Psychology
Keeping yourself accountable.
Most traders don't fail because they have a bad strategy, but because their psychology sucks.
Most common psychology mistakes are:
- Over risking & overleveraging
- Overtrading
- Revenge trading
- Fear of losing money
- Fear of missing out (FOMO)
- Overconfidence
- Greed
- Impatience
- Fear of being wrong
But every issue can be fixed.
- Practice correct risk management.
- Limit yourself to take max 2 trades a day.
- After a loss, stay disciplined and stick to your rules.
- De-risk to an amount you are comfortable losing.
- There is opportunity to make money every trading day.
- Market does not care and will destroy your ego.
- Trading is not a get rich quick scheme.
- Wait for your setup and only then take a trade.
- Losses are part of trading and nothing is certain, but fear leads to missed setups.
Overall, you need to adopt an Abundance Mindset, which is a belief that there are plentiful opportunities for success and profit in the market, rather than a limited, fixed amount.
Journaling
Reflecting on your past trades is where the growth happens.
A trading journal will help you determine your perfect A+ setup and see which variables worsen your probability.