Crypto market psychologythis is an example of how the mass think and why the mass always lose
Avoid thinking this way and you'll do better than most traders on CT
be smarter than the mass and zoom out to see the bigger picture
Psychology
Build small habits, but make big plans!Todays daily primer is more focused on mental trading skills than anyhting else!
We are keeping it nice, short and sweet!
Hope you learn something of value!
QQQ short term calls to the next supply?I am looking for a short-term play to the next supply zone 320.00-326.33. We have been in a bearish market for some time now so this would be a retest for possible continuation to the downside. We will adapt to the market sentiment and plan accordingly.
Three pillars of trading success 📈💲It's time for my mid week educational post.
Today I want to talk about the three pillars needed by all traders for success in the markets.
This isn't just the forex market either this applies to trading all financial markets.
Be it forex, crypto or stocks, so lets get into the the three pillars of success.
PILLAR NUMER ONE- STRATEGY
You MUST have an edge before entering the markets.
When will you enter the market?
When will you close?
What % per trade will you risk?
What pairs will you trade?
What timeframes will you trade?
If you don't have any answers to the above you are entering the markets blind and it will end in tears.
In trading, edge is your ability to select trades that perform better than random.
You can think of edge as the process used to generate and execute entry and exit signals.
Do not enter the markets until you are working a strategy with a proven edge.
The stronger your edge, the more profitable you’ll be.
PILLAR NUMBER TWO- RISK MANAGEMENT
We can't avoid the white elephant in the room on average 80% of trader lose money or fail in the markets.
Some say its even more and you will become one of the stats if risk management isn't applied to your trading.
Some of the reasons losses like these exist in trading is down to the fact that aspiring traders don’t put any thought into their risk management tolerance.
We only ever see the upside when we start out and many never do anything to protect themselves from potential losses.
If you never made any money as a trader before or entered the markets before ask yourself the question below before starting out.
How much money am I comfortable losing?
Your first priority with trading is to stay in the game
So manage your risk per trade and total risk at anyone time.
Understand probability and ensure you are comfortable with your maximum exposure at any one time.
Understand the maximal draw down in your testing when finding your edge.
That way it will help you see what a potential losing run you could experience.
PILLAR NUMBER THREE- TRADING PSYCHOLOGY
We need good trading psychology to keep a balanced mind whilst trading, this stops your emotions leading the trade.
The trade outcome cannot be controlled and you MUST detah yourself from each trade outcome.
You will know when your trading emotions are nailed on when you do not 'FEEL ' anything when trading.
If you have 'emtions' with your trades or when trading simply reduce your risk further.
Two emotions that need particular attention are GREED and FEAR.
You need discipline in controlling these two emotions or you are going to end up making losses as a trader.
We all been there we make a few profits confidence kicks in and then greed before you know it your in whole world of pain.
We all be there at some point with fear to and not executing trades due to a fear being in our trading game say from a poor run of form.
Emotions will always be there we are emotional beings, but they will need controlling in order for you to be a successful trader.
Practice developing the emotional control needed to trade successfully.
FINAL THOUHGHTS
Trading requires 100% commitment most see it as a hobby to start with but this can be costly hobby if commitment to trading is lacking.
The sole reason most get into trading is to make money. One purpose of a business is to make money.
Treat trading as a business at the end of the day it's your personal money that's on the line.
Every trader needs to have a disciplined approach to the markets. Following these three steps will help you.
In order to be a successful trader and run a profitable account, it is essential that you have these three pillars in your trading.
Thanks for taking the time to read my idea.
Darren 👍
Confirmation bias in trading, why 99% crowd drain deposits?A lot of material has been written on the topic of psychology in trading. Especially often you can stumble upon unpretentious articles on the Internet, where the author, like any self-respecting “psychoanalyst”, is trying to talk on the topic: “Why are deposits being drained”.
And everywhere, as if according to one learned pattern, they write about fear, about greed, about the fact that one should not sit out losses, one should allow profits to grow, one should put stop orders, observe risks, keep a diary, work according to the system and other banality, oh which everyone has heard.
Our idea is that in trading there can be only two options - either you know what you are doing and then just systematically work on your trading setups, or you don’t know and just play “guess the tune”. Unfortunately, most traders are bright representatives of the second category.
A typical beginner's decision-making scheme: open any instrument, choose a “convenient” timeframe, try to draw a line, throw in a couple of indicators, and then sit and carefully watch the price... Many people call this self-hypnosis “market analysis”. And then something happens - the price goes down sharply and we begin to "see" the entry point for the purchase - now the price will return, it always rolls back. Click on BUY, choose a fatter volume in order to earn more - the deal is open. We sit, tremble, wait for the price to rise and... oh my God, the market gives us 2 points of profit! We cut profit immediately. We repeat this operation N times, and when the market does not give immediate profit, we average it by the same volume.
The account sometimes goes into a small drawdown, but this is not terrible, in most cases the “system” works like a Swiss watch. Having calculated the profit, we already imagine ourselves as millionaires and market gurus. But suddenly the moment comes when the system gives a small failure - we see a drawdown of half an account, the price continues to fall down ... What to do? We go to analytical sites, feverishly read reviews, especially lingering on those that say that the market is oversold, somewhere near a strong level, we are waiting for a reversal. Having calmed down a bit, we look at the sentiment and see that 85% of traders are also buying ... phew, the majority cannot be wrong!
After reading the analytics, looking at the sentiment, we return to the chart. Looking at it from a different angle, we make an expert opinion - no, it definitely won’t go lower, now let’s turn around. We add to the rest of the margin and, with bated breath, look at the monitor. And then, unfortunately, the price stubbornly ignores analysts, the market goes further down, and our trades are closed by stop loss. There is no limit to disappointment, how is it, everyone predicted a reversal, and the chart is moving further along the trend!
This is the so-called confirmation bias. When we act not according to a pre-arranged plan, but for good luck, we are looking for confirmation of our innocence in every possible way and completely ignore the opposite information.
From this, the main conclusion is - if you are not sure, do not play! We need to be open to the perception of all the information available, and not just the one that “suits” us. Only a systematic approach can defeat cognitive distortions!
How to save your nerves and make trading enjoyable?!How to save your nerves and make trading enjoyable?!
What to do if you have already decided to embark on the path of trading, but are facing psychological problems. First of all, let's identify these complexities and reiterate them:
1. Fear of entering a position. Even when the formation being traded is familiar to you, and the entry seems obvious, you look at the candle going up, but you still cannot force yourself to press the BUY / SELL button. The market goes in the expected direction. The mood is spoiled today.
2. Fear of being in a deal. You made an entry according to the trading system, provided for all the nuances, placed a stop order, but the sensations of a possible loss of money are so unpleasant that they make you drop everything, deviate from the plan and, in the end, close the deal.
3. Bad mood, irritability from a deal closed in the negative. You skillfully entered the position, checked the entry on the trading system, at first everything was in order, but catch the stop loss.
Familiar? So know. These emotional reactions are typical for those who have just begun to connect their path with trading. Medicines for these "diseases" are also known:
A. Formalize your trading system. If the deal matches it, enter. Why is it so easy? The fact is that in the long term, a high-quality trading system has a statistical advantage. And if you follow it correctly, then a positive result is almost guaranteed.
B. Start trading with those amounts and those risks that are insignificant for the deposit. But not a demo account. If you are responsible for small amounts, then the risks at first will be insignificant. But the emotions will be quite similar. Mistakes made at first will teach you to do the right thing. But the fee for this will be much lower than the merged deposit. Gradually increase the amount of risk as you grow in experience.
Q. Periods of negative values in a position will have to come to terms. If you are confident in your actions and the trade corresponds to the trading system, know how to wait and hold the position. This is the nature of this profession. After all, even if something goes wrong, then you are insured by a powerful medicine - a stop loss.
G. And, finally, the last. To get rid of psychological fears and trade easily - you need to trade. Psychological stability will come with experience and professionalism, when you get a feel for the trading system and get your hands on trades.
Good luck with your quality deals!
ACBThe last stage: Panic
Stage 3: Panic
As the bull quickly turns into a bear, investors may become desperate and start panicking. All traces of confidence are now gone and investors are now looking to minimize losses. Some spirits will be crushed entirely, leaving them to wonder if the market will recover at all.
👁️🗨️ You See what YOU WANT to See 🧠Further to our idea:
:
In other, more simple words: We See What We Want to See
Obi-Wan Kenobi once advised Luke Skywalker to not trust his eyes, because “your eyes can deceive you.” Most of us can recall an instance from our own non-Jedi lives when these words rang true. Think of a time when your eyes saw what they wished to see: a person you were thinking about on a busy street, a heart-shaped pebble you were looking for on the beach.
This phenomenon, called motivated perception, has been explored in psychological research for decades. Indeed, the world as we conceive it in our awareness is not exactly an accurate representation of what it truly is. Our perception is often biased, selective, and malleable.
Even our desires can affect what we see by impacting the way we process visual information.
IN TRADING:
We see what we want to see. You guys can see a million different ideas but your eye is just a gateway to the brain and that's where the problems start:
You will See what YOU WANT to see..and you will act accordingly.
Will make a small video to elaborate on this with some tips on how you can protect yourselves from your own EYES!
One Love,
the FXSHRINK
👁️🗨️Watch the video, i explain in the most simple way how you can stop letting your eyes (and brain basically) fool you 🧠
Bull? Bear? Swan?
The chart:
Shows an index average for SPX, NAS and DOW using rescaled CFD and futures prices.
Indicator is a momentum oscillator (midline) with an envelope much like a Bollinger band.
The paradox:
The consensus is the chart is a picture of 'doom' (as bearish as it gets).
At the same time, every trader in the chat room was bullish on the upcoming 12 hours. Not a single bear.
The assumption that recent outcomes will be repeated is also called "The Hot Hand" .
Both chart and traders refer to the same asset class. The chart accurately describes what traders experienced. Same information, but divergent conclusions and sentiment.
Why the gap?
One contributing factor is likely the qualitative difference between looking at a chart, and trading that same market in real time.
Research shows that when we "experience" outcomes ourselves we pay more attention to the most recent, frequent and impactful outcomes. This does not happen if we get the same information on a chart, from a discussion, or the news.)
In his book "The Black Swan", Nassim Taleb attributes peoples 'black swan blindness' (pp.77) to never *experiencing* an event, even if the information is available in some descriptive format (like a chart). There is a similar discussion in the chapter on rare events (ch.30) in Kahneman's book "Thinking fast. and slow" .
Lastly, lab studies from economics, finance and psychology provide data for both predictive and descriptive models. These models can be used to predict how personal experience with risk will result in different sentiment that a simple description of the same information. Some of this research is summarized in a Psych-Science paper at: pure.mpg.de
Notes:
This way they can share the same USD scale and
are weighted so that a 1 point change will imply the same change in $ terms. (For weights see: www.barchart.com ).
In basketball there is a belief that a player can be on a hot-streak and more likely to score. Despite the compelling belief, statistical studies show it to be false. The same can be said for consecutive sessions in the equity markets. On a whole the market is largely efficient thanks to our relentless effort to remove every last inefficiency.
FOMO - Analysis from a Trading PsychologistFOMO.
Fear of Missing Out.
I can feel FOMO’s omnipresence in the trading world right now. We have seen some large career changing moves in Commodities & Futures as of late. Extend the lookback time a few years and the Cryptocurrency universe is surely included.
I decided to turn to my favorite trading psychologists, Brett Steenbarger,PhD. Brett has been in the trading game since the late 1970’s and his Nov 21’ speech on Trading FOMO piqued my interest. Below is a summary of what I took away from it, and some preventative ailments attributed to Brett’s psychological evidence-based outcomes.
FOMO is a P&L Killer! At its core FOMO is a fear. The problem is not that we missed the trade, it’s that our brains perceive that missed trade as a threat to our future, our success, our reputation. When humans are afraid of something, or see a threat, it produces anxiety. This fear takes blood away from the part of the brain where higher level thinking takes place and sends it to the part that impulsive thinking lives. There WILL be poor decision making under the influence of anxiety. The key to solving this issue is to take the threat out of the situation.
Solutions:
Taking a break from the screen is healthy but it is not a long-term fix. Brett explains how to train in exposure therapy (His presentation explains this in greater depth.) Slow breathing and visualization are more adept at battling FOMO. If you can visualize a calming place or situation and pair it with that fear, daily practice and dedication will prevent blood flow to the impulse zone. Gradually, when FOMO comes around, you will experience feelings of safety. Combined with expanding your time of reference, understanding, and acknowledging FOMO will make those events look like potholes on a long highway.
Missing a trade is unfortunate, but will it end my career? No. Will buying at the top, and then being so irate that I add to a losing trade and forgo stop orders end my career? It might. Will I be thinking clearly on my next trade with a fresh mistake permeating my thoughts? No.
The best motivation to avoid FOMO is to develop emotional hate towards the negative consequences of it. In the fullness of time, the desire to avoid negative outcomes becomes self-reinforcing with repetition and therefore cements as an internal priority. This works across the board in other life scenarios as well.
Tapping into other motivations besides P&L is one that really hit home with me as well. Brett dives into the desire to learn and grow as a greater motivator than just P&L alone. This addition will create a dual purpose to each trade. You are diversifying your outcome! If you come away from a trade with a negative P&L, but with a positive learning experience, you are building your Learning Capital. With time under this premise, your Learning Capital will be indistinguishable from your monetary statement.
Instead of tying your value as a trader strictly to your P&L, tie your value to your consistency and risk management. The magnitude of your P&L is nothing without consistency. Risk management begets larger positions, lower drawdowns, and an overall better quality of work life.
A Day comes with myriad experiences. Create a diversified life with people and activities that fulfill you outside of trading and your trading will improve. Reminding yourself daily of this is important.
Tying all of this together is the practice of keeping a daily ABCD Journal.
A - Activating Event – What got you upset? - Missing the trade in this case.
B - Beliefs about the event – Little voice in your head – Why is this upsetting to you? “Other people are getting ahead of me, I’m not as good as they are”
C - Consequences from the event – How does negative thinking affect your subsequent trading? I’m so upset about missing the opportunity I go ahead and miss the next one!
Becoming proficient in ABC will allow you to recognize the triggering event in real time. You begin to identify the negative beliefs and become a pro at understanding the magnitude of the consequences. You can change the pattern of your behavior because the consequences are so front and center.
D - Disputation- You are talking back at that negative thinking. How would you talk to someone you care about who is in that situation? Mentoring a teammate that missed a big play involves constructively lifting them up and helping them learn from it with a comforting tone. You aren’t going to beat them up.
I welcome all feedback and am also here if you want to chat about a particular experience. Happy Trading!
-Paul Wankmueller, CMT
Blue Line Futures Director of Content & Education
4️⃣ Trading habits that have to go 👋We've all done it.
At some point in your trading journeys bad habits set in.
Here is my four trading habits you've got to kick in order to stay profitable.
1. Overtrading
We all been there with this one.
We think we have to be in the market all the time.
We don't and its okay to be flat at times.
No strategy should have excessive trade volume.
More time in the markets the more chance of catching a cold.
Overtrading can happen when we also start revenge trading.
You've caught some losses and your trying to get it all back.
Don't overtrading combined with revenge trading is a no no. Take a break.
Trading with no strategy or system
Should never be in the markets with out a plan or system.
More importantly no trader should be entering markets with out a proven edge.
Back test and forward test your strategy and make sure you are entering markets with a proven plan.
Psychology wise it makes trading so much easier to deal with.
No plan will lead to nothing but stress and losses.
No stop loss
Trading with no stop loss is biggest sin of all.
It's just not worth risking huge amounts of your trading capital on the line.
One big crazy move in this uncertain world could do damage.
Plus how can you develop a proven plan if stop loss is not included.
Also moving your stop loss should not be part of your trading.
As you've just altered any strategy being trading into the unknown category.
No risk management
So I've mentioned stop loss but that is only one element of risk management and it doesn't stop there.
Risk management includes many aspects you'll need to consider.
That includes position sizing relative to your capital size.
The psychology behind losing runs and how they are factored into your trading plan.
Work to set and proven trading rules as part of your risk management.
Be sure not to add to losing positions.
Know when you are wrong and move on to the next.
Failure to follow risk management means you will essentially be gambling.
Be realistic in expected returns is a big factor in risk management.
Sticking to all of the above and not allowing these habits to enter your trading will ensure you keep that trading account growing.
Thanks for taking the time to read my idea.
Darren 👍
BTC and Trading excitement..In this Video we are going to discuss market Trading mentality and understanding the timeframe of markets.
This is one of the most important Trading Lessons there is, so please do watch and take note!
1D timeframe market structure Why is it important to understand the structure of the market?
Because decisions to buy or sell are made through referencing current price against previous areas which caused significant emotional response, in particular those areas which led to regret of missing out on the opportunity, or those areas which trapped traders in losing positions.
LET'S GET REAL: Fear of Losing! Hey Traders,
Most traders battle it. I myself had to progress past this in order to achieve consistent returns trading the markets. It is seen as one of the hardest challenges to pass in terms of emotional discipline. Understanding yourself better so you can make decisions in a calm, composed and consistent manner is crucial to success.
Today I wanted to touch on that. I wanted to talk about the fear of losing what spurred from my fear of losing, how I progressed through it (it still creeps in from time to time). Hopefully you can take from my story and how it improved your trading or how it can help you progress past that fear of losing.
If anyone has any questions or maybe some other stories in the way they progressed through a fear of losing or a fear of being a failure, please feel free to share in the comments and I'll get back to you as soon as possible.
Have a fantastic trading week!
Backtesting USDCAD looking for setupsI am backtesting setups but what I am specifically looking for is similarites in the formations of my setups.
It is very easy to hindsight trade and leave your trading desk happy but it is about having setups that you can see in real-time markets.
The habit of hidsight trading 'with no intent of real-time application' is one you must break through mindset shifting (replacing with a new habit and then repeating that new habit constantly to switch it over from the old habit).
What are your thoughts about having 'hindsight setups' vs 'real-time setups'?
Let me know in the comments or DM me because I am interested to know!
Ethereum Name ServiceEveryone's favorite Airdrop/DAO/NFT/Web3 functionality ENS has been catching a decent bid amid current market conditions.
Up about 90% from the lows while the majority of the market is back to their lows, I'd say ENS is doing pretty well.
From a point of value/ R:R, and also based on popularity, utility + sustainable future, ENS is in a great place currently at face value for a swing/mid-term hold (IMO).
Recent News
ENS 3 & 4 digit number names have become quite popular recently creating a buzz around the NFT ecosystem, most notably with BAYC/MAYC members buying the # that corresponds to their NFT #.
Adding to the above, with the new otherside deeds going live, ALL ENS numbers from 1-10k & 10.1 - 20k are taken. Quite an influx of cashflow is no doubt having an effect on the price of the underlying token as I believe a portion of the funds go towards the DAO and the community handles it from there, making for a fundamentally bullish case IMO.
I myself have been trying to snipe notable names that are expiring soon . Think of it like buying the copyright to your name - no one else can have the same name as you, and if they want to, then theyll have to pay you at your price. I believe ^this^ portion of the analysis is where the greatest value will come from; I'll leave you to connect the dots and figure out the rest.
ENS also recently broke the threshold of 1,000,000 names.
Moving along, looking at price as a whole, its evident to me that ENS has went thru a full market cycle and is in the last phase. Think of the famous Market Psychology Chart.
Many airdrop tokens & brand new low-midcap IDO tokens tend to go through this Market Psychology M as I like to call it at a much faster rate than more sustainable tokens. I believe I have a few analysis on that topic that I'll link below.
Conclusion
Looking at all the factors mentioned and from a probabilistic view:
Is it possible for ENS to make it back to $40 given there is a rise in popularity again?
YES
Is it possible due to the current market cycle phase for ENS to make it back to at least $40 without any other factors?
MAYBE
Can ENS fall back to lows where we see a fourth bottom and likely fall even further creating a much worse R:R ?
UNLIKELY (NO)
Based on current strength relative to the market, can ENS possibly continue even for a short while breaking the next resistance level?
YES
Welp, thats enough for me to look for an entry and potentially hop into the next trend. ENS names becoming hot again is definitely something I see happening; everyone already has their twitter usernames as their ENS, so what could really go wrong by buying a name you like, or even investing in the project that facilitates this?
Educational Post about Defining zones : Read the CaptionIf you have been led to believe that the prices move depending on the number of buyers and the number of sellers; if the number of buyers is greater than the number of sellers, prices go up, & if the number of sellers is greater than the number of buyers, prices go down. Then you would be wrong...
The number of sellers or buyers is not what moves the price. What if one seller is doing all the selling to thousands of buyers? The price will go down. The answer to our question is that it is the degree of aggression of the buyers or the sellers and the volume of order-flow they submit is what moves the price. That's what creates the imbalance between buyers and sellers. Your goal as a trader is not to try to catch tops and bottoms that would be absolutely crazy. Your goal as a trader is to find suboptimal zones or in other word good deals.
What is a Optimal Zone?
A zone in which price has already a trend defined by a rally or drop. Most of the time it is a breakout and pullback structure close to a very strong supply and demand level. Most important is that:
Buy optimal zones are close to a macro buy zone In other words price is cheap = good deal to buy.
Sell optimal zones are close to a macro sell zone. In other words price is expensive= good deal to sell.
What is a Sub-optimal Zone?
Buy sub-optimal zones are close to a macro sell zone In other words price is expensive = bad deal to buy.
Sell sub-optimal zones are close to a macro buy zone. In other words price is cheap= bad deal to sell.
please if you find this idea interesting make sure to follow this profile and drop your comment and like :) thanks family! I wait your comments
Don’t bite the bait. Time is money. This is a case of comparative advantage. Which means the less time it takes the coin to produce oil or energy, maybe even transactions. All will go down and then pop back up, much like a sinking ship.
Within the next 5 hours, an entry point will be present. It’s time to glean for Q2, because after this the prices will hit an all time high and then go back down until July. A lot will assume now is too soon, but yesterdays price isn’t todays price.
However, the cup and handle has presented its self. Now the next sign of equilibrium the price will make will be like a Nike check. Or a Wolfe wave. The eagle has left the nest.
2. API CRUDE OIL U.S.: anything under 5 is a sink. Forecast is in the -1.0 range.
TOTAL VEHICLE CAR SALES: Elon and Twitter
Don’t hire the bait just yet.
Four trading fears you will have to overcome 😱The stats for retail traders are not pretty.
It's no secret around 80% of all retails traders lose money.
The reason most fail is the four fears not being overcome.
Fear of being wrong!
We are emotional creatures and lets be honest none of us like being wrong.
This trait shows in some more than others but there is no place in trading for this trait.
It's impossible to 100% right all the time it's not even possible being 90% or 80% right all the time.
Once the reality sets in your not going to be right all the time we then as traders have fear of being wrong when seeking our trades or strategies.
Fear of losing money
We all suffer this fear at some point.
What we need to understand is all accounts suffer periods of drawdown.
I firmly believe the 80% of all retail traders stat is so high due to people losing money and quitting.
The reason money is lost is due to poor strategy or no strategy.
Once in a whole the fear of losing more will push people away from trading.
Fear of missing out
It's probably the fear of missing out that led you here in the first place.
You see all the lambo's on social media and the life style and fear of missing out is already in play.
Then comes seeing what everyone else has profit wise.
Then comes paying attention to everyone else and full blown FOMO instead of sticking to your own game.
Fear of leaving money on the table.
No better feeling than seeing your trades run in profit.
The screen is lit up blue and your loving it.
But now comes the fear of letting them trades play out.
Your leaving money on the table and it's now a fear you'll lose that money.
It's one of the biggest mistakes a trader makes!
Cutting winning trades to soon and letting losers run for to long.
So how to overcome these fears?
There's many elements to overcoming the four fears .
There's so may and then even sub elements of those.
Hence why this idea had the two brainstorm bubbles on the chart of what fears haunt us as traders.
Followed by the bubble of all the thoughts you need to take in to consideration as a trader.
It's imperative as traders we build a robust tested plan.
Sticking to your own plan and lane is crucial.
Just avoid others that blur your plan.
Losses are a part of trading quicker you accept this as a cost of business quicker that fear of losing money disappears.
There is many more on the chart drawing but quicker these behaviours are followed as a trader the quicker the four fears will disappear.
Here's to a good rest of the week🥂
Thanks for looking at my Idea
Darren 👍
How to win over greed?🎃1. Greed is the problem
Many beginners and even experienced traders face greed. It's a feeling that makes you believe in your superiority over the market:
• Opening a lot of trades, breaking risk management
• Continuing to trade after incurring a loss
• Refusing to take profits, hoping to earn more
• Averaging losing trades, because everything is about to change.
• Believing in the reliability of your pattern, although no pattern or indicator always works out 100%.
2. Why does greed take over?
We all have our own desires and goals. Society teaches us that we shouldn't deny ourselves comfort. This leads the vast majority to take out loans for new clothes, iPhones, Cars.. This is how people get used to greed's superiority and put it before discipline, getting accustomed to being able to live beyond their means.
What do you think happens to such people when they come into trading?
God forbid, such a person immediately learns about futures, then he will lose everything in a month at most. This is exactly the 95% who lose money in the market.
They suddenly see an opportunity to make a million out of $10,000 in a month, and, inspired by the stories of dogecoin millionaires from YouTube and Reddit, start to long bitcoin with x125 leverage.
There is another type. They do not rush to make money, they act more cautiously. They set themselves up right away that "trading is a long game and there is no hurry". They develop steadily and study pattern after pattern. However, their game pays off very slowly, and under the influence of their expertise they allow themselves more and more "experiments". They are like King Theoden from Lord of the Rings, who was slowly losing his mind under the watchful eye of Wormtongue.
3. How do you get around greed and start using it to your advantage?
Change your perspective. Instead of being greedy for money, become greedy for your professional growth . Ironically, if you stop focusing on money, they will come.
Create a journal and start analyzing your trades:
• What were your reasons for entering?
• Did you need to open that trade or was it suboptimal?
• Did you act under the influence of emotions, and if so, which one and why?
Develop, grow, and reward yourself when you get better, even if your trading results are unchanged. Your brain needs to get used to the fact that the most important thing now is discipline and small improvements. Step by step, you will become a profitable trader and, when you do, withdraw your honestly earned profits into fiat to reward yourself for your fortitude and persistence. You will succeed, because unlike all casino players, you will have the backbone and endurance!
Good luck on your journey! If you have any questions, feel free to ask them in the comments, I always check and answer them.
Leave a like so you can enjoy the trader psychology posts in the future as well, and thanks for reading to the end. You are the best!
Sunday afternoon backtesting sessionToday I am backtesting trades on EURUSD to further improve my strategy and my ability to apply my strategy. It is important to keep your tools, and mind, sharp so that you can execute your trades in a live market that has major market players, news events, volatility, liquidity with experienced traders with high end technology with a high end education trading these markets. This means you must find your edge and constantly practice it to refine it, improve it, and remember it anywhere, any place, any time.
