MENTAL FORTIFICATION

[Don_xyZ]

I learn trading psychology from many others but this is the guy that really opened up my eyes.

https://youtu.be/hr_EI7N2MFA?si=OsxRJGh_5D6lDfvy
https://youtu.be/jFhXSDyXqbM?si=lEoje3Lo6MV7Drl_

(somehow the YT video could not load so I put links instead)

Whether you are am aggressive trader or a conservative trader his psychology stuff will help you overcome the fear.

[kiwiarian]

I learn trading psychology from many others but this is the guy that really opened up my eyes.

https://youtu.be/hr_EI7N2MFA?si=OsxRJGh_5D6lDfvy
https://youtu.be/jFhXSDyXqbM?si=lEoje3Lo6MV7Drl_

(somehow the YT video could not load so I put links instead)

Whether you are am aggressive trader or a conservative trader his psychology stuff will help you overcome the fear.

Cheers Don, I have been watching more of him recently, he has some really good points.
Someone else (withnail) recently posted this guy (Dante) who has a no fluff way of telling how it is.
https://youtu.be/Vy1_URi88eE?si=sKHzf7o9Wn_wGjd7

[Don_xyZ]

I learn trading psychology from many others but this is the guy that really opened up my eyes.

https://youtu.be/hr_EI7N2MFA?si=OsxRJGh_5D6lDfvy
https://youtu.be/jFhXSDyXqbM?si=lEoje3Lo6MV7Drl_

(somehow the YT video could not load so I put links instead)

Whether you are am aggressive trader or a conservative trader his psychology stuff will help you overcome the fear.

Cheers Don, I have been watching more of him recently, he has some really good points.
Someone else (withnail) recently posted this guy (Dante) who has a no fluff way of telling how it is.
https://youtu.be/Vy1_URi88eE?si=sKHzf7o9Wn_wGjd7

Yes, learn from many.
When I get more time i'll check him.

[IgazI]

Yes, learn from many.
When I get more time i'll check him.

I'm in the "hear what others have to say, but value your own experiences above all else" camp.

No matter what someone shows you, you'll see it your way.

No matter how they tell you to think, you'll think your own way.

Might as well stick to seeing with your own eyes and hearing your own thoughts

[Yirbu]

I learn trading psychology from many others but this is the guy that really opened up my eyes.

https://youtu.be/hr_EI7N2MFA?si=OsxRJGh_5D6lDfvy
https://youtu.be/jFhXSDyXqbM?si=lEoje3Lo6MV7Drl_

(somehow the YT video could not load so I put links instead)

Whether you are am aggressive trader or a conservative trader his psychology stuff will help you overcome the fear.

Cheers Don, I have been watching more of him recently, he has some really good points.
Someone else (withnail) recently posted this guy (Dante) who has a no fluff way of telling how it is.
https://youtu.be/Vy1_URi88eE?si=sKHzf7o9Wn_wGjd7

Yes, learn from many.
When I get more time i'll check him.

I like what Tom has to say.
Read his book recently and learned a couple of things.

[kiwiarian]

Cheers Don, I have been watching more of him recently, he has some really good points.
Someone else (withnail) recently posted this guy (Dante) who has a no fluff way of telling how it is.
https://youtu.be/Vy1_URi88eE?si=sKHzf7o9Wn_wGjd7

Yes, learn from many.
When I get more time i'll check him.

I like what Tom has to say.
Read his book recently and learned a couple of things.

Oh, I didn't know he had a book, good to know. I like his general trading tips as well.

[Don_xyZ]

Yes, learn from many.
When I get more time i'll check him.

I'm in the "hear what others have to say, but value your own experiences above all else" camp.

No matter what someone shows you, you'll see it your way.

No matter how they tell you to think, you'll think your own way.

Might as well stick to seeing with your own eyes and hearing your own thoughts

Yes of course.

When I first started learning guitar my friend/mentor told me about Yngwie Malmstein, Steve Vai and Joe Satriani. They all basically said the same thing "learn/follow first, improvise later".

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yngwie.jpeg (34.39 KiB) Viewed 9511 times

It is by learning from others first that I am now able to notice the similarities and/or incompatibility between me and them and started my own thing. That's why I'm forever grateful to the likes of MO, TRO dragon33, espip and Tom.

[Don_xyZ]

BE NIMBLE

Forex trading is not like any other business. If pushed to the extreme, you can make it or break it in literally 1 trade. It's really no surprise to see a very wealthy person become poor overnight or vice versa. This is a reminder of how utterly dangerous forex trading is and especially for those with gambling addiction.

The forex market is ruthless, it's unforgiving. You can't enter the market with a tough guy mentality like you expect people to bend to your will. The market will crush you no matter how tough you think you are or how much money you have in your bank account. The market is the ultimate nightmare. People go insane because of it (I know because I have a cousin like this) and many even committed suicide because they lost money that eventually lead to losing their possessions that leads to losing loved ones, friends and family. News about the latter were often buried but some did come out to the public and a simple google search will show you this fact.

Things like pride and ego have no place in the market. You must learn about the market, know its behavior and then adjust to its tune not the other way around. You must learn the art of accepting your loss, to admit that you are wrong. This is where stop loss comes into play. You must know and decide beforehand the point in the market where your analysis is no longer valid and exit the market. There is an old saying in the market "cut your loss short and let the winners run". The ability to identify market movement is going to determine whether you will stay in the market long enough and be profitable or not. Understand this, the forex market moves very fast unlike any other business you've seen before so the faster you learn about controlling your loss the higher your chances will be to make money consistently.

When the market is going against you there are 2 choices you can make:

1. Stop trading and wait until the next trading opportunity comes or
2. Immediately go with the new direction

No matter which choice you make it's gonna be hard if you wear your ego on your sleeve because anyway you are saying to yourself "ok, I'm wrong this time so I need to follow the market". The primary reason for this is because the market is always right. You cannot argue with it, you can't debate it, you can't sweet talk it, you can't force it to give you profit. Thus, prepare the choice beforehand so you will be mentally ready when the time comes to execute that choice. Doubt is bad and you must get rid of it before you enter a trade. This is especially true if you prefer to become or is a scalper. Every tick can generate profit for you but on the flip side, it can absolutely destroy you.

Now, once you've made your choice, stick to it and just execute it when the time comes. Just like a programmed robot. If the consequence of the choice results in a loss then you must be able to brush it off. It is hard to get rid of the emotions at first but you must get used to it because losing money is not something you can totally avoid. I've repeated this over and over and over again that nobody who has executed and closed at least 1,000,000 trades can come out and say "I never had a single loss". Someone who claimed otherwise is either a complete noob who entered the market yesterday or a con artist who fabricated things. The ability to absorb losses and continue like nothing happened is one of the characteristics of a successful trader. Ask around and if they'll tell you the same.

I truly wish for your success. Bye now.

Picsart_23-12-03_09-15-14-389.jpg (65.3 KiB) Viewed 9139 times

Why Bruce Lee pic? Coz this guy was first and foremost a street fighter who survived the deadly streets of Hong Kong back in the day. For a reference, you can check out Benny "The Jet" interview to know how it was:

or here if link is blocked:

https://youtu.be/2ct1_V8koEg?si=8dNm0igcn6gJs06o

[Don_xyZ]

YOU CAN BEAT THE MARKET. NO!

David vs. Goliath

https://youtu.be/_plQnUT92bo?si=0IvlezN-OsYSPZ0V

https://youtu.be/bPSv59kxj5w?si=bJpMRj4ZoAmUL7_j

The first clip showed an overwhelming difference in terms of weight but you can say "well, the other fighter is so out of shape" or some other criticisms but hey don't forget that he is a trained fighter and if you personally have to go one on one with him on that ring you would think twice.

The second clip though, you can't say he's out of shape and in fact, he was a good fighter and you would think a billion more times to go fight him than you would the big guy from the first clip.

The point is David vs. Goliath phenomenon is real. You can win against a much bigger opponents.

However....

It can only happen in a one on one fight, with a set ring, rules, judges and a referee. To put it in perspective, let's say that you are the guy from the 2nd clip who won the fight but instead of fighting 1 opponent you must fight 5 of them or 10 or 100. Even if you train like crazy you wouldn't survive the fight. It's a losing fight right at the moment of the announcement. Don't you agree?

This is how it feels like to fight against 2 opponents:

Picsart_23-12-03_14-16-05-124.jpg (155.85 KiB) Viewed 9112 times

Later at around minute 3:13, 5 people were ganging up on him.:

Picsart_23-12-03_14-26-12-540_copy_1280x562.jpg (102.67 KiB) Viewed 9112 times

The whole fight:

https://youtu.be/GixDXD44_yA?si=Qb405WDMy_Tst9UW

I can't even imagine the pain.

Even if you put all of your money you still wouldn't be able to move 1 candle of the 1 second chart according to your will. If then, the market has such power, the only way for you to make money is either by

1. following it (follow the trend) or
2. by anticipating its historical move (reversal trading)

Anticipating the market movement by way of its historical move means you are following what the market did in the past when certain conditions in the market happened. For this, you need a lot of data way into the past to know the statistical probability of such a move.

There are of course, pros and cons for each of them. Method #1 (following the market) is generally the best thing to do as you are basically trailing what the big money is doing in terms of market direction and there's really not much guess work to do. Reversal though (method #2) is a bit tricky because it might turn out to be a retracement instead of a reversal. Essentially, what you will be doing is trying to pick tops and bottoms. In terms of risk, method #1 is less risky than method #2.

[Yirbu]

BE NIMBLE

When the market is going against you there are 2 choices you can make:

1. Stop trading and wait until the next trading opportunity comes or
2. Immediately go with the new direction

Nicely written. Thanks!
I should try to reverse more often. Especially when scalping. Sometimes I take a trade and I know its a dangerous place because of a certain level nearby. If these trades fail, those will be perfect to reverse and go in the other direction.