I knew a trader who made excellent money on oil but played without SL. It did not worry him at all, such trading lasted for several years…
Category: Trading Psychology
The flood of information (information overload) is one of the three main problems that traders complain about.
The best traders have their solutions: they limit the amount of news to the necessary minimum. Too much and not – selected news gives not only a waste of time but also may suggest something that will have a negative impact on the position.
Change comes more easily if it is carried out daily over a long period. And it’s best if the new activity (such as analyzing or watching for a new type of exit) becomes part of your daily routine.
If you find something worth introducing or changing, the best way is to try it every day for a while to form a new habit.
The best of the best traders are constantly constructively satisfied and at the same time dissatisfied with their achievements.
The best traders I’ve met pointed to survival on the market as their main achievement. By studying their biographies, you can benefit in one particular way: you will strengthen your ability to adapt. Markets are changing and will continue to change, sometimes dramatically. Alternative data, big data and AI are coming into widespread use.
One day I came up with the idea of finding the best traders in the world and then asking them about everything that is relevant for achieving success on the market. I wanted to know their full story — from the beginning, up until now. In the result, I interviewed almost 100 traders from all over the world. One of the questions was “What are the cardinal rules of trading according to you?” Check it out, what some of them told me…
The reasons you get punched in the face in trading can be many: an attack on a refinery, a bombing, a flash crash, … or more mundane: a strong move and sl. A quick rise in price followed by an even quicker fall. An upward impulse, a downward impulse and a breakout of previous lows. You are on the minus side.
The best traders have both channels functioning well even in the most difficult situations. This means that even under the influence of strong, or even very strong emotions in trading, the best traders are able to make good decisions.
In the long run, the best and mentally strongest traders are characterized by Mental Toughness to losses and big losses, ability to cope with long periods of losses and then bounce back.
A minor problem in trading that has occurred may be felt by you as very painful and serious at a time when you are particularly sensitive to stress, when your mental condition is weakened. The cumulations of negative events affect your trading results, especially losses and mistakes. It is best not to trade then.