions too early. By exercising patience and waiting for the right opportunities, traders can improve their chances of success. Execution: Putting Theory into Practice Executing trades properly is essential for success in forex trading. Traders should use stop-loss orders, position sizing, and risk management strategies to protect their capital and maximize their profits. They should also be aware of the potential impact of slippage, which occurs when the price at which a trade is executed differs from
Education
by Hartiva
The Art of PatienceAmong the dozens of qualities and attributes, experts say traders need, patience is one of the most important qualities a trader can possess. It is a virtue often overlooked in the fast-paced world of trading, where new traders are lured into the trap of the get-rich-quick ideology. The ability to wait for the right trades can be the difference between success and failure, but how can we grow our patience? In this article, we will dive into the art of patience. We will discuss why patience is important and methods to cultivate patience. Why Patience is Important in Trading In this day and age, patience is a difficult thing to master. As a society, we almost want things before we know we want them. That makes waiting for nearly anything a monumental burden for most. We are so impatient that we are willing to pay money to remove things that require patience. Ads on video or music streaming apps or expedited package delivery are great examples. However, this does not mean we cannot learn and become disciplined in the art of patience. Patience allows traders to take a long-term view of the market. That market can be a volatile and unpredictable environment, and the temptation to blindly leap into a trade can be immense if we cannot maintain discipline and patience. Emotional or impulsive trades often lead to losses. Patience allows traders to wait for ideal opportunities that are thoroughly analyzed, utilizing a robust yet simple trading system. If we as traders take the time to be patient and genuinely analyze potential opportunities we can often avoid trades that are likely to be unprofitable. How to Cultivate Patience Patience is not a natural trait for everyone, but it can be cultivated through practice. Here are some tips for building your patience: Set realistic goals: Patience really requires a long-term perspective. Traders should set realistic goals for their trading strategy and focus on achieving them over time, rather than trying to get rich quick. The old adage of “Rome wasn’t built in a day” couldn’t be more pertinent. Great things take time to develop, but they are often worthwhile. If you miss, you miss: Something that is difficult for any trader is missing an opportunity. Maybe you were pulled away or just generally distracted, and an opportunity passed by you. It is unwise to hop on the FOMO train in the hope that there is still room up or down for a trade to be profitable. It is far better to take a step back and analyze the market and find new entries or opportunities that can be verified by your system. Missed opportunities are also a great learning experience to build yourself up rather than tear yourself down. Avoid distractions: Ohhhh look a squirrel! Anyways, the markets can be overwhelming, and it can be easy to get distracted. Examples of distractions would include nonconsequential/irrelevant news, misleading social media posts or groups, and personal environmental factors. Avoid distractions and focus on your trading plan; your future self will be thankful. Practice mindfulness: Many mistakenly think mindfulness is to make your mind a blank canvas, devoid of thought, and disregarding everything external. Mindfulness is the practice of being present in the current moment, recognizing when your mind wanders, and letting it go as you bring your focus back. View your mind as a muscle that needs to be trained, not entirely dissimilar to an athlete training their body. Mindfulness can help you stay focused and avoid impulsive decisions as you bring yourself to the present moment. Conclusion The funny thing about patience is that it takes time to develop. Patience is a foundational pillar for a trader's market psychology, but it is one of the hardest to build up. It allows traders to wait for the right opportunities, avoid emotional decision-making, and take a long-term view of the markets. By cultivating patience and applying it to your trading strategy, you can increase your chances of success.
NASDAQ:AMZNEducation
by LeafAlgo
4
5 STUPID Trading Advice SayingsIt’s true. When it comes to financial trading, everyone has an opinion, and there is no shortage of advice floating around. However, some advice is just plain ridiculous and some tips can be downright detrimental to your trading success. I want to cover the 5 stupid trading advice points, that many traders still follow and why you should avoid them by all means. #1: Go Big or Go Home This advice suggests that you should take significant risks in trading. You should aim for massive gains. And you should adopt the casino mentality of going full port! It is true that higher risks can lead to higher rewards. But when you adopt a “go big or go home” mentality, it can result in substantial losses that are difficult to recover from. Instead, follow a disciplined approach to risk management, using appropriate position sizing and stop-loss orders to protect your capital. Risk little to make a little more. Risk 2% to make 4%. Or risk 1% to make 3%. Those small gains will eventually outweigh the losses. #2: The Next Trade Will Be Better If you believe that the next trade will magically be more successful than the previous one, you’re in for a bad time. This is nothing but a dangerous mindset to adapt to. This belief can lead to overtrading and a lack of discipline when you stick to your trading strategy. To avoid falling into this trap, focus on maintaining a consistent and well-defined trading plan, rather than trying to chase the elusive “better” trades. #3: Follow Your Heart Emotions are proven to be the trader’s worst enemy. They will often cloud judgment and lead to impulsive decisions. “Follow your heart” in trading and you’ll find you’ll ignore your strategy and you’ll take irrational risks. Instead, rely on your trading plan, technical analysis, and fundamental research to make informed decisions, and always keep your emotions in check. #4: Everything Happens for a Reason When you depend on fate, the stars and the mysterious cosmic plan, it is a surefire way to lose money in trading. The stock market doesn’t work on esoterical means. It works on simple demand, supply and volume. The financial markets are also influenced by countless factors, from economic data releases to geopolitical events, and it’s essential to understand these factors to make well-informed trading decisions. Don’t rely on fate or superstition when trading. Instead, focus on analysis, strategy, and risk management. #5: Work Harder and You’ll Win More While hard work and dedication are essential for success in any field. The belief that you need to work harder in a trading day, will guarantee more wins in trading is misguided. If the environment is not conducive. Or trades have not aligned according to your strategy, it’s pointless taking more trades for gain. Think of sideways markets. Whether you buy (go long) or short (go short), you’re more likely to fail. Trading is not just about putting in the hours; it’s about working smart, refining your strategy, and maintaining discipline. Instead of trading harder, focus and develop a comprehensive trading plan, continually educate yourself on market dynamics, and consistently reviewing and refining your strategy. And of course. JUST TAKE THE TRADE – When it lines up according to your strategy. Can you think of anymore?
JSE:J200Education
by Timonrosso
Trading Mindfully: Letting Go of Revenge for Financial Success Sometimes the market can really wear us down mentally and emotionally. Imagine this scenario: you enter a trade feeling confident, having carefully considered and calculated everything. You're in a fantastic mood, already envisioning the profits. And then, unexpectedly, everything goes wrong. In moments like these, even if you have a solid system and strategy in place, anger and resentment can take over. You might feel the need to seek revenge on the market for what you perceive as an injustice, and impulsively open positions with the intention of punishing it. However, the outcome of such revenge trading is almost always regrettable, resulting in significant financial losses. Let's take a closer look at what revenge trading entails and why it is so dangerous. Revenge trading occurs when we believe that the market has taken "too much" from us or treated us unfairly. Instead of stepping back and regaining composure, traders act contrary to every rule and guideline, driven by anger and a desire to prove themselves. Fueled by a mixture of frustration and determination, traders tend to fall into one of two scenarios: they either open large positions that further amplify their losses, or they manage to recoup some of their losses if luck is on their side. However, the best course of action in such situations is actually to take a break and reflect on the situation at hand. Attempting to take revenge on a market that is infinitely more powerful than any individual trader is inherently irrational. Moreover, this type of trading has several other negative consequences. When you trade out of revenge, you are driven by emotion rather than logic and strategy. This approach is destined to fail and can result in even greater losses over time. At this point, you lose touch with reality, forgetting everything you know and have learned about the market. Your well-thought-out strategies and trading algorithms that used to bring you profits are abandoned. Effective money management and risk compliance become distant thoughts. You throw all your resources into the blazing fire of revenge. As a result, you find yourself trading based on intuition, which is no longer a disciplined approach but akin to gambling. How to Overcome the Urge for Market Revenge There is a simple yet crucial mechanism that can help traders overcome the desire to seek revenge on the market. The most challenging part, however, is remembering to apply it in practice. Here are some steps to follow: 1: Take a Step Back: When the desire for revenge arises, it's important to slow down your emotions and actions. Step away from the computer and engage in activities that involve fine motor skills, such as solving puzzles or engaging in a hobby. It's detrimental to continuously look at the screen that displays recent losses, as it only amplifies your emotional state. By diverting your attention to non-trading activities, you allow the frontal cortex of your brain, responsible for rational decision-making, to activate. Going for a walk or connecting with a friend can also be effective ways to shift your focus and regain composure. 2: Analyze the Situation: To regain a conscious state and process your emotions, conduct a written analysis of the situation. It's beneficial to do this manually on a plain sheet of paper, utilizing your fine motor skills once again. Describe the entire incident in detail, including your thoughts, emotions, and actions. By gaining a comprehensive understanding of what threw you off balance emotionally, you'll be better equipped to recognize and control those triggers in the future. 3: Evaluate Your Trading Strategy: Every trader relies on a specific algorithm or trading system to make decisions. Take the time to thoroughly examine your trading system and ask yourself some important questions: - Does your trading system genuinely work? - If you had followed your system entirely (which you didn't do when seeking revenge), would it have helped minimize losses? - Are the losses that angered you a result of system losses or a breach of the system's rules? In addition to studying your trading system, it's crucial to assess your money management rules and ensure you are effectively managing risks. Proper risk management acts as insurance, protecting you from substantial losses. Regardless of market fluctuations, you can confidently close trades when necessary. Effective risk management is what distinguishes profitable traders from those who suffer losses. Final Thoughts: To overcome the desire for revenge, it is essential to understand what triggers it and address the underlying reasons. When we view the market as a reflection of our self-image and attribute personal meaning to our trades, it often leads to an emotional storm. In such a state, we may disregard trading systems and risk management principles, making foolish mistakes that can devastate our trading accounts. It's important to remember that the market provides only factual information for analysis, and behind the price quotes lies nothing more than information.
Education
by FOREXN1
24
Ninja Talks EP 12: Jesus Trading After teaching a bunch of amateur traders over the years, I've come to realise in my not so humble, but highly righteous opinion that their biggest obstacle always seems to come down to their inability to abstain from placing a trade. They give into temptation. But as Jesus says; "Forgive them for they know not what they do." Yes I know Jesus wasn't a trader, but he did turn water into wine and as far as I'm concerned that's the definition of buying low and selling high. Anyway, let's get this back on track - where was I? Ah yes, abstinence. Most fresh spawn traders are so eager to just "be in" the market, they fail to learn this age old mistake. The solution? Simple. And I talk about it often. It's the concept of "letting the trade pass by" - when you do this (truly, no cheating) you'll know (1) If it's a good trade and (2) The exact time to enter. This can be likened to card counting, you observe the dealer and players and count the cards (analyse the markets) and then when the "shoe is rich" (clear entry established) you enter and bet big. Works in cards like it works in the market, but guess what? The majority of sour faced amateurs won't even get to this point because they're more fixated on short term dopamine shots to the vein. If you want to be in control, then take control and stop giving in to temptation, practice abstinence and the world is your oyster. Make sense Ninja? Good, I'll see you in the next episode! Nick
AMEX:SPYEducation
by NinjaTradingServices
The AEM Framework: 3-Step Guide to Successful TradingToday, I'd like to introduce you to the 'AEM' framework – a three-step process to successful trading. This framework is designed for everyone, from beginners starting their journey to seasoned professionals looking to refine their strategies. It involves three fundamental steps: Analyze, Execute, and Manage. Let's break down each element: 🔍 'A' for Analyze The first step to becoming a successful trader is to understand yourself and find a trading style that suits your personality, risk tolerance, and financial goals. This includes your emotional comfort with taking risks, your patience levels, and your time commitment to trading. Once you've figured out your trading style, the next step is to analyze potential strategies. Whether you're inclined towards fundamental analysis, technical analysis, or a combination of both, you must thoroughly understand the strategies you want to apply. Finally, analyze your chosen strategies and yourself to create a robust trading plan. Your trading plan should include what you'll trade, when you'll enter and exit trades, and your criteria for decision-making. Remember, the goal isn't to make perfect predictions but to follow a consistent plan that can potentially yield positive results over the long term. 🎯 'E' for Execute The second phase is execution. You've made your plan, and now it's time to put it into action. Execute your trades according to your strategy, without letting emotions cloud your judgement. Remember, it's about sticking to your plan – not chasing profits or running from losses. But executing your plan isn't just about trading. It's about discipline and consistency, regularly reviewing your trading activity, making adjustments as necessary, and continuously learning from your experiences. 📊 'M' for Manage The final step in the AEM framework involves managing several aspects of your trading: Manage Yourself: Trading can be emotionally taxing. Maintain your physical and mental health to ensure you're always in the best shape to make rational decisions. Manage Your Risk: No strategy is bulletproof. Always use stop losses, position sizing, and diversification to manage your risk effectively. Manage Your Trades: Monitor your trades, keep records, and review them periodically to identify patterns, learn from your mistakes, and improve your strategy. Manage Your Money: Keep your capital safe. Never risk more than a small percentage of your trading capital on any single trade, and be sure to keep some funds in reserve for unexpected opportunities or setbacks. The AEM approach is a comprehensive method that can assist you at all levels in creating, executing, and managing a successful trading plan. It encourages introspection, disciplined execution, and careful management. Remember, the journey to trading success isn't always smooth, but the right approach and mindset can make it considerably more navigable.
Education
by TheFxAce
13
Gym Well - Trade Well!When you gym well, it’s like trading well. You gym to tone, to lose weight to build muscle and to build discipline. With trading you trade to build your portfolio, build confidence, create a secured financial future and work on your mindset for life. Both pursuits require consistent effort, perseverance, and a strategic approach. Gym is an important element in my life and so I want to explore the similarities between trading and gymming, and how each can lead to success in their respective domains. You Put in the Work Every Day: Gymming and Trading Like a regular gym routine, successful trading requires dedication and consistency. You can’t expect to see results overnight – you need to put in the work every day. As a trader you must constantly educate yourself on market trends, stay informed about global events, and analyze past performance to make informed decisions. Just as gym-goers must adhere to their workout schedules, traders should establish a daily routine that involves researching and analyzing the market. You Pick Up the Portfolio (Weights) as You Make More Money When you gym, you gradually increase the weights you’re lifting to build strength and endurance. Similarly, as you become more experienced and successful in trading, you can gradually increase your investment portfolio. As your confidence and financial gains grow, you may choose to diversify your portfolio and take on a variety of different assets to spread risk, lower risk, optimise and maximize your returns. Don’t Overtrain – Don’t Overtrade Overtraining at the gym can lead to injury and burnout. And if you over trade in the market, it can result in financial losses and emotional exhaustion. It’s essential to strike a balance between staying active and giving yourself time to rest and recover. In trading, this might mean you: Set your limits on the number of trades you make each day or week Identify the goldilocks zone risk per trade Know when to hault trading or lower risks during a drawdown period. And most importantly. Remember, trading is a marathon, not a sprint. So pace yourself accordingly which is crucial to long-term success. It’s a Forever Process (Takes Time) Both gymming and trading are long-term commitments. You won’t see immediate results in either pursuit. It takes time and dedication to achieve your goals and to identify your trading risk and personality. In the gym, you can expect to see gradual improvements in your strength, endurance, and overall fitness. In trading, you’ll gain experience, knowledge, and a more refined strategy as time goes on. So stay dedicated, and you’ll be well on your way to achieving your goals. Let me know if you gym and if it helps your trading :)
JSE:J200Education
by Timonrosso
2
Our Mind's - Our greatest gift as a human being Our mind's, is our greatest gift as a human being, yet most people use their mind to create unnecessary suffering. How our minds work is fascinating. The brain can be our best friend or our worst enemy. Our mind is the problem. Our mind’s core objective is to keep us alive and avoid pain. We are automatically wired to think in a way that keeps us alive. This thought pattern is hard-coded into our DNA. It might keep us alive, but it makes trading difficult The very thing that keeps us alive is the very thing that makes trading an incredibly difficult proposition, until you have learned how to counter your hard-coding. The issues we face largely fall into two categories: 1. We associate this moment with another moment, whether we are conscious of it or not. 2. We have a mind wired to avoid pain. We have learned to associate in order to benefit from experiences. Association (connecting past moments with the present moment) and pain avoidance do not go hand in hand with trading. Association and pain avoidance are detrimental to profitable trading, in trading each moment is unique, and anything can happen. Trading is the equivalent of a coin-flip game. Emotions kill trading accounts. It isn’t the lack of knowledge that’s stopping you from winning big. It’s the way you handle yourself when you are in a trade. In life, outside of trading, one way to deal with the pain is to talk to someone. As the saying goes, a problem shared is a problem halved. Why a painful experience feels less potent after we have shared it with a friend? don’t know. Maybe the act of verbalising the disappointment puts the problem into a healthier perspective. Either way, you feel better, and the pain subsides. But when you are in trading, while the majority look to run away and rid themselves of pain, you must do the opposite. you must run towards it. you should embrace it. you don’t want to share your pain. you want to hold on to it. you need it. Whether you are new to trading and speculation, or you have years of experience, you should give this question some serious thought: If you want to be a success in a field where 90% or more fail, how do you think you should approach this task? Best Loser Wins - Tom Hougaard
BITSTAMP:BTCUSDEducation
by Minazuki_Ame
2
Mindset Monday's: Sphere of Rationality Hey there, so in today's mindset series, we going to be talking about a topic that has the potential to change the way you enter, manage and exit your positions. By watching this weeks video you will: - Learn how to get into a trade with the best frame of mind, allowing you to mange the trade in the best way possible leaving you to maximise your overall returns. - Gain a distinct advantage by learning how to control your emotions instead of ignoring them, which means less emotional pain and more financial gain.
by DeanMuller
⌛ It's Just A Matter Of Time📍Journey Of a Successful Trader No one started as a good trader. Every profitable trader was once a newbie. The journey of a successful trader is filled with challenges, hard work, and perseverance. It begins with a strong desire to learn and a commitment to become an expert in the markets they are trading. 📍The Right Path To Reach The Top 🔹Learn the basics of Trading 🔹Pick a Strategy that you fully understand 🔹Trading plan customized to your lifestyle 🔹Back Testing your strategy and plan 🔹Review your Trades, calculate your expectancy 🔹Demo Trading to build basic knowledge 🔹Live Trading, Manage your risk and emotions 🔹Professional Trader 📍Summary The first step in the journey is to acquire the necessary knowledge and skills. This includes learning about the financial markets, technical analysis, risk management, and trading psychology. Successful traders also develop a trading strategy that fits their personality and trading style. Once they have acquired the necessary knowledge and skills, successful traders spend countless hours studying the markets, analyzing charts, and monitoring news events that may impact their trades. 👤 @AlgoBuddy 📅 Daily Ideas about market update, psychology & indicators ❤️ If you appreciate our work, please like, comment and follow ❤️
Education
by QuantVue
4
🌸HOW YOUR BELIEFS SHAPE YOUR TRADING🌸 🌺Trading is not just about making money. it's also about understanding yourself and your beliefs. Your beliefs can shape the way you approach trading and ultimately impact your success. It's important to identify what we believe and how these thoughts influence our decision-making. 🌼The role of beliefs in trading is often underappreciated. A trader's beliefs can influence their perception of risk, their ability to handle losses, and their willingness to accept new information. Beliefs can also impact their emotional state and motivation, affecting their overall approach to trading. 💐Beliefs can be positive or negative, and they all play a crucial role in shaping our trading behavior. For instance, it is commonly believed that trading requires an intuitive sense, and that success comes from the "gut feeling." While this intuition is essential, it's also vital to think logically and systematically. As a trader, you should evaluate your methods and actions based on logic and data. 🌻Another belief that may impact trading is the 'fear of loss.' This belief comes from a reaction to the thought of losing our hard-earned money. Traders who may be influenced by this belief may avoid loss by being too cautious and missing promising opportunities in trading. Additionally, they may move too quickly and sell out too soon, taking small losses instead of giving trades a chance to earn enough to cover their expenses. 🍀Moreover, some traders believe they can't make money consistently. However, such a belief is likely to result in a failure mindset and a lack of effort to learn and develop skills. Failing to learn about risk management and technical analysis may lead to bigger losses, which will, in turn, affirm the belief that consistent profits are impossible. 🌸To turn negative beliefs around and transform them to suit favorable outcomes, a trader may need to replace negative thoughts with positive ones. Additionally, it may help to find influences that align with your trading goals, whether that's finding a mentor or joining a relevant trading community. Working with like-minded people helps keep your focus on your goals and learn from others' experiences and mistakes. It can boost your confidence and reinforce the belief that consistent profits are attainable, which can impact positively in your trading. 🌵In conclusion, a trader's beliefs heavily impact their trading. It's essential to examine and understand the positive and negative beliefs that influence one's trading behavior. By identifying negative beliefs, traders can have better control of their emotional state and approach to trading. Replacing erroneous beliefs with positive behaviors and working with like-minded traders can provide a path to a positive and successful trading journey. 🌺Hope u like my article. Please let me know what you think💋 Love, Anabel❤️ Please, support my work with like and comment! Love you, my dear followers!👩‍💻🌸
Education
by AnabelSignals
5
Turtle Power: Experiment Turns Novices into MillionairesHi and welcome back! As a trader, you have probably at one time heard about the Turtle Traders, right? But what was it, and what can we learn from it? Let me take you on a journey into the fascinating world of the Turtle trading strategy! 🐢💰 This legendary trading experiment, conceived by two master traders, Richard Dennis and William Eckhardt, in the 1980s, showcases the power of a well-designed system and the right mindset. Dennis believed anyone could be trained to trade successfully, while Eckhardt argued that trading skills were innate. To settle the debate, they devised the Turtle trading experiment. They selected a diverse group of 23 individuals, known as the "Turtles," and taught them a trend-following trading system focused on trading commodities and currencies. The core principles of this system were: Follow the trend : The Turtles used Donchian Channels, tracking 20-day and 55-day price channels, to identify breakouts and breakdowns. When the market price broke above the 20-day high, it was a buy signal. When it broke below the 20-day low, it was a sell signal. Cut losses short : The Turtles followed a 2% rule, never risking more than 2% of their account on any single trade. They calculated position sizes using the N value, the 20-day average true range (ATR), dividing the 2% risk amount by the N value. Position sizing and pyramiding : The Turtles adjusted their position sizes based on market volatility and employed pyramiding, adding more contracts at specific increments up to a maximum limit as the market trended in their favor. Stop Losses : They used a stop-loss order equal to 2N for every trade, exiting the trade to minimize losses if the market moved against their position by twice the N value. Diversification : The Turtles traded a diversified portfolio of markets, spreading risk and enhancing returns. Scaling Out : They used a two-tiered exit strategy, exiting a portion of their position when the market retraced by 10-day low/high and the remaining position when the market retraced by 20-day low/high. With these principles, the Turtles were handed real money to trade. Over the next four years, they collectively made more than $100 million , proving that trading success could be taught. The Turtle trading experiment demonstrated the power of a disciplined, trend-following system combined with the right mindset. In conclusion, the Turtle trading strategy is an extraordinary tale of how a simple, yet effective, trading system can lead to remarkable results when executed with discipline and consistency . As you venture into the world of trading, remember that the strategy in itself is not as important as the lessons of the Turtles: stay disciplined, follow the trend, and manage your risk . You might just be the next trading success story! 🌊📈 Want to become a Turtle? 💡 Curious about the Turtle trading strategy? Dive into TradingView's Public Indicator library, where you'll find a collection of Turtle-related scripts crafted by the Pine Script™ community. Just open a chart, click "Indicators," and search "Turtle" to access a variety of indicators that'll give you a feel for this legendary system. Happy exploring! 💡 The Original Turtle Rules (PDF): This free eBook, written by Curtis M. Faith, one of the original Turtles, contains the original Turtle trading rules and guidelines. Link: www.trendfollowing.com 🚀 Like and follow if you appreciated this article. 📖 More useful publications can be found under "Related Ideas" below ⬇️⬇️⬇️
BITSTAMP:BTCUSDEducation
by Nico.Muselle
87
♦️BAD MINDSET IS YOUR ENEMY♦️ ♦️Forex trading is one of the most exciting and lucrative ventures that anyone can undertake. With the right mindset and tools, one can make a lot of money by trading currencies. However, the opposite is also true. A bad mindset can lead to disastrous consequences in forex trading. It is, therefore, important for traders to understand the effects of a bad mindset and avoid them at all costs. ♦️One of the most common effects of a bad mindset in forex trading is overthinking. When traders overthink, they become too analytical and too cautious. This can lead to missed opportunities and bad trading decisions. Overthinking can also lead to indecision and second-guessing, which can be harmful in a fast-paced and dynamic market like forex. ♦️Another effect of a bad mindset is emotional trading. Emotions like fear, greed, and impatience can lead to irrational trading decisions. For example, a trader may hold onto a losing position for too long in the hope that it will eventually turn profitable. This can lead to bigger losses and a further deterioration of the trader’s mindset. Similarly, greed can lead to taking on too much risk, which can also lead to disastrous consequences. ♦️A bad mindset can also cause traders to be too dependent on their trading strategies. While having a good trading strategy is important, it is equally important to be flexible and open-minded. A trader who is too reliant on their strategy may miss out on profitable opportunities that do not fit their style. This can lead to missed profits and frustration. ♦️Lastly, a bad mindset can lead to overconfidence. Traders who are overconfident may take on too much risk or ignore important market signals. This can lead to catastrophic losses and a severe blow to the trader’s ego. Overconfidence can also lead to ignoring basic risk management principles, which is a recipe for disaster. ♦️In conclusion, a bad mindset can have a significant impact on forex trading success. Traders who are too analytical, too emotional, too dependent, or too overconfident may make bad trading decisions that can result in losses. It is, therefore, important for traders to stay calm, flexible, and open-minded in their approach to forex trading. A winning mindset can help traders achieve success and make profitable trades in the dynamic and exciting forex market. Thanks for reading bro, you are the best☺️ Like, comment and subscribe to boost your trading! Dear followers, let me know, what topic interests you for new educational posts?
BITSTAMP:BTCUSDEducation
by SignalProvider
1
How To Win, By Learning How To Lose Hey there, so today I would like to introduce the first episode in what I would like start calling Mindset Mondays. So in this session we going to: - Learn how to overcome the fear of losing so you can trade with confidence and fearlessness - Discover how to leverage your losses and maximise your returns resulting in consistent and sustainable equity growth - Learn how to use your emotions as a signal to identify shortfalls and weaknesses in your overall trading approach which means refining your understanding about the markets and yourself, ultimately allowing you to trade with a carefree state of mind. So, be sure to watch all the way through if you want to learn how to win by learning how to lose.
by DeanMuller
How not to miss an opportunity. I found out about Bitcoin many years ago when it was in prime time only to be associated with organized crime , scams, and money laundering. And that remained deep in my mind. Since jail seemed a bad idea, I convinced myself that crypto it’s not for me. As time went by, I didn’t see the good fortune because my mind was still relating Bitcoin to a dark area . Something kept me from buying and I didn’t know what. As I was on the dark side, I am now thinking that the ones who listened to another side of the story, the winning side, greatly benefit from it. Later I found out that psychologists have a name for my burden and it’s called Anchoring bias . It is described that first introduced knowledge on a subject has a great impact on our later decisions . The first details I come upon Bitcoin unconsciously affected my judgment and kept me in a do not act state of mind and made me miss my chance. That’s when I found some ways to improve my decision-making process and to look at data from another perspective , which I am going to share with you. But first, let’s take a glimpse at anchoring bias, an error of our mind present in many aspects of our lives, which usually works against us. Picture yourself in a shop on Black Friday. Would you buy an item for 150$ and how would that make you feel if you knew that it was discounted from 200$? We tend to look at the price of 200$ as an anchor that quickly drives our behavior to a decision to act. Similar to adjustment bias, comparing the 200$ item now seems like a bargain. The same thing happens in trading. How do we know whether a stock is overpriced or not? By comparing it with past quotations that act as an anchor. Is BTC overpriced at 20k? We all would agree that in 2017 it was, but how about now? These anchors make us act unwisely and take unconscious decisions with small returns. This could lead to unsatisfying results, frustration, or wipe our account over the long run. Once you get better at identifying the anchoring bias, you can use it to your advantage. Think about what makes good and strong support & resistance. The perception is that a large number of investors credit that bid as a fair value for them. So what should we do? T o have a better understanding of what drives our choice it’s important to double-check our mindset, emotions, and the data that we encounter. Does it help us or it could be a potentially harmful anchor? What is the context of the news? In the example above, could we consider solely that 150$ is a fair price, without the 200$ price before the discount? Also, if you have a strong assumption about a subject, try to look at other points of view, not to change your mind but just to reinforce the reasons you already have. Remember that the first step into overcoming a bias is to be aware of its presence and next just look inside you to find proof that drives your decisions. So, let’s recap Find context - Figure out if the price you set for your buy order is a fair one or if you find it good compared to the day before. Find anchor - Do I want to invest in this company I have never heard of before just because my cousin thought it was a good idea? Observe - Do I have doubts about this buy? Do I follow my plan or I am unconsciously driven to make this purchase Review - Have I looked at other oppions?
COINBASE:BTCUSD
by TheSimpleThinking
Still not making 100$ a day trading?I have noticed that one of the most searched topics in the industry relates to strategies on how to win a steady income over a limited period - How to make 100$ a day or 10.000$ a month. Everywhere you look someone tries to sell some fortune cookie strategy that will make you a sure gain over a certain period. So why do new traders frequently look for the same approach? Is it because they want to exchange the time spent on a 9 to 5 job with a time in the markets with a sure, steady income? I can’t tell, but the mindset is similar. Trading and long-term investing call for another attitude because here you don’t exchange time for money. You are not logged into markets for 4 hours and effortlessly earn yourself some dollars. Some days you win more than you have expected but in some minutes could wipe out your portfolio. What I am trying to say is that you should never consider the markets as a sure deal for exchanging time over money. Also, if you still struggle to find a flawless strategy by looking at the best technical analysis or hit rate system maybe you should reevaluate your approach. The reason one looks for a sure deal is deeply ingrained in our self-protection mechanism. First, there is this fear of getting hurt by losing a position, which each of every one of us experiences, so our mind seeks to overcome this anxiety by looking for a certain, no-risk deal. This straight line of flawless strategy can save us from being exposed to dangerous circumstances. At the first level of understanding, you search for these plans of trading, just to protect yourself from suffering. But to win, one needs guts. As the saying – No guts, no glory. Also, trading setups offer you another kind of gain which is based on momentums, that can occur under a certain period. There can be days, maybe weeks, or even months with slow trading moves and barely any opportunities, but that should not leave you defeated. Because in many situations, the honor goes to the person who is the most patient. So don’t get discouraged about not winning every day.
COINBASE:BTCUSD
by TheSimpleThinking
📖STOIC TRADING📖Stoic trading. I bet stoics didn't trade, but they knew a lot about life in general. I suggest to cultivate stoic mindset in regards to trading, and negative expectation and negative visualization in particular. You can talk about it with ChatGPT and explore yourself, but here let me explain a bit. So, instead of doing exactly what everyone else does - that is to expect your next trade to deliver big time, or to dream about a big runner, or huge profits in a day or a week, or to trade back all your recent losses with one overrisked entry - try to do something that's completely different. And by the way, that's a great overall approach to trading: find what doesn't work, and do the opposite (that's one of the main principles discussed widely by great Tom Dante). To do this, when you come to the market, visualize and expect nothing🙀. Literally tell yourself this: 1️⃣..I showed up to the charts just to observe and analyze them (by the way, did you know that speculation, from latin "specio", means observation, with no judgement) 2️⃣..I expect my setup to NOT show up today, and so today I'm not expecting any trades to have In case you'll find your setup, continue to keep the following negative mindset: 3️⃣..I followed my rules and entered a good setup, and I will follow my management rules, but right now I expect this trade to just end up as a loser If you were able to protect at breakeven later, expect it to hit your breakeven and not your take profit. For beginners, this all can sound stupid, even somewhat like a paradox🙄, but that's only because they don't understand how trading works. And trading really works in a way, that having LESS trades brings you MORE profit. Even if you're trading 1 sec. chart, and I'm not joking here. This mindset practice I described above allows you to protect your emotional capital and also enter setups with a better quality. I will talk more about this and also why so called "overtrading" is actually pure gambling, and how it destroys people's accounts in the next post. Have a good day everyone, and keep the grind, even if there's no one to appreciate or believe in you! P.S. I appreciate you and believe you will eventually do it and become consistent and profitable trader. 🙌
BITSTAMP:BTCUSDEducation
by Yelli_trades
11
Let's Talk About Bad Luck and Downtimes In TradingAbout bad luck and downtimes in trading. Let's discuss the downtimes that traders may face. While everyone experiences them, some traders can maintain a calm mindset, while others may collapse under the pressure. What sets them apart? As I mentioned in my previous articles, trading involves risks, much like gambling. If you're seeking a risk-free investment, consider options like bonds or long-term investments. Even with a positive expected value, trading can encounter terrible consecutive losses. For instance, my index swing trading strategy has a win rate of around 40% and a profit-to-loss ratio of 5 or higher, which sounds promising. However, the reality is that consecutive wins and losses are inevitable. A 40% win rate implies the following chances: - Around an 8% chance of experiencing five consecutive losses. - Around a 5% chance of experiencing six consecutive losses. - Around a 3% chance of experiencing seven consecutive losses. - Around a 2% chance of experiencing eight consecutive losses. How many consecutive losses can you handle? Can you keep your emotions in check? Can you survive the phase of self-doubt and questioning the strategy's correctness? These are all crucial factors. The most critical aspect is always capital management, ensuring that you retain profits and avoid being eliminated by the market. When feeling down, it's essential to accept your emotions and not avoid them. Embrace yourself and the imperfections of your trading. Take a break and improve your mood. Only trade when you can maintain a rational mindset. Go for a walk, chat with your family and friends, enjoy good food, and appreciate the beauty of the world beyond trading. Although it's against human nature, keeping an open mind and discussing your loss situation with others can be helpful. This helps you face yourself honestly, rather than trading for self-esteem or self-display. Trading goals should focus on making money, self-realization, improving life, and helping those in need. Always remind yourself. Evaluate the feasibility of the strategy, the ability to withstand consecutive losses, and manage your money well. Be aware that downtimes may occur at any time, but long-term positive expected value trading will lead you in the right direction. I hope this article can be helpful to you. I'm trader Beta, and you can also find me if you need a psychological coach. Wish you all the best of Luck while trading.
CME_MINI:NQ1!Education
by Eleta1228