I have studied, am studying and will study trading endlessly!
There are profitable trades, there are unprofitable ones! There are good investments and failed ones! As I work on myself, I increasingly fall into the rabbit hole of my demons, which if you do not stand face to face with them, will catch up with you every time again and again!
What I noticed from the last! There are two traps
After a series of stop losses, new trades are carried out with fear of entering a position, or by reducing the stop loss, for example, from the standard 1% to 0.25%, which entails even more stop losses, but short ones, and their number still takes as much money as standard stops! Even if you have a clearly written strategy, I realized that before the trading day you need to not only follow the rules, but also create your own checklist for the day, trade arguments! And it should include emotional, news and psychological moments! Your mood also affects decision making! I'm working on it
The desire to take the movement right down to the last cent! When you leave a position early, then there is a desire to enter and finish the trade, or emotionally then regret during the day that it was possible to take more! I'm working on this too! I can't take all the great trades, 1/2 trade is already cool, a question of a deposit or trading leverage! Plus, when you close small trades with such a win rate, it can be psychologically easier for you at a distance, since expectations become lower, you trade more calmly! At least for me it is! When you look at social networks, it seems to you that everyone takes 1 to 10 take profits every day, and you start chasing, but all this in most cases is a beautiful picture - nothing more! And I trade for myself, and not to surprise some stranger on the other side of the monitor or the continent!
Both of these traps can lead to losses, the market does not care which of these 2 traps torments you and why you lose your deposit! The market doesn't care who you are or how you trade, you are the biggest obstacle to yourself to become successful in trading!
The sooner you realize this, the sooner you will come to terms with the fact and start working on overcoming the obstacle! The obstacle is not the market, not CEX, SEC, FOMC, Elon Musk, not your laptop, not the wifi, not money, not your girlfriend and not anyone else but YOU!
Reflection and conversations with myself and my demons personally help me in trading!
#Write2Earn! #psychology #TradingTips