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𝗦𝗼𝗺𝗲 𝗰𝗼𝗺𝗺𝗼𝗻 𝗽𝗶𝘁𝗳𝗮𝗹𝗹𝘀 𝗼𝗳 𝘁𝗿𝗮𝗱𝗲𝗿𝘀 (both novices and experienced ones) :
1. Being dependent on others
2. Setting High expectations
3. Dont like to give money back to the mkts
4. Performance comparisons
Let me try to elucidate further --
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1. Being dependent on others
2. Setting High expectations
3. Dont like to give money back to the mkts
4. Performance comparisons
Let me try to elucidate further --
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1. Consistently profitable traders do not care about anything or anyone’s opinions of what the market will or might do.
They never watch what other traders do as they are independent in making their trading decisions
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They never watch what other traders do as they are independent in making their trading decisions
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They don’t carry the notion if someone is trading longer than themselves, they should be naturally smarter (this is the most absurd thinking of newbie traders) 
There are dozens of proponents and opponents for the popular 10000 hours theory
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There are dozens of proponents and opponents for the popular 10000 hours theory
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2. It is common for many traders to set high expectations about themselves and their performance in trading.
When the expectations are not met, they beat themselves up mentally and get stressed out.
In turn, they are subjecting themselves to make trading errors.
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When the expectations are not met, they beat themselves up mentally and get stressed out.
In turn, they are subjecting themselves to make trading errors.
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Losses start to mount, and their mood worsens.
Soon, they find themselves in a deep psychological drawdown. You can't just snap out of it. It will take a lot of extra effort and psychological resilience to get back up to par and (only few ever come out of it successfully).
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Soon, they find themselves in a deep psychological drawdown. You can't just snap out of it. It will take a lot of extra effort and psychological resilience to get back up to par and (only few ever come out of it successfully).
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This high expectation creeps into our mind in 2 ways – either through internal stimulus (we set it) or through external stimuli like other people’s so called ‘claimed’ performance
What is the best way to solve 50% of this issue? Stop comparing our performance with others
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What is the best way to solve 50% of this issue? Stop comparing our performance with others
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3. Another common gangrene of traders (both newbies and experienced) is that they don't like to give $$ back to the market, so they decide to try and modify the system to filter out trades like that last losing one
They burn midnight oil to see how this could be avoided
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They burn midnight oil to see how this could be avoided
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They begin to add indicators to charts, coming up with more longwinded combinations, frantically testing to see what removes the worst signals while leaving in place the +ve trades
This cycle never ends until the traders realizes hes in it already.
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This cycle never ends until the traders realizes hes in it already.
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A few times round this loop and their chart starts to resemble like a 2 year old drawing on the wall
Consistent traders never jump systems or modify their system for every losing month.
Market is just like life, It is never going to make anything worthwhile, easy.
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Consistent traders never jump systems or modify their system for every losing month.
Market is just like life, It is never going to make anything worthwhile, easy.
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If someone says making money in the market consistently is easy as being portrayed by many, relax your leg muscles for few seconds & run a sprint in the opposite direction..It ain't true
There is always going to be a price or a premium to pay. Just that the price varies
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There is always going to be a price or a premium to pay. Just that the price varies
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4. Trading is not like riding a bicycle, in the sense that, once we get over the threshold of learning how to ride, we’re finished.
There are various stages of profitability a trader must go through, each one requiring different technical and emotional skills.
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There are various stages of profitability a trader must go through, each one requiring different technical and emotional skills.
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a) The trader first has to get to the point in his profitability where he can overcome transaction costs & all the negative emotions that subvert a novice trader, so that he consistently breaks even.
This is an important first step
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This is an important first step
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b) The next level of profitability, is when a trader can actually support himself (and his family), through his trading profits.
Accordingly, the bar for his emotional skill-set must be raised, because trading is now his livelihood
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Accordingly, the bar for his emotional skill-set must be raised, because trading is now his livelihood
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Not only are the pressures of trading still there, but the everyday pressures of life are now ubiquitous
c) And last, is the level where we’re trading to make optimal (as much money as we can make, given the amount of capital you are working with) money.
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c) And last, is the level where we’re trading to make optimal (as much money as we can make, given the amount of capital you are working with) money.
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Only, you can go through all these stages for you and nobody can.
𝐏𝐥𝐞𝐚𝐬𝐞 𝐝𝐨 𝐧𝐨𝐭 𝐞𝐱𝐩𝐞𝐧𝐝 𝐲𝐨𝐮𝐫 𝐞𝐧𝐞𝐫𝐠𝐲 𝐨𝐧 ‘𝐩𝐞𝐫𝐟𝐨𝐫𝐦𝐚𝐧𝐜𝐞’ 𝐜𝐨𝐦𝐩𝐚𝐫𝐢𝐬𝐨𝐧𝐬.
It is better to isolate yourself once you have a solid plan and start implementing it..
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𝐏𝐥𝐞𝐚𝐬𝐞 𝐝𝐨 𝐧𝐨𝐭 𝐞𝐱𝐩𝐞𝐧𝐝 𝐲𝐨𝐮𝐫 𝐞𝐧𝐞𝐫𝐠𝐲 𝐨𝐧 ‘𝐩𝐞𝐫𝐟𝐨𝐫𝐦𝐚𝐧𝐜𝐞’ 𝐜𝐨𝐦𝐩𝐚𝐫𝐢𝐬𝐨𝐧𝐬.
It is better to isolate yourself once you have a solid plan and start implementing it..
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Ultimately, it is not what the trader knows, but who he is
The really profitable traders are able to ignore or weaken their natural tendencies to do what feels comfortable, and instead, do what is essential, to be profitable.
Happy trading all !!
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The really profitable traders are able to ignore or weaken their natural tendencies to do what feels comfortable, and instead, do what is essential, to be profitable.
Happy trading all !!
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