I Blew Many Accounts Until…. | Trading Psychology Tips

I Blew Many Accounts Until…. | Trading Psychology Tips
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Big Dreams

Meet Harry; the aspiring young trader with big dreams and an even bigger appetite for success. He envisioned a future where he makes the right trades, picks the right investments, and swims in a sea of money. In this future, he would buy the Rolls Royce, his dream house at that exotic location, and accrue so much wealth that his children’s children would never know what it is to lack anything. There are some psychology tips

However, Harry’s journey in the world of trading turned out to be far more challenging than he had anticipated. In 2020, he discovered the promising world of cryptocurrency, where technology was turning ordinary Joes into millionaires overnight. And if he was honest with himself, the tech wasn’t really his interest; it was all about the money. So, he immersed himself in what he thought were market fundamentals, trends, charts, and learned about various trading strategies.

But despite his efforts, his trades seemed to consistently go awry. It was one step forward and two steps back. Day after day, Harry struggled to understand the intricacies of the market. He would often succumb to his emotions, letting fear and greed guide his decisions. He would impulsively enter and exit positions based on hunches. His profits would soar to the moon one day, only to come crashing down like a meteor the next, resulting in significant losses.

Confidence Plummeted

As this pattern repeated, doubt began to creep into his mind, and his confidence plummeted. With mounting losses, Harry found himself in a cycle of despair. He questioned his abilities, wondering if he was cut out for the trading world. To make matters worse, he ended up blowing his trading bank, and those around him suggested he find something else to do with his life.

Contemplating giving up and pursuing a different career path, a flicker of determination remained deep down, urging him to persist. So, Harry ventured into the world of Forex Trading, assuming that the market would be less volatile than the crypto market. He funded his account again, and very soon, his old friends, fear and greed, came back rearing their ugly heads. And very soon, he blew his trading account again!

As a result, he went on a thorough exploration of the psychological dimensions of trading.

Discipline in Trading

He began implementing the practical trading psychology techniques he’d learned. As time went on, Harry’s newfound discipline and knowledge started yielding positive results. He began to see a gradual improvement in his trading performance. Small wins became more frequent, and his losses were kept in check.

With each successful trade, his confidence grew, and he started to believe in his abilities once again. Months turned into years, and Harry’s persistence and dedication paid off. He developed a keen understanding of the market and honed his trading skills.

How can a simple mental shift help him turn his initial struggles into a stepping stone toward a rewarding and fulfilling career as a trader? Before I continue, I will let you know that I am Harry. And if you’re struggling with turning a profit with your trading, I want you to know that you can change your trading story just as I changed mine.

Many aspiring traders make the common mistake of focusing primarily on studying market behavior rather than understanding their own mindset and personal attributes and the “reality” of the market. In this video, I will share with you the 5 important things you should know about the psychological aspect of trading—that I can guarantee you has been stopping you from becoming a profitable trader.

Trading Mindset

In this video, I will share with you the “reality” of the market, what I’ve learned over the years on how to develop an ironclad trading psychology for the Forex markets, and how this ultimately transformed my trading mindset and made me a better trader.

Number 1: Having a good strategy just means a better chance of making a profit than a loss.

When I began trading, I kept searching for the next great strategy that claimed to have the highest chance of winning. As you probably know, there are numerous videos on YouTube offering such strategies. However, most of them didn’t work for me.

Don’t misunderstand; some of them were genuinely effective trading methods. What I didn’t realize back then was that even if a strategy is good, it doesn’t mean it will always result in consistent winning trades. One of the most important lessons that successful traders have picked up over time is that having a good strategy in trading does not guarantee a 100% success rate or predict the outcome of individual trades.

However, it is important to note that does not imply not being capable of being wrong. Traders will still experience losing trades despite having an overall higher probability of winning. The edge simply provides an advantage that, over a series of trades, can lead to consistent profitability.

Decision-Making

Understanding and recognizing this trading reality is essential for traders.

Number 2: There’s no rhyme or rhythm to profits and losses.

This idea challenges the common belief that trading outcomes follow a predictable pattern or sequence. In trading, the distribution of winning and losing trades does not follow a linear or predictable pattern like you see on the internet with most of the trading gurus.

This simply means that even a well-designed trading strategy will experience a mix of winning and losing trades that occur in an unpredictable manner. Understanding this randomness is crucial because it helps traders avoid falling into the trap of expecting consistent wins or loses based on past results. Each trade is an independent event and is not influenced by previous trades.

Mindset in Trading

Therefore, traders should not assume that a winning streak will continue indefinitely or that a series of losses indicates a string of future losses. By recognizing the random distribution of trading outcomes, traders can adopt a more objective and disciplined approach, avoid getting emotionally attached to specific trades or outcomes, and instead focus on executing their trading plan consistently.

Number 3: Any outcome is possible.

No matter how well a trader analyzes the market; there are always unexpected events, volatility, and unforeseen outcomes that can occur. This concept serves as a reminder that even the most thought-out trading strategies are subject to the inherent randomness and unpredictability of the market. Understanding that “anything can happen” helps us as traders develop a realistic perspective and avoid becoming overly confident or attached to a specific outcome. By acknowledging the potential for unexpected events, you as a trader can prepare mentally and emotionally to handle various market scenarios and make more informed decisions. In trading, it is common for traders to develop expectations or biases based on analysis or beliefs about the market. .

Number 4: You don’t have to predict the market to make money.

Number 5: Each time in the market is different.

The Specific Conditions

It is important to know that what happened yesterday in the trading market will not necessarily happen today. Each moment in the market is distinct and should be treated as such. . You as a trader should avoid making assumptions based solely on historical patterns or previous market behavior. By recognizing the uniqueness of each market instance, traders are encouraged to remain adaptable and open-minded. You should understand that relying solely on past experiences or generalizations can lead to faulty assumptions and inaccurate predictions.

If you made it to the end of this video, I appreciate you. Thanks for watching!

 

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