Psychology

Never Quit!
Normal state of mind as you make your way through the lessons.

-Ah ha, this makes perfect sense I see it now

-Ah ha, this makes perfect sense I see it now
-Ah ha, this makes perfect sense I see it now

-I'm lost! -(Go back and review some lessons you breezed through) Ah ha, this makes perfect sense I see it now
-I got this!

-I have no idea what I'm doing

-(review again) Ah ha, this makes perfect sense I see it now

-This is completely impossible!!!

-(review again) aha!!!
-wait, why didn't he show us this first. Now I really get it (this is actually just a sign of comprehension setting in)

-forget it, I'm lost, I need a break.

-(review key elements again) Ah ha, this makes perfect sense I see it now
-wait, that's all that's to it? This is so simple.

Our mind takes on a journey where we recognize that something works, but, as we begin the process of application we then naturally stumble and make
mistakes. Those mistakes are key. They allow to go back and fully comprehend it (perhaps we didn't look at a time frame above or below or we were
countering and ignored a key sign from our TA etc) Your mind will lie to you. "It's impossible.” Meanwhile, you have already seen that it's much more logical
then you ever imagined so, tell your mind to get those lies out of your head. Eventually, we reach such an interesting level b/c when we comprehend it we say,
"this is it" and "there must be more". The journey is hilarious because we go from saying it's impossible to saying this is simple. That's the goal! Full
Comprehension above all else and even when you reach a high level of comprehension you can always improve on it by studying the same exact things. Don't
quit. Don't get too discouraged. Lean on me and others in here for a supportive voice. I will not leave any man or woman behind. Regroup and jump in again
with a fresh mind.
Mr. A’s Shared Wisdom
➡ Assets were only cheap if they are going higher after you buy them.

➡ Never trust a person more than the market. Ppl lie, the markets don’t.

➡ Controlling losers is a must; let winners run out of control.

➡ Simplicity in trading demonstrates wisdom. Complexity is a sign of inexperience

➡ If a man empties his purse into his head, no man can take it away from him. An investment in knowledge always pays the best interest.
—Benjamin Franklin

➡ There are no secrets to success. It is the result of preparation, hard work, and learning from failure.

➡ Trend is your friend we follow until the end. Ignore momentum at your own peril.
6 Stages Of A Trader (Yoder & Graifer)
Mr.A: If we are to become a great trader we will go through some variation of
all 6 of these stages. Being aware of these stages can help you identify where
you are now and where you need to eventually be.
Stage One: The Mystification Stage
This is where the neophyte trader begins. He has little or no understanding of
market structure. He has no concept of the interrelationship among markets,
much less between markets and the economy. Price charts are a meaningless
mish-mash of colored lines and squiggles that look more like a painting from
the MoMA than anything that contains information. Anyone who can make
even a guess about price direction based on this tangle must be using black
magic, or voodoo.
However, as one begins to observe, read, study, the mess may begin to resolve
itself into something that may make sense. Sort of.
Stage Two: The Hot Pot Stage
You scan the markets every day. After a while (sometimes a good long while),
you notice a particular phenomenon which pops up regularly and seems to
“work” pretty well. You focus on this pattern. You begin to find more and more
instances of it and all of them work! Your confidence in the pattern grows and
you decide to take it the very next time it appears. You take it, and almost
immediately your stop is hit, and you’re underwater for the total amount of
your stop-loss.
So you back off and study this pattern further. And the very next time it
appears, it works. And again. And yet again. So you decide to try again. And
you take the full hit on your stoploss.
Practically everyone goes through this, but few understand that this is all part
of the win-lose cycle. They do not yet understand that loss is an inevitable part
of any system/strategy/method/whathaveyou, that is, there is no such thing as
a 100% win approach. When they gauge the success of a particular pattern or
setup, they get caught up in the win cycle. They don’t wait for the “lose” cycle
to see how long it lasts or what the win/lose pattern is. Instead, they keep
touching the pot and getting burned, never understanding that it’s not the pot
(pattern/setup) that’s the problem, but a failure on their part to understand
that it’s the heat from the stove (the market) that they’re paying no attention
to whatsoever. So instead of trying to understand the nature of thermal
transfer (the market), they avoid the pot (the pattern), moving on to another
pattern/setup without bothering to find out whether or not the stove is on.
Stage Three: The Cynical Skepticism Stage
You’ve studied so hard and put so much effort into your trading and this
universal failure in the patterns only when you take them causes you to feel
betrayed by the market, the books and materials and gurus you tried to learn
from. Everybody claims their ideas lead to profitability, but every time you take
a trade, it’s a loser, even though the setups all worked perfectly before you
played them. And since one of the most painful experiences is to fail when
success looks easy, this embarrassment is transformed into anger: anger at the
gurus, anger at the vendors, anger at the writers, the seminars, the courses, the
brokers, the market makers, the specialists, the “manipulators”. What’s the
point in trying to analyze and improve your own trading when there are so
many dark forces out to get you?
This excuse-driven blame game is a dead-end viewpoint, and explains a lot of
what you find on message boards. Those who can’t pull themselves out of it will
quit.
Stage Four: The Squiggle Trader Stage
If you don’t quit, you’ll move into the “squiggle trader” phase. Since you failed
with patterns and so on, you figure there’s some “secret weapon”, a “holy grail”
that’s known to the select few, something that will help you filter out all those
bad trades. Once you find this magical key, your profits will explode and you’ll
achieve every dream you ever had.
You begin an obsessive study of every method and every indicator that is new
to you. You buy every book, attend every course, sign up for every newsletter
and advisory service, register for every trading website and every chat room.
You buy more elaborate software. You buy off-the-shelf systems. You spend
whatever it takes to buy success.
Unfortunately, you stack so much onto your charts that you become paralyzed.
With so many inputs, you can’t make a decision, particularly since they rarely
agree. So you focus on those which agree with the direction of the trade you’ve
taken (or, if you’re the fearful sort, you look only for those which will prove to
you how much of a loser you think you are).
This is all characteristic of scared money. Without a genuine acceptance of the
fact of loss and of the risks involved in trading, you flit around like a butterfly in
search of anything or anybody who will tell you that you know what you’re
doing. This serves two purposes: (1) it transfers to others the responsibility for
the trade and (2) it shakes you out of trades as your indicators begin to conflict.
The MACD says buy, the STO says sell. The ADX says the market is trending, the
OBV says its overbought. By the end of the day, your brain is jelly.
This process can be useful if the trader learns from it what is popular, i.e., what
other traders are doing, and, if he lasts, how to trade traps and panic/euphoria.
And even though he may decide that much of it is crap, he will, if he doesn’t slip
back into the Cynical Skepticism Stage, have a more profound appreciation —
achieved through personal experience — of what is sensible and logical and
what is nonsense. He might also learn something more about the kind of trader
he is, what “style” suits him best, learn to distinguish between what is desirable
and what is practical.
But the vast majority of traders never leave this stage. They spend their
“careers” searching for the answer, and even though they may eventually
achieve piddling profits (if they don’t, they will of course eventually no longer
be trading), they never become truly successful, and this has its own insidious
consequences.
Stage Five: The Inwardly-Bound Stage

The trader who is able to pry himself out of Stage Four uses his experiences
there productively. The trader learns, as stated earlier, what styles, techniques,
tactics are popular. But instead of focusing entirely on what’s “out there”, he
begins to ask himself some questions:
What exactly does he want? What is he trying to accomplish?
Rather than be thrown by them, he accepts them for what they are, a part of
the natural course of business. He examines them, of course, in order to
determine whether or not some error was made, particularly one that can be
corrected, though true trading errors are rare. But, if not, he simply shrugs off
the loss and goes on about his business. He understands, after all, that he is in
control of his risk in the market.

What sort of trading makes the most sense to him? Long or intermediate-term
trading? Short-term trading? Day-trading? Trend-trading? Scalping? Which is
most comfortable?
What instrument — futures, stocks, ETFs, bonds, options — provides the range
and volatility he requires but is not outside his risk tolerance? Did he learn
anything at all about indicators in Stage Four that he might be able to use?
He doesn’t rant about his broker or the specialist or the market maker or that
vast conspiracy of everyone who’s trying to cheat him out of his money. He
doesn’t attempt revenge against the market. He doesn’t fret. He doesn’t fume.
He doesn’t succumb to hope, fear, greed. Impulsive, emotional trades are gone.
Instead, he just trades.

And so he “auditions” all of this in order to determine what suits him, taking all
that he has learned so far and experimenting with it.
He begins to incorporate the “scientific method” into his efforts in order to
develop a trading plan, including risk management and trade management. He
learns the value of curiosity, of detached interest, of persistence and
perseverance, of taking bits and pieces from here and there in order to fashion
a trading plan and strategy that are uniquely his, one in which he has complete
confidence because he has tested it thoroughly and knows from his own
experience that it is consistently profitable.

He accepts fully the responsibility for his trades, including the losses, which is to
say that he understands that losses are inevitable and unavoidable.
Stage Six: Mastery
At this level, the trader achieves an almost Zen-like trading state. Planning,
analysis, research are the focus of his time and his effort. When the trading day
opens, he’s ready for it. He’s calm, he’s relaxed, he’s centered.
Trading becomes effortless. He is thoroughly familiar with his plan. He knows
exactly what he will do in any given situation, even if the doing means exiting
immediately upon a completely unexpected development.
He understands the inevitability of loss and accepts it as a natural part of the
business of trading. No one can hurt him because he’s protected by his
rules and his discipline.
He is sensitive to and in tune with the ebb and flow of market behavior and the
natural actions and reactions to it that his research has taught him will
optimize his edge. He is “available”. He doesn’t have to know what the market
will do next because he knows how he will react to anything the market does
and is confident in his ability to react correctly.
He is, in a sense, outside himself, acting as his own coach, asking himself
questions and explaining to himself without rationalization what he’s waiting
for, what he’s doing, reminding himself of this or that, keeping himself centered
and focused, taking distractions in stride. He doesn’t get overexcited about
winning trades; he doesn’t get depressed about losing trades. He accepts that
price does what it does and the market is what it is. His performance has
nothing to do with his self-worth.
It is during this stage that the “intuitive” sense begins to manifest itself. As
infrequent as it may be, he learns to experiment with it and to build trust in it.
And at the end of the day, he reviews his work, makes whatever adjustments
are necessary, if any, and begins his preparation for the following day, satisfied
with himself for having traded well.
The knowledge proved through research that a particular price pattern or
market behavior offers an acceptable level of predictability and risk to reward
to provide a consistently profitable outcome over time.

He understands and practices “active inaction”, knowing exactly what it is he

wants, exactly what it is he’s looking for, and waiting, patiently, for exactly the
right opportunity. If and when that opportunity presents itself, he acts
decisively and without hesitation, then waits, patiently, again, for the next
opportunity.

He does not convince himself that he is right. He watches price movement and
draws his conclusions. When market behavior changes, so do his tactics. He
acknowledges that market movement is the ultimate truth. He doesn’t try to
outsmart or outguess it.
The Path to Becoming a Trader
https://medium.com/hackernoon/my-one-year-journey-trading-cryptocurrencies-de57be1657f3 How do I feel?
Have I given time to develop mental/emotional strength? As discussed in Step 1, make sure
Step 1: Train Your Brain by research to create a Mental Model (FA, PA, TA, MA (Trading in the you’re taking time to stay healthy.
Zone)).
What did I learn?
TRADING PSYCHOLOGY What did you learn (like making a trade you regret) and how will you correct for it in the
future? (For example, I would always check the price of a coin but I simply adopted using price
Step 2: Patience! Give ample time to reflect and strategize before making a trade. Anticipation alerts, stop loss and limit orders, which gave me a lot more room to breathe).
releases Dopamine which hijacks your brain.
The fact that you wait means you are giving your brain a chance to return to a baseline point
where you’re able to engage in complex and abstract thought processes.

Step 3: Keep body and mind sharp through Exercise, meditation, and always BREATHE to focus

HOW TO BREAK BAD HABITS

Step 4: Make a plan. Think in terms of probabilities. Use Risk & Reward ratios.

TRADING PLAN

PROBABILITIES

A weekly self-check is a good practice to adopt.

Ask yourself the following questions

Did I stick with the my plan in my trading journal?

Track your trades in an excel document — include entry/exit targets, reasons for buying, and
profit targets. Review them and be honest with yourself, but don’t beat yourself up if you didn’t.
There’s always the next trade.
Psychology Advice
https://medium.com/@cryptohornhairs/mental-muscle-up-actionable-trading-psychology-advice-
fbdc6917a2b4
Meditate
Exercise
No amount of technical analysis and risk management can save you from a
Focus / Flow
broken state of mind. You will lose all of your money and waste all of your
time if you cannot endure the psychological turmoil of trading. Keep a positive attitude

Successful trading often requires one to be resilient to psychological pain as a

trade is stopped out or your open position is underwater. Being able to endure
the completely normal part of trading, that is losing, puts you above most
traders.

Building up that resilience to pain endured from trading comes from

experience, mostly, but can also be engineered purposefully. If you live a life
full of comfort and never put yourself in a position where things could go
against you, the moment you lose a trade you will feel increasingly tilted and
it will carry over to your next trades. On the opposite spectrum, if you’re
constantly challenging yourself outside of trading and building up a resilience
to any sort of pain it will be easier to deal with when it comes around to your
trades.

Day Trading - Psychology Talk - Part 1

Practice makes permanent - for both bad and good habits

Day Trading - Psychology Talk - Part 2

Alerts for Trading Multi-Assets

TC: Looking at one or just a handful of pairs/assets has advantages but, it also means you have to be patient if not, then you need to add a
few assets if you genuinely need more opportunity.
For me, I have several days where I wont make a trade and I don't even think about it but, others want near daily type action and as long
as they are doing it in a sound manner then that is fine but, perhaps adding some assets would help.

Ish: I find I have more success once I study the behavior of an asset for a while before I trade. Builds confidence in it as I notice Gold moves
differently from indices and stocks move differently but the system all applies and is universal.
I think I am ready to start applying what I know across a few others as I really could do with making more trades and not getting so
complacent.

You got any tips for keeping track of multiple assets, do you have alerts or anything set?
Also are you swing trading stocks or still day trading them?
I found day trading them to be too time consuming and trying to work around the pre market and post market stuff was a pain and the
move always had already done about 4% pre market that I would just leave it by the time the open happened.

TC: ALERTS!
On HTF S/R (nearby) Right before a HTF demand right before a HTF supply
I try to keep my alerts HTF or else I'll go crazy. But if I see something untested on h4 or higher, I'll set those too with notes

For sure will set EMA alerts as well. Normally geared towards test of certain EMA's so the alert is just to tell me to pay attention and assess
the data.
Alerts for Trading Multi-Assets
Ish: First thing I would say is come to a place of acceptance that it's impossible
to catch every single coin. Alt coins can trend like crazy so pick a few that you
like and stay on them. For me I only trade NQ, ES and BTC. I don't even look at
stocks or alts at the moment. Slowly I have been adding a stock that I like and
setting some HTF alerts, but from a few solid assets you can make all the
money in the world by riding the wave over and over again, but it all starts
with killing the FOMO and accepting that its just not possible to trade every
asset. What Steve suggested is very good also. Set the alerts on the ones you
were trading so you don't slip away from it.
George: When you exit a trade do wait to trade again when you get another
set up on the same asset or move to another coin.
@Ish I understand but I trade a full position and then when my alarm alerts me
I’m already in another trade and I’m not liquid to re enter my previous asset .
This ends up confusing me and stressing me out and cost me money in the end .
Blazg: @Steve I like the idea with alerts. Do you set them based on EMA flow
and Stoch rules probably?
Steve: I have set alarms to dozens of coins and every time one triggers I watch
the chart and decide if I want to take it or not. This is how I decide: On current
leg up of BTC I rebought 3 times, and meanwhile played also 2-3 other Alts. All
from alarms @blazg yes
Ish: @Steve I am still playing around with my alarms, I have an ok system for it
but would love to hear yours specifically as I am starting to dislike sitting in
front of the computer all day.
George: I need to manage FOMO or just stick to BTC .
@Ish i set my alarms on the RSI/MA/EMA crossover and the Stoch 50 line.
Bullish and bearish crosses usually indicate the 21 EMA.
Ish: @george I would advise choosing a few key assets that you like and move well. Everything else (for now)
can be on your B list. Where you don't prioritize it. Stick to the few you like and just come to a place of
acceptance that there are thousands of assets doing massive moves that you won't catch, but you're ok with
that as you have your dream team assets you know like the back of your hand and trust will pay out over time.
Slowly start adding to that dream team list as you feel more comfortable. I am also in the same place as far as
trading other assets and have just stuck with my 3 that I love. So maybe other people can give some better
advise for how you build up that dream team!
@george Similar setup for me man. I have alarms on the 40 mark and 60 mark of my stochastic Anchor and the
21/34 cross on EMA 2 hour for BTC for example. I also have alerts on supply zones.
Steve: For complex alarms you need to build your own indicator or use existing ones, but if I would chose for
simple alarms I would go with a bull-crossed daily stoch (stoch k above stoch d) and stoch k above 50 as HTf
signal (momentum) and then chart it/bring it to a lower timeframe for planing your trade / trigger. Will most
probably outperform many other signals.
Ish: @Steve Yea very similar to what I have! So I assume you then set other alarms on the lower time frames
after your main HTF alarms have gone off.
Steve: That would be the logic, yes. Thats crucial, you need to set your trigger otherwise your anchor signal
was useless.
Blazg: @Steve You mentioned stock in alarm definition. You don't put EMAs as well to be considered in alarm?
Steve: @blazg The more concrete the better but to put several HTF conditions in one signal you have to write
your own indicator.
Ish: For example I get a 12hour stochastic alarm as it enters above 50. I then need some other steps to be in
correct order before I take my trade so I set those alarms e.g bull cross trigger. My problem is when my first
alarm goes off I come back to the computer and I just sit there and wait for the other criteria to be met rather
than set more alarms @! " # $ (Steve)
George: @Ish yeah, you’re right, I’ve done this before but end up moving away from my selected coins and get
lost in the crowd losing track of my selected coins and missing their bigger moves.
George: @Ish I have that issue as well with the alarms . I end up sitting there for hours wasting my day
Steve: @Ish I found out that watching charts has been one of my biggest problems and installing processes
that replace that has dramatically improved my trading.
Ish: @Steve Yea man I see you talk about that a lot and I am really thinking that it will improve my game. I am
going to spend today getting a system down that will allow me to step away from the computer.
Steve: @Ish Writing down your system will dramatically add value because you have to be very clear about
what you actually want to see before entering a trade.
https://www.youtube.com/watch?v=el10dgDa2Do
Habits of Wealthy Traders
1. They are patient with their winning trades and enormously impatient
with losing trades.
Most traders get into a winning trade and then get anxious. And keep finger on the sell button or
move up their stoploss too close. And when a trade goes against, they wait just a little longer to
see if it turns around. Wealthy trades flip this and do the opposite. This is the most important
change to make as a trader!
2. They realize that making money is more important than being right.
The market can stay wrong longer than you can stay solvent. We all have a human characteristic
that we want to be right, but you need to be able to change sides. So if the market is telling you,
you are wrong, you need to listen.
3. They look at charts as a picture of where traders are lining up to buy or
sell.
Zones, EMAs, Trendlines, Fibo, etc. All these are used to identify probabilities of buyers and sellers.
4. They know where they will exit for both a gain or a loss before entering
a trade.
This allows for proper risk management. Never get into a trade if you don’t know where you’re
getting out for a loss or a profit.
5. They stick to their edge and approach each trade without becoming
emotional after consecutive losing trades.
Chart patterns and other TA plays don’t work 100% of the time, they may not even work 60% of the
time. Don’t be gun shy. If you are confident in your system and/or confluence, take the trade.
6. They have stopped trying to pick tops and bottoms.
It is extremely difficult to see tops and bottoms. Trade with the trend you will have a much easier
time trying to make money.
7. They are willing to change sides if the market tells them to do so.
Wait to see what the market is going to do and then trade it. If you have a bias, and you see the
market doing the opposite, trade what it’s telling you.
8. They use clean charts and focus on zones.
The more indicators you put on a chart will not make your TA better. Use what works for you. Get a
feel for what you’re trading by looking at price alone first. Focus on one asset first and become
successful at trading it first before adding more opportunity.
9. They realize that being uncomfortable trading is normal and ok.
The idea that trading will become easier with more confidence is false. You have to be
comfortable with being uncomfortable. You’re never going to be completely in-sync with the
market. Remain confident in decision in the face of incomplete information.
10.The markets are their workplace. They participate and are not on-
lookers.
You’re there to make money. Don’t feel like you have a disadvantage because you don’t work at a
hedge fund. You can still be successful and make money.
11. They have stopped thinking about the market as “cheap” or
“expensive.”
Just because a stock is priced low, doesn’t make it a good deal. If the company is trash it can
become a very expensive stock if price tanks. The question should always be, “is someone going to
pay more or less for this when I sell.” Google at $1000 may be a bargain at $2000.
12.They trade aggressively when trading well and modestly when not well.
Never trade a larger position size to make up for reassuring losses. Only trade higher position sizes
when you are trading well and when you are not trading well lower your size. Ex: trade with only 1
share until you correct your directional bias. It’s about getting your mind in sync with the market.
13.Cash is the goal, but never the measure of success.
You cannot attach a dollar figure goal in order to qualify for a successful day. You will end up
making trades you shouldn’t if you say, “my goal is to make a $1000 today.”
A better measure of success for the day would be to say, “ did I follow my rules to get in and out of
trades.”The cash will follow from this.
13.They realize that there’s always another trade.
FOMO is the devil. Learn and live. Move on with your trades.
14.They never add to a losing trade. EVER.
The only reason you would ever do this is if you’re leveling in your trades because you are adding
$40,000 at a time.
15.They read books about psychology and crowd wisdom.
This will help to understand the human characteristics of what drives Price Action.
-The Wisdom of Crowds
-The Art of Strategy
-Markets, Mobs, & Mayhem
16.They have a way to gauge fear, greed, and speed of the markets
They use Tick Charts
https://www.youtube.com/watch?v=RC_ozEi6Vo4
17.They have an “Edge” that they can explain to their mothers.
If you can’t explain in an elevator pitch and keep it simple, then you are going off some kind of
gut feeling. You need to have an objective reason why you are getting in.
19.They practice reading the right side of the chart, not the left.
You must learn to see the patters as they begin to form. And understand that patterns morph.
Not talking about a crystal ball.
On something that you’re trading a lot, and that you’re getting to know the behavior of. Look at
the last couple of bars and picture in your mind what the next bar is going to look like. Where is it
going to print?
20.Their position size is calculated exactly on risk tolerance.
1%, 2%, 3% of account based on stop loss to determine number of shares to purchase.
The stoploss has to be wide enough to absorb the daily range. ATR + 1 or 2
21.Profit targets are based on average range or something objective.
You have to know the general behavior of a stock before you start to trader it. To understand its
range in price or its volatility.
22.One or two trades a month make their month.
They don’t make money every day, they have a bunch of losers and 1 or 2 trades a month that
absolutely crush it. Some of them have 1 or 2 trades a year that makes their year. The latter takes
extreme patients. For loses they keep them small within their trading plan for risk. They let their
runners run. They may even add to positions after they are back to break even.
23.Their business isn’t trading – it’s finding the right trades.
Wait for the right opportunities to appear. Even days. Be patient and play your edge with proper
risk execution. You may miss opportunities, but continue to be patient.
24.They don’t take loses personally and winners don’t inflate their ego.
Elevated levels of dopamine lead to poor decision making. Remain calm in the face of losers and
winners.
25.They buy higher highs and sell lower lows.
This doesn’t mean FOMO buy a top, it means but lower highs. Price that goes higher tends to keep
going higher. Trend is your friend.
26.They Journal every trade - Price, Thoughts, News, Attitude.
Trading journals only work over a long period of time. Add your personal feelings from life
situations as well. You never know what it will reveal. Look for patterns in your own behavior that
are keeping you form making good decisions and money.
27.They stick to a trade unless something major changes.
Don’t sit there and watch the chart. Unless you are day trading. For swings and trend trades, set a
stop, a target, and some alters.
28.They trade the reaction not the news.
Most trades try to trade the news. You want to trade the reaction after the fact because it’s
almost always an overreaction. Trade the reversion to the mean. Trade the imbalance back to the
mean levels. Don’t hold into or trade earning.
Relevant Chat
SHWmeDway: I am still struggling to overcome my thoughts and opinions
Steve: The trick is to always define a level where your bias is wrong. For example, i am
bearish SPY because i see a rejection on higher timeframe resistance and bear
divergences forming. On the other side I do recognize that market structure on the daily
and momentum is still good. Therefore I give up my bias if we close above 324 on the daily
and accept that market is ready to leap to previous highs of 340 points. IMO its ok to
have a bias, but you should define a level where it is invalidated and you should also
define a plan what to do in each scenario. Then you do the right, even if you were initially
wrong. It is ok to be wrong, but you should always to the right after being wrong.
It's very different for everyone though depending on the system, so I am just going off my
perception and my system.
SHWmeDway: Thanks.. i’m always reading posts and watching vids but that also is my
major problem too much input ...no output
Ish: My best advise is to work on getting a complete system down and backtest it. Stick to
that system and just keep drilling it over and over. This has to become as rule based as
possible cause our minds are against us most of the time in trading. Are you working on a
system at the moment ?

Ish: Well said like Steve said having a trading plan and letting the market decide is the EMA with stochastic, a few time frames and S/D is all you will ever need in my opinion.
key. It just takes time. Pulling the trigger can always be the hardest part though. So you
have your trading plan but the emotions take over. I cant tell you how many times I seen
Create a system around that and learn that well and watch the money start coming in...If
an opening for ES during the mega ramp up and just didn't act on it. This is why we have you can stick to your rules and block out the mind.
rules. As Mr. A said our feelings and our rules will conflict with one another, always go with
your rules as they are not subjective. I am paraphrasing, but you get the point. It all then
Steve: You describing a typical psychological issue. IMO you are afraid to lose and
boils down to being automated with your edge, just take it. It's right more times than your
therefore you don't take the trade, not because of the TA. What you should do is the
feelings, so therefore mathematically you are crazy not to take it. Easier said than done
following: 1. Become aware, that many profitable traders and strategies lose more trades
but this helped me a lot and even though I only started trading ES right at the literal top
than they win and that this is normal and no harm as long as you have a profitable system
at 3200 I am still now trading both directions. Still have those thoughts a lot of the time
and still uncomfortable but at least I am trading and they are becoming weaker and itself and solid risk management. You can easily lose 3 trades with 1% when the 4th trade
weaker thoughts.(edited) makes 5% (plus) 2. If you are not confident enough in your system then trade very small
sizes e.g. 5 to 10 USD until you feel well and have enough confidence. Then move to bigger
sizes not before, but also don't paper trade. You need skin in the game to really learn it. 3.
SHWmeDway: Thanks ...my problem is I find a trade that meets TA and then I go on to
Focus on less assets in the beginning (max 10 stocks/ 10 coins) and stick with them. Try to
different TF until I find something that goes against it ...then I don't pull the trigger
understand their behavior because every asset is different because different people are
I always stick to my usual timeframes for TA and I only peak at the higher time frames for
buying it. When you know where most traders get in and out then you get a better
momentum.
feeling/edge on the cow you want to milk. If you are not sure which assets you want to
follow start with those that have an RSI above 65 (by using the RSI scanner of
We can always find a S/D zone or resistance somewhere or something we don't like but TradingRoom app or the one of TradingView) but did not hit their ATH.
you gotta have a system down with rules for entry, exit, take profit etc. With these rules
and system you are confident that until I get my exit signal I am riding the momentum etc.