Topic: My trading constitution. - page 4. (Read 833 times)
You can manage everything, but if you don’t have knowledge and basics of any work that you do, then you won’t excel in that particular task. Same happens with trading also. If you want to do good trading and that too without losses, then you have to at first gain knowledge on trading. Do dry calculation and estimations and then do miracles with the market. At last do proper risk management and then do trading in limit.
Trading is 90% psychology
This is quite a huge percentage and I don't agree to this statement, because you are implying anybody that has basic knowledge of crypto and charts will survive in the trading world which is far from the truth!Trading requires one to have the skills to trade, know how to control their emotions and lastly apply proper risk management which you have pointed out.
Trading gives you money, in order to to protect your money risk management is paramount.
I agree that risk management is definitely the important part in trading because you cannot profit if you always lose what you have earned and that's definitely a problem. You cannot be profitable if you're not consistent.
It's weird to call a constitution without so much details lol.
It's weird to call a constitution without so much details lol.
Psychology is indeed very important in trading, especially for those who are often emotional in trading. those who are easily provoked, emotional, greedy will definitely not get big or easy profits here. because such things affect their decision to invest behind what they predict. it's good to understand how your mood before making a decision.
- you can't win without a profitable trading system.
That's an interesting point, but how do we get a profitable trading system in the first place? I agree with you that it makes sense to create a trading system around our profitable trading ideas. Probably most beginners have the same problem to find trades that will make money consistently. Doing research and using technical analysis is a great way to find such trades. But it also requires a lot of testing to see if our trading system is correct. Just because we make money during a few weeks doesn't mean that our trading system is profitable long term. For example, if the general crypto market moves into our favor it will likely rise all our positions, even if we didn't pick the best coins. A constant form of oversight and testing can protect us from losses, I wouldn't trust a trading system blindly just because it was right in the past.
Trading is 90% psychology, but
- you can't build confidence without a profitable system.
- you can't have consistent gain without a profitable system.
- you can't be disciplined without a profitable system.
- you can't win without a profitable trading system.
Trading gives you money, in order to to protect your money risk management is paramount.
Yeah, Absolutely. While psychology is a crucial factor in trading, it's crucial to keep in mind that a profitable system is just as essential. A profitable system aids in developing confidence, achieving consistency, maintaining discipline, and ultimately prospering in trading. Risk management is indeed vital in safeguarding your investment. Hence, it's imperative to create a sound trading strategy, adhere to it and manage risks efficiently. Remember that trading is an adventure that requires patience, persistence and a constant drive to learn and enhance your skill- you can't build confidence without a profitable system.
- you can't have consistent gain without a profitable system.
- you can't be disciplined without a profitable system.
- you can't win without a profitable trading system.
Trading gives you money, in order to to protect your money risk management is paramount.
I see that many have responded above. Each one assumes what the word "profitable system" means, but we still do not know its meaning, or at least what @OP means.
It's like saying "In order to make a profit in trading you have to be smart, stupid people always lose" which is a correct sentence but what is the definition of intelligence and what is the criterion that determines smart from stupid?
There is no such thing as a "profitable system", as trading in itself is subject to profit and loss, and there is not always the possibility of profit, but there is always the possibility of loss, and therefore there is a "losing system", but there is no "profitable system".
profit and loss is making by probabilities of what the demand will be in the future.
It's like saying "In order to make a profit in trading you have to be smart, stupid people always lose" which is a correct sentence but what is the definition of intelligence and what is the criterion that determines smart from stupid?
There is no such thing as a "profitable system", as trading in itself is subject to profit and loss, and there is not always the possibility of profit, but there is always the possibility of loss, and therefore there is a "losing system", but there is no "profitable system".
profit and loss is making by probabilities of what the demand will be in the future.
You can’t really build and code a system and trade that way. It will work for a while but eventually it will stop working and you will have to adapt and tweak your system. This is why those trading bots never make money in the long run.
Only way to do this is basically experience and you can’t teach experience you just need to put in the hours. When you have enough screen time you will see what is going to work and what wont. And with enough screen time you will still need to manage risk properly so you don’t revenge trade and lose your entire account.
Only way to do this is basically experience and you can’t teach experience you just need to put in the hours. When you have enough screen time you will see what is going to work and what wont. And with enough screen time you will still need to manage risk properly so you don’t revenge trade and lose your entire account.
For point number 1, I say may be that. Trading is heavily influenced by psychology, as emotions and mindset play a significant role in making decisions. But, I wouldn't necessarily say it's 90% psychology, as there are many other factors to consider. A profitable system is indeed crucial for success, as you've mentioned.
While psychology is undoubtedly a significant factor, it's not the only determinant of success. A well-rounded approach that considers all aspects, including a profitable system, psychology, and risk management, is more likely to yield favorable results. Without a profitable system, it's challenging to build confidence, achieve consistent gains, maintain discipline, and ultimately win in the trading world.
In my brain, a profitable system is the foundation of successful trading, while psychology and risk management act as essential pillars that support and enhance the overall performance. It's vital to strike a balance between these elements to achieve long-term success in trading.
While psychology is undoubtedly a significant factor, it's not the only determinant of success. A well-rounded approach that considers all aspects, including a profitable system, psychology, and risk management, is more likely to yield favorable results. Without a profitable system, it's challenging to build confidence, achieve consistent gains, maintain discipline, and ultimately win in the trading world.
In my brain, a profitable system is the foundation of successful trading, while psychology and risk management act as essential pillars that support and enhance the overall performance. It's vital to strike a balance between these elements to achieve long-term success in trading.
- you can't build confidence without a profitable system.
this point is good and understandable because if a person regularly wins then it is possible to achieved the desired goals so confidence in that person increases therefore he will talk about his trading system with confident attitude to the others.
But I think making a profitable trading system will requires time it cannot happen quickly and during this duration you will face losses as well as gaining so I think that confidence will create only when you see different situations. A profitable trading system can only originates when you have complete knowledge about the crypto market and have spend lots of years for getting the basic point to be a successful trader.
Trading is 90% psychology, but
- you can't build confidence without a profitable system.
One of the first requirement and prerequisite is a profitable trading strategy though it's 100% perfect because there isn't any Holy Grail therefore money management should be utilize in trading.- you can't build confidence without a profitable system.
- you can't have consistent gain without a profitable system.
Consistency in earning profits will in a long run enable the trader to have an edge over the market therefore the trading strategy should have a reasonable rewards to risk ratio.
- you can't be disciplined without a profitable system.
Trading requires strict discipline by following the lay out rules to trades defying such rules will result to incurring losses.
Trading gives you money, in order to to protect your money risk management is paramount.
Above all money management is the key to a successful trader how well a trade is managed by trailing stop a winning with a Stop Loss.
Trading relies on keeping track of a particular currency's economic flow. If you can determine this flow precisely, investing will be simpler. The profitable system can only be achieved with an immediate input to the precise coin, however, until you figure out a trading strategy. This makes the process more difficult. Your entire goal is to make a profit from trading, but in order to do so, the trader must first construct a profitable trading strategy.
Trading is 90% psychology, but
- you can't build confidence without a profitable system.
- you can't have consistent gain without a profitable system.
- you can't be disciplined without a profitable system.
- you can't win without a profitable trading system.
Trading gives you money, in order to to protect your money risk management is paramount.
- you can't build confidence without a profitable system.
- you can't have consistent gain without a profitable system.
- you can't be disciplined without a profitable system.
- you can't win without a profitable trading system.
Trading gives you money, in order to to protect your money risk management is paramount.
Seems more ideal is 50 percent of knowledge comes from the sources of information you can use and apply with your trading journey, and 50 percent for decision making why? because most of your trading will depends on this if you know what are the possible price movement the technical indicators you could use gives you an idea to entry or to exit, but in that case, your emotions give you a doubt or a guts to place the position.
You really have a profitable system, but if it involves your mentality, like controlling your emotions, it is still useless. Just imagine you have those systems and confirmations in place before doing an entry, but because you lack patience and are greedy and overconfident on a trade, you'll hit the entry without following your confirmations. Emotions really play a big factor in your system; it is not only about the method; emotions are also needed.
Emotions could be a cycle if you make a trade when it comes to get profit for sure you'll get greedy but with the use of your TA sometimes you are trying to get more than focusing to your plan, and getting lose to decide to cut your loss or still holding your coins.
You really have a profitable system, but if it involves your mentality, like controlling your emotions, it is still useless. Just imagine you have those systems and confirmations in place before doing an entry, but because you lack patience and are greedy and overconfident on a trade, you'll hit the entry without following your confirmations. Emotions really play a big factor in your system; it is not only about the method; emotions are also needed.
- you can't be disciplined without a profitable system.
This should be the other way round. You can't have a profitable system if there is no discipline. It is the discipline that brings about the profit. A disciplined trader sticks to the strategy/analysis that works and anything that doesn't seem clear is avoided. As for every other thing listed in OP they need a profitable system to maintain them but discipline is the reverse.That makes them trapped and because they have lost discipline, their emotions are also disturbed and in the end, they will choose or decide something they should not have chosen. And that causes them to suffer losses in trading.
Many traders have experienced it. Some can learn, while others keep repeating the same mistakes. Disciplined traders can adapt to unstable markets and even make good decisions to avoid losses that can occur at any time.
Trading does involve the emotions but calling it a complete mind game is not correct in my opinion. You can say that trading needs skills and luck and you would not be profiting of you were only making predictions based on your gut feeling. The gambling aspect of it comes from the fact that you might get addicted to it and there are non-Spot modes of trading that are very risky.
If you can keep track of how to trade, mainly buy low sell high, you shouldn not get into trouble. That too if you are keeping a ledger and following your sells with your buys.
Just don't trade only based on emotions, see the charts and previous trends and then decide what trade to place.
If you can keep track of how to trade, mainly buy low sell high, you shouldn not get into trouble. That too if you are keeping a ledger and following your sells with your buys.
Just don't trade only based on emotions, see the charts and previous trends and then decide what trade to place.
Trading is 90% psychology, but
- you can't build confidence without a profitable system.
- you can't have consistent gain without a profitable system.
- you can't be disciplined without a profitable system.
- you can't win without a profitable trading system.
Trading gives you money, in order to to protect your money risk management is paramount.
Trading requires 100% psychology and you cannot do trading. Trading requires confidence and long term statement. There are many people who before trading think that they will earn huge profits by investing in the future. But they did not think that in order to trade, they must know the details of the market. Those who have not acquired good knowledge about trading, if they go to invest, they have a huge amount of risk in business. So before trading it is very important to know the pros and cons of following a trader here. With all these concepts and gaining knowledge later investing with trading skills, there will be no business risk, so you should be careful about all these things. - you can't build confidence without a profitable system.
- you can't have consistent gain without a profitable system.
- you can't be disciplined without a profitable system.
- you can't win without a profitable trading system.
Trading gives you money, in order to to protect your money risk management is paramount.
- you can't be disciplined without a profitable system.
This should be the other way round. You can't have a profitable system if there is no discipline. It is the discipline that brings about the profit. A disciplined trader sticks to the strategy/analysis that works and anything that doesn't seem clear is avoided. As for every other thing listed in OP they need a profitable system to maintain them but discipline is the reverse. 
- you can't be disciplined without a profitable system.
How do you mean by this maybe you need to explain on this Being disciplined IMO is not about having a profitable system because you can be loosing while being discipline as losing can also be temporary.
However someone which backtested their strategy and which is completely sure it is a profitable one can make profits with their strategy way more easily and deal with such short term losses.
- you can't be disciplined without a profitable system.
- you can't win without a profitable trading system.
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I agree with this because most of the new traders who are starting out are not properly learning the cores or the basics before they start trading.- you can't win without a profitable trading system.
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This is required proper risk management which will help you to have profitable system, by this way, it will help to protect or preserve your capital and maximize profits.
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