Serious psychological barriersSerious psychological barriers
1) Fear of missing out
The first thing you should define is your trading plan, trading method
You should remember the main factors of your setup formation (Time&Price). At what time this setup is formed, the presence of a sequence (context). If you do not know when your trading idea/setup can be formed, then most likely - you do not have a trading plan or a trading setup. Remember that trading is a game of probabilities, but trading is not a game.
Having a trading plan is the key, trading time, session, waiting for a possible setup to form, take notes based on what happens in each session, and in the future, some patterns can help you. Even if you miss some setup, you should not worry about it, since you know +- time when a new one will form
2) Fear of losing
You need to remember that there is not a single setup with 100% or even 70% accuracy of execution! In fact, there is no point in even such a setup or searching for it! The question is always only in your risk management! Fear of losing - arises from the lack of a plan.
3) Impatience
This occurs in young traders, even with a strategy, successful capital management. But, sometimes, we enter a position before we should. This requires a lot of attention, develop discipline, following the rules of your trading method. All this is due to the fact that you do not want to spend enough time on trading experience, since in most cases, when you achieve success or make a profitable decision, you will want to experience this rush of emotions as quickly as possible, so you can fix your profit ahead of time, or open a position before your setup is formed. Do not follow your emotional impulses, do not try to prove your case, just wait for the moment
4) Fear of not being a good enough trader
This is a side effect of being on social networks. Social networks are the problem of the 21st century! Everyone lives by the principle of Fake it till you make it. If you think you are not as fast a learner as the guy on Twitter, and even if he says that everything is fine - remember, in reality, it is not. Most people try to pretend and distinguish themselves as "the smartest in the room". Don't let this bore you too much or make you feel inferior
The most important thing is to study your statistics, your data over time, remember where you started and determine if you have achieved results since then.
5) Fear of losing streaks and drawdowns
This is directly related to money management. You do not have a process, a sequence of actions, when you have a losing streak or drawdown, you must understand how to reduce the risk, how to act in this situation. This is where your trading strategy will help you, where all the risk management is described. State everything about managing your deposit, when you stop trading, when you reduce risk or when you stop trading
6) Lack of discipline and rules
Listen to your inner voice that tells you: "Don't do this" but you continue anyway, you want to see what happens next. Do this outside the market, there must be clear discipline and rules that must be followed. Discipline is achieved by forcing yourself to follow a set of rules and these rules must be strict, short and detailed
Mindsettips
Higher Rewards For Less RiskI've changed my reward-to-risk ratio from 1:1 to 2:1.
You heard me right! They have changed.
I wasn't a stickler about my ratios, but I am now. I want to make more money and do less trading. How is this possible, you may be asking?
It's simple when you look into the details. So let's take a look at the losses first.
What do my losses look like?
Each time I lose a trade, I recently exited a previous winner or wasn't in a trade on that currency pair before I lost. Let me explain because these are two different things.
When I win a trade, I give back my profits on losing trades and may not enter the next trade due to my emotions being everywhere.
I noticed that I was stopped out, and the price flowed my way. But, honestly, I can do nothing to prevent this from happening.
You may say, "well, can't you change your stop loss?"
I could, but to what? I never know when I'll be stopped out or how big the wicks will be to get me out of the trade. This means every trade is unique, and I'm making a mistake if I don't follow my rules.
Being stopped out isn't the problem. Trading my system too much with almost the same reward to risk is the problem.
Question to myself, what if you could hold the trade longer(I'm a swing trader, so this fits) and increase your reward significantly, so you don't have to keep entering multiple trades unless the reward was worth it? So now, if I am stopped, my winning trades will make up for my losses and more.
What do my winning trades look like?
My winning trades look more significant than my losses. My focus is and will always be higher timeframes. I like to trade when markets are trending. So per the daily, weekly, or monthly timeframe, I'm trading if my currency pairs are trending.
My goal is to get the best entry that fits my rules and hold to my long-term targets, and any trade under a 2:1 reward-to-risk ratio will not be traded.
I'm also ok with not being triggered into trades set by my pending orders. I'm also ok with losing trades. That's part of the business.
In Summary
I seek to hold trades longer to receive bigger rewards and let the small losses be small. I've not changed my trading strategy. It works, and I am working on it. We go well together.
My belief is as long as the market is trending, I can hold my trade.
I pray this blessed you,
Shaquan
Remember, you don't trade the markets. You trade what you believe about the markets. "Van Tharp"
🧠 The Mind Of A Smart TraderTrading psychology is influenced by emotions like greed and fear, which can drive irrational behavior in markets. Greed causes excessive risk-taking and speculation, while fear causes traders to exit positions prematurely or avoid risk. Regret can also cause traders to violate discipline and make trades at peak prices, leading to losses. These emotions can be particularly prominent in bull or bear markets and can have a significant impact on market outcomes. Trading psychology is a crucial factor in determining success in trading securities. It includes aspects of an individual's character and behavior that affect their trading decisions. Discipline and risk-taking are critical components of trading psychology, as is the impact of emotions like fear, greed, hope, and regret. It can be as important as knowledge, experience, and skill in determining trading success.
🧠10 Trading mindset tips:
🔹 Stay informed: Stay updated with the latest market news, trends, and developments, as well as your preferred assets.
🔹 Create a trading plan: This should include a clear set of rules for entry, exit, and risk management. Stick to your plan.
🔹 Manage your emotions: Avoid making impulsive decisions, especially during volatile market conditions. Keep a clear head and stick to your plan.
🔹 Continuously educate yourself: Enhance your knowledge and skills by reading books, attending seminars, and practicing with demo accounts.
🔹 Diversify your portfolio: Spread your risk across different assets and markets to reduce your exposure to any one particular market.
🔹 Stay disciplined: Follow your plan and stick to your rules, even if your emotions are telling you otherwise.
🔹 Set realistic expectations: Be mindful of your limitations and don’t overreach. Accept small losses and focus on long-term success.
🔹 Stay focused: Avoid distractions and keep your mind on your trading activities.
🔹 Keep a trading journal: Record your trades, track your progress, and reflect on what you could have done differently.
🔹 Take breaks: Avoid overtrading, which can lead to burnout. Take time to recharge and come back fresh.
👤 @AlgoBuddy
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Cause & Effect in Day TradingCause and effect works in every aspect of our lives and if understood and used correctly can be of major help to the persons success, in live, trading and even love.
Seek more knowledge on cause and effect by yourself and that will be the first step you need to take to see it in action!
Good luck trading!
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