Dear Trader,
What I’m about to show you today contains simple but powerful methods to overcome your trading fears in 6 months! Yes, you heard me, 6 MONTHS! To get a hang of what you have to do, open this 🧵:
The Reality of FEAR
FEAR is real; it lurks behind us like a shadow, ready to devour our emotions. In this THREAD, I will show you 3 MAGIC Steps on how to overcome your fears as a TRADER. These steps work so well that it looks like EMOTIONAL SORCERY. So….. let’s get started 😊
Understanding FEAR
First things first, fear is always biological, meaning that you can’t afford to lose something of great value that poses a threat to your existence. This can be true with TRADING, especially when dealing with a scarce resource such as MONEY.
The Steps
The steps are divided into 3 categories:
STEP 1: TRADING STRATEGY
DURATION: 3 MONTHS
Your strategy is the foundation of everything you want to do as a trader. It is important to ask yourself if your STRATEGY is well-defined. Most times, your reason for being afraid is simply a lack of basic knowledge of what you do and how to do it. It’s not about learning multiple strategies, but about understanding and applying whatever you have learned.
For the first 3 months, focus on building your strategy. Here’s how:
- Pay a Mentor: Learn from someone with a proven strategy to shorten your learning curve.
- Learn it Yourself: Dedicate time to build a working strategy if you can’t afford a mentor.
NOTE: For you to build a trading strategy, it must contain two factors:
1. Simple: Easy to create and refine.
2. Repeatable: Consistent and easy to repeat.
STEP 2: RISK MANAGEMENT
DURATION: 1 MONTH
Without risk management, you won’t last long in this game. After building your strategy, shift your focus to creating a solid risk management plan. Learn the basics in one month:
1. Pips and pips value
2. Lot sizes
3. Leverage
4. Stop Loss and Targets
5. Risk to Reward
A good risk management plan is an antidote to overcoming a lot of fear in trading.
STEP 3: PSYCHOLOGY
DURATION: 2 MONTHS till Eternity
This final step is crucial. Remember, we’ve talked about strategy and risk management. Although psychology is heavily debated, without it, even the best strategy or risk plan is useless. Each plays a role and works hand in hand.
Building Your Psychology:
Write down these 5 fundamental truths about the MARKET to help manage your emotions:
1. Anything can happen in the MARKETS.
2. You don’t need to know the future to make money in the MARKETS.
3. There will always be a random distribution between wins and losses.
4. An Edge is a pattern that can repeat itself.
5. Every moment in the MARKET is unique.
Conclusion
We’ve come to the end of this THREAD 🧵. I enjoyed sharing information to help you in your trading journey. Trading is never easy, but with grit and determination, you will always find your way through.
Timeline:
- August, September, October: Build a solid strategy and backtest or forward-test it.
- November: Learn and apply risk management to your trading plan.
- December and January: Build your psychology by reading the provided books.
By February, you’ll be ready to trade the markets and refine your skills 😊