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You’ll keep praying for pullbacks and miss them and once you go “fuck it” and market buy, it touches every one of your wishful pullback levels as you exit and keep calling it a manipulated scam whilst it recovers above your initial buy level
^life of a new trader
Thread/
^life of a new trader
Thread/
1/ If this is you: stop
I use three foundational pillars:
i. Data driven strategies
ii. Cognitive emotional control
iii. Managed risk
This is simplified, but abstraction works
Experience will show implementation of these pillars for you specifically - it’s very personal
I use three foundational pillars:
i. Data driven strategies
ii. Cognitive emotional control
iii. Managed risk
This is simplified, but abstraction works
Experience will show implementation of these pillars for you specifically - it’s very personal
i 
Data driven strategies
Take existing strategy
Quantify it, modify it, harden it with data, backtest etc
Understand why it (doesn’t) work(s)-> rules
Rinse and repeat, until you have a framework
Then continue/start trading small size and learn to apply (ii) and (iii) 2/
Data driven strategiesTake existing strategy
Quantify it, modify it, harden it with data, backtest etc
Understand why it (doesn’t) work(s)-> rules
Rinse and repeat, until you have a framework
Then continue/start trading small size and learn to apply (ii) and (iii) 2/
ii Cognitive emotional control
Emotions can only be mastered by being exposed to them
Understand how your brain and markets trick you
Using a data driven framework (i) is a good way to relatively safely expose yourself
Reflection leads to cognitive control of emotions 3/
Cognitive emotional controlEmotions can only be mastered by being exposed to them
Understand how your brain and markets trick you
Using a data driven framework (i) is a good way to relatively safely expose yourself
Reflection leads to cognitive control of emotions 3/
Strategies can be simple and yet effective
Creating profitable strategies is not impossible, it’s the easier part
But without knowing yourself, your emotions and how your brain and the market tries to trick you, you will lose every single time 4/
Creating profitable strategies is not impossible, it’s the easier part
But without knowing yourself, your emotions and how your brain and the market tries to trick you, you will lose every single time 4/
iii Managed risk
Last but not least, trading remains gambling of some sorts
I like to call it making educated bets
Losing is part of the game
So the third pillar is to know how many times you can expect to execute losses before going bankrupt
Adjust your risk for this 5/
Managed riskLast but not least, trading remains gambling of some sorts
I like to call it making educated bets
Losing is part of the game
So the third pillar is to know how many times you can expect to execute losses before going bankrupt
Adjust your risk for this 5/
6/6 I understand this sounds incredibly simplified
But before diving in to any kind of complex system (bottom-up), many don’t realize the abstract foundation (top-down) behind trading
I always prefer a top-down approach and build from there
And these are my pillars
But before diving in to any kind of complex system (bottom-up), many don’t realize the abstract foundation (top-down) behind trading
I always prefer a top-down approach and build from there
And these are my pillars
