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9 lessons from Traders Who Made Multiple 8 figuresHello Traders Losses Losses are an unavoidable element of trading, and it is important to understand that they are a regular part of the process. It's critical to remember that even the most successful traders suffer losses, and how they deal with such losses defines their total performance. Setting stop-loss orders, which are orders that automatically end a trade when it hits a specific degree of loss, is an important component of loss management. This may assist traders limit their losses and safeguard their wealth. It's also critical to have a strategy in place for dealing with higher losses, such as reducing transaction sizes or taking a vacation from trading. To new traders reading this, don't get scared... you're going to blow up your account at least once. Because, if you never did it, you never experienced how painful that is to lose your gains, initial capital, dreams. You need to experience that once so that your brain knows you'll never get to that dark place again. There is no other way, even if you follow guidelines from successful traders... I guarantee you that sooner or later, you'll blow up your account if it never happened to you yet. Every successful trader I know blew one or more accounts My wish for you is that it happens early in your trading journey so that the capital loss is small relative to your future potential gains Discipline Discipline is an essential characteristic for every trader to have. Trading can be a turbulent and fast-paced atmosphere, and it's easy to get caught up in the market's enthusiasm or anxiety. Discipline, on the other hand, enables traders to remain focused and adhere to their trading strategy even when emotions or other events attempt to distract them. My discipline strategy is two-folds: 1) When I capture a 1 or 3 great intraday moves, I stop for the day. I don't want to give my gains back. I close my trading station and stop watching the market as I'll always end up thinking "oh it keeps moving, I could have made X USD more" 2) It's being patient as it could happen I'm getting ready to trade at 6 am but nothing happens before 5 pm... leading me to wait wait wait.... for a decent setup to appear. This is not a natural skill at all, I acquired it Preparation Proper planning is crucial for trading success. This involves having a sound trading strategy in place as well as a clear grasp of the market and the instruments being traded. It is critical to evaluate and update this strategy on a frequent basis to ensure that it remains effective and current. Preparation also include maintaining current on market news and events that may have an impact on the assets being traded. Reading industry journals, following financial news sites, and engaging in online groups or forums may all help with this. As an intraday trader, I check every morning what are the main events of the day and make sure to not be in a trade or be at least SL/breakeven around macro events such as CPI, FOMC, etc... Risk Risk management is an important component of trading. This involves knowing the degree of risk associated with various instruments and techniques, as well as ensuring that only a suitable level of risk is taken on given the trader's risk tolerance and money. It's vital to remember that profit potential is exactly proportional to the degree of risk taken. This indicates that although greater risk tactics have a larger potential for profit, they also have a higher chance for loss. I'm a risk adverse trader overall... though when I identify a very profitable potential setup... I push on the pedal for real... meaning I increase drastically my position size. Emotions Emotions may be the deadliest adversary of a trader. If left uncontrolled, fear, greed, and overconfidence may all contribute to bad trading judgments. Meditation helped me a lot for that It is critical for traders to identify and manage their emotions when trading. Setting limitations on the degree of risk taken, placing stop-loss orders to safeguard against excessive losses, and taking pauses as needed to clear the mind are all examples of this. Frustrations Trading may be unpleasant at times, particularly when you're dealing with losses or a streak of bad transactions. Traders must remember that setbacks are a typical part of the business and keep focused on the long-term objectives. Taking pauses, finding support from others, and being disciplined may all help traders get through these trying times. Being ok with being frustrated is also NOT a natural skill and has to be acquired. I know now when to label when I'm frustrated and what to do to relax (meditation, stretching, deep breathing, self-massage, classical music, ...) Frustrations have a compounding effect leading to greater and greater frustrations and losses. And we get frustrated because... we lost money or didn't make as much as we could... The richest traders I know are the ones who are able to disconnect completely their trades from the monetary value. Which kind of impossible when for most 1 trade >= 1 month worth of rent => leads to too much mental pressure and stress. Failure Failure is an inevitable part of the learning process, and traders must understand that it is OK to make errors. What matters is how traders react to and learn from their errors. It's critical to assess what went wrong honestly and make the necessary changes to prevent repeating the same errors in the future. Hesitation Hesitation may be detrimental to a trader's success. In the fast-paced world of trading, traders who are hesitant may lose out on chances or join transactions too late. Traders must make judgments swiftly and confidently, while also understanding the possible risks and benefits of each deal. Journey Trading is a journey, and traders must approach it with a long-term view. This entails accepting that there will be ups and downs and being dedicated to ongoing learning and growth. Setting reasonable objectives and celebrating minor accomplishments along the way are also crucial. Thank you for reading David
CME_MINI:ES1!Education
by Daveatt
6
The 5 Outcomes Of a Trade | How not to blow your account Successful traders know there are 5 outcomes that can come out of a trading position. When managed well these outcomes can lead to great success. However, when manage badly can cause disaster to a trader’s account. Below I’ll highlight and discuss the possible 5 outcomes of a trade and how you can manage them. 1. Small Profit This is when a position ends in a very small profit, for trend traders, this is usually the case. However, in this situation, there is no loss. 2. Small Loss This is when you lose a small amount at the close of your position. This is part of normal and good trading. In fact, you should cut your losses early. Taking small losses or cutting your losses early will help you stay in this business long term. 3. Breakeven This is a position where you really didn’t make or lose any money. They’ll come too, they are not necessarily bad trades. These types of trades may just mean you should find re-entry to the position or may just be a quick exit without a loss or profit. 4. Big Profit This is when a position ends in a very big profit. This type of trade does not come too often but when they do come they are the trades that move your general account return for the period to the next level. As a trader, these are the type of trades you should look forward to. 5. Big Loss This is when a position ends up closing at a very big loss. This type of trade should never happen on your trading account as a pro-trader. This is the type of trade that can blow your trading account. It’s why you should know how to cut your losses quickly and take a small loss. I’m glad I’ve been able to share with you the possible outcomes of a trade and how you can manage them properly. A simple knowledge like this can suddenly turn your trading account to become profitable. Please, like this post and subscribe to our tradingview page!👍
Education
by EliteTradingSignals
7
The Biggest Mistake Novice Traders Make When Learning To TradeI wasted a lot of time from years one to four in my trading career. Being scammed led me to decide to create my unique trading strategy. I used the course material I bought and google to do so. It worked but after years of pain and suffering. If I had continued searching for a legit trading coach, I would've succeeded much quicker. But I'm grateful because I learned a valuable lesson, which is to always... Start By Mastering An Existing Trading Strategy Before Creating A Brand New One. Ignoring this advice, especially as a novice trader, will stop you from succeeding on time. For that reason, trying to create something new that you don't have experience with is useless. Because it will waste the mental energy and time you need to master what you already have to move forward. Thus committing to grasp the details of a trading strategy will save you from mental battles that hinder your growth. You'll also free up time to develop the following key ingredients for trading success: 1. Trading and Risk Management (Business) Plan. 2. Risk Management edge. 3. Psychological edge. 4. Journalling Habit. With that said, let me show you how to flourish as a novice trader, below. Find a legitimate trading coach with a proven track record. Having a professional trader coaching you through your journey will make it a bit easier and more fun. But there aren't many legitimate professionals who will make that possible. The industry has a lot of scammers who only make money from selling courses. That's not a problem though as there are traders who live off trading. Your job is to find them. How? Do research before buying a course: 1. Pick 2-3 traders you perceive as legitimate. 2. Check if their course will help you develop the 4 ingredients for trading success. 3. Check the coach's Trustpilot for course/community reviews. 4. Do research by contacting people who have bought it. 5. Ask for the coach's trading (Myfxbook) statistics. 6. Join their free communities to ask questions. Once you’ve found your perfect match, focus on studying and mastering his/her course material till you become a profitable trader. And while doing that teach other people your skill for free. This will quicken the process of learning, understanding, and mastering. After that form new trading strategies to maximize your gains and sell to other people for extra cash. Following the advice above, will save you years of pain and suffering in exchange for fun years of rapid growth and success. So trust the process and you’ll make it.
Education
by Doji-2k1
1
Forex Market: Who Trades Currencies & Why The foreign exchange or forex market is the largest financial market in the world – larger even than the stock market, with a daily volume of $6.6 trillion. The forex market not only has many players but many types of players. Here we go through some of the major types of institutions and traders in forex markets: Commercial & Investment Banks The greatest volume of currency is traded in the interbank market. This is where banks of all sizes trade currency with each other and through electronic networks. Big banks account for a large percentage of total currency volume trades. Central Banks Central banks, which represent their nation's government, are extremely important players in the forex market. Open market operations and interest rate policies of central banks influence currency rates to a very large extent. A central bank is responsible for fixing the price of its native currency on forex. This is the exchange rate regime by which its currency will trade in the open market. Exchange rate regimes are divided into floating, fixed and pegged types. Investment Managers and Hedge Funds Portfolio managers, pooled funds and hedge funds make up the second-biggest collection of players in the forex market next to banks and central banks. Investment managers trade currencies for large accounts such as pension funds and foundations. Multinational Corporations Firms engaged in importing and exporting conduct forex transactions to pay for goods and services. Individual Investors The volume of forex trades made by retail investors is extremely low compared to financial institutions and companies. However, it is growing rapidly in popularity. There is a reason why forex is the largest market in the world: It empowers everyone from central banks to retail investors to potentially see profits from currency fluctuations related to the global economy. What do you want to learn in the next post?
OANDA:XAUUSDEducation
by UnitedSignals
7
Learn How to Apply a Position Size Calculator Hey traders, In this educational article, I will teach you how to apply a position size calculator and calculate a lot size for your trades depending on a desired risk. First of all, let's briefly discuss why do you need a position size calculator. Even though, most of the newbie traders trade with the fixed lot, the truth is that fixed lot trading is considered to be very risky. Depending on the trading instrument, time frame and a desired stop loss, the risks from one trade to another are constantly floating. With the constant fluctuations of losses per trade, it is very complicated to control your risks and drawdowns. A lot size calculation, however, allows you to risk the desired percentage of your capital per trade, limiting the maximum you can potentially lose. A lot size is calculated with a position size calculator. It is integrated in some trading platforms like cTrader. If it is absent in yours, there are a lot of free ones available on the internet. Step 1: Measure a pip value of your stop loss. It is the distance from your entry level to your stop loss level. In the example on the picture, the stop loss is 290 pips. Step 2: Open a position size calculator Step 3: Fill the form. Inputs: Account currency, account balance, desired risk %, stop loss in pips, currency pair. In the example, we are trading with USD account. Its value is $20000. Trading instrument is EURUSD. Step 4: Calculate a lot size The system will calculate a lot size for your trade. 0.069 standard lot in our example. Taking a trade on EURUSD with $20000 deposit and 290 pips stop loss, you will need 0.069 lot size to risk 1% of your trading account. Learn to apply a position size calculator. That is the must-use tool for a proper risk management. ❤️If you have any questions, please, ask me in the comment section. Please, support my work with like, thank you!❤️
Education
by VasilyTrader
5
Reflecting on 12 years of Trading - Do's and Dont'sHello traders, Feeling a bit emotional today while writing this piece of content. From my trading journal I kept updated for more than a decade... I want to share what differentiate a profitable trader from the crowd (losing money) In trading, you are guaranteed to lose your time and money if one: can't sit on his/her hands when there is nothing juicy to trade plan trades he/she never execute and execute trades he/she never planned let emotions from the last trade(s) affecting his/her next trade(s) can't understand markets can remain illogical longer than he/she can remain solvent end your trading day with his/her last trade... it must end when one has journalled them all and learned lessons bury his/her head in the sand instead of studying the mistakes made wants to forget previous mistakes... you have to remember them...writing them down on a post-it and having them staring at you whenever you take a trade. Great process to remind to not repeat the same mistakes. doesn't add onto winners because doesn't know how to identify strong momentum... instead take profit too early is confident when he/she should be fearful and vice-versa treats trading like an entertainment and not a job Feel free to read my numerous other educational FREE content from my profile page Thank for reading Dave
Education
by Daveatt
5
Fall of USD as Global Reserve CurrencyIf you give someone a button to print money, they will press it 1,400 years ago the Roman republic inflated its currency until its empire collapsed USD used to be backed by gold, but that ended in 1971 This allowed governments to print endless money Hyperinflation is just a matter of time The US government learned to overspend and print the difference The debt is now $31 trillion and $100 trillion in liabilities The only way out is printing more money But destroying the savings and hard-earned tax money of citizens Global reserve currencies change every 90 years So, Monetary Switch is inevitable Checkout Venezuela's 2013- mid-2020 Inflation data The paper that is used to print a dollar is not actually worth a dollar. The paper does not have value, it simply represents the value. It is not money because it holds no individual value. To take it a step further, dollars are actually the OPPOSITE of value. Dollars are debt. A dollar is a PROMISE to pay back debt. The U.S. is over a trillion dollars in debt. A trillion is “1” followed by 12 zeros. It’s a thousand billion. A trillion seconds is 32,000 years. A stack of $1 bills would be 68,000 miles high. So how do we pay back such monumental debt? Taxes. It’s painful, but it’s obvious. So, the dollar is the PROMISE of the U.S. government to pay back over a trillion dollars of debt by taxing its citizens. And, to kick you while you are down, the debt is still growing. The dollar is actually debt. That is why the smart rich don’t work for dollars, they work for assets like BTC and GOLD Thank You for Reading. Like and Share!
Education
by FortuneAI
2
How To Stay Motivated When TradingHello everyone, Trading can be a challenging and often unpredictable pursuit. It’s easy to get discouraged and lose motivation when faced with setbacks and losses. But, with the right mindset and strategies, you can stay motivated and on track to achieve your trading goals. 1/ Set clear and specific goals. It’s important to have a clear idea of what you want to achieve in your trading. Set specific, measurable, achievable, relevant, and time-bound (SMART) goals that will keep you focused and motivated. For me it was, with my previous job I was making X USD per month, I want to make that money (after taxes) off my trading. Which meant, making 2X my income assuming a 50% ish tax rate (20% VAT + 33% tax on capital gains) I don't agree with those recommending to leave your 9 to 5 jobs if you make X USD with both your trading and your job. To keep things equal, you need to make 2X USD off your trading 2/ Create a trading plan. A well-crafted trading plan can help you stay disciplined and on track. Your plan should include your goals, your strategy, your risk management rules, and your expectations for your trading performance. Journaling everything is important, I wrote an article about it here: I also journal how I slept, how I worked out, what I ate, what went well, wrong and why. It helps my brain registering that going to bed at 8:30 pm is optimal for me, working out at 10 am is perfect for me, etc... 3/ Stay focused on the long-term Trading can be a roller coaster ride, with ups and downs. But, it’s important to stay focused on the long-term and not get too caught up in short-term fluctuations. Keep your eye on your goals and your trading plan, and don’t get sidetracked by short-term distractions. Seek out education and support Trading can be a lonely pursuit, and it’s important to surround yourself with like-minded individuals who can provide support and guidance. Join a trading community, attend webinars and seminars, and seek out mentors who can help you stay motivated and on track. Most trading communities are created by gurus who never traded in their life. They don't even take the trades they're sharing to their paid subscribers. If you're joining a trading community, make sure to fact check everything... Which is hard to asses because even a trading report can be photoshopped Celebrate your successes Trading can be a frustrating and stressful pursuit, and it’s important to take time to celebrate your successes. Acknowledge your wins, no matter how small, and reward yourself for your hard work and dedication. This will help keep you motivated and focused on your goals. Whenever I make my weekly USD goal, I celebrate with a restaurant When I reach my monthly USD goals, I treat myself with a 2-3 days holiday somewhere nice Conclusion By setting clear goals, creating a trading plan, staying focused on the long-term, seeking out education and support, and celebrating your successes, you can stay motivated and on track in your trading. Keep pushing forward, and don’t let setbacks and losses discourage you from pursuing your trading dreams. You got it guys!!! PS I wrote a lot more FREE trading educational content you'll maybe enjoy too Dave
CME_MINI:NQ1!Education
by Daveatt
Why I'm Trading With The Trend and I'm not A ContrarianHello traders 1/ Trading with the trend, also known as trend trading, is a strategy that involves buying and selling securities in the same direction as the underlying trend in the market. This is in contrast to trading against the trend, which involves taking positions opposite to the direction of the trend. The first one for me is easier on my mind... I don't like trading like Michael Burry front-running everyone months/years in advance and being double digits percent negative PnL during that period. I don't like it because it's draining, uncomfortable, unpleasant and I become an awful human being mean with everyone.... I've been journaling my trades for a decade, and read trading journals of hundreds of traders... While TikTok/Instagram teaches us we have to be contrarian and goes against the crowd.... our brains aren't wired for it... maybe because we're social creatures... who knows. I really don't "care" of being among the first ones on an investment/trade opportunity. I'm here to make money, it's a marathon, not a sprint. What I share is personal of course but I'm sharing it because I manage a community of traders and I'm speaking with them, they're sharing with me their feedback. Even trading intraday against the trend, I'm not profitable - I'm just not made for that, I accepted it. Most of my contrarian trades are losers An important caveat though, for investing, when you see a security down 60/70/80/90% and the company behind keeps printing cash like crazy and the fundamentals are still great, I would invest SPOT for a long-term trade. I wouldn't do it with derivatives due to trading fees to pay every day. 2/ There are several reasons why trading with the trend is generally considered more profitable than trading against the trend. First , trend trading allows traders to capitalise on the momentum of the market. When a security is in an uptrend, for example, it is likely to continue to rise as long as there is buying pressure. By buying into the trend, traders can take advantage of this momentum and potentially profit from the upward movement in the price of the security. That's how I designed my trading method, first we let a bigger timeframe signal being displayed on candle close, then we enter in the lower timeframe signals in the same direction. Second , trend trading can help traders avoid false breakouts. A false breakout is when a security breaks out of a trading range, only to quickly reverse and move back within the range. Trading against the trend can often result in traders getting caught in these false breakouts, resulting in losses. By trading with the trend, however, traders can avoid these false breakouts and potentially profit from the continuation of the trend. Third , trend trading can help traders manage their risk. When trading against the trend, traders are essentially betting against the market, which can be a high-risk strategy. By trading with the trend, however, traders can reduce their risk and potentially improve their chances of making profitable trades. In summary, trading with the trend is generally considered more profitable than trading against the trend because it allows traders to capitalise on the momentum of the market, avoid false breakouts, and manage their risk. By following the direction of the trend, traders can potentially improve their chances of making profitable trades. Thank you for reading Dave
Education
by Daveatt
2
7 Stages to Financial Freedom and How You Can Get There Today we will discuss the stages you go through to reach freedom and how you can achieve it with awesome thinking models. The journey to financial freedom includes seven stages. 1. Clarity This is the stage where you are clear about your current financial position and where you want to be. 2. Self-sufficiency This is the stage where you can bear all your expenses by yourself. You are not dependent on anyone for your survival. This also means you earn enough to sustain your expenses. 3. Breathing room This is the stage where you have saved enough to sustain yourself for a couple of months, even if you lose your source of income right now. 4. Stability This is the stage where you have paid off all your debts and you also have a saving to sustain you for at least 6 months in advance. 5. Flexibility This is the stage where you have saved enough money to sustain yourself for two years in advance. 6. Financial independence This is the stage where your money earns more for you. It’s when you have enough investments and savings that the return you get is enough to sustain your expenses without working. At this point, you work on something because it’s your hobby, and not to earn money. 7. Abundant wealth This is the stage where you have accumulated so much money that you would not be able to spend all in your lifetime. But how do you progress through these stages and achieve financial freedom? Here are some awesome thinking models you can use to head towards financial freedom. 1. Time is more valuable than money. 2. Compounding can help you achieve it earlier 3. Make money with a side business 4. Learn to sell stuff As it should be your ultimate financial goal, it is never enough to talk about achieving financial freedom. I wish you luck, dear traders. Hey traders, let me know what subject do you want to dive in in the next post?
OANDA:XAUUSDEducation
by TopTradingSignals
7
Trading with 0 stress👉So you see a trading opportunity. It looks like a fair setup. You get confirmation to enter, but you hesitate. You're afraid of losing money, or you have some anxiety that keeps you from pulling the trigger. This is a problem that almost all traders face at some point in their trading career. I too have suffered from fear of losing money and this problem has led to other mistakes that have stopped me from executing my best trades. Today I share my process of what I did. To reduce my anxiety while trading and the actual steps I took to improve my trading execution. ❓ Do you think the color of the candle affects you while trading? Of course it does. Feel free to tell me if this sounds familiar in the comment section. You enter a long trade expecting the market to go up. You gain a few %, then the price turns against you and forms a red candle. And you start watching the movement, especially each candle pointing down. And you focus on the red color of the candle. 😱You get more and more anxious. When another red candle forms. This was a big problem for me in my early years. I closed my trades after a few minutes. When I saw more red candles below my entry point. The solution to overcome this is simple: 🧨 Change the color of the candles to one color. This way you will only track the price and its range. Let me ask you, which of the texts on the screen is the one that is easier to read? The single colour or the multi-colour? There is a phenomenon in psychology called visual perception. Your brain is always looking for patterns in commerce. If you use multi-coloured candles, you reduce your ability to recognise patterns. Let me repeat that. Your brain is looking for patterns, and one of those patterns is similar colors. Colors affect your brain, your emotions, your feelings. Your psychology, potentially your trading ability. To trade best, you need to trade in a neutral, unbiased state of mind. I've bought in the past because of fast moving red or green candles, I've made bad trades, both on entry and exit. If you get anxious during an open trade, use candles of the same color. So try this simple tip to reduce your reaction to price movements. Change the colour to anything but not to red. Blue or green, yellow or white candles. Just stay away from red and give me a feedback in a week or so. I find myself calmer using a single color for the up and down candles. Maybe this little brainstorming session will help relieve some of the anxiety. 👉 Here's another situation. You see a long opportunity. The price is around the key level and you need to decide. You pull the trigger at, say, $50. You say to yourself, "Wait, I'll wait until... until the market drops a few cents. The market drops to $50.02, but you're still waiting. And then the market goes back up to $50.10 and... you say to yourself, I'm not getting in now. That's a worse price than five minutes ago. I'll wait until it goes down again. And of course the price never comes back. It goes up without you. And now you're frustrated because you anticipated the move, but your perfectionism... prevented you from pulling the trigger. Fear of losing money and perfectionism can lead to irrational behavior, overanalyzing, overthinking and slowly draining your mental energy. 🟢 One of the problems I personally struggled with was. That I wanted to be perfect in my trades. I was looking for the perfect opportunity. You know, when you enter and the price never goes against you, not even one %. Being a perfectionist in trading is stressful and always being on the edge doesn't help you make good trading decisions. In most cases, when you are waiting for the perfect entry, you realize you just missed a big move. Trying to time your entry precisely, at the entry point, is a foolish undertaking. Perfection can be your biggest enemy in trading and can cause you a lot of stress. 🟢 Here's how to reduce that anxiety. Use ranges instead of exact prices. As a day trader, you will not be able to track price movements every minute of the day. That's why you should use price ranges instead of exact prices. This gives you some flexibility. And of course you still need to be strict with yourself when executing your plan. Good traders are vigilant, yet patient. When a lineup they've been waiting for pops up, they grab it without hesitation. But until that time comes, they won't budge. The price fluctuations that lure other traders. They choose to reserve energy for what they are prepared for and ignore everything else. They don't chase the market, they let the market come to them. The opposite of this is forcing trades. You know the feeling when you wait for a trade, see some activity, and pull the trigger early. You force the trade. I did that almost every day. 🟢 Here's the solution. Stop using market orders and use limit orders instead. Basically let the market come to you. Once you have selected the assets you want and done your analysis, you need to determine the prices where you will buy and sell. Your goal is simply to buy and sell at the best possible prices, and use your research to identify reasonable prices in advance. Not only will this help you get a better deal, it will also help you avoid emotion-based trading. The simple solution to reducing stress and anxiety is to only act when the conditions are what you expect. Letting the market come to you is a difficult but valuable skill to learn. So forget market orders and use limit orders. This will reduce your emotional involvement and prevent you from making bad decisions. 🟢 If you want to reduce stress and anxiety while trading, you should switch to higher time frames. This will allow you the time needed to make informed decisions. I know you will find it difficult at first, but you will continue to struggle with anxiety and stress until you make the change. If you are feeling nervous and afraid of losing money, I highly recommend trying the higher time frames. Again, this transition to higher time frames is difficult and most traders are reluctant to switch. But you need to change your environment if you want better trading performance. If you trade in an environment like the 1-minute or the 5-minute chart, you risk the risk of market noise. True, higher time frames don't offer trading opportunities with as much speed, but the signals generated are more reliable and have a much higher chance of working. Better to trade a handful of good quality trades. Rather than trying with many poor quality trades. Daytrade trading is exciting, but it also requires you to monitor price movements for many hours. Most daytrade traders initially like the excitement and moving on lower time frames, but it's only a matter of time before they experience mental burnout, and once mental discipline is exhausted, greed, frustration, anger and impatience will bring bad trades and send you into a dangerous state of mind from which it is difficult to recover. So move into higher time frames. You'll only spend a fraction of the time in front of the charts, and you'll be at less risk of burnout. After a while, you'll find that it becomes much easier to work with a cool head while maintaining mental and emotional discipline. 🟢 How often do you enter trading? The setup looked great, then the price went straight away to your stop-loss before it got to your take profit level without you. Without profit, this is probably the most frustrating scenario many traders face on a daily basis. Because you fear losing money, you tend to use small stop losses. You don't want to make a mistake and try to keep your losses small, but keeping your levels too close to the entry candle is a recipe for having your account cut to pieces. A tight stop relies on you having very precise, near-perfect entries, and we've already talked about perfectionism in trading. If you repeatedly see your stops being hit regularly before the price turns in the original direction, it is very likely that you have placed your stops at levels that other traders use, especially if you trade on obvious price movement patterns. My advice is to start trading with a wider stop loss and a lower position size away from the entry. The position size you use should be small enough that neither a loss nor a gain will affect your mindset and ability to continue trading, only then will you really focus on proper execution. 🟢If you are trading the markets with your hard-earned money, but you don't know what your trading strategy is and you don't trust your market analysis skills. You probably shouldn't be trading with a live account. One of the biggest reasons why you are nervous and afraid when you trade is that you will lose your money because you don't trust your own trading skills. You may not have learned a trading strategy. You do not have a trading plan, you do not keep a trading diary. You are simply not prepared to take risks. Real money at risk in the markets. That is why you feel fear when you trade. Basically, trading anxiety comes from not knowing what you are doing. I have talked many times about the value of a trading log. The key is to use your trading log to keep track of when you are at your best and when you are at your worst when it comes to your trading and your emotions. I pay close attention in my trading diary to times when I make mental mistakes, such as not trading a good trade when I know I should. When I am afraid of losing money or avoiding a good trade, I look for triggers and patterns. Was I confused? Did I make that mistake in a particular market situation? Do I have certain feelings and emotions from previous trades? These are the intangible factors that you need to track in your trading log. 🟢 Most traders are fixated on short-term results. They make money by pressing a few buttons and don't pay attention to the process that makes it possible. They make mistakes, learn from them, and correct them over and over again. Everyone thinks about winning, but few think about the benefits of losing . In my experience, most wins are directly attributable to a big losing trade that I learned from making money in the past. As a trader it makes no sense if you don't understand why/why you can't repeat. Similarly, losing money is a valuable experience. If you understand why you lost. Paradoxically, you cannot understand why you win. Without first understanding how you could have lost in the same situation. So change the way you think about losses, because they will show you the direction of repeatable victories in the future. If you've already lost, at least don't lose the lesson. Take care my friend and have a good trade!
COINBASE:MATICUSDEducation
by CryptofolioHungary
Institutional / Smart Money Vs Retail Psychology + Rules🎃 Many people approach technical analysis thinking that it is the first and most important thing to learn, which in reality should be the last. It is essential to first understand that trading psychology and risk management is the MOST IMPORTANT factor when trading within the market. Even if you have a strong technical analysis (which can never be perfect), you can still lose if you have poor risk management. You can lose even more if you are not patient enough and trade EMOTIONALLY. 🎃 The sad reality is that many professionals who have been trading for years still haven't realized this. I hope this little post will shed some light on advanced and novice traders. Every day I witness traders who make money and don't know why, or lose money and don't know why. One of the things I always like to advocate is that it is better to know why you lost a trade than not to know why you made money on a good trade. These are realistic expectations of the market, there is no simple magic spiral in technical analysis . 🧠 1.) Time frames: institutions (fund managers, funds, banks and whales) think in long time frames and monitor price action based on this (Years, Decades) small investors, retail traders monitor things in low time frames (Minutes, hours, days) 📜 Rule: always zoom out to higher time frame 🧠 2.) Objectivity: Small investors quickly switch between optimism and pessimism because of current price movements and news in the media. It can be a bull market one day and a bear market another day for a small investor. Institutional investors are not sentimental, they assess the growth rate of the market sector, the total market size available, the adoptation/acceptance, the growth of the network, the analysis of revenues (to predict profitability years and decades in advance). If an institutional investor reaches a conclusion, they hold it until the underlying financial situation changes. 📜 Rule: Follow the price not the news 🧠 3.) economic power: Small investors usually have limited money to invest, so they often resort to leverage, which typically results in full liquidity. Therefore small investors (who do not like to buy spot because it is not "cool") can easily be "thrown out" of trading because of the unlimited losses from leverage. There is a reason why 90% of retail traders lose money. Institutionalists brazenly exploit those with few resources and fear. Institutional investors have access to billions of dollars worth of resources and have teams of quantitative/statistical experts who control the automated trading algorithms. 📜 Rule: As long as you are not an expert, buy in Spot 🧠 4.) Influence: Institutional investors have deep pockets and can influence the general sentiment of the market through the press (news, social media and interviews). Institutional investors influence the news that small investors read. Institutionalists are well known for advertising higher prices for retailers to "buy at the top" to avoid FOMO (Fear of Missing Out). They are also notorious for creating tremendous market fear (FUD - Fear Uncertainty and Doubt), which encourages retailers to "sell at the bottom". 📜 Rule: You pay the price for FUD & FOMO!! 🧠 5.) Behavior: Institutions actively participate in futures, options and derivatives markets. Both actively benefit from short-term price cycles as well as longer-term accumulation strategies. Small investors tend to think in short time horizons. They are sophisticated, financially strong and have expertise. Institutions make money by attracting retail investors into the market (via FOMO) and then liquidating their positions (via FUD). In the market, one person's loss is another person's gain. 📜 Rule: News is usually wrong! 👉 Adoption stages Many people misinterpret the exponential adoption process from a forward market perspective. In short: You've probably heard the ingenious question that a scientist found that a lily started growing in a pond and doubled in size every day, then after 30 days covered 100% of the pond. Which day will it cover 50% of the lake? The answer is on the 29th day, as it doubles in size every period. The lake goes from growing 50% to 100% when it doubles in size. It is interesting to note that on day 28 the lake covered only 25% of the sample and on day 27 it covered 12.5%. It is therefore difficult to understand the exponential growth.
COINBASE:MATICUSDEducation
by CryptofolioHungary
DEMONS OF TRADING | Don't Think Like This Have you ever wondered what helped all those professionals of Wall Street become successful? You will be surprised, but the key to their reached heights is hidden in their mistakes. Yes, that is right. Most professional and successful traders made many mistakes before they got to the top. Making mistakes is ordinary and sometimes even necessary because you learn when you make them. The crucial point of this idea is never to repeat those mistakes because some errors may cost us a fortune. That is why we gathered 10 most common trading mistakes to prevent you from faults and losses. Little preparation Entry to the Forex market is relatively easy, so people have a light-minded attitude towards trading knowledge. Beginner traders, especially, think that theory is not a big deal, and they will be able to build it up without a peep. However, it does not work this way. Miscalculating the risk/reward ratio For some reason, many traders believe that higher win trades are more profitable than lower ones. Sometimes, this idea even gets paid off, and due to blind luck, trades, where the potential risk exceeds the reward, benefit. However, in most cases, such trades are a sure way to lose money in the longer term. Avoiding risk management Risk management should be the core of your trading because it helps cut down losses. Trading without risk management is like skydiving without a parachute. Neglecting market events Relevant market news is essential as economic events influence the direction of trading during the day. So, if you are not aware of the financial reports or earnings, you might skip the volatility. To win the game, you need to develop your thinking and how you participate in the game. You are in a market trading against professional traders. Your goal is to think like a professional. That is the only way to survive in this game. Please, like this post and subscribe to our tradingview page!👍
Education
by EliteTradingSignals
7
The Iceberg Illusion: The hidden logic of success We often get mesmerized by someone’s above the surface success and don’t factor in all the below the surface opportunity-costs they paid to achieve that success. This is the ‘iceberg illusion’. It’s been a fav analogy of mine for years. And yet, this just might be a better visual for sport than the ‘iceberg illusion’. You see… the hyper focus on outcomes is one of the biggest failings (or façades) that comes from social media. It creates a false impression of what leads to success. We see the success, but not the work that went into it… The unseen hours, necessary failures, setbacks, crises of confidence, the not-now’s (to the countless asks), the loneliness, the late nights and early mornings; and, all the wobbling that comes before the walking—much less running. There are no shortcuts. There are no overnight successes. The iceberg doesn’t move quickly. It’s not sped up. It just moves consistently; at often a barely discernible speed. What do you want to learn in the next post?
OANDA:XAUUSDEducation
by UnitedSignals
4
HOW TO MANAGE YOUR EMOTIONSHello everyone! One of the most important , and in the same time, one of the hardest aspects of trading is the ability to manage correctly your emotions and leave them aside while trading. So how can we manage our emotions in stressful situations? Here are some tips that every trader should consider when starting trading: 1. DO NOT ACT ON ANGER: every time you feel strong emotions, hold back and revisit your trading plan, is your move aligned with your initial plan or are you acting on irrational emotions? One of the worst things is to take a position based on anger after a loss in order to recover the losses. Take a deep breath and rethink your decision! 2. DO NOT FALL IN LOVE WITH YOUR POSITIONS: we all want to always be right, but sometimes we have to accept a bad position and close it. It is common to fall in love with our positions and hold it out of hope that the market will switch, but involving emotions just blow the account, stick to your plan! 3. ESTABLISH SOME TRADING RULES AND KEEP A TRADING JOURNAL: setting your own rules of trading and risk management is crucial for a profitable account. No matter what you hear from others and how good a position may look, if it is not aligned with your rules, do not take it! Moreover, do not change a strategy after some losses, stick to what you have learnt and planned, keep the information in a trading journal and plan your next moves based on you learnt from it. 4. TAKE A BREAK AFTER 3 LOSSES IN A ROW: it is natural to have a bad day, but when this happen do not become over emotional and over trade, but rather take a break and wait for a new and fresh trading day. Strong emotions will ruin any important decision, no matter the context, so try to avoid them. 5. SET TP AND SL AND TRUST YOUR JUDGEMENT: after establishing your trading plan and risk management plan, in order to stick to your risk to reward strategy, you have to use Take Profit and Stop Loss orders, and trust your judgment and the market. No matter what happens, this helps you have a clear forecast of your account, without blowing it. Also, avoid getting greedy and secure your profits with take profit order. 6. LOWER THE TRADE SIZE: if you feel overwhelmed by the risk on each trade, and out of fear you make irrational decisions, try to lower the trade size to what feels comfortable with you. After doing this, always update your trading strategy! 7. DO NOT GIVE UP! : there is a point when every trader feels like giving up, losing all his faith, but you should understand that this is the normal journey, with ups and downs, and if you do not let yourself intimidated by the downs, the ups are limitless!
OANDA:XAUUSDEducation
by m_maia14
2
Why You Shouldn't Feel "FOMO" AnymoreHello to you my dear TradingView readers, All the below are based on my preferences, I don't give any financial recommendations and I have nothing to sell you with this article. I'm sharing content because I see a lot of traders being/becoming broke and I don't want you to be one of them. One reason I don't have fear of missing out is that after 11 years of trading, I've learned that almost no one in this game keeps the money they've made. A person's 10 minutes of fame does not excite me. Usually, I'm right in thinking that they'll end with nothing. 👇 Here is Why 👇 My uncle made a fortune trading stocks during the dot-com boom, so I got into it. He came up empty-handed. With cryptocurrencies, I've seen young men turn $1,000 into over $100,000 in a matter of weeks. They've since lost everything and are now penniless and in debt. Robert, one of the greatest legends to me in my trading journey, was once up $60 million from trading. He finished with nothing more than a good story. I've seen it time and time again. I'm no longer surprised by the rollercoaster of huge gains and losses. It is my standard assumption. I don't want anyone to suffer financial hardship. Even those who appear to be clueless and act like fools. The market gives and the market takes away. It is extremely effective in this regard. So let me say this: if you've made 100,000% in trading, I sincerely wish you the best. But if you want congratulations, tell me when you’re retired. The skills to make money are very different than the skills needed to keep that money. The latter were more difficult for me to acquire... If you want me to expand more on that topic, please let me know in the comments section. I'll keep bringing a few articles like this every week because it helps me clarifying my thoughts AND giving back to the community makes me feel good about myself somehow :) I intend to share all facets of what makes a fantastic profitable trader and how to attain that status. This is both the most difficult and the most rewarding job. Thank you for reading Dave
CME_MINI:ES1!Education
by Daveatt
11
Smart Money vs Retail traders (How to Think Like Smart Money)😱 There were a few people there talking about their losses, that they had no idea what to do and I wrote this to them: It's mostly the fault of mainstream media + youtubers + twitterers etc. It's really easy to communicate the simplest approach that everyone understands and subscribes too. Note that if everyone is on the same side... Usually most people are wrong. They take past events too much at face value. But the market is constantly changing. Its to buy on the upside and not during pullbacks + HODL HODL HODL. With that said they really have no idea where they should get out and get in. That's fine by the way. News can be picked up by any of us from the news portals. They don't inform anyone about the negative side of things. It's a tough place to be and you can't take it half as seriously as it is communicated. Unless you are an investor (REAL) you are looking at the market long term. A multi-year perspective. Of course it doesn't pay off here either. The crypto market is still pretty damn small. No one is too late. Now most of you are losing time, but everyone has to start somewhere. I was in the same situation in 2017. I was drowning. Now I'm still looking at these corrections from + xxxxx% profit. Unfortunately we have to give ourselves time in the market and endure pullbacks of -20-30-40-50-60% to see 3000% profits. Realizing upwards during the upswing is not a bad thing. For me, a huge part of my strategy is to have a lot of money on the sidelines. That's why. Especially on 4H trend changes I sell everything that is not bullish. Then I sell others too if they break the trend and just trade. 💡 We are in the best market in the world, but psychologically the hardest market. If you learn to manage these things and use volatility to your advantage rather than your disadvantage, then it's a game changer. 💡 Institutions (fund managers, pension funds, banks and whales) think in long term horizons and monitor price action based on that (Years, Decades) Small investors, retail traders monitor things in low time frames (Minutes, hours, days). Small investors quickly switch between optimism and pessimism based on current price movements and news in the media. It can be a bull market one day and a bear market for a small investor the next. Institutional investors are not sentimental, they assess the growth rate of the market sector, the total market size available, the adoptation/acceptance, the growth of the network, the analysis of revenues (to predict profitability years and decades in advance). If an institutional investor draws a conclusion, they hold it until the underlying financial situation changes. Small investors usually have limited money to invest, so they often resort to leveraging, which typically results in full liquidation. Leveraged trades have "unlimited" potential losses, and therefore small investors (who do not like to buy spot because it is not "cool") can easily "drop out" of trading because of the "unlimited" losses from leverage. Think about it... as a retailer, you have your precious and hard-earned money on the line. Do you have time to lose what you've worked hard to earn, or even more? Why can't you accept that this is a profession? We study in university for 3-10 years to get an average salary afterwards. But here we are not willing to spend a couple of years without constantly taking time away from yourself with losses? Levrage are not bad. The user is the dangerous one. 😱 There is a reason why 90% of retail traders lose money. 💡Institutionalists brazenly exploit those with few resources and fear. Institutional investors have access to billions of dollars worth of resources and have teams of quantitative/statistical experts who control the automated trading algorithms. Institutional investors have deep pockets and can influence the general sentiment of the market through the press (news, social media and interviews). Institutional investors influence the news that small investors read. Institutionalists are well known for advertising higher prices to retailers to "buy at the top", This is the FOMO factor (Fear of Missing Out). They are also notorious for creating tremendous market fear (FUD - Fear Uncertainty and Doubt), which encourages retailers to "sell at the bottom". 💡 Institutions are also actively involved in futures, options and derivatives markets. They all actively benefit from short-term price cycles as well as longer-term accumulation strategies. The institutions are sophisticated, financially strong and have expertise. Institutions make money by attracting small investors into the market (via FOMO) and then liquidating their positions (via FUD). In the market, one person's loss is another person's gain. 💡 There is a learning curve that 90% of your people want to skip and get rich overnight. Unfortunately, this is not reality. Knowledge is incredibly important. If you want to be a doctor, or a surgeon, you don't just walk into the operating room and say give me a knife and I'll cut this guy open and operate him without any knowledge. You really have to know what you're doing. If you're an engineer or you want to be an engineer, without training or knowledge, it would be very difficult for you to build a bridge or a skyscraper. You need the knowledge. If you want to be a teacher, but you don't know the subject matter, it would be very difficult to teach students in a meaningful way if you don't even know what you are teaching. So it is essential to acquire knowledge, but that knowledge has to come from the right people. So mentoring is also vital. Everyone must also understand the psychological aspects of investing and trading. Because a lot of people lose money in the financial markets. Not because they are stupid, but because their emotions get the better of them. Focusing on learning is incredibly important, it changes your life. Of course, this doesn't just apply to investing and trading. It applies to everything, which is why the financial markets are so incredible in their ability to create meaning in life, if people are open to it, and if they don't focus too much on money, then money will simply be the result of doing things the right way. Over time, if you do things the right way, you will become rich, you don't have to become a millionaire overnight. If you want to do that, you will probably lose all the money you put into the hands of institutions that want your money, want you to be captivated by a fantasy world. The reality is that you need the knowledge to fight the big players and win. 💡Self-control is also a must. All wealth will pass without self-control. Self-control makes you keep the money you earn. There are many examples of this among people who have won huge amounts of money without earning it. For example, people who win lottery. These people basically give back all the money they made because they didn't really earn it. A lot of times, the money they didn't earn is put back. When you earn money with self-control, you never have to give it back! It is yours and will continue to grow. 💡 The key is to get off your ass and get moving. Remember these things and you'll be fine.
BITSTAMP:BTCUSDEducation
by CryptofolioHungary
10
The Lesson From The Biggest Trader I've KnownHello to you TradingView traders, All the below are based on my preferences, I don't give any financial recommendations and I have nothing to sell you with this article. I'm sharing content because I see a lot of traders being/becoming broke and I don't want you to be one of them. I was fortunate enough to work alongside a trader making 7-8 figures a month. 👇 Here is what I learned from him👇 The Pareto law The Pareto principle or law of the vital few, stating that 80% of the effects come from 20% of the causes. Took me quite some time to truly understand it Throughout the years, I've had a sneaking suspicion that a small percentage of my trades were responsible for the vast majority of my profits. Basically, trades I entered early, in the expected direction and held until the next support/resistance zone. Such trades, where the next S/R confluence zone is "far" tend to give the best results. Then I started to wonder if I should prioritise only those setups over others because of how lucrative they are. Why bother taking the "less easy" trades right I asked to a senior trader at the prop? His answer was enlightening He said, "because we don't know upfront if those trades will work... we only know they have a better chance of giving bigger rewards.... though it's not a guarantee" And that's why we have to take the other trades too because "even those ones could bring a lot of gains even though the initial configuration is probabilistically less rewarding" This piece of wisdom killed me inside because I'm lazy and as everyone, I want to make the big money taking a few trades per day/week only I felt some pain to learn there is no guaranteed way to know upfront even if a likely high rewarding trade will finance my future fancy lifestyle.... He told me then "If you want to make a soccer player wage, you'll have to take bigger position sizes for those high reward setups" Sounds obvious right? When you know your trading system gives 20% of very rewarding trades and 80% of small gainers, it makes sense to increase one position size for the rare high reward trades. Very quickly, I learned that any other strategy for making money in trading is doomed to failure. To balance out my losing trades and have a decent profit at the end of each month, I had to bet big on high reward setups. Might sounds shocking to most of you but even with a low win rate, as long as your winners size and PnL are far higher than all the other trades, you'll be profitable. This simple change was one of the main things that helped me become a very successful trader. Success defined as how consistent I am at making the desired monthly/yearly salary and at increasing it every year. If you struggle making money out of your trading, take some time to reflect and identify which trades setups usually bring you most of the available gains. Then backtest visually what you would have made if you'd had 2X, 3X, 4X the position size on those trades, keeping all the rest equal. I'll keep bringing a few articles like this every week because it helps me clarifying my thoughts AND giving back to the community makes me feel good about myself somehow :) I intend to share all facets of what makes a fantastic profitable trader and how to attain that status. This is both the most difficult and the most rewarding job. Thank you for reading Dave
NASDAQ:TSLAEducation
by Daveatt
2
If You're Thinking About Giving Up On TradingHello to you TradingView traders, All the below are based on my preferences, I don't give any financial recommendations and I have nothing to sell you with this article. I'm sharing content because I see a lot of traders being/becoming broke and I don't want you to be one of them. If you're thinking of giving up on trading read this 👇 A long time before becoming profitable Trading is one of the most difficult tasks in the world It sucks you in and takes your money within minutes But if you're seriously trying to change your life around, here's why you should stick with it: I've been trading for 10 years now For the first 2 years I lost money The first account I funded with $10,000 I lost in 6 days The trading journey is mentally tough. Not only did I lose a lot of money, but I lost a lot of confidence I had devoted 2 years of my life to trading and still could not get consistent profits. It was mentally draining. The light at the end of the tunnel But sticking with it was the best decision I have EVER made I get to wake up every day now feeling fulfilled. Feeling like all those years of hard work and sacrifice were worth it Trading turned me into the person I am today. Before I had ZERO: - Confidence - Sense of accomplishment - Happiness And now I have all of those things AND... I also learned a lot about myself. I learned what it takes for me to become disciplined I learned that in some scenarios I'm not very patient, in others I am I learned about how I learn and the best way for me to educate myself Yes the trading journey was financially and mentally tough but it was also fun. The process was fun. At the end of the day, that's what makes people happy: Setting a goal, working towards it, and achieving it There is no better feeling than that in my opinion But here's the kicker: If you don't give up, you can't lose It's LITERALLY a waiting game It's impossible to spend 10,000 hours on something and NOT be successful at it Don't compare your journey to someone else It took me 3.5 years to become profitable, and one more year to trade full-time For some, it took 6 months For others, it took 7 years But I can say for every successful trader out there that it was totally worth it So if you're considering giving up, take a step back Think. Are you a quitter? How bad do you want this? Sleep on it and see what happens tomorrow :) I'll keep bringing a few articles like this every week because it helps me clarifying my thoughts AND giving back to the community makes me feel good about myself somehow :) I want to teach you guys every aspects of what makes a great trader and how to get there. This is the most challenging and the most rewarding job at the same time Thank you for reading Dave
Education
by Daveatt
17
THE POWER OF STOP LOSSHello again! Here I prepared for you what I consider the most important tool when it comes to risk management and developing a discipline, which helped me a lot in my trading journey: stop loss! At first, I have to admit that I found it truly frustrating to see how 2 pips can trigger the stop loss and right after that my position reaches my target, but in time, I realised that in order to stick to my trading strategy and become profitable, I have to also accept the losses, even when I consider them "unfair". Using the stop loss order not only that it helps cutting the losses, but can also help you lock in the profits. What helped my account the most was, after a while when the price goes in the desired direction, to move the stop loss at the entry point (so whatever happens, there will be no loss), and it honestly eliminates a lot of stress, especially during night. Hopefully you will find this information as useful as I did, and feel free to ask anything in the comments section!
Education
by m_maia14
Why Your Backtest Results May Not Give Realistic ResultsHello traders, All the below are based on my preferences, I don't give any financial recommendations and I have nothing to sell you with this article. I'm sharing content because I see a lot of traders being/becoming broke and I don't want you to be one of them. Timeframes A lot of models work on high timeframes on the charts. They work visually at least and that's why many are only sharing with high timeframes charts greater than 4H. We all built a backtest based on a moving average cross and got a shooting 95%+ win-rate when running the backtest engine for the very first time. We all thought we were geniuses right :) "Way too easy" we all thought There is a caveat though... For derivatives trading (CFDs, options, futures, ..) backtests always account for real trading fees. Let me explain... We all heard/saw those rollover fees that we need to pay overnight. This is basically how the brokers are forcing the overnight/over weekend traders to pay more fees. While the explanation longs to pay for the shorts, and shorts to pay for the longs is poetic - those fees could eat out your position capital way before the price action has even moved. Imagine a range during days/weeks. You'll end up paying a lot of fees and might end up with a very negative position size way before anything interesting (from a trading perspective) ever happened. I saw many trades being minus double digits percent PnL only because of fees. Then, imagine trading contracts with an expiration date - this adds another challenge - and most of backtests don't even account for that either. Leverage Leverage increases disproportionally the risk compared to the opportunity. Leverage 2 does increase the risk by 2 but the opportunity won't be multiplied by 2. Well.... it would be in case the analysis is good in the first place. (assuming the risk/entry/exit plan is correctly calculated). Assuming those analyses are made by experienced traders, then using leverage makes sense - otherwise I'd stay away from it. I surely sound like a broken record with this... But, I know what you're thinking You calculated already how many trades and pips you need to earn $1M and you concluded it won't be possible without leverage. This statement is true if you want to get rich quick which anyway always lead to get poor quick. "Past performance doesn't guarantee future performance" Probably the quote we hear the most in trading guys... Generally in trading, what worked before has a probability to not work anymore the more time has been elapsed. I don't mean it won't work anymore. This only means we should be cautious when trading setups valid from a while ago on a specific market. A way to not get that burden on our psychology is to indeed reduce the position sizing. Until we are comfortable and not stressed anymore. That's the sweet spot you guys have to find. For some, it might be a few hundreds per trade, for others a few thousands. There IS NOT a well-formulated generic universal valid answer for what's the best position sizing. Apart of course from starting with tiny baby positions and scaling up from there But for sure, once we get comfortable with one position size range level, we should go to the upper level direct above. Direct above means, if we trade 100 USD position sizes, the next one could be in the 110-150 USD range. (and not 1K right off the bat...) We wouldn't lift 100 kg after getting used to only 10 kg. Trading isn't different than any skill requiring training and dedication The challenge is to not change our goals midway after a few wins or a few losses. And to stick with them for a few months at least. Literally takes me weeks of training to add a few kg to my chest press barbell or biceps curls. That's how much it took me also to increase the average position sizing by 10% or so. Thus the more I increase it, the more time I need to get comfortable with it. And it gets increasingly difficult from a psychological perspective the bigger the position size gets Applies in a lot of areas in life, sport, career also. It takes time! The worst thing for new traders is getting early very lucky and rewarding trades. That's what happened with many crypto traders in 2017 and 2021 They got too cocky and made that money too quickly and too easily. Then, when the market turned bearish... they gave all it back because their experience/backtest/psychology/beliefs weren't ready for a market shift. We're at a time where markets change constantly. And perhaps that's why the patterns used by our predecessors 20 years ago aren't relevant anymore. My father told me that trading 40 years ago was as "easy" stealing a candy from a baby.

Now it’s a lot more complicated due to the noise, trading bots, etc.. Often orders aren't filled In paper trading or with a backtest, when a Take Profit is hit... well we make profit and that's cool. But those LIVE trading know that sometimes... the limit orders aren't filled and no one can give us a logical explanation why the F... they weren't filled. Even though the charts clearly show we should have been filled... Your broker will say slippage. Your guru will say "I got a nice 1000% profit - Hope you all exited when I told you so" You will say "But my backtest claimed that an order should always be filled..." I'm saying blaming the casino isn't useful and won't bring you anywhere And that's why trades need to be managed because we're playing against the house (exchange) & competition (i.e. SMART-MONEY - understand bankers/funds with real advanced financial education) that want us liquidated. I'll keep bringing a few articles like this every week because it helps me clarifying my thoughts AND giving back to the community makes me feel good about myself somehow :) I want to teach you guys every aspects of what makes a great trader and how to get there. This is the most challenging and the most rewarding job at the same time Thank you for reading Dave
Education
by Daveatt
5