DOGS Main Trend. Tactics of Working on Risky Crypto 03 2025Logarithm. Time frame 3 days. Tactics of working on super-risky cryptocurrencies of low liquidity, which are always sold (without loading the glass), by the creators of “nothing”. In order to increase sales, of course, when they rationally reverse the trend and make pumps at a large % and marketing positive news "have time to buy". On such assets with such liquidity, “killed faith” (at the moment), and control of the emission in “one hand” it is not difficult. Something like in BabyDOGE.
On such assets you should always remember:
1️⃣ allocate a certain amount for work in general on such assets from the deposit as a whole.
2️⃣ distribute money (potential reversal and decline zones) from this allocated amount to each similar asset in advance.
3️⃣ diversify similar assets themselves (5-10 cryptocurrencies), understanding that sooner or later they will scam. The scam of one of them should not be reflected significantly on the balance of the pump/dump group of low liquidity. It is impossible to guess everything that does not depend on you, and it is not necessary. Your miscalculations (what does not depend on you) are smoothed out by your initial trading plan and risk control, that is, money management (money management).
4️⃣ Set adequate goals. Part of the position locally trade 40-80% (not necessary, but this sometimes reduces the risk).
5️⃣ Work with trigger orders and lower them if they did not work and the price falls.
6️⃣ Remember that in consolidation and cut zones in assets of such liquidity, stops are always knocked out, so the size of the stop does not really matter. It will be knocked out, especially before the reversal.
7️⃣ Before the reversal of the secondary trend, as a rule, they first do a “hamster pump” by a conditionally significant %, when everyone is "tired of waiting". They absorb all sales. Then the main pumping without passengers by a very large % takes place to form a distribution zone. As a rule, it will be lower than the pump highs, that is, in the zone when they are not afraid to buy, but believe that after a large pump, the highs will be overcome significantly.
8️⃣ Remember that assets of such liquidity decrease after listings or highs by:
a) active hype, bull market -50-70%
b) secondary trend without extraordinary events -90-93%
c) cycle change -96-98% or scam, if it is a 1-2 cycle project (there is no point in supporting the legend, how it is easier to make a candy wrapper from scratch without believing holders with coins).
9️⃣In the capitulation zone, there can be several of them depending on the trend of the market as a whole and rationality, the asset is of no interest to anyone. Everyone gets the impression that everything is a scam. That is, on the contrary, you need to collect the asset, observing money management, that is, your initial distribution of money and the risk that you agreed with in advance. As a rule, in such zones people "give up" and abandon their earlier vision.
🔟 After the entire position is set (pre-planned, according to your money management), stop and do not get stuck in the market and news noise. Wait for your first goals.
Remember, people always buy expensive, and refuse to buy cheap ("it's a scam", they try to "catch the bottom"), when "the Internet is not buzzing". This all happens because there is no vision, and as a consequence, no tactics of work and risk control . Many want to guess the “bottom”, or “maximums”, and refuse to sell when they are reached. The first and second are not conditionally available, on assets of such liquidity and emission control. But, there are probabilities that you can operate and earn on this, without getting stuck in the market noise. And also in the opinions of the majority (inclination to the dominant opinion and rejection of your plan and risk control), from which you must fence yourself off.
Most people, immersed in market noise and the opinions of others , choose for themselves the price movement, which is beneficial to them at the moment , and to which they are inclined, but do not provide themselves with the tactics of work. This is a key mistake, and the main manipulation that the conditional manipulator achieves, who, by the way, is sometimes not on the asset, to form an opinion and, as a consequence, the actions of the majority.
Because, in essence, most people do not have the tactics of work. Where the news FUD (inclination to the dominant opinion), “market noise” (cutting zones and collecting liquidity), the opinion of the majority, is directed, that is what they are inclined to.
When the price goes in the other direction, it is disappointment.
If these are futures — liquidation of the position. Zeroing out due to greed.
If this is spot — "proud random holders" , without the ability to average the position (no money), to reduce the average price of the position set as a whole, and as a result increase the % of profit in the future.
A trading plan and risk control are the basis, not guessing the price movement. If you do not have the first “two whales” of trading in your arsenal, then you have nothing. It doesn't matter how much you guess the potential movement, as the outcome of such practice is always the same, and it is not comforting.
Trading Psychology
How to Actually Do Backtesting?Welcome back guys, I’m Skeptic!
Today, I’m gonna break down one of the most important and fundamental skills every trader needs: Backtesting .
Backtesting is the very first step on your trading journey and probably the most crucial one. It’s all about putting your theoretical knowledge and trading plan to the test by evaluating them against historical market data. The goal? To see whether your strategy actually works — with what win rate, R/R ratio , and more.
But here’s the problem: many traders do it wrong. They end up getting unreliable results, which leads to self-doubt when it comes to forward testing. The real issue is not your strategy but how you conduct your backtest.
Let’s dive into the complete process! 💪
🛠️ Tools You Need
To start backtesting, you’ll need some software that supports the replay feature, allowing you to move through historical data as if it were live.
The best platforms for this are TradingView and MetaTrader . Personally, I use TradingView because it’s super intuitive and has great backtesting capabilities.
Also, make sure to choose appropriate timeframes for backtesting that align with your strategy.
🕰️ Choosing Market Conditions:
You need to backtest your strategy in all types of market conditions:
Uptrend
Downtrend
Range-bound
High Volatility
🚀 Step-by-Step Backtesting
1.Choose the Timeframe:
Make sure your backtesting timeframe matches your strategy’s timeframe. For example, if your strategy works on the 4H chart, don’t backtest on the 1H chart.
2.Select Your Strategy:
Stick to your written trading plan without improvising.
3.Pick the Asset Pair:
Test on at least three different pairs or assets (e.g., EUR/USD, XAU/USD, GBP/NZD) to get diverse results.
4.Define Entry and Exit Rules:
Clearly specify your entry, stop loss, and target levels. Never change these rules mid-backtest, even if it seems illogical. In real trading, you won’t have the luxury of endless contemplation.
🎯 Running the Backtest
Use the Replay Tool to move through historical data.
Never peek at the future price movement. If you accidentally see it, restart from a different point.
Open a minimum of 30 positions for each market condition (e.g., uptrend, downtrend, range).
Record each trade in a spreadsheet (Excel, Google Sheets, etc.) with the following columns:
Date
Time
Entry strategy
Stop loss
Target
Result (profit/loss as R/R ratio)
Exit time
📊 Analyzing Your Results
After completing your backtest, it’s time to analyze the data. Key metrics to focus on include:
R/R Ratio
Win Rate (%)
Drawdown (%)
Losing Streaks
Position Frequency
🚩 Common Mistakes to Avoid
Inconsistent Strategy: Changing your rules during backtesting is a no-go. Stick to the plan.
Incomplete Testing: Don’t cut corners and always aim for a substantial number of trades.
Ignoring Market Conditions: Make sure your strategy is tested in all four market scenarios.
Lack of Patience: Just because the first few trades are losses doesn’t mean the strategy is a failure. Sometimes, a losing streak can be followed by a winning trade that covers it all.
💡 Conclusion
Backtesting is the beating heart of any trader’s skill set. It builds confidence and lays the foundation for a profitable strategy. If you found this tutorial helpful, give it a boost and share it with your fellow traders. Let’s grow together, not alone!
And as Freddie Mercury once said:
We are the champions, my friends! :)🏆
Happy trading, and see you in the next analysis! 💪🔥
Trading Miscalibration: Crypto Aims Too High, FX Aims Too LowI was thinking about something fascinating—the way traders approach different markets and, in my opinion...
One of the biggest mistakes traders make is failing to calibrate their expectations based on the market they’re trading.
📌 In crypto, traders dream of 100x gains, refusing to take profits on a 30-50% move because they believe their coin is going to the moon.
📌 In Forex and gold, the same traders shrink their expectations, chasing 20-30 pip moves instead of riding 200-500 pip trends.
Ironically, both approaches lead to frustration:
🔴 Crypto traders regret not taking profits when the market crashes.
🔴 FX and gold traders regret not holding longer when the market runs without them.
If you want to be a profitable trader, you must align your strategy with the reality of the market you’re trading.
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Crypto: Stop Aiming for the Moon—Trade Realistic Outcomes
Crypto markets are highly volatile, and while 10x or 100x gains can happen, they are rare and unpredictable. However, many traders have been conditioned to expect extreme returns, leading them to ignore solid 30-50% gains—which are already fantastic trades in any market.
🔴 The Problem: Holding Too Long & Missing Profits
Many traders refuse to take profits on a 30-50% move, convinced that a 10x ride is around the corner. But when the market reverses, those unrealized gains disappear—sometimes turning into losses.
🚨 Frustration:
"I was up 50%, but I got greedy, and now I’m back to break-even—or worse!"
✅ The Fix: Take Profits at 30-50% Instead of Waiting for 10x
✔️ Take partial profits at key resistance levels.
✔️ Use a trailing stop to lock in gains while allowing for further upside.
✔️ Understand that even professional traders take profits when they’re available—they don’t blindly hold for the next 100x.
📉 Example:
If Bitcoin jumps 30% in a month, that’s already a massive move! Instead of waiting for 200%, a disciplined trader locks in profits along the way. Similarly, if an altcoin is up 50% in two weeks, securing profits makes sense—instead of watching it all disappear in a market dump.
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FX and Gold: Stop Thinking Small—Aim for Big Market Trends
On the other hand, when it comes to Forex and gold, many traders shrink their expectations too much. Instead of capturing multi-hundred-pip moves, they settle for 20-30 pip scalps, constantly entering and exiting the market, exposing themselves to unnecessary whipsaws.
🔴 The Problem: Exiting Too Early & Missing Big Trends
Unlike crypto, where traders hold too long, in FX and gold, they don’t hold long enough. Instead of riding a 200-500 pip move, they panic-exit for a small profit, only to watch the market continue without them.
🚨 Frustration:
"I closed at 30 pips, but the market kept running for 300 pips! I left so much money on the table!"
✅ The Fix: Target 200-500 Pip Moves Instead of Scalping
✔️ Focus on higher timeframes (4H, daily) for clearer trends.
✔️ Set realistic yet ambitious targets —200-300 pips in Forex, 300-500 pips in gold.
✔️ Use a strong risk-reward ratio (1:2, 1:3, even 1:5) instead of taking premature profits.
📉 Example:
• If EUR/USD starts a strong downtrend, why settle for 30 pips when the pair could drop 250 pips in a week?
• If gold breaks a major resistance level, a move of 300-500 pips is entirely possible—but you won’t catch it if you exit at 50 pips.
________________________________________
Why Traders Fail to Calibrate Properly
So why do traders fall into this misalignment of expectations?
1️⃣ Social Media & Hype Culture – Crypto traders are bombarded with "to the moon" narratives, making them feel like 30-50% gains are not enough. Meanwhile, in Forex, traders get stuck in a scalping mindset, thinking that small, frequent wins are the only way to trade.
2️⃣ Fear of Missing Out (FOMO) vs. Fear of Losing Profits (FOLP)
• In crypto, FOMO keeps traders holding too long. They don’t want to miss "the big one," so they refuse to take profits.
• In FX and gold, fear of losing small profits makes traders exit too soon. They don’t let trades develop because they fear a pullback.
3️⃣ Misunderstanding Market Structure – Each market moves differently. Crypto is highly volatile but doesn’t always go 10x. Forex and gold move slower but offer consistent multi-hundred-pip trends. Many traders don’t adjust their strategies accordingly.
________________________________________
The Solution: Align Your Strategy with the Market
🔥 In crypto, don’t wait for 10x— start taking profits at 30-50%.
🔥 In FX and gold, don’t settle for 30 pips—hold for 200-500 pip moves.
By making this simple mental shift, you’ll:
✅ Trade smarter, not harder
✅ Increase profitability by targeting realistic moves
✅ Reduce stress and overtrading
________________________________________
Final Thoughts: No More Frustration!
The calibration problem leads to frustration in both cases:
⚠️ Crypto traders regret not taking profits when the market crashes.
⚠️ FX and gold traders regret not holding longer when the market trends.
💡 The solution? Trade according to the market's behavior, not emotions.
Stop chasing 20-30 pips if you want to become profitableOne of the biggest obstacles for traders who want to become consistently profitable is the mindset of chasing small 20-30 pip moves.
While it may seem appealing to enter and exit trades quickly for immediate profits, this strategy is often inefficient, risky, and unsustainable in the long run. Here’s why you should change your approach if you want to succeed in trading.
________________________________________
1. Trading Costs Eat Into Your Profits
When you target small moves, you need to open and close many trades. This means that spreads and commissions will eat up a significant portion of your profits. If you have a spread of 2-3 pips (depending on the pair) and you’re only aiming for 20-30 pips per trade, a consistent percentage of your potential gains is lost to execution costs.
________________________________________
2. High Risk Compared to Reward
A smart trader focuses on a favorable risk-reward ratio, such as 1:2, 1:3 or even 1:4. When you chase just 20-30 pips, your stop-loss has to be very tight, making you highly vulnerable to the normal volatility of the market. An unexpected news release or a liquidity spike can stop you out before the price even reaches your target.
________________________________________
3. You Miss Big Moves and Real Opportunities
Professional traders focus on larger trends and significant price movements of hundreds of pips. The market doesn’t move in a straight line; it goes through consolidations, pullbacks, and major trends. If you’re busy trading short-term 20-30 pip moves, you’ll likely miss the big trends that offer more sustainable profits and better risk management.
________________________________________
4. Increased Stress and Emotional Trading
Short-term trading requires constant monitoring and quick decision-making. This increases your level of stress and negative emotions like fear and greed, leading to costly mistakes. In the long run, this trading style is mentally exhausting and difficult to sustain.
________________________________________
How to Change Your Approach to Become Profitable
✅ Think in terms of larger trends – Focus on 200-300+ pip moves instead of small fluctuations.
✅ Aim for a strong risk-reward ratio – Look for setups with at least 1:2 risk-reward to maximize your profits.
✅ Use higher timeframes – Charts like 4H or daily provide clearer signals and reduce market noise.
✅ Be patient and wait for the best setups – Don’t enter trades just for the sake of activity; wait for high-probability opportunities.
Crypto: From "HODL Paradise" to a Speculator’s PlaygroundDuring past bull markets, a simple HODL strategy worked wonders.
Bitcoin and Ethereum set the market trend, and altcoins followed with explosive gains. If you bought the right project before the hype wave, the profits were massive.
However, today’s market is vastly different:
✅ Liquidity is unevenly distributed – Only a handful of major projects attract serious capital, while many altcoins stagnate.
✅ Investors are more sophisticated – Institutional players and smart money dominate, making retail-driven pumps less frequent.
✅ Not all coins pump together – Only projects with real utility and solid tokenomics see sustainable growth.
________________________________________
2. What Matters Now? Strategies for the New Crypto Era
To succeed in the current market, you need a more calculated approach. Here’s what you should focus on:
🔹 Technical Analysis
You can’t just buy blindly and hope for a moonshot. Understanding support and resistance levels, price patterns, trading volumes, etc. is crucial.
Example: If an altcoin has surged 50% in a few days and reaches a strong resistance level, it’s not a buying opportunity—it’s a sell signal for short-term traders.
🔹 Tokenomics and Supply Mechanics
In 2017 and 2021, as long as a project had a compelling whitepaper, it could attract investors. Now, you need to analyze total token supply, distribution models, utility, and vesting schedules.
Example: If a project has an aggressive vesting schedule where early investors and the team receive new tokens monthly, there will be constant selling pressure. No matter how good the technology is, you don’t want to be caught in a dumping cycle.
🔹 Market Psychology and Speculative Cycles
Crypto is driven by emotions. You need to recognize when the crowd is euphoric (time to sell) and when fear dominates (time to buy).
Example: If a project is all over Twitter, Telegram, and TikTok, it might already be near the top. On the other hand, when a solid project is ignored and trading volume is low, it could be a prime accumulation opportunity.
________________________________________
3. Realistic Expectations: 30-50-100% Are the New "100x"
If catching a 10x or 100x was common in the past, those days are largely over. Instead, 30-50-100% gains are far more realistic and sustainable.
Why?
• The market is more mature, and liquidity doesn’t flood into random projects.
• Most "100x" gains were pump & dump schemes, which are now avoided by smart investors.
• Experienced traders take profits earlier, limiting parabolic price action.
Recommended strategy:
1. Enter early in a solid project with clear utility and strong tokenomics.
2. Set realistic profit targets (e.g., take 30% profit at +50%, another 30% at +100%, and hold the rest long-term).
3. Don’t wait for a “super cycle” to make money—take profits consistently.
________________________________________
4. Conclusion: Adapt or Get Left Behind
The crypto market has evolved from a “HODL Paradise” where almost any coin could 10-100x into a speculator’s playground, favoring skilled traders and informed investors.
To stay profitable, you must:
✅ Master technical analysis and identify accumulation vs. distribution zones.
✅ Pick projects with solid tokenomics and avoid those with aggressive unlock schedules.
✅ Set realistic expectations—forget about 100x and aim for sustainable 30-100% gains.
✅ Stay flexible and adapt to market psychology and emerging trends.
Crypto is no longer a game of luck. It’s a game of knowledge and strategy. If you don’t adapt, you’ll be stuck waiting for a 100x that may never come.
So, at least this is my opinion. But what about you? Do you think crypto is still a "HODL paradise," or are we fully in the era of skilled traders and speculators?
Will we ever see another cycle where almost everything pumps together, or is selective investing the new reality?
I’d love to hear your thoughts—drop a comment below and let’s discuss
123 Quick Learn Trading Tips - Tip #6 - Defensive or Aggressive?123 Quick Learn Trading Tips - Tip #6 - Defensive or Aggressive?
To make money in trading, you need to control your emotions.
Traders often fall into two emotional traps:
Overly Aggressive: After several wins , a trader may become too confident. They might increase their position sizes or take on riskier trades. This can lead to significant losses if the market turns.
Overly Defensive: After several losses , a trader may become too fearful. They might hesitate to enter good trades or exit trades too early. This can lead to missed profit opportunities.
Maintaining a balance between these states is key. Learn to recognize and control your emotions. Discipline and a calm mind are essential for successful trading.
In trading, you must simultaneously be
defensive and aggressive.
Balance is Key ⚖️
Navid Jafarian
Every tip is a step towards becoming a more disciplined trader. Look forward to the next one! 🌟
The Four Fears of Trading and the Law of HarmonyTrading is not just about charts, strategies, and numbers. It’s a psychological battlefield, where fear dominates — but there’s also an often-overlooked factor: harmony. WD Gann’s Law of Harmony teaches that markets, like people, have unique vibrations. When you trade in sync with stocks or currency pairs that ‘resonate’ with you, your confidence and performance improve. Let’s explore how combining Gann’s insights with an understanding of the Four Fears of Trading can create a balanced, more successful trading mindset.
What Is the Law of Harmony?
The Law of Harmony is one of WD Gann’s foundational principles. Gann believed that everything in the universe moves according to natural laws, and markets are no different. Each stock, commodity, or currency pair has its own ‘vibration’ or rhythm — a unique frequency that determines how it behaves. When a trader finds a market whose vibration aligns with their own psychological makeup and trading style, they experience greater clarity, confidence, and success. This is trading in harmony.
Gann used this principle to select markets that matched his analysis style, making it easier to forecast price movements. He believed that recognizing harmony between the trader and the market was just as important as the technical setup itself. He meticulously studied time cycles, price patterns, and astrological influences to find markets that moved in predictable, harmonic ways — and traded only those that felt “right.”
In essence, Gann’s Law of Harmony is about working with the market’s natural flow, not against it. When you’re in sync, trades feel clearer, decisions become easier, and success feels almost effortless.
The Four Fears of Trading
In a recent Twitter poll I conducted, 45% of traders admitted that fear was their toughest emotional challenge — more than greed, hope, or overconfidence. Fear in trading can be broken down into four key categories: the fear of losing money, fear of missing out (FOMO), fear of being wrong, and fear of leaving money on the table. Let’s explore each one — and how the Law of Harmony can help conquer them.
1. Fear of Losing Money
This is the most common fear among traders — nobody wants to lose money. The reality, however, is that losses are an inevitable part of trading. Trading is a game of probabilities, with each trade having around a 50% chance of success.
Many traders react to losses with irrational decisions like closing trades too early or holding onto losing trades in the hope they’ll bounce back. This behavior stems from loss aversion — the natural human tendency to avoid losses more than we seek equivalent gains.
How the Law of Harmony helps:
Trade assets that ‘vibe’ with you. Some stocks or forex pairs will naturally feel clearer and easier to predict — that’s harmony.
Stop forcing bad trades. If you consistently lose on a specific pair, stop forcing it. It might not align with your psychology.
Backtest your system. Develop and backtest a trading system over multiple market conditions (trending, sideways, volatile). When you find one that feels ‘right,’ stick with it.
2. Fear of Missing Out (FOMO)
FOMO drives traders to jump into unplanned trades, often near market tops, for fear they’ll miss a big move. This leads to poor entries, increased risk, and reduced potential rewards. The irony? These impulsive trades often result in losses.
How the Law of Harmony helps:
Shift your mindset from “making money” to “following a process.” Money is a byproduct of trading in harmony with the right instruments.
Accept that the market is endless. Opportunities are like waves — there’s always another one coming. When you trade in sync with a market’s natural rhythm, better setups come to you.
3. Fear of Being Wrong
From childhood, we’re conditioned to avoid mistakes. In trading, however, losses are not failures — they’re feedback. The fear of being wrong can cause traders to hold onto losing trades, cut winners short, or avoid taking trades altogether.
How the Law of Harmony helps:
Focus on pairs or stocks that feel intuitive. When you feel more connected to an asset’s behavior, the fear of being wrong diminishes.
Accept that not every market resonates with you — and that’s okay.
Embrace losing trades as a natural part of the business. Even in harmony, some trades won’t work — that’s part of the rhythm.
4. Fear of Leaving Money on the Table
This fear emerges when a trader exits a trade too soon, only to watch the market continue in their favor. It’s frustrating, but trying to capture every last pip is a recipe for disaster. Markets are unpredictable, and no one catches the exact top or bottom consistently.
How the Law of Harmony helps:
Trust the market’s rhythm. If you’re aligned with the right instrument, more opportunities will come.
Define your exit strategy before entering a trade.
Let go of perfection. Accept that partial profits are better than no profits. In a harmonious market relationship, consistency matters more than squeezing every move.
Final Thoughts: Finding Harmony in Trading
Fear is a natural part of trading — it’s part of being human. The goal isn’t to eliminate fear but to manage it. By identifying which type of fear affects you the most and combining it with Gann’s Law of Harmony, you’ll make more rational decisions and improve your long-term performance.
Imagine you’re at a party. A mutual friend introduces you to a new group of people. You might vibe with some, while others give you an uncomfortable feeling. Stocks and forex pairs work the same way. You naturally gel with some, understanding their behavior and making profitable trades, while others consistently lead to losses.
The secret to long-term trading success is not forcing trades or chasing markets — it’s about finding what resonates with you. Focus on the process, trade in harmony, and the profits will follow.
Remember: The market doesn’t reward those who fight it. It rewards those who flow with it.
Happy trading!
Possible vs. Probable in Trading — Most Traders Ignore ThisOne of the biggest mistakes traders make — especially beginners — is confusing what is possible with what is probable.
This confusion leads to poor decisions, unnecessary risks, and eventually, losses that could have been easily avoided.
Possible and Probable Are NOT the Same Thing
Let's make this very clear:
• Possible means it can happen.
• Probable means it is likely to happen, based on evidence and context.
In life, many things are possible — but that doesn’t mean we should live our lives preparing for each possible (and often extreme) event.
To give you a real-life example: it’s possible that something falls from the roof top of a builing and hits you while shopping and die. Sadly, this actually happened in Romania about a month ago.
But as rare and tragic as it is, it’s not probable. And it definitely doesn’t mean that we should stop going outside, right?
Trading Is a Game of Probabilities, Not Possibilities
When trading, we are not betting on what is possible.
If we did, we would enter trades every time we imagine a price could go higher or lower — and that would be a disaster.
Instead, we are betting on what is probable — based on:
• Technical analysis
• Price action
• Market context
• Volume
• Sentiment
⚠️ Yes, it is always possible for price to go in either direction.
But our edge comes from identifying what is more likely to happen based on the data we have.
Why This Difference Is Crucial for Your Trading Success
✅ Focusing on probabilities means:
• You enter only high-probability setups.
• You manage risk properly because you accept that nothing is 100% sure.
• You avoid chasing trades just because "it’s possible" something happens.
❌ Focusing on possibilities leads to:
• Overtrading
• Emotional decisions
• Hoping instead of following a plan
• Blowing up accounts
Conclusion: Trade Like a Professional — Trade Probabilities
Remember:
"Anything is possible, but not everything is probable."
If you want to survive and thrive in the markets, focus on probabilities — not on fantasies of what could happen.
You are not trading "maybe this happens", you are trading "this is likely to happen, and I’m managing my risk if it doesn’t".
Make this shift in mindset, and you’ll already be ahead of most traders out there.
Exploring the Main Components of a Powerful Trading Journal
In one of the previous posts, we discussed the significance of a trading journal. In the today's article, I will share with you the key elements of a trading journal of a professional trader.
And first, a quick reminder that a trading journal is essential for your trading success. No matter on which level you are at the moment, you should always keep track of your results.
Let's go through the list of the things that you should include in your journal.
1 - Trading Instrument
The symbol where the order is executed.
You need that in order to analyze the performance of trading a particular instrument.
2 - Date
The date of the opening of the position. Some traders also include the exact time of the execution.
3 - Risk
Percentage of the account balance at risk.
Even though some traders track the lot of sizes instead, I do believe that the percentage data is more important and may give more insights.
4 - Entry Reason
The set of conditions that were met to open the trade.
In that section, I recommend to note as much data as possible.
It will be applied in future for the identification of the weaknesses of your strategy.
5 - Risk Reward Ratio
The expected returns in relation to potential risks.
6 - Results
Gain or loss in percentage.
And again, some traders track the pip value of the gain, however,
in my view, the percentage points are more relevant for studying the statistics.
Here is the example of the trade on Gold:
Here is how exactly you should journal the following trade:
Instrumet: Gold (XAUUSD)
Date: 03.07.2023
Risk: 1%
Entry Reason: H&S Pattern Formation,
Neckline Breakout & Retest
R/R Ratio: 1.77
Results: +1.77%
Of course, depending on your trading strategy and your personal goals, some other elements can be added. However, the list that I propose is the absolute minimum that you should track.
❤️Please, support my work with like, thank you!❤️
I am part of Trade Nation's Influencer program and receive a monthly fee for using their TradingView charts in my analysis.
Breaking the Trading Matrix: Lessons from The Matrix MovieThe Matrix is more than just a movie—it’s a mind-expanding experience that continues to offer new insights, no matter how many times you watch it. Beyond its philosophical depth and action-packed sequences, the film carries powerful lessons that can be applied to trading.
Just like in The Matrix, financial markets blur the line between reality and illusion. Success in trading requires a shift in perception, a willingness to embrace harsh truths, and the ability to decode the underlying structure of the market.
Let’s break down the key trading lessons inspired by The Matrix.
🕶️ Building Confidence: The Neo Path
Remember Neo’s journey? He started as Thomas Anderson—doubtful and uncertain—before transforming into the confident savior of humanity. This mirrors a trader’s evolution:
• You start hesitant and unsure.
• Greed and ego take over.
• The market humbles you with losses.
• You develop an edge, learning from experience.
• Over time, confidence and resilience grow.
Like Neo, every trader faces setbacks. But every setback is a setup for a comeback. Persistence and adaptation are key.
🏃♂️ Confirmation Bias: Dodging the Bullet
One of the most iconic scenes in The Matrix is Neo dodging bullets, bending reality to his advantage. Traders must do the same by reshaping their biases.
If you only seek confirmation for your trades, you’ll ignore critical counter-signals. To avoid this trap:
✅ Develop a trading system based on logic, not emotion.
✅ Seek diverse viewpoints instead of reinforcing your bias.
✅ Accept that the market moves on probabilities, not personal beliefs.
Dodge the confirmation bias bullet, and you’ll become a more objective and adaptable trader.
🔴 Take the Red Pill: Embrace Reality
In The Matrix, the red pill symbolizes awakening to the truth. In trading, taking the red pill means accepting the realities of the market:
❌ Traders who take the blue pill:
• Chase high win rates.
• Refuse to accept losses.
• Gamble with oversized positions.
✅ Traders who take the red pill:
• Accept risk as part of the game.
• Prepare for inevitable losses.
• Understand that past performance does not guarantee future results.
Those who ignore market realities are doomed to fail. Take the red pill and see the market for what it truly is.
🥄 There Is No Spoon: The Power of Perspective
In the famous "There is no spoon" scene, Neo learns that reality is shaped by perception. The same applies to trading:
• The market isn’t your enemy—your perception of it is.
• Stop trying to “bend” the market to your will.
• Instead, bend your mind to adapt to market conditions.
Traders who develop flexibility thrive, while those who resist change break.
🔢 Understand the Code – Understand the Matrix
Neo eventually sees the code behind The Matrix. Similarly, traders must understand the market’s underlying structure:
📊 Price Action
📈 Volume
📉 Probabilities
Markets move up, down, and sideways. Your job is to recognize patterns and decode them. The more you understand the code, the more clarity you gain in your trades.
👨💼 Agent Smith and Market Manipulators
Just as Agent Smith was a virus in The Matrix, market manipulators exist to exploit uninformed traders. Beware of:
🚨 Extreme volatility
📉 Unusual price gaps
❌ Pump-and-dump schemes
Stay vigilant and avoid manipulated markets that can drain your capital.
🏋️ Training Simulation: Practice Makes Perfect
Before Neo fought in the real world, he trained in simulated battles. Traders should do the same before risking real money:
✅ Backtest strategies to refine your edge.
✅ Use demo accounts to practice execution.
✅ Paper trade to gain confidence before going live.
Mistakes in training are free. Mistakes in live trading cost money. Train smartly.
🕶️ Morpheus’s Faith: Belief in Yourself
Morpheus believed in Neo before Neo believed in himself. Traders must also develop unwavering self-belief:
✔️ Trust your analysis.
✔️ Stick to your system.
✔️ Make decisions with confidence.
Doubt and hesitation lead to poor execution. Confidence, backed by preparation, leads to success.
🏛️ The Architect’s Plan: Strategy is Key
The Architect had a plan for The Matrix—every possible outcome was accounted for. Traders need the same level of structure:
📝 Develop a clear trading strategy.
🎯 Stick to your plan, even when emotions flare up.
⚖️ Adjust when necessary, but never trade impulsively.
Without a plan, you’re just another gambler in the market.
🧘 Free Your Mind: Emotional Control
Neo’s final test was to free his mind. In trading, emotional control is the ultimate skill:
✅ Backtest your system to understand market behavior.
✅ Risk less until you're comfortable with losses.
✅ Trade small before increasing position sizes.
Your worst enemies in trading?
❌ Ego
❌ Fear
❌ Greed
Master them, or the market will master you.
🔥 Final Words: The Path to Financial Awakening
Trading, like The Matrix, is a journey of self-discovery, discipline, and adaptation. If you want to break free from the illusion of quick riches and truly understand the market, you must:
📌 Develop confidence and resilience.
📌 Avoid confirmation bias and seek objective perspectives.
📌 Accept the harsh realities of trading.
📌 Adapt to market conditions instead of resisting them.
📌 Learn to read price action, volume, and probabilities.
📌 Stay vigilant against market manipulation.
📌 Practice before going live.
📌 Believe in yourself and your system.
📌 Have a structured plan and execute with discipline.
📌 Master your emotions to make rational decisions.
The real question is: Are you ready to free your mind and take control of your trading destiny?
THE IMPORTANCE OF TREND FOLLOWINGMost people tend to not check the overall trend not knowing that could potential be a danger to their trades and account
If the overall trend is a downtrend(making lower lows and lower high)- you should look only for selling entries especially if you trade bigger time frames(M15 to upwards). However it's not that simple or everyone would be making millions of dollars lol.
when you check the overall trend you should make sure the swing lows and high are clear, strong and the bearish/bullish pressure(volatility) should also be strong and clear if one of these is missing
then it's best to stay away from the market or you'll become liquidity for other trades😂
so all in all, combine your Trend following with liquidity and market volatility.
Different Shades of DisciplineIn my decade of trading experience I've come to realize through huge number of trials and errors that discipline in trading is a rather unique and not always universal beast.
While there are definitely broad categories of discipline trading like taking high-quality setups, correctly managing risk, taking profits, and so on; There are also many unique underlying reasons and mind-tangled cognitive dissonances that can become the cause of these lapses.
What I understood in my experience is that discipline seems to be transferrable from 1 area to another. Addicted to smoking? Perhaps, quitting can be beneficial to one's trading. However, not necessarily as some traders smoke (and can't quit that habit) for a different underlying reason and thus quitting for them might NOT be as beneficial for the former one. The devil seems to be in the details. Why one smokes? Is it a coping mechanism for stress, or is it a little ritual that one employs to consciously recalibrate themselves?
The key seems to be in action and number of trials and experiments. Attempting to try the routine of other people might not yield the best results for the expended effort. One person may run for many miles and enjoy that time, for another it will be excruciating agony to do that. The discipline required in that example would obviously be vastly different, and thus the effect that action produces also - different.
At the end of the day - the most important thing in trading is consistency, but coupled with PERSONAL unique discipline is something that gives us edge in the markets.
123 Quick Learn Trading Tips #5: To HODL, or not to HODL?123 Quick Learn Trading Tips #5:
To HODL, or not to HODL: That is the question
Alright, crypto adventurers, let's talk about HODLing! 🎢
Ever seen this meme?
It perfectly captures the reality of holding onto your Bitcoin! 😂
What newbies think HODLing is: A smooth bike ride to the finish line! 🚴♂️💨
Easy peasy, right? Just buy and wait for the moon! 🚀🌕
What HODLing actually is: A wild rollercoaster through mountains, valleys, stormy seas, and even a cloud with a face! 😱🌊🏔
It's a journey filled with dips, peaks, unexpected turns, and maybe even a few moments where you question your life choices! 😅
But here's the secret sauce: The good news is that the more you learn about Bitcoin, the easier it becomes to HODL. 🧠📈
Why? Because understanding the technology, the fundamentals, and the long-term vision of Bitcoin gives you the conviction to weather the storms. ⛈
You start to see the dips as buying opportunities, not as reasons to panic-sell! 📉➡️📈
So, dive into the world of Bitcoin! Learn about its history, its technology, and its potential! 📚💡
The more you know, the stronger your hands will be, and the smoother that HODL journey will feel! 💪💎
Remember, it's not just about getting to the finish line, it's about enjoying the crazy ride! 🎉
Dangers of Giving Up Too Soon on a Trading Strategy GOLD, FOREX
There are hundreds of different strategies to trade. Some of them are losing ones, some provide modest results and some strategies are very profitable.
Novice traders often struggle to find the right strategy that suits their personality, financial goals and risk appetite. Unfortunately, they also tend to make some common mistakes that can undermine their performance and confidence.
❌ One of the biggest mistakes that they make in their search is that they give a strategy a very short trial period. It simply means that they are trying to assess the validity of the strategy, trading that for a very short time span (usually a day to a week).
Please, realize the fact that the performance of the strategy can be measured only with extended backtesting - meaning that the strategy should be tested on multiple financial instruments and for a long period of time and applying multiple evaluation metrics.
Moreover, if the strategy proves its efficiency on backtesting, it should be traded on a demo account at least 2 months before the valid performance can be calculated.
❌ Another common mistake is that many traders drop the strategy once it starts losing. And by losing, I mean just 2–3 trades in a row.
Newbies are searching for the approach that never loses.
They may even abandon a trading strategy once they catch JUST ONE bad trade.
✅ In contrast, a smart trader realizes that one bad trade does not define the performance of the strategy. Moreover, such a trader calmly faces the losing streaks and sticks to the strategy.
Take a look at that picture.
On the top, we have the traits of a newbie trader and his equity curve.
He abandons the strategy after he faces the loss, not giving the strategy a chance to recover.
When he changes the strategy, he starts recovering a little bit and a losing period follows.
He drops a strategy again, and he keeps following this vicious cycle till his entire account is blown.
On the bottom of the picture, we see the equity curve of a smart trader.
Even though he faces losses occasionally, his strategy always gives him a chance to recover and with time his trading account steadily grows.
Please, realize the fact that a perfect strategy does not exist. You will lose the money occasionally anyway. What distinguishes a smart trader from a dumb one is his discipline and trust to his trading system and willingness to face losses.
❤️Please, support my work with like, thank you!❤️
I am part of Trade Nation's Influencer program and receive a monthly fee for using their TradingView charts in my analysis.
HIGH Volatility Alert! Everything You Need to Know
Have you ever wondered why the certain trading instruments are very rapid while some our extremely slow and boring?
In this educational article, we will discuss the market volatility , how is it measured and how can it be applied for making smart trading and investing decisions.
📚 First, let's start with the definition. Market volatility is a degree of a fluctuation of the price of a financial instrument over a certain period of time.
High volatility reflects quick and significant rises and falls on the market, while low volatility implies that the price moves slowly and steadily.
High volatility makes it harder for the traders and investors to predict the future direction of the market, but also may bring substantial gains.
On the other hand, a low volatility market is much easier to predict, but the potential returns are more modest.
The chart on the left is the perfect example of a volatile market.
While the chart on the right is a low volatility market.
📰 The main causes of volatility are economic and geopolitical events.
Political and economic instability, wars and natural disasters can affect the behavior of the market participants, causing the chaotic, irrational market movements.
On the other hand, the absence of the news and the relative stability are the main sources of a low volatility.
Here is the example, how the Covid pandemic affected GBPUSD pair.
The market was falling in a very rapid face in untypical manner, being driven by the panic and fear.
But how the newbie trader can measure the volatility of the market?
The main stream way is to apply ATR indicator , but, working with hundreds of struggling traders from different parts of the globe, I realized that for them such a method is complicated.
📏 The simplest way to assess the volatility of the market is to analyze the price action and candlesticks.
The main element of the volatile market is occasional appearance of large candlestick bars - the ones that have at least 4 times bigger range than the average candles.
Sudden price moves up and down are one more indicator of high volatility. They signify important shifts in the supply and demand of a particular asset.
Take a look at a price action and candlesticks on Bitcoin.
The market moves in zigzags, forming high momentum bullish and bearish candles. These are the indicators of high volatility.
🛑 For traders who just started their trading journey, high volatility is the red flag.
Acting rapidly, such instruments require constant monitoring and attention. Moreover, such markets require a high level of experience in stop loss placement because one single high momentum candle can easily hit the stop loss and then return to entry level.
Alternatively, trading a low volatility market can be extremely boring because most of the time it barely moves.
The best solution is to look for the market where the volatility is average , where the market moves but on a reasonable scale.
Volatility assessment plays a critical role in your success in trading. Know in advance, the degree of a volatility that you can tolerate and the one that you should avoid.
❤️Please, support my work with like, thank you!❤️
I am part of Trade Nation's Influencer program and receive a monthly fee for using their TradingView charts in my analysis.
Embracing Losses: The Silent MindThe Silent Mind: Embracing Losses with Emotional Equanimity in Day Trading
In the fast-paced world of day trading, where market movements are swift and often unpredictable, the greatest challenge doesn't come from the external environment but from within. The markets are a mirror reflecting every trader's deepest fears, anxieties, and insecurities. Among these, the ability to remain emotionless during losses stands as a cornerstone for consistent success.
Understanding the Nature of the Market
At its core, the market is a realm of probabilities, not certainties. Each trade presents a unique combination of variables, making the outcome uncertain despite the most rigorous analysis. Accepting this fundamental truth is the first step toward emotional mastery. When traders internalize that losses are an inherent part of the game, they shift from a mindset of avoidance to one of acceptance.
Imagine standing at the edge of a vast ocean, tossing a pebble into the waves. The ocean's response is indifferent; it absorbs the pebble without disruption. Similarly, the market reacts to your trades without malice or favoritism. It doesn't know you exist. Personalizing losses—believing that the market is out to get you—only fuels emotional turmoil.
The Psychological Trap of Losses
Losses trigger a primal response rooted in our instinct for survival. The discomfort associated with losing money can evoke fear, leading to impulsive decisions aimed at immediate relief. This reactionary cycle often manifests as revenge trading, overtrading, or abandoning one’s trading plan altogether.
Consider a trader who, after a series of losses, decides to double their position size to "win back" what was lost. This act isn't grounded in a sound strategy but in an emotional need to heal a psychological wound. Such decisions escalate risk and often compound the initial loss, reinforcing a negative feedback loop.
Cultivating an Emotionless State
Being emotionless doesn't mean being indifferent or suppressing feelings. It's about achieving a state of mental equilibrium where emotions exist but don't dictate actions. This balance allows for objective decision-making based on predefined strategies rather than momentary feelings.
Here are key practices to cultivate this state:
Embrace Losses as Information
View each loss not as a failure but as valuable feedback. Losses provide insights into market conditions, the effectiveness of your strategy, and your execution. By analyzing losses objectively, you turn them into stepping stones for growth.
Develop a Robust Trading Plan
A well-defined trading plan acts as a compass amid market chaos. It outlines entry and exit criteria, risk management protocols, and position sizing rules. Relying on this plan reduces the reliance on gut feelings and minimizes emotional interference.
Implement Strict Risk Management
Accept that any trade can result in a loss. Determine the maximum amount you're willing to lose on a trade—typically a small percentage of your trading capital. This approach ensures that no single loss can significantly impact your overall portfolio.
Practice Mindfulness and Self-Awareness
Regular mindfulness exercises enhance your ability to recognize emotional triggers. By acknowledging emotions without reacting impulsively, you maintain control over your trading decisions.
Set Realistic Expectations
Unrealistic expectations, such as winning on every trade or making a fortune overnight, set the stage for disappointment and emotional distress. Aligning expectations with the realities of the market fosters patience and discipline.
The Power of Detachment
Detachment is the art of being fully engaged in the trading process without being tethered to the outcome of individual trades. It's about finding satisfaction in executing your plan flawlessly, regardless of whether a trade results in a profit or a loss.
Think of a seasoned athlete who performs with consistency. They focus on perfecting their technique, understanding that while they cannot control the outcome of the game, they can control their preparation and effort. Similarly, traders who master detachment find freedom in the process rather than the result.
Transforming Losses into Opportunities
Every loss carries the seed of an equal or greater benefit if perceived correctly. Losses can highlight flaws in your strategy, reveal biases, or signal changing market dynamics. Embracing this perspective turns setbacks into catalysts for improvement.
Ask yourself after a loss:
Did I adhere to my trading plan?
Was the loss due to market unpredictability or a lapse in discipline?
What can I adjust to enhance future performance?
By systematically evaluating these questions, you foster a growth mindset conducive to long-term success.
Conclusion
The journey to becoming an emotionless trader during losses is not about stripping away your humanity but about elevating your consciousness. It's a disciplined path requiring self-reflection, practice, and unwavering commitment to personal development.
Remember that the market is an ever-changing landscape. Your ability to navigate it with emotional clarity and steadfastness sets you apart. Losses are not adversaries but teachers guiding you toward mastery.
In the silence of an emotionless mind, you find the clarity to see the market as it is, not as you fear it to be. It's in this state that the true potential of a trader is realized.
Embracing Uncertainty: Mastering the Trader's Mindset on US30Navigating the US30 index as a day trader isn't just about reading charts or following market news—it's a deep dive into understanding probabilities and mastering your own psychology. Markets are inherently unpredictable, and every price movement is a unique event with its own set of variables. The key isn't to predict with certainty where the US30 is headed next, but to develop a mindset that embraces the uncertainty and leverages it to your advantage.
Imagine the market as a vast ocean. You can't control the tides or the currents, but you can adjust your sails. Each trade is like setting off on a new voyage. Some days, the waters will be calm, and your journey smooth. Other days, storms will emerge without warning. As a trader, your success hinges on your ability to remain composed, make decisions based on your pre-defined strategy, and not on the emotional highs and lows that come with market swings.
Recent fluctuations in the US30 have illustrated just how quickly sentiment can shift. Economic indicators, political developments, and global events can send ripples—or waves—through the index. But rather than trying to catch every wave, focus on the patterns that align with your trading plan. Consistency is your anchor. By sticking to your rules for entries, exits, and risk management, you create a framework that helps you navigate the unpredictability.
Embracing the probabilistic nature of trading is crucial. No single trade defines your success. It's the cumulative result of many trades executed with discipline that matters. Accept that losses are a natural part of trading. Each loss is an opportunity to learn, not a personal failure. This shift in perspective reduces the emotional weight of trading decisions and helps prevent impulsive actions driven by fear or greed.
Consider the psychological barriers that often hinder traders:
Fear of Missing Out (FOMO): Chasing trades because you're afraid of being left behind can lead to poor entry points.
Overconfidence after Wins: A series of successful trades can lead to complacency or taking on excessive risk.
Dwelling on Losses: Obsessing over losses can paralyze you, making you hesitant to take the next opportunity.
Developing self-awareness around these tendencies allows you to address them proactively. Techniques such as mindfulness and regular self-reflection can enhance your mental resilience. Keeping a trading journal not only tracks your performance but also your emotional state during each trade, revealing patterns that you can work on.
Moreover, it's beneficial to approach the market with a flexible mindset. Rigid expectations can be shattered when the market doesn't behave as anticipated. Adaptability is a strength. When the US30 behaves unpredictably, having the agility to adjust your strategy while remaining within your risk parameters is vital.
On a practical level, ensure you're well-informed but avoid information overload. Select key indicators and news sources that are relevant to your trading style. Too much conflicting information can lead to analysis paralysis.
Beyond trading strategies, reflect on how your life outside of trading impacts your performance. Adequate rest, a healthy lifestyle, and a supportive environment contribute to clearer thinking and better decision-making on the trading floor.
Have you explored integrating psychological disciplines into your trading routine? Techniques like visualization, meditation, or even consulting with a trading coach might offer new insights into enhancing your performance. The journey of trading is as much about personal growth as it is about profit and loss.
How to Stop Fear and Greed from Controlling Your TradesMany traders think they need to "fight emotions" to improve their results. In reality, emotions are a symptom of poor risk management. Fear and greed take over when risk exposure is too high or when there is no structured plan.
The Solution: Use Risk Management to Train Emotional Discipline
Lower risk per trade until losses feel manageable. If a trade makes you nervous, you are risking too much.
Use a strict entry and exit system. When stop-loss and take-profit are pre-planned, emotional exits are eliminated.
Detach from individual trade results. A single trade doesn’t matter—the process does. If you follow your plan, outcomes take care of themselves.
Test discipline on a demo account first. If you cannot follow risk management rules in a risk-free environment, you won’t follow them in live trading.
Risk management isn’t just about protecting capital. It’s about removing the conditions that allow emotions to take control. On each of the topics I have written detailed articles about my experience and the solutions that I came up with for my own trading. If you are interested to know more you can check the link in my bio.
What’s the hardest part of sticking to your risk rules?
I am also a life coach, so if there is anything I can help with please comment below and hopefully we can do something to improve results.
7 Practical Exercises to Build Patience in TradingI often talk about patience, planning, strategy, and money management, yet many of you tell me that you lack patience, can’t resist impulses, and struggle to follow your plan when emotions take over.
So today, we’re skipping the theory and diving straight into practical exercises that will help you train your patience just like you would train a muscle. If you want bigger biceps, you do dumbbell curls. If you want more patience in trading, try these exercises.
________________________________________
1. The “Observer” Exercise – Train Yourself to Resist Impulsive Trading
Goal: Improve discipline and reduce the urge to enter trades impulsively.
How to do it:
• Open your trading platform and set a timer for 2 hours.
• During this time, you are not allowed to take any trades, only observe price action.
• Write down in your journal: What do you feel? Where would you have entered? Would it have been a good decision?
Advanced level: Increase the observation time to a full session.
✅ Benefit: This exercise reduces impulsiveness and helps you better understand market movements before making decisions.
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2. The “One Trade Per Day” Rule – Eliminate Overtrading
Goal: Train yourself to select only the best setups.
How to do it:
• Set a rule: “I am allowed to take only one trade per day.”
• If you take a trade, you cannot enter another, no matter what happens in the market.
• At the end of the day, analyze: Did you choose the best opportunity? Were you tempted to overtrade?
✅ Benefit: Helps you filter out bad trades and eliminates overtrading, a common issue for impatient traders.
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3. The “Decision Timer” – Avoid Impulsive Entries
Goal: Help you make better-thought-out trading decisions.
How to do it:
• When you feel the urge to enter a trade, set a 30-minute timer and wait.
• During that time, review your strategy: Is this entry aligned with your trading plan? Or is it just an emotional impulse?
• If after 30 minutes you still think the trade is valid, go ahead.
✅ Benefit: This exercise slows down decision-making, helping you think rationally rather than emotionally.
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4. The “No-Trade Day” Challenge – Strengthen Your Self-Control
Goal: Prove to yourself that you can stay out of the market without feeling like you're missing out.
How to do it:
• Pick one day per week where you are not allowed to take any trades.
• Instead, use the time to study the market, analyze past trades, and refine your strategy.
• At the end of the day, reflect: Did you experience FOMO? Was it difficult to resist trading?
✅ Benefit: Increases discipline and teaches you that you don’t have to be in the market all the time to succeed.
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5. The “Walk Away” Method – Stop Micromanaging Trades
Goal: Reduce stress and prevent over-monitoring after placing a trade.
How to do it:
• After placing a trade, walk away from your screen for 1 to 2 hours.
• Set alerts or use stop-loss/take-profit orders so you’re not tempted to constantly check the price.
✅ Benefit: Reduces emotional reactions and prevents overmanagement of trades.
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6. The “Frustration Tolerance” Drill – Train Yourself to Accept Losses and Missed Opportunities
Goal: Build resilience to emotional discomfort in trading.
How to do it:
• Watch the market and deliberately let a good opportunity pass without taking it.
• Observe your frustration, but do not act. Instead, write in your journal: How does missing this opportunity make me feel?
• Remind yourself that there will always be another opportunity and that chasing trades leads to bad decisions.
✅ Benefit: Helps reduce FOMO and makes you a calmer, more disciplined trader.
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7. The “Trading Plan Repetition” Exercise – Build a Strong Habit
Goal: Reinforce discipline and reduce deviations from your plan.
How to do it:
• Every morning, before opening your trading platform, write down your trading rules by hand.
• Example:
o “I will not enter a trade unless all my conditions are met.”
o “I will not move my stop-loss further away.”
o “I will close my platform after placing a trade.”
• Handwriting strengthens mental reinforcement, and daily repetition turns it into a habit.
✅ Benefit: Increases self-discipline and keeps you committed to your strategy.
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Final Thoughts
If you’ve read this far, you now have a concrete plan to build patience in trading. Remember, trading success isn’t just about technical analysis and strategies—it’s about discipline and emotional control.
Just like a bodybuilder follows a structured routine to develop muscles, you must practice patience and discipline daily to master trading psychology.
Impulsive Trading:Understanding the Risks and Regaining ControlHave you found yourself hastily clicking the “Buy” or “Sell” button only to be engulfed by regret almost immediately afterward? If so, you're in good company 😃.
Impulsive trading is a widespread issue that affects traders of all experience levels, often leading to significant financial losses. Studies reveal that a considerable portion of traders battle with impulsive decision-making, which can drastically influence their overall financial health.
Impulsive trading typically arises from emotions rather than careful market analysis or strategic planning. Factors such as the fear of missing out (FOMO), frustration after a loss, or the temptation of quick profits often cloud judgment, resulting in decisions that deviate from disciplined trading practices. This behavior is especially pronounced during volatile market conditions, where emotions can run high. Acknowledging the signs of impulsive trading is essential for fostering discipline and achieving sustained trading success.
Understanding the Risks of Impulsive Trading
The implications of impulsive trading reach far beyond individual poor trades. Each impulsive action can generate a cascade of errors, diverting traders from their predefined strategies. Engaging in impulsive trading often leads to overtrading, where traders make numerous trades in quick succession while hoping for fast returns, ultimately resulting in mounting losses. This not only increases exposure to market volatility but also raises transaction costs, systematically eroding any potential gains.
Another major risk associated with impulsive trading is flawed decision-making. Actions born out of emotional responses lack the rational foundation necessary for sound trading, pushing traders towards choices that diverge from their overall objectives. For instance, abandoning a Stop Loss order or ramping up position sizes following a loss can lead to dramatic financial damage. Moreover, the psychological impact of impulsive trading can result in burnout, heightened stress, and diminished confidence, all of which threaten a trader's long-term viability. Recognizing and understanding these risks highlights the need for self-regulation and a disciplined approach—critical elements for successful trading.
Psychological Triggers Behind Impulsive Trading
The tendency to trade impulsively often stems from various psychological factors that can be difficult to manage. One of the main culprits is the fear of missing out (FOMO); in fast-paced markets, traders may feel an urgent need to enter positions quickly to seize potential profits. This urgency can lead to ill-timed trades, making them more vulnerable to reversals.
Greed is another significant factor that plays a role in impulsive trading. The relentless pursuit of maximizing profits can quickly overshadow a trader’s original plan. As a result, they may prolong a successful trade or increase leverage in hopes of capturing even greater returns, leading to heightened risks. Loss aversion, the instinct to avoid losing money, also contributes to impulsivity. When faced with setbacks, traders might engage in “revenge trading,” making rash decisions in an attempt to recover losses—often dismissing their foundational analytical methods.
External factors like social media and market news also amplify these emotional triggers. The overload of information—from Twitter updates to various trading forums—can create a sense of urgency and spur impulsive behavior, even among experienced traders. By acknowledging these psychological influences, traders can cultivate a more deliberate and strategic approach to their decision-making processes.
Read also:
Identifying Impulsive Trading Behavior
Recognizing the signs of impulsive trading is crucial for anyone looking to regain control and establish a more strategic trading method. Indicators of such behavior include:
- Ignoring Your Trading Plan: Frequently deviating from established entry and exit criteria in favor of fleeting emotions can indicate a pattern of impulsivity.
- Constantly Monitoring Trades: Habitually checking price movements or refreshing trading platforms often suggests an emotional attachment to positions, prompting unnecessary reactions to minor fluctuations.
- Execution of Unplanned Trades: Making trades without forethought, especially after emotional highs from winning trades or lows from losses, disrupts a carefully crafted trading plan and exposes one to greater risks.
- Neglecting Risk Management Practices: Exceeding leverage limits or disabling Stop Loss orders indicates a tendency to focus on immediate gains rather than sustainable trading strategies.
By becoming aware of these behaviors and taking deliberate steps to reflect on each trade's alignment with the overarching strategy, traders can minimize impulsivity and foster a disciplined mindset grounded in rationality.
Read Also:
Strategies for Overcoming Impulsive Trading
Successfully overcoming impulsive trading requires a blend of discipline, self-awareness, and effective strategies. Here are some actionable steps:
1. Set Clear Entry and Exit Criteria: Define explicit guidelines for entering and exiting trades, based on predetermined market conditions or technical indicators. Adhering to these rules minimizes the likelihood of impulsive actions.
2. Employ Stop Loss Orders: Utilize Stop Loss orders to automatically close trades when certain price levels are met. This helps protect against significant losses and allows traders to step back from their positions.
3. Maintain a Trading Journal: Keeping a detailed record of every trade—including motivations, emotions experienced, and outcomes—encourages self-reflection and helps to identify recurring patterns in behavior.
4. Practice Self-Discipline: Establish realistic trading goals and commit to your trading plan. Taking a pause before executing trades can help you refocus on your long-term objectives, minimizing the urge to act impulsively.
5. Restrict Trading Frequency: Set limits on the number of trades you make each day or week to ensure that you only engage in high-quality opportunities, rather than reacting to every market fluctuation.
By adopting these strategies, traders can cultivate the discipline necessary to move away from impulsive decision-making, emphasizing logical and goal-oriented actions instead.
Cultivating a Rational Trading Mindset
Developing a rational mindset is essential for long-term trading success and evading the pitfalls of emotional decision-making. Consider implementing the following techniques:
- Mindfulness and Relaxation Practices: Engage in mindfulness exercises to enhance awareness of your thoughts and feelings. Awareness allows you to recognize when emotions may be influencing trading decisions. Even short moments of focused breathing can provide clarity.
- Take Breaks Regularly: Long trading sessions can lead to fatigue and impaired judgment. By stepping away from your work periodically, you can recharge and return to your trading activities with fresh insight.
- Avoid Trading During Emotionally Charged Situations: If you find yourself facing personal stress or strong emotions, it may be wise to refrain from trading until you regain an even temperament.
- Focus on Long-Term Objectives: Prioritize sustained success over immediate rewards. Remind yourself that while impulsive decisions might provide short-term satisfaction, they often result in long-term setbacks.
Building a rational trading mindset requires patience and dedicated effort, but it is instrumental in improving trading performance. By incorporating these habits into your routine, you can enhance emotional control and make decisions that reflect logic rather than impulse.
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The Critical Role of a Trading Plan
An effective trading plan is a cornerstone for preventing impulsive decisions that can undermine a trader's performance. The emotional responses associated with impulsive trading—such as fear and greed—can derail even the best-laid strategies. A comprehensive trading plan serves as a guiding framework, providing clarity and structured guidelines to help traders manage emotional impulses.
By defining specific goals, a trading plan equips traders with a clear sense of direction, reducing the temptation to chase fleeting opportunities or react to market noise. Furthermore, by integrating principles of risk management into your trading strategy, you ensure that engagement with risks aligns with your personal threshold, thereby minimizing unnecessary exposure. Establishing entry and exit guidelines allows traders to base their decisions on objective criteria, independent of emotion-driven impulses.
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Enhancing Trading Discipline with Tools and Techniques
Employing specific tools and strategies can support a disciplined trading approach and reduce impulsive behavior. Trading software with alert functions can help by notifying traders when predefined conditions for trades are met, ensuring decisions are based on strategic analysis rather than reactive impulses.
Regularly reviewing trading performance is equally vital. This practice allows traders to analyze trades, recognize behavior patterns, fine-tune their strategies, and verify their alignment with their trading plan. Drawing insights from these reviews fosters adherence to disciplined trading and helps traders remain focused and make informed decisions.
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In conclusion..
Achieving lasting success in trading depends on rational thought processes and emotional management. A well-developed trading plan, complemented by the right tools and techniques, empowers traders to avoid impulsivity and concentrate on their goals. Although the temptation for quick gains can be powerful, maintaining a disciplined approach is essential for sustainable success. Remember, trading is a journey rather than a sprint. By remaining consistent and methodical, traders can navigate risks effectively, ultimately crafting a strategy that yields long-term results.
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123 Quick Learn Trading Tips #4: Spot or Futures? Real or Fake?123 Quick Learn Trading Tips #4: Spot or Futures? Real or Fake? 🧐
News : $1.3 Billion has been liquidated 💥 from the FUTURES market within the past 24 hours, as Bitcoin plummeted to $86,000. 📉
Futures leveraged traders were forced to close their positions, realizing a collective loss of $1.3 Billion.
This shows how risky trading with leverage (borrowed money) can be. 💸 ⚠️
Traders who use leverage enter into a gambling game with exchanges, which always win the game. In other words, in the last 24 hours, several crypto exchanges made $1.3 billion in profits.
On the other hand, people who bought Bitcoin directly (spot market) only lost a small amount of profit. This shows that owning the actual asset is more stable. 💎
Traders using leverage lose their money. But for spot investors, this is a good chance to buy more Bitcoin at a low price and make their long-term position stronger. 💰
Like I always tell my students and friends:
Let's go up the spot market stairs, step by step. 🪜 Don't think about the futures elevator. 🏢 It has crashed many times, 📉 and it will crash again. ⚠️
Instead of gambling in the "fake" futures game,
invest your money in the "real" spot market. 💎
Build your investments by owning assets, not by risky leverage. 🚫
Have a nice trading journey!
The Pygmalion Effect in Trading: Expectations Shape Your Resuls!The Pygmalion Effect is a psychological phenomenon where higher expectations lead to improved performance, while low expectations result in poor outcomes.
This concept, often explored in education and leadership, also plays a crucial role in trading psychology.
Your beliefs about your trading abilities, strategies, and the market can directly influence your results.
But how can you use this to your advantage, and when does it work against you? Let’s explore.
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How the Pygmalion Effect Applies to Trading
At its core, the Pygmalion Effect suggests that what you expect tends to become reality—not through magic, but through subconscious behavioral shifts. In trading, this can manifest in several ways:
🔹 Confidence in Your Strategy – If you genuinely believe in your trading system, you're more likely to follow it with discipline, leading to consistent results over time.
🔹 Fear and Self-Doubt – If you constantly doubt your trades, hesitate to enter, or close positions too early out of fear, you reinforce negative expectations, leading to underperformance.
🔹 Risk-Taking Behavior – Overconfidence, another side of the Pygmalion Effect, can lead to excessive risk-taking, believing that every trade will be a winner—just as dangerous as self-doubt.
How to Use the Pygmalion Effect to Your Advantage:
✅ Develop a Strong Trading Plan – Confidence comes from preparation. A well-tested strategy gives you a clear roadmap to follow.
✅ Control Your Self-Talk – The way you talk to yourself matters. Replace " I always lose trades" with "I am improving my risk management and discipline."
✅ Focus on Process Over Outcomes – Instead of worrying about individual wins or losses, focus on executing your plan consistently.
✅ Surround Yourself with Positive Influences – Follow traders and mentors who reinforce disciplined trading habits rather than hype and emotional decision-making.
✅ Use Visualization Techniques – Imagine yourself trading successfully, making rational decisions, and following your plan—this can train your mind to align with positive expectations.
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Applying the Pygmalion Effect – A Real Market Example:
Let’s take a real-world example to illustrate this concept:
For several days, I have been warning about a potential major correction in Gold. The reason? Looking at the daily chart, even though Gold has made all-time highs in the last 10 days, these highs are very close together, and each time the price hit a new top, it reversed sharply.
This pattern is a classic sign of a reversal.
Yesterday, Gold closed with a strong bearish engulfing candle, another indication that a correction is underway.
Now, if we look at the hourly chart (left side), we can see an aggressive drop followed by a retest of the 2930 level—a typical move before further decline.
Here’s where the Pygmalion Effect comes into play:
✅ We see the setup clearly.
✅ We trust our analysis.
✅ We execute with confidence.
Following this logic, Gold could continue its correction, breaking below 2900, possibly testing 2880 support or even lower. We put the strategy into action with conviction.
Final Thoughts:
The Pygmalion Effect in trading is powerful—your expectations can make or break your performance. By setting high but realistic expectations, reinforcing confidence, and focusing on disciplined execution, you can shape yourself into a profitable, consistent trader.
Trust what you see, believe in your strategy, and trade with conviction.
👉 What are your expectations for your trading? Let’s discuss! 🚀📊
Disclosure: I am part of Trade Nation's Influencer program and receive a monthly fee for using their TradingView charts in my analyses and educational articles.
Crypto influencers: The Good, The Bad and The UglyThe crypto space is evolving fast, and with it, the influence of social media figures has grown exponentially.
Crypto influencers have become a major source of information, ideas, and trends for traders and investors alike. But are they really helping, or are they just creating noise?
Let's break it down into three categories: The Good, The Bad, and The Ugly.
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The Good: Learning and Discovery
One undeniable benefit of crypto influencers is access to information. With thousands of projects emerging every months, it's impossible to keep track of everything on your own. Influencers often highlight new projects, provide market insights, and share educational content, making it easier for retail investors to stay informed.
Their content can serve as a starting point for research, helping you discover opportunities you might have missed otherwise. Instead of spending hours searching for new projects, you can get a curated list of potential investments, saving time and effort.
However, the key here is not to blindly follow , but to use their insights as a research tool to dig deeper and verify information before making investment decisions.
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The Bad: Copy-Paste Content & One-Sided Narratives
While some influencers provide value, many simply recycle the same information. If you follow multiple influencers, you might notice that most of them talk about the exact same projects, using almost identical arguments.
Why? Because they often copy each other or are paid to promote specific coins. Instead of offering genuine analysis, they just ride the hype wave.
Another major issue is the lack of balance in their narratives. The majority of influencers focus only on bullish scenarios, constantly pushing the idea that prices will rise. Very few discuss the risks, potential corrections, or exit strategies.
This creates a dangerous mindset among beginner investors, making them believe that crypto only goes up, leading to FOMO-driven decisions instead of well-thought-out investments.
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The Ugly: Hype-Driven, Clickbait Influencers
And now, we get to the worst of the bunch—the aggressive, loud, and sensationalist influencers who have taken over social media. These are the ones who:
🚨 Shout in every video, promising to make you a millionaire overnight
🚨 Hype up "the next 1000x coin" without any real analysis
🚨 Push FOMO-driven narratives to drive engagement, not to educate
Their goal? Clicks, views, and affiliate commissions.
Many of these influencers don’t even trade or invest themselves—they simply capitalize on the excitement of others. They prey on new and inexperienced investors, convincing them to buy into the hype without considering the risks.
But let’s be honest… How many people have actually gotten rich following their advice?
Most of these so-called “expert picks” end up crashing once the hype fades, leaving followers with losses while the influencers move on to the next pump-and-dump scheme.
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Final Thoughts: How to Navigate the Crypto Influencer Space
Not all influencers are bad, but you need to approach them with a critical mindset. Here are a few tips to stay safe:
✅ Use influencers as a research tool, not financial advisors – Always do your own due diligence.
✅ Look for balanced perspectives – Avoid those who only push bullish narratives.
✅ Be skeptical of hype-driven content – If someone is shouting about a guaranteed 100x coin or even 1000x, it's most probably a scam.
✅ Follow influencers who discuss risk management – Real traders know that both gains and losses are part of the game.
At the end of the day, your success in crypto depends on your own research and strategy, not on blindly following influencers. Stay informed, stay cautious, and don’t fall for the hype! 🚀📉
What do you think about crypto influencers? Have you ever made (or lost) money following their advice? Share your thoughts in the comments! 🔥👇