Trader comfort zone journey 🥴➡️😊Let's end the week on a thoughtful note.
On the chart is a visual I see the other day that I feel relates to trading massively.
It's called the comfort zone map.
This can be applied to many situations in a person's life as a generic visual map.
But I really do think it represents the journey every trader must take in order to become successful.
COMFORT ZONE
It's where we all start any journey
Sat in the comfort zone not wanting to leave as we dont want to fail or get hurt.
Some will stay in this zone forever but will never progress.
If you are on TradingView looking at this idea then chances are leaving this zone is already being explored.
We all like this zone put you have to take the leap of faith in order to progress.
As traders we all have to leave our comfort zone in order to start our trading journey.
FEAR ZONE
This is the worse zone for any human on any sort of journey but more so for traders.
Things are really uncomfortable in this zone and pain will be felt.
Mistakes will made, as traders money well be lost but key bit is learn from those mistakes.
Plenty of people will turn their backs at this point and jump back into the comfort zone.
Those who carry on trying to achieve will have other people questioning what are they doing.
Don't let opinions sway you and find a way to find your feet in this zone.
You will lack knowledge, You will lack skills at the start but traction comes with hard work and persistence.
LEARNING ZONE
The traction gained and hurdles overcome in the fear zone leads you to this zone.
Once in this zone it's now all in the eye of the beholder.
This is now the new comfort zone but don't drop the ball you can end up dropping back in this zone.
Now's the time in this zone to really kick on but it can take time.
You are now laying the foundations of an exciting future.
Take the base knowledge gained and gain even more in this zone.
Problems are no longer holding you back as you are able to overcome.
You enjoy the challenges and tackle them head on while still learning.
Putting the time in here takes you to the next step but also stands you in good stead for rest of lives hurdles.
GROWTH ZONE
This where the fruits of your labour are felt but not just in trading profits.
Mindset and contentment are on point.
Due to the above continued learning never stops.
Objectives are now smashed.
Purpose and fresh identic is now found within yourself.
Continued Personal growth as well as financial growth is now a element of life.
In this zone the end game is infinite but shouldn't be taken for granted.
Hard work has got you here but don't get complacent.
Treat everyday as an opportunity to fulfil your life even more in many ways not just money.
You earnt the right to be in this zone so enjoy.
But be grateful in this zone and take nothing for granted.
Stay level headed and with the right mindset this becomes your new comfort zone to enjoy forever.
Enjoy the weekend folks and see you next week 👍
Darren✌️
Mindsets
3 Mindset Tips for Elite TradingHappy Sunday Traders!
In todays video we go over 3 mindset tips for elite day trading!
Watch the short video below to understand this better, but here they are anyway:
BE OPEN MINDED
Let the market be your guide (price action)
Wait until you feel the market (day trading)
Be just as ready to buy, as you are to sell
CONTROLED AGGRESSION
Know what an A+ setup is, then develop the confidence to act big and fast
Have a plan, both for the best entries and the failed trades
EVERY TRADE IS ABOUT DEVELOPMENT
How good/great of a trader could you become by next month if you learn from every trade you take this January?
Visualization and Trading Manifestation 💆♂️Visualization
Why is it important?
You may have noticed that whatever you choose is always manifested. What you choose is what you get. Whatever you choose to believe in gets reflected in your worldview.
So why are you not choosing to be a successful trader?
Thoughts not only provide the motivation for human action, they also have a direct influence on our reality.
Thought energy transforms into physical reality.
Thinking positively going into a trade and thinking positively in general as a trader is a sure path to success.
Do you practice positivity and visualization when trading? 💆♂️
The three O's that have to go ❌The O’s in your trading game that have to go are shown drawn on the chart.
The three O’s in the idea can all overlap one another and allowing one to creep in can lead to any of the other also creeping in to your trading.
We have all suffered at some point in our trading journeys of these three phenomena.
All of these O’s can lead to capital being impacted and potentially a blown account.
We’ll start with over trading.
On the face of it, over trading is taking too many trades.
Over trading can occur when chasing losses or being on a particularly good winning steak.
Either of those situations mentioned is essentially a loss of control.
The loss of control leads to a loss of focus.
The loss of focus leads to too many trades.
Too many of those trades will be stupid trades.
Those stupid trades will be losing trades at some point.
All these trades mean increased commissions.
The cycle continues and instead of compounding profits the only thing being compounded is risk.
Compounded risk leads to losses and if the cycle isn’t broken a blown trading account awaits.
Next is over risking.
Risk management is key to any trading plan being successful.
Stating the obvious in that first sentence.
But I’m also stating the obvious when I say we’ve all been there and risked more than we should on some trades.
Over risking more than our capital allows will only lead to tears and one outcome which is the blown account outcome.
We end with overconfidence
Probably the worse O of the three to allow in your trading behaviours!
Allowing this one to sneak in can quickly allow the other two already covered to sneak in.
Usually seen as a positive emotion in the world we live in, this emotion can quickly become a negative emotion in the trading world.
Allowing this emotion to creep in blurs our perceptions to so many concepts we need for trading and can lead to a gambling mentality.
Greed will take hold with overconfidence and when the winning streak comes to a cashing end the trader runs the risk of allowing the other two O’s to creep in leading to only one outcome.
The blown account yet again.
The O’s can crossover
All of the traits mentioned can be experienced individually or some can crossover one another. Below are a few examples.
We covered in the overconfidence how it can lead to the O’s creeping in. Overconfidence from a winning streak leads to overtrading which in turn leads to an inevitable losing streak and capital impacted with losses.
Worse case scenario is overconfidence from a good run of trades leads to over risking on the next set of trades which loose. You then end up over trading in revenge to gain back the losses which could lead to yet more losses.
You could be a new trader starting out with no confidence.
You start to over risk from the off and lead to your trading account being blown.
You could over trade combined with over risking which accelerates the loss of trading capital.
In those scenarios mentioned confidence hasn’t been an issue at all. But risk management and trade volume have.
How to avoid the O’s
I'm pretty sure we all suffer one of O traits at some point in our trading journey.
The key is to recognise the incident and the issues it caused and learn from that.
It lies with us as individuals to own up to our trading mistakes. Some of us will suffer all three O’s in our trading paths.
In owning up to our shortcomings all the O’s can be avoided going forward in your trading life's.
Hope you all enjoy your trading week.
Darren
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Psych Hack #0007 - decision-making - it's what we do. Everybody - I mean everybody - who is actively trading has to make decisions. Entry points, exit points, trailing stops, stop-losses and so on - they all involve decisions. But what affects the integrity of our decision-making ? Some say we don't need to make decisions, once we follow a mechanical trading plan. I disagree 100%. If everybody could follow a mechanical trading plan and be millionaires it would have happened already - it ain't happening! End of.
I say that our decisions are made in our heads - our brains, our minds. I say that I (we) need to know about the pitfalls in decision-making - pitfalls that may affect our minds.
I'm sharing some things I've learned with others. These may not be of relevance to everybody. However, as the hard evidence shows that between 75 and 90% of all traders lose money consistently, I think it should be of relevance to a majority.
Declaration : None of this is advice - even if so construed. Opinions on the two charts shown are not be relied upon. Your losses are entirely your own.
Courses, horses - or the mind?If you’re reading this looking just for the best course to attend, you may be disappointed. I go deeper than the simple issue of 'which courses' or 'what course is best'. The sharing of my personal experience may be of value to new traders but also for more seasoned traders.
INTRODUCTION
I’m sharing a summary of my experiences over the last 4 years, so that others can see something more about ‘courses’ – and what courses can never give you.
I am nobody known or big in the trading world. I do not offer advice in this or any other post. I do not train anybody. I do not seek anybody's money for any service. I do not require recognition. Take all of what’s written here as 'what I've learned' and cautiously apply the parts of it that you find of any value. Where I use words like ‘you’ and ‘yours’, this is my self-talk as if I’m advising myself all over again. I do this all the time. You're not mad if you're doing self-talk. It is an important thing to do.
I started off with binary options and lost a fair amount of money. I watched numerous videos on YouTube about how to trade these, with numerous so-called successful strategies. In my searches I came across Spreadbetting, and did the same. More money lost. I then signed up with various trainers and spent more money there. More losses. I'm to blame I was led to understand because I didn't follow the rules. That's true to some extent - but something fundamental was missing. Why could I not follow the rules of some strategy invented by others? It's about why this post is in the Trading Psychology section of Tradingview.
I followed various gurus on websites, paid more money and still no success. Most of these gurus had state of the art audio-visual equipment and studios. They usually appeared with large microphones, conspicuous and 'in the face'. Is that really necessary? Some will say it’s all about better sound quality.
Then I got into ‘trading diaries’ and other things people out there said I should do. Still major problems.
So, what was missing? To put it in a nutshell the problem was grappling with my personal psychology . This is about the way I work - how my mind functions in relation to risk, which would be different to everybody else. Psychologists may be able to tell you a bit about how minds in general work. They cannot tell you exactly how ‘your mind’ works.
GURUS?
Most of the gurus I came across would mention psychology several times but never get to the heart of it. Naturally they're not psychotherapists, so they can't tell me how to sort myself out. Most trainers focused on 'discipline' which is fine, but they couldn't tell me how to become disciplined. What? - am I just supposed to pull myself together and follow a script? Some would say 'yes'. But this is not how the human being operates. If everybody could just pull themselves together and follow a trading plan and a set of rules, then everybody would be rich. Come on - we all know that's silly.
... truncated .
This post became so long, that it cannot fit on Tradingview. It is accessible here where I go on to explore:
GURUS?
RECOGNITION
METHODOLOGY AND STRATEGY
MIND AND PSYCHOLOGY
PATTERN REWRITING
IF I COULD TURN BACK TIME
I do apologise, and hope Tradingview allows this post to remain.
