Breaking these habits could be the key to unlocking your success
Trading is quite different from usual 9 to 5 job. It includes a lot of psychology, a lot of stress and of course a lot of money. We interact with the invisible soulless entity called the market. How do we treat it? How do we expose ourselfs to the market? Do we behave in the way that brings us wealth and joy? How are your everyday habits holding you back from trading profits? Here's a list of 6 habits to watch out for.
1. Working hard
In a simple world you can dig a deeper hole by digging 12 hours instead of 6 hours. Putting in extra hours at work or taking on additional shifts could lead to increased income. This is how we used to get results and money in a regular world. However, the market doesn't reward you for simply spending more time in front of the screen watching price movements. In fact, trying to make more trades or working long hours in trading can be counterproductive. In terms of trading less is more.
“Riches, when they come in huge quantities, are never the result of hard work! Riches come, if they come at all, in response to definite demands, based upon the application of definite principles, and not by chance or luck.”
—Napoleon Hill, "Think and grow rich"
2. Being aggressive
While this behavior may work to intimidate street punks and take their money without harm, it is impossible to scare the market. Being aggressive and pushing too hard can lead to significant losses in trading. Adding to losing positions or using excessive leverage may lead to disaster. The market is vast and indifferent; it does not care about your aggression. Market is your sensai. If you approach the market with an aggressive attitude, you will likely be quickly defeated. Zen-like calmness and discipline are crucial in successful trading.
3. Being needy
When shit hits the fan and i am in a loosing trade, i begin to act like a baby. Why the market went against me? It must do what i am expecting! I am crying and i am looking at my deposit, and somehow it still isn't growing. That's confusing! When i was a baby and i was crying parents were feeding me and giving me things. Some adults are still used to be noisy and needy to get what their want. Their strategy called "the louder wheel gets the grease" and in fact that works on a daily basis, because to people around it's easier to get rid of such "loud wheels" by fulfilling their needs. No one will fulfill your needs on the market, and you can't call the CEO of Bitcoin to move the price in your direction. The composite man, who controls the market, doesn't care about your personal needs or desires. Being needy in trading is a surefire way to lose money and miss out on profitable opportunities.
4. Being brave
Every attempt to be brave trading cost me a lot. Like really A LOT. Because of markets uncertainty we have to make finance decisions which will affect our lives. Money equals your ability to get resources. Loosing money means being cut off from resources. This is scary! When we are scared, we want to act RIGHT NOW! So instead of getting skills during the time we may decide that we can fix this by being brave in the moment. Bravery alone is not enough. Everytime i didn't use a stop-loss or put my Take Profit way too high - i am trying to brave without a skill. Some wise general once said: "I don't need dead heroes, i need alive soldiers to win"! You don't want to be a dead "hero", you want to be alive and wealthy.
“The secret is to make peace with walking around in a world where we recognize that we are not sure and that’s okay. As we learn more about how our brains operate, we recognize that we don’t perceive the world objectively. But our goal should be to try.”
― Annie Duke, "Thinking in Bets: Making Smarter Decisions When You Don't Have All the Facts"
5. Being authentic
As a lover of poetry, I value the art of finding unique ways to express ideas and perspectives. However, when it comes to trading, trying to be too original or unique can be a costly mistake. The market operates in a binary way, with winners (composite man) and losers(retail traders). To be a winner, you need to follow the strategies and techniques that have been proven to work, such as Wyckoff, Elliot Waves, and Dow Theory. It's not about reinventing the wheel or being different, but about aligning yourself with the Composite Man and going with the crowd. Don't let the desire to be authentic lead you down the wrong path in trading.
6. Being stuck to your bias
Winners always look solid in their beliefs and decisions. Knowing what's good for you and being able to defend it that's what makes a man a great leader in our eyes. This image is a static picture in our brain and we don't see the process behind it. But as a newbie trader i wasn’t able to make a high quality decision simply because of lack of experience. There were no point to stick too hard to my own bias. Now when i am much more experienced it has much more sense to stick to my plan and i have less doubts. Markets are fluctuating. Life goes on. Everything is changing. Bears got over bulls and vica versa. To be a winner it is better to always inventories own beliefs and question if it is still making me feel good? If it is not i must move on. Imagine being stuck in love with a girl you fell love with in the 5th grade, while she already got married, has 3 kids and lives in Kansas.
What really improves your trading:
It's important to shift your mindset towards pursuing success. This involves seeking out ideas, methods, and goals that will lead you towards the life you want to live. In my next article, we will discuss what makes a better trader. Make sure to follow me for updates, and let's discuss your trading upds and downs in the comments.
1. Working hard
In a simple world you can dig a deeper hole by digging 12 hours instead of 6 hours. Putting in extra hours at work or taking on additional shifts could lead to increased income. This is how we used to get results and money in a regular world. However, the market doesn't reward you for simply spending more time in front of the screen watching price movements. In fact, trying to make more trades or working long hours in trading can be counterproductive. In terms of trading less is more.
“Riches, when they come in huge quantities, are never the result of hard work! Riches come, if they come at all, in response to definite demands, based upon the application of definite principles, and not by chance or luck.”
—Napoleon Hill, "Think and grow rich"
2. Being aggressive
While this behavior may work to intimidate street punks and take their money without harm, it is impossible to scare the market. Being aggressive and pushing too hard can lead to significant losses in trading. Adding to losing positions or using excessive leverage may lead to disaster. The market is vast and indifferent; it does not care about your aggression. Market is your sensai. If you approach the market with an aggressive attitude, you will likely be quickly defeated. Zen-like calmness and discipline are crucial in successful trading.
3. Being needy
When shit hits the fan and i am in a loosing trade, i begin to act like a baby. Why the market went against me? It must do what i am expecting! I am crying and i am looking at my deposit, and somehow it still isn't growing. That's confusing! When i was a baby and i was crying parents were feeding me and giving me things. Some adults are still used to be noisy and needy to get what their want. Their strategy called "the louder wheel gets the grease" and in fact that works on a daily basis, because to people around it's easier to get rid of such "loud wheels" by fulfilling their needs. No one will fulfill your needs on the market, and you can't call the CEO of Bitcoin to move the price in your direction. The composite man, who controls the market, doesn't care about your personal needs or desires. Being needy in trading is a surefire way to lose money and miss out on profitable opportunities.
4. Being brave
Every attempt to be brave trading cost me a lot. Like really A LOT. Because of markets uncertainty we have to make finance decisions which will affect our lives. Money equals your ability to get resources. Loosing money means being cut off from resources. This is scary! When we are scared, we want to act RIGHT NOW! So instead of getting skills during the time we may decide that we can fix this by being brave in the moment. Bravery alone is not enough. Everytime i didn't use a stop-loss or put my Take Profit way too high - i am trying to brave without a skill. Some wise general once said: "I don't need dead heroes, i need alive soldiers to win"! You don't want to be a dead "hero", you want to be alive and wealthy.
“The secret is to make peace with walking around in a world where we recognize that we are not sure and that’s okay. As we learn more about how our brains operate, we recognize that we don’t perceive the world objectively. But our goal should be to try.”
― Annie Duke, "Thinking in Bets: Making Smarter Decisions When You Don't Have All the Facts"
5. Being authentic
As a lover of poetry, I value the art of finding unique ways to express ideas and perspectives. However, when it comes to trading, trying to be too original or unique can be a costly mistake. The market operates in a binary way, with winners (composite man) and losers(retail traders). To be a winner, you need to follow the strategies and techniques that have been proven to work, such as Wyckoff, Elliot Waves, and Dow Theory. It's not about reinventing the wheel or being different, but about aligning yourself with the Composite Man and going with the crowd. Don't let the desire to be authentic lead you down the wrong path in trading.
6. Being stuck to your bias
Winners always look solid in their beliefs and decisions. Knowing what's good for you and being able to defend it that's what makes a man a great leader in our eyes. This image is a static picture in our brain and we don't see the process behind it. But as a newbie trader i wasn’t able to make a high quality decision simply because of lack of experience. There were no point to stick too hard to my own bias. Now when i am much more experienced it has much more sense to stick to my plan and i have less doubts. Markets are fluctuating. Life goes on. Everything is changing. Bears got over bulls and vica versa. To be a winner it is better to always inventories own beliefs and question if it is still making me feel good? If it is not i must move on. Imagine being stuck in love with a girl you fell love with in the 5th grade, while she already got married, has 3 kids and lives in Kansas.
What really improves your trading:
- -Finding a reputable teacher with real trading experience and a track record of success to learn from, and investing time into obtaining a proper trading education.
-Working less and focusing on being in a relaxed and comfortable state of mind.
-Experimenting with your working environment to find your optimal trading flow.
-Using common techniques that have been proven over time by professional traders, such as Wyckoff Schematics, Elliot Waves, and Dow Theory.
-Analyzing the market with an open mind and being willing to adjust your perspective and biases as needed.
-Focusing on executing each trade flawlessly, as a positive trading dynamic will take care of the money (as stated by Mark Douglas, author of "The Disciplined Trader")
It's important to shift your mindset towards pursuing success. This involves seeking out ideas, methods, and goals that will lead you towards the life you want to live. In my next article, we will discuss what makes a better trader. Make sure to follow me for updates, and let's discuss your trading upds and downs in the comments.
Clause de non-responsabilité
Les informations et les publications ne sont pas destinées à être, et ne constituent pas, des conseils ou des recommandations en matière de finance, d'investissement, de trading ou d'autres types de conseils fournis ou approuvés par TradingView. Pour en savoir plus, consultez les Conditions d'utilisation.