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Trader Mindset Series - Cause & Effect Day 1
Trader Mindset Series - Cause & Effect Day 1
B
Trader A is someone who trades
with a low capital and trades with
highly demanding expectations and
super exaggerated goals. These Trader C is someone who trades
exaggerated goals come by high A C with a big capital and has high
expectations of returns.
demanding needs (Money),
Overconfidence, hope and several
other factors the very mindset
we need to train the most.
D
Trader D is someone who trades with a big capital, is
disciplined and has moderate goals to achieve
consistently.
Trader Mindset.
Cause & Effect
Effect :
Let’s see the outcome and then understand
the causes. You may even strike a chord
when you read the causes further down.
Trader Mindset.
Cause & Effect
Trader A initiates the trade at 17272 but starts to panic when the price moves higher. He exits the trade
when price 17280. The candle opens again at around the buy price shown in signal at 17273 and Trader
A
A initiates the trade again. The price to his disbelief moves higher and touches a high of 17298 in the
subsequent next candle. He squares of his position at 17298 thinking this is not his day. The market is
out there to take his money away from him.
B Trader B initiates the trade at 17272. He does not panic but adds some more to his position when price
reaches 17290. He exits his position at 17265.
C Trader C initiates the trade with huge quantity at 17272. Adds more and uses all his capital to add more
when price hits 17280. He finally exits his position at 17298 when the high was made, and the panic
starts to sound.
D Trader D is this cool guy who initiates the trade at 17272 with some quantity. Adds more to the position
at price 17280, more at 17285, more at 17295. He adds more to the position when price comes back to
17285. Trader D starts to trail the position when price comes below 17280 trails, trails till 17262. He
exists with the trailing stop loss hit when price moves back to 17265.
Trader Mindset.
Cause & Effect
Causes : You may already have your reasoning for the above. Let’s dive in.