Our Lead Analysts repeatedly show the benefits of trading charts over emotions.
It all comes down to logic. Of course, that's easier said than done when you're a beginner, or you've suffered some heavy losses.
A great way to overcome this issue is to realise where the problem started.
Find the root, find the problem, find the process to correct it.
The next step is to put the principles into practice.
Our Lead Analysts repeatedly show the benefits of trading charts over emotions.
It all comes down to logic. Of course, that's easier said than done when you're a beginner, or you've suffered some heavy losses.
A great way to overcome this issue is to realise where the problem started.
Find the root, find the problem, find the process to correct it.
The next step is to put the principles into practice.
Of course, there is no rush to do so, but you can do this with minimal risk.
Go through the summary with our Lead Analyst, and create a strategy for yourself to use on 25 trades, each with a position size of only $1.
The purpose of this is to become disciplined and to refine your process. If for example, you have a win rate of 70% from those 25 trades, then you can have more confidence in your strategy when using significant amounts of money.
Conversely, if you have a win rate of 50% or less, then you can go back through your strategy and adjust accordingly. Then repeat the 25 trade process again to test if your adjustments are effective.
Key Points of the Lesson
RECOGNIZING THE PROBLEM
Do you second-guess yourself when entering trades and doubt your own analysis?
Do you overthink the trade setup due to recent losses?
Do you have a plan for your trade? Are you sticking to your plan?
EMOTIONS?
Pressure ⇒ you have to make money from trading to support yourself and your family.
You compare yourself to others and their success ⇒ additional pressure.
Tension ⇒ from participating in the market and putting your capital at risk.
UNDERSTANDING AND ACCEPTING RISK
Traders often accept that they can lose, but they do not truly accept the risk.
You can lose any trade that you take ⇒ all it takes is one other person in the world to invalidate it.
Embrace that you are trading probabilities, not certainties.
TRADING STRATEGY DEVELOPMENT
Work through the learning content.
Decide on a setup that you will take for the next 25 trades ⇒ use strict rules and always take the setup.
Use only $1 on each trade and record each result.
After 25 trades (not before), check results and make adjustments if necessary.
THE SECRET TO TRADING
“no man ever reached to excellence in any art or profession without having passed through the slow and painful process of preparation” (Quintus Horatius Flaccus).
There is no way of avoiding all losses in trading, and no indicator can change that.
Trade without fear or overconfidence.
You never know if your next trade will be a winner or loser.
Stop overthinking trade setups and think in a “percentage over a series of trades” perspective.
Goal ⇒ consistency over a long period of time (10 years+).
TAKE HOME MESSAGE
Recognize the problems.
Understand and accept risk ⇒ you can lose every trade taken.
Develop a strategy and stick to the plan.
Put in the hard work.