It's no secret that managing your trading psychology is the biggest challenge in your trading journey.
Some say it counts for 80%+ of what's needed to be successful.
I totally agree...
However, there's a key factor in this for me.
How you actually trade to start with!
Correct trading psychology starts by realising you need a strategy.
If you're guessing with no real plan or risk management surely you're going to be more stressed and overwhelmed than a trader who has a plan, has the data to support his strategy and manages his risk?
So once you get your system/strategy nailed on, this in turn will help manage your fear.
Greed is another factor, but this comes from your expectation.
Expectations and reality need to be aligned with one another.
Your expectations can come from your data and your testing.
But if you've skipped this step you'll be chasing unrealistic expectations.
Not just in terms of % gains, but in understanding your drawdown periods too.
So in summary both are completely related. You give me a trader that's really struggling with his trading mindset and fear and within a month they won't be feeling the same way.
Likewise, if give me a trader who is calm and in tune with his system and emotions, we'll quickly change this by getting him to trade randomly!
No trading psychology means no trading strategy, No trading strategy means no trading psychology. These two elements are so intertwined.
Thanks for looking at my idea.
Darren 👍
Some say it counts for 80%+ of what's needed to be successful.
I totally agree...
However, there's a key factor in this for me.
How you actually trade to start with!
Correct trading psychology starts by realising you need a strategy.
If you're guessing with no real plan or risk management surely you're going to be more stressed and overwhelmed than a trader who has a plan, has the data to support his strategy and manages his risk?
So once you get your system/strategy nailed on, this in turn will help manage your fear.
Greed is another factor, but this comes from your expectation.
Expectations and reality need to be aligned with one another.
Your expectations can come from your data and your testing.
But if you've skipped this step you'll be chasing unrealistic expectations.
Not just in terms of % gains, but in understanding your drawdown periods too.
So in summary both are completely related. You give me a trader that's really struggling with his trading mindset and fear and within a month they won't be feeling the same way.
Likewise, if give me a trader who is calm and in tune with his system and emotions, we'll quickly change this by getting him to trade randomly!
No trading psychology means no trading strategy, No trading strategy means no trading psychology. These two elements are so intertwined.
Thanks for looking at my idea.
Darren 👍
