Here is the one thing I wish I knew about when I started trading. This is a real game changer Time for a #tradingpsychology thread!
๐งต Mastering the Art of Planning Trades Ahead ๐๐ฏ
Traders & Investors! Let's talk about one of the most crucial skills: planning trades ahead! Buckle up, because we're about to embark on a journey that will elevate your trading game.
Picture this: You're driving to an unknown destination without navigation. Trading without a plan is just like that! A solid plan ensures you know where you're headed and how you'll get there. It's your roadmap to success!
Start by defining your trading goals. What are you aiming for? Short-term gains or long-term investments? Once you have clarity on your goals, you can align your trading strategy accordingly. Remember, a goal without a plan is just a wish!
Know your risk tolerance like the back of your hand. How much are you willing to risk per trade? Define your risk management rules and stick to them religiously. This keeps your emotions in check and ensures you won't lose your shirt!
Embrace the beauty of patience! Wait for the right setups that match your strategy. Stop FOMO (Fear Of Missing Out) and impulsive decisions. Remember, successful traders are like skilled snipers, patiently waiting for the perfect shot! ๐ฏโ๏ธ
Keep a trading journal, note down your thoughts, and review them later. It's a treasure trove of insights! Analyzing past trades helps you identify patterns, strengths, and weaknesses. Learn from your experiences! ๐๐
Evaluate your progress and adapt as needed. Markets evolve, and so should your trading plan! Be open to refining and improving your strategy. Adaptability is the secret ingredient to survive and thrive in the trading jungle!
Cut the noise traders! Planning trades ahead is a game-changer. It gives you confidence, lowers the volume of your emotions, and boosts your chances of success. So, equip yourself with a solid plan and embark on a profitable journey!
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I've spent thousands of hours coaching people on (trading) psychology. The insights I'm about to share might help you to shift from a mediocre trading mindset to a stronger trading mindset
Time for a thread ๐งตโ๏ธ
We must understand that trading goes against your biology and psychology. Keep this premise in your mind while you read this thread!
If you torture the data long enough it will confess!
We have the tendency to over-optimise (trading)systems. Because we want to see what we believe and hope for. Your goal as a trader is to challenge your belief system. Know yourself! And know your why!
Few people know that J.Welles Wilders created a bunch of indicators, RSI was one of them. He passed away in April 2021. I am grateful for what he has brought to the trading community.
To honor his work. Here is a thread about #RSI that you won't find anywhere else
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Let's start first with what an RSI does. It measures up and down moves and calculates a ratio. It compares the strength of gains to losses over a period, which is by default 14.
The general premise is that too much in any direction is not sustainable which will induce a mean reversion. But what is too much? And what are the better triggers!
3 things I wish I knew about fear and trading before I started trading. Time to wake you up with this trading psychology thread. And because I love you all, you'll get 3 tips from a certified NLP master coach ๐
A Thread ๐งต๐
The F word destroys more than you think. It destroys dreams, mental capital and financial capital. There are many ways to express fear. And loss aversion is one of the strongest expressions of fear. Time to destroy the myth about fear before it destroys you!
Before we continue. I want to get rid of a major misconception. Emotions like fear and greed, in their true essence, are not bad or good. They are neutral. Thinking you can control or fight an emotion that activates our survival mechanism is another fallacy.
We know what's right, but we don't act upon what we know. There is a gap between knowing and doing! So what's happening in that brain of yours, and what can we do?
Let's close the close the gap, shall we?
Time for a thread ๐งต
1) What is in for me?
Before we move on. Ask yourself how your trading performance would look like if you acted more upon what you know is right? Can you already see the benefits? And how this makes your life easier? Keep that picture in mind!
2) NLP
Quick 1-1 NLP. What you first need to understand is that your brain is very powerful and your mind wants to preserve your energy. Understand this before you continue