**THREAD**

Over the past 12 months I've worked with 30 or so people for 1:1 education and coaching on trading.

This process is designed to establish a strong foundation and base to begin independent decision making and stepping up your trading.

Here are some things I learnt.
I hope by putting this thread together you'll see that some mistakes, thought processes and trading habits are pretty much universal.

While they are still "bad" they are represented everywhere. I hope you can take some value in this thread for how to overcome some issues.
What I'm going to do is run through the common themes and issues I would say 99% of the people I worked with demonstrated.

I suspect I'll be very close to describing a lot of your behaviours and actions given the demographic here.
1. FOMO and Greed dominate.

Without a doubt the two most common themes that are covered.

FOMO from Twitter/TG/Discord is actually WAY more powerful than I imagined it was. The immediate confirmation some accounts/tweets can give traders is actually quite frightening.
1a. There is always a universal acceptance that the individual feels FOMO and acts on it. Not once has someone told me that they don't feel FOMO. Present in everyone and acknowledged as such.

So why the issue with turning it off?

Greed and confidence.
2. Greed.

Gains gains gains. People really care about big numbers and they care about holding positions because of the dreams they have about their total PnL when they get to close.
2a. Greed takes many forms:

Holding too long
Positions too big
Inability to "let go"
Inability to reverse a position despite a signal to close
2b. Greed is something that not everyone acknowledges. Unlike FOMO people think they do not demonstrate traits of greed, usually this is untrue.

Make sure you are aware of your own traits, think about what you do and how your actions and decisions can be seen as "greedy."
3. Lack of Confidence

This is HUGE. The majority of people actually have pretty solid TA and understanding of the market, but they are completely devoid of confidence.

They don't have any personal confidence in their ability to trade.
3a. This stems from following others. Whether they've been hand-held or whether they assume everyone else is a better trader.

Building a personal sense of confidence in the ability to execute in the market is a huge challenge to overcome.
3b. But the point here is, you probably have the ability. The only way to gain that confidence is to begin trading with no outside influence, start proving to yourself that your decision making is good and that you don't need anyone else.
3c. Put yourself to work. Stop relying on the ability to follow others.

Take what you know and what you've learnt and begin thinking for yourself, you'll be surprised with the results.
4. Risk Management

Everyone knows about risk management. Not everyone applies it. Some people "think" they apply it when they don't.

I cannot stress the importance of this enough, PROTECT YOUR CAPITAL.
5. Lack of a system/method to trade

There is a significant lack of any systematic process or methodology to follow for most people. Most decisions are made on narrative, visuals and feelings.

Most approaches are subjective at best.
5b. Spend time working on a way to trade, spend time working on your own approach, your own way to make money.

Utilise the downtime you have and the time when we chop around.
5c. Part of this is backtesting. Utilise the Replay Tool in TradingView. Go back to a random time period and begin testing yourself on how you'd trade the region, log your results, what worked, what didn't? Collate the results, analyse, improve. https://www.tradingview.com/blog/en/bar-replay-5913/
6. Too many Markets

People focus in too many places and under the wrong impression and actually a direct contradiction to the lack of confidence.

Let me explain.

When I ask people to look at fewer markets, the typical response is "but what if I miss a move on an alt?"
6b. Well. This thought process assumes two things:

1. You successfully identified the opportunity and set up.
2. You positioned and executed the trade perfectly to be a part of it.

But at the same time you're not confident trading independently. So how is it you'll nail this?
6c. We don't consider our own ability when we see things moving up, we simply view it as "missing opportunities" we don't stop to think about the work required to be in that particular trade.

Reducing your focus to fewer markets actually improves your hitrate dramatically.
6d. You no longer have a scattergun approach, you're focused and looking for signs in the markets you're interested in trading. You become more familiar with levels and behaviours of the market.

You're also reducing your potential losses from randomly taking trades elsewhere.
I can keep going on this and perhaps I'll move in to a 2nd part in the future, but for now I'm going to pause it here.

The overriding message I have here that's been demonstrated from the people I work with is:

"You can do it"
I genuinely mean that. You'll hear statistics about who doesn't make it, the numbers who fail, the stories of bankruptcy but if you work hard, correct the issues that have plagued you, you'll be in a position to step up and be the best trader you can be.
Have confidence, establish your parameters for trading, reduce your market view, focus, don't follow others blindly, take responsibility for your risk management and acknowledge your flaws.
I've worked with some incredibly talented traders that simply didn't know they had the ability to do what they can do because they were clouded.

Free yourself and thrive in these conditions and this market.
You can follow @ColdBloodShill.
Tip: mention @twtextapp on a Twitter thread with the keyword “unroll” to get a link to it.

Latest Threads Unrolled:

By continuing to use the site, you are consenting to the use of cookies as explained in our Cookie Policy to improve your experience.