Traders Mindset – Part 1

This is a transcription of our course A Traders Mindest – Part 1.  Please click here if you want to check out the video. 

Just get up and walk away. If you trade at a workstation, get up and walk away. Go get some fresh air. If you trade on your phone, put it down on a counter in someplace safe and walk away. Walk away, kill the urge to go back and stare. Staring at a loss does nothing for you. All right. Sitting and staring at the charts and just watching it, you know, decimate in front of you.

It’s not gonna do anything for you. Go get some fresh air, take a deep breath and be grateful that you’re still alive to at least trade the next day. That does not happen for everyone. Traders run into situations where they’re highly leveraged, you know, and then you end up getting full liquidation. The liquidation takes out your entire account and your account balances down to zero.

Now what that trader is not going to trade the next day. Be happy that you are, we’ve taught you about stop losses. We’ve taught you about risk management. We taught you how to avoid losing all of your money. So you should not be in that situation. All right. We haven’t even gotten to leverage yet. Not in any meaningful way that you should feel comfortable trading with it yet.

So for all those reasons, you should still have capital. So be grateful that you do now. What comes next is evaluating what actually happened was the market overall, just having a bad day. Was the S and P and the Dow Jones and the Russell and the NASDAQ. Were they all dumping? Was it Bitcoin? Was it Ethereum?

Was it XRP and light coin? Were they all dumping were all the T 20 fives? The T 30 S the T 50 S tanking were all the indexes just losing 20, 30, 40, 50%. Is that what happened? You have to evaluate. Was there global news that just destroyed your strategy. Your strategy’s been doing good for three months and then all of a sudden, uh, one country goes to war with another country that news breaks.

And, uh, the market is completely tank. Was that the deal? Was there global news that ruined your strategy. Does your strategy need fine? Tuning is your strategy generally a 60% win rate strategy. But now that you look at the data in your journal, uh, you’re pulling 30%, maybe you need some fine tuning in your strategy.

Did you take the trades based off your strategy or? Did you do what a lot of traders do when they start bending the rules, they start getting a little greedy, right. And they start saying, ah, you know, it’s not, it’s not perfectly set up for me, but I’m just gonna get in a little early in anticipation that I’m gonna get this crossover.

I’m gonna get this tick green, or I’m gonna get the confluence or the confidence for, for me to take this trade on the next candle. I’m gonna take it four hours early on this candle, or maybe was it just not your day to. Have you gone back in your journal and realized that on every Wednesday, you’re just a terrible trader?

Is that possible? Is it possible that you only lose trades on Wednesdays? For some traders it’s possible that they always lose on Monday or they always lose on Friday for traditional market traders. And the reason for that is Friday, right? They could either be very greedy towards the end of the week, or they throw all their risk management out the window because they didn’t hit their weekly targets.

So now they’re just throwing anything at the wind and just praying for a miracle. Right. Mondays are, are traditionally rough because you’re coming off of a weekend there’s weekend news that people are still compiling in their heads. They’re still trying to figure out how the market’s gonna go. And if you’re one of the pre-market traders, well, then you’re sort of just guesstimating how the market is gonna react.

Once it opens at nine 30. Now for things like cryptocurrency with Bitcoin and Ethereum and, and the other 10,500 tradeable coins that are out there, uh, those run on different fundamentals, very loose fundamentals, right? So, you have somebody in the traditional market actually, uh, can make a bullish statement or a bear statement about Bitcoin and could have enough influence to start pushing that market up or.

All right. So now that you’ve done all that, you’ve asked all those questions. The next step is what separates the winners from the losers. The next step is what is vital to your success as a trader, what a winner does. So take notes. A winner will brush off the losses, make some adjustments to a strategy, recognize that it’s time to stop trading for the day.

You’re not gonna get mad. Not gonna get disappointed. They’re not gonna rage, quit and smash their computer. They understand that they have good risk management and that good risk management allowed them to take 10 losing trades and still have capital to trade. The next day. That’s something to be grateful for all is not lost and they don’t need to go down the rabbit hole of pain and.

now, I’m not gonna say that they laugh it off. They take 10 losses in a row and they just laugh it off. Like it’s no big deal, but they don’t let it affect them to the point where it changes their mindset. They don’t let their attitude; their trading attitude get changed because of it. And that will wrap it up for part two of the three-part series talking about trading like a robot.

We’ll be back with part three next.

Overall, Market Wide, we are seeing some health return to the atmosphere.  Will it last?  Too early to tell.  Can we trade setups that in this climate, yes.  Staying cautious when taking long positions in and otherwise down market is inherently more risky than taking long positions in a healthy market.

If we can see these indexes really fly then we know it’s time to start taking some positions but we want quick profits as we don’t want to be some whales exit liquidity.

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