Thread by @Deepakdhillan

Everyone talks about market Psychology.
What actually mean it?
Does big boys consistent traders do really hv a different psychology?
If Yes, then How?

As you may have also experienced that initial luck favours almost to all as mostly make money in initially 1st or 2nd trade of life.
Why it is so.
It has got a deep meaning imbibed.
That is :-
->Carefree trading I mean trading without any fear.

->Once one get hit hard, he starts risk aversion, in turn piling more & more losses and finally stop altogether.
->Always think it a game of large numbers . Out of hundreds you gonna loose 20-30 for sure, so don’t curse yourself ( Self sabotaged) instead follow the process only.

Just opposite of this is Euphoria stage where one is in risklessness condition.
You go through any Psychology book , one common advice is that when you hv a windfall of profit. Take a break & go in vacation.

In this stage one starts increasing the Qty.
As markets go against one, now one is in psychological debacle from euphoria stage. Mind Freezes.
As one is back 2 senses, it too late.
This is day when he makes catastrophic draw down on ones equity curve.

Your equity curves is also a chart man.
My way of looking at equity curve is You should know your weekly High-Low. As you slipped below in negative territory, be extra cautious as you are in equity curve correction phase by reducing Qty or restricting to high probability trades

It’s difficult to summarise all here. But I ll keep updating same in this thread continuously as get to learn anything.

We see markets and patterns not as they are but as we are.

Markets trends due to imbalance between supply & demand.
If someone is taking it up/down, they are doing it purposefully.
As a retailer we are completely relying on dynamic traders/ big boys to either reward or sl for our trades, as we ourself can’t make any impact on prices .

Holy grail of market:-
Your trading plan can make you enrich from unending-opportunities in markets , not on trades to trade basis but rather over a percentage of series of trades. So starts thinking in probabilities.

Dynamic traders (Herd masters) has resources and Psychological advantages over general public (Herd) always defend their prices.
There is no way to determine what they gonna do next.
So it’s better to understand price dynamics as anyone can come , anytime to impact the prices.

What we do. We gets buy signal, we enter & gets rewards, thinking that this move came into our favour just because prices crossed couple of indicators/ macd or stochastic lines or something but it doesn’t matter absolutely . It has nothing to do with reality as why prices moved.

I personally put GTT triggers to entry at my desired levels to capitalise any fall in index or stocks for at least 03-04 months for time horizon in mind to get reward.
Same way I prefer to Enter @ only pull backs/retracements only in intraday trading.

Once one starts trading without fear with carefree state of mind, thinking in probabilities is sign of you are transforming yourself into Professional one.
Taking predetermined risk on your methodology leads to optimal position sizing & flawless execution.

Consistently is nothing but a equity curve with normal drawdown.
It can only b achieved via first knowing your methodology then developing skills to execute same.

Everybody talks of EDGE.
What actually it mean:-
-> An edge is nothing more than an indication of a higher probability of one thing happening over another.
That’s it. Really it simple na.
Yeah it is. Core of your trading methodology.