Here are 10 lessons to help you understand the psychology of trading.
A Thread🧵👇
A Thread🧵👇
Despair is caused when you’re losing money and your trading is not improving.
Disappointment happens when return expectations were far greater than current reality.
Regret is caused by the disappointment in a loss that was caused by a lack of discipline.
You will enjoy your trading when you are having winning trades and no fear of ruin because you are trading with the right position size.
Wisdom comes from the experience of years of successful trading.
Faith in your system comes from a belief in its profitability through back testing and then the experience of winning with it for years.
Listen to the charts and follow the trend, that is the path of least resistance.
When it comes time to make entry and exit decisions focus on your trading system not the news, or social media, or other people.
Panic is unhelpful in the markets while staying calm is an edge that will give you returns on your mental capital.
The key to the right psychology as a trader is faith in your strategy and the discipline to execute it with discipline and proper position sizing.
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