Thread by @SJosephBurns

10 lessons from the book:

“Mastering Trading Psychology: Improve Your Trading with Firsthand Reports by Real-Life Traders” by Andrew Aziz and Mike Baehr

A thread 🧵👇

“In trading, you need to be resilient to be able to succeed. You will fail many times, almost every day in fact, and there will rarely be a week in your trading life that you will not have had at least one very bad loss or one very bad trading day.”

“You need to focus on the process of trading, develop a TradeBook for each strategy you trade, monitor only a small number of carefully selected stocks each trading day, and then deliberately limit yourself to entering into only well-thought-out good and solid trades.”

OODA stands for Observe, Orient, Decide, Act. The four steps should be repeated again and again in your trading.

“Orienting is all about connecting with reality, not with a false version of events filtered through the lens of cognitive biases and shortcuts.”

“Your focus should be on implementing and executing the strategy itself, rather than the potential outcome of the strategy.”

It has been estimated that approximately 90% of all profits in trades are the result of just 20% of all trades. Although some novice traders naïvely expect that the majority of their trades will be profitable, the fact is that a very large percentage of trades actually lose money

“Positive P&Ls are generally the result of only a few big wins and many small losses. A good trader is a good loser.”

“The enemy of change is relapse: falling back into old, unproductive ways of thinking and behaving. Without the momentum of emotion, relapse is the norm.” Traders need to learn about the psyche and how to sustain change in a different way, in fact in a much more tangible way.

“The key is to stay in the game. Day trading is a marathon, not a sprint.”

“Trading is the game of probability and uncertainty. Therefore, sticking to your stop losses is a key aspect of successful trading.”

Book link: amzn.to/3iFZbes by @BearBullTraders