Hi everybody! Technicaltrader123 Here!
Thank you so much for taking the time out of your day to read something I want to talk about. You are an amazing person and I hope that this Article will help you within your trading journey.
ITS ALL IN THE MIND!!
10% of the Game
Most people will think that trading and charting is very difficult. Learning a strategy is very difficult, understanding candlesticks,understanding patterns, understanding what makes a trend and so forth. While actually what would you say if I told you that knowing how stop hunts work, knowing where sell and buy orders are, knowing where or what banklevels are. Understanding fundamentals in such an order that you know what happens when the fundamental news is positive or negative.Understanding when you should enter or exit the market,understanding whats the average daily range of a pair. And that's just a tip of the iceberg. What would you say If I told you that, this is just 10% of the Game we Love so much ?!
Well, It actually is the truth. Knowing how to chart, how to enter and all the 'market makers' secrets is just 10% of the Game!!! Well Technical Trader 123, whats the other 90% then?
90% of the Game
90% of the game is about YOU! It's all about how you are within the market, how you adapt to certain circumstances and how you are when you are in a trade. There's this wise trader and brother which told me something; Kevin, What If I told you that I could learn you a strategy, thats 90-95% accurate but you will be in drawdown for 99% of the Time. This Trader was ThatFxTrader and I never understanded why this would be an issue at the end of the day when I win 90-95% of my trades.
I soon learnt that evens statistics, good looking trades, good understanding of the market can make a complete technical confirmed trade go wrong, just by YOURSELF.
A lot of people can chart well within the forex market, and a lot of people know a lot more about the market then I would know. I don't understand Moving Averages, I don't use Elliot Waves, I don't use Harmonics, I don't use any of these indicators. I don't know every pattern at the back of my head or every candlestick. But... I know MYSELF.
See you have to understand, that Trading becomes simplistic once you are learning the correct strategy. At first your first test at your new level of education must have been hard right? But as you progress and you keep repeating over and over, you will get better. It's the same with charting, you will get better at it. But what won't get better by just trading, is YOUR MIND. See its not about how much money do you earn in year 1 or 2, it's about how can you scale your MIND to be able to handle large monetary fluctuations for the next 10-20 years.
WORK ON YOUR MIND
See what I would advice to every astounding beginning/middle or even advanced trader is to work on the mind. What are the most important things you should work on in my opinion:
1: being able to risk the same regardless of your subconsciousness.
Hereby I mean that you should always always follow risk management. you will find yourself maybe risking more if you see a nice car, or want a nice watch or you see somebody else posting & bragging about their big profits on instagram. Everybody loses within the Forex Game and everybody started somewhere. NEVER EVER LET OTHER PEOPLES RESULTS be your driver. FOCUS on YOURSELF
2: Holding, especially if you are a swing trader
Let's Face it, if you are a swing trader you will be in drawdown 80-90% of the time as long as you risk accordingly what you are willing to lose and have parameters set to depend, if certain levels hit where the trade Idea is invalidated. And you are acting on these you're good. Cause in reality the trend either moves up or down. Statistically speaking you enter a buy if the chances of it moving higher are % higher then of it moving lower, never ever forget that when you are holding a trade which is in drawdown.
3: Know when its enough and have parameters for this as well
Every trader has this week, they start on Monday or Tuesday, hit their target within a day. feeling well, feeling good, want to gain more and end up in a loss at the end of the week. Have Set Parameters based on your factual performance. So what I did is I charted every single pair. every single week since the start of January and my analysis got better and better and better. After that I knew I was able analysewise to catch pips.
After That it was time to see where my execution was. based on my execution so my net pips. I can find what I can catch on average. Based on that amount I can make a target.
Once I have my Target I should also make a plan to A) what to do once I hit it and B) what to do If I don't hit it.
See the problem is in Trading and in Life as well. The reason why 9 out of 10 people don't succeed is we do things half-ass. We go on a diet but don't follow it and sneak in a piece of cake every now and then. We save money but if we see something nice we'll buy it and promise ourselves to save more next time. We mak an appointment with ourselves to start tomorrow with new habits. Ending up saying the same thing the day after.
It takes 21 Days to form a new Habit and 90 days to make it a Lifestyle. I dare you to write down what your errors are Tradingwise, and I dare you to challenge yourself for 90 days and make it into a habit and FIX the MIND.
I also dare you to do the same within your personal life. Because clarity within Life, gives Clarity within the Mind, and since the mind is 90% of the Game it will also give Clarity within the Charts.
If we each get on a treadmill right now one of two things is going to happen... either you're going to get off first or I am going to die. Period- Will Smith.
Thats how hard you should work with trading(never heard someone half-assing trading and earning a mill in 5 years from now? Did you? I think not)
So..... Let's get to work! FIX YOUR MIND.
The TechnicalTrader 123