Thread by @Abhishekkar_

TRADING PSYCHOLOGY (Thread):
Amassed from books,sessions worth 5000$
-No matter how much you learn about the market’s behavior & how brilliant an analyst you become, you will never learn enough to anticipate every possible way market can make you wrong or cause you to lose money

-Anything can happen
-You don’t need to know what is going to happen next in market
-There is a random distribution between wins & losses for any given set of variables that define an edge
-An edge is an indication of a higher probability of 1 thing happening over another

-When u find your niches,u open yourself to talent environment interactions that create massive multiplier effects
-You need to ask yourself 3 ques:
1.What you can be best at
2.Where you can be most profitable
3.What you are most passionate about
-Every moment in market is unique

-The biggest psychological barriers:
1.Gambling
2.FOMO
3.Revenge Trading
4.Fallacy
*A competent trader is 1who consistently covers his or her trading
costs
*An expert trader is 1who makes a consistent & acceptable living
from his or her trading

-If you do not experience the performance high, you are in the wrong niche
-It is essential to have the following in your trading plan:
*Risk
*Reward
*Risk/Reward
*Exit point
*Entry point
*Position size
*Adjustment points
-You need SCORE to succeed:

S – Self Confidence
C- Concentration
O- Optimism
R- Relax
E- Enjoy
-Divided attention is the source of most performance shortcomings. Focus on one method,one asset class,one trading style and one setup only
-How you practice is every bit as important as what you practice

-Your best mentorship resources will be among people who are trading markets & styles similar to your own
-Consistency comes:
*Identify your edge
*Avoid state of euphoria
*Learn in market probability
*Avoid self sabotaging belief
*Avoid state of euphoria
*Reach a carefree mindset

-Extreme challenges, once mastered, create extreme confidence
-Psychological interference with trading performance are the result of improper sleep,monetary issues,conflicts in family,burden,medical condition or betrayal. One needs to avoid trading in such situations at all cost

-Novice traders reason in the backward fashion: They look for information to support their opinions rather than assemble their trade ideas from their readings of the market
-Maintaining a trade journal is key differentiator which a lot of traders ignore
-Psychology is underrated

-Trading is is not routine,mechanical task or the automatic expression of an innate talent. Trading, like athletics is a field that demands an initial degree of talent
and develops this talent over time to achieve increasingly refined performance
Keep learning
Keep sharing
#AKAL