For many years I had a friend whose wife was fat. She was an elegant dresser, and she had been on a diet for as long as I had known her. She said she wanted to lose weight and she didn’t eat cake or potatoes in front of people—but when I came into her kitchen, I’d see her go at it with a big fork. She said she wanted to be slim, but remained fat. The short-term pleasure of eating was stronger for her than the delayed pleasure and health benefits of weight loss. My friend’s wife reminded me of a great many traders who say they want to be successful but keep making impulsive trades—going for the short-term thrills of gambling in the markets. People deceive and play games with themselves. Lying to others is bad, but lying to yourself is hopeless. Bookstores are full of good books on dieting, but the world is still full of overweight people
This trading article series will teach you how to analyze and trade the markets, control risks, and deal with your own mind. I can give you the knowledge. Only you can supply the motivation. And remember this: an athlete who wants to enjoy risky sports must follow safety rules. When you reduce risks, you gain an added sense of accomplishment and con- trol. The same goes for trading.
You can succeed in trading only if you handle it as a serious intellectual pursuit. Emotional trading is lethal. To help ensure success, practice defensive money management. A good trader watches his capital as carefully as a professional scuba diver watches his air supply.
To understand full concept read in sequence from number 1.
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$BTC will bounce from right here 65.6k or from 64.5k range......Hold Tight. keep your liquidation low. buy now . Dot, Near,Ena,KSM, Doge,ICP,Matic for spot. if you Wana do leverage don't go with more then 2x. keep at least 30% as reserve.
#Dyor before jumping into trade. None of my post is financial advice.
Why do most traders lose and wash out of the markets? Emotional and mindless trading are big reasons, but there is another. Markets are actually set up so that most traders must lose money. The trading industry slowly kills traders with commissions and slippage. You pay commissions for entering and exiting trades. Slippage is the difference between the price at which you place your order and the price at which it gets filled. When you place a limit order, it is filled at your price or better, or not at all. When you feel eager to enter or exit and place a market order, it’s often filled at a worse price than prevailed when you placed it. Most amateurs are unaware of the harm done by commissions and slippage, just as medieval peasants could not imagine that tiny invisible germs could kill them. If you ignore slippage and deal with a broker who charges high commissions, you’re acting like a peasant who drinks from a communal pool during a cholera epidemic. The trading industry keeps draining huge amounts of money from the markets. Exchanges, regulators, brokers, and advisors live off the markets, while generations of traders keep washing out. Markets need a fresh supply of losers just as builders of the ancient pyramids needed a fresh supply of slaves. Losers bring money into the markets, which is necessary for the prosperity of the trading industry.
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2.2 How This Learning Series Is Organized (2/2)
Part Nine will lead you into the all-important topic of money management. This essential aspect of successful trading is neglected by most amateurs. You can have a brilliant trading system, but if your risk management is poor, then a short string of losses will destroy your account. Armed with the Iron Triangle of risk control and other tools, you’ll become a safer and more effective trader. Part Ten will delve into the nitty-gritty of trading—setting stops, profit targets, and scanning. These practical details will help you implement any system you like.
Note:
To understand full concept start reading from Sequence 1.
The three pillars of successful trading are psychology, market analysis, and risk man- agement. Good record-keeping ties them together. This book will help you learn the essentials of all these areas.
Part One of this series will show you how to manage emotions in trading. I discov- ered this method while practicing psychiatry. It greatly improved my trading, and it can help you too. Part Two will focus on crowd psychology of the markets. Mass behavior is more primitive than that of individuals. If you understand how crowds behave, you’ll be able to profit from their mood swings instead of being swept up in their emotional tides. Part Three will show how chart patterns reflect crowd behavior. Classical techni- cal analysis is applied social psychology, like poll-taking. Support, resistance, break- outs, and other patterns reflect crowd behavior. Part Four will teach you modern methods of computerized technical analysis. Indicators provide a better insight into mass psychology than classical chart patterns. Trend-following indicators help identify market trends, while oscillators show when those trends are ready to reverse. Volume and open interest also reflect crowd behavior. Part Five will focus on them as well as on the passage of time in the markets. Crowds have short attention spans, and a trader who relates price changes to time gains a competitive advantage. Part Six will focus on the best tools for analyzing the stock market as a whole. They can be especially helpful for stock index futures and options traders. Part Seven will present several trading systems. We’ll begin with the Triple Screen, which has become widely accepted, and then review the Impulse and Channel trad- ing systems. Part Eight will discuss several classes of trading vehicles. It will outline pluses and minuses of equities, futures, options, and forex, while blowing away the promotional fog that clouds some of these markets.
2.1 Getting Off the Roller Coaster The majority of traders spend most of their time looking for good trades. Once they enter a trade, they don’t manage it but either squirm from pain or grin from pleasure. They ride an emotional roller coaster and miss the essential element of winning—the management of their emotions. Their inability to manage themselves leads to poor risk management and losses. If your mind is not in gear with the markets, or if you ignore changes in mass psychology of crowds, you have no chance of making money trading. All winning professionals know the enormous importance of psychology. Most losing amateurs ignore it. Friends and students who know that I am a psychiatrist often ask whether this helps me as a trader. Good psychiatry and good trading have one important principle in common. Both focus on reality, on seeing the world the way it is. To live a healthy life, you have to live with your eyes open. To be a good trader, you need to trade with your eyes open, recognize real trends and turns, and not waste time or energy on fantasies, regrets, and wishful thinking.
Note: To understand full concept, Start reading from Sequence 1 .
Remember how you felt the last time you placed an order? Were you anxious to jump in or afraid of losing? Did you procrastinate before entering your order? When you closed out a trade, did you feel elated or humiliated? The feelings of thousands of traders merge into huge psychological tides that move the markets.
Note :
To Learn and Understand full concept of this learning series Read from Sequence 1.
You can be free. You can live and work anywhere in the world. You can be indepen- dent from routine and not answer to anybody. This is the life of a successful trader. Many aspire to it but few succeed. An amateur looks at a quote screen and sees millions of dollars sparkle in front of his face. He reaches for the money—and loses. He reaches again—and loses more. Traders lose because the game is hard, or out of ignorance, or from lack of discipline. If any of these ail you, your are at the right place. I am going to start posting daily articles that will change your whole trading approach, will help you understanding trading psychology, risk management and each and everything about Trading . I bet you will tell me in comments that It really makes a difference.
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