Know the feeling?
When you're overwhelmed by trading?
It's a mental grip that depletes your confidence.
And calls for a way to reset.
Even though it's written to a Millennial
Obstacles are generation agnostic
So this note to a mentoree will work for you too…
Read MoreThe yellow line in the chart below calculates weekly volume-weighted average price (WVWAP). The slope of WVWAP is trending up, as we would expect, given the massive upside gain this week. Generally, price trading above WVWAP as a signal to maintain long positions.
See how price price has broken below WVWAP, only to reverse back to the upside, as shown by the blue ellipses? What's this signalling to traders?
Read MoreAs a serious trader your first step is to chunk down until you have a framework that brings order to your trading.
Think playing field and sports.
Within the field of play is when you can trade. Out-of-bounds is when you don't trade.
But it's not only about being in the field of play.
Read MoreThe examples are clear. But unlike surfing both conditions hurt you. So screen time teaches you to recognise and avoid them. But perfect waves seldom occur in markets. As shown in the image below, markets are mostly a blend which makes when to trade ambiguous. Right?
Read More"I'm good at picking when the market turns so that makes me good at trading."
Says a struggling trader
Followed by:
"So I know I'll be profitable if I get help with my psychology."
Look
Even though you experience winning trades…
Ironic isn't it
You've experienced pain from
expected returns not met
being overwhelmed with "how to trade"
years of trading losses
courses that didn't help
minefields of analysis, tools & indicators
"Holy grails" recommendations, poor advice
Yet:
when it comes to trading
pain pays…
Is your concern re developing trading?
You can only do so if you can allocate all your time.
Truth is
when you first commence professional trading
you don't have the "trading fitness" to trade 5-8 hours a day…
If your problem is:
over-trading
taking poor odds trades
feeling like you're going to lose when you put on a trade
Here's how to resolve it…
Take poor odds trades?
It's not as simple as
Boredom
FOMO
But what if?
3 reasons why
1. You define yourself as a trader
And as a trader, unconsciously, you tell yourself if you're not trading, you're not "working"
What's that ''thing"
all great traders possess?
Caltech researchers found it's using your theory of mind facility.
i.e. your capacity to understand other traders - what they're feeling and what actions they're taking based on how they are feeling
Hold that thought…
Read MoreLike many traders discover
You think you are applying the right approach
Only to find out you are burning up your account
How do you get it so wrong, then?
Know this
your eyes deceive you
Look at the image below
Read MoreYou know
You also win exploiting traders’ mistakes
Take yesterday in AUDUSD
Long weekend in the US
And RBA rate decision on Tuesday
What impact does this have on participation?
So if it's down
What are the chances of a trend day?
That's right. A range day's likely
Error to exploit?
Traders who position themselves for trend continuation
