The 10 Minute Talk Every Trader Needs to Hear
but I thought it would be well worth your time. It is a talk from the Traders4ACause 2018 Charity Conference and it deals with the mental attitude of a good trader and the psychology of trading. It is not about cryptocurrency trading in particular, but everything you will hear applies to the crypto space as well. You will hear from the perspective of a trader what it means having a fixed set of rules. Those are the rules that you follow all the time without exception. The speaker argues that 90-95 of traders fail not because of a lack of good trading setup, but because of too many preventable losses or just one big loss. I found this talk very useful. I believe it may help you to:
- understand how important it is to limit your losses
- learn from the same mistakes you make over and over again
- hold yourself accountable for your actions as a trader
- focus on what you are doing poorly rather than on the next big setup
- wait on your high probability setups (those with probability of 80-90%) to kick in before making a move
- forget about trading at any cost just because you think you should be proactive
- use hard stops, or having a mental idea about where you are gonna exit if your trade doesn't go the way you thought
- forget about being stubborn with trades that have gone the wrong way but you are still holding to them
- cut your trade if you are not right immediately
- learn not to be biased on your research about a coin if the market says otherwise
Here are the rules that the speaker has set for himself:
- trade the best setups that are profitable at least 80-90 percent of the time
- for these high probability setups put big money into them
- never add money to losing trades
- never say to a losing trade it can go higher
- take profit on winning trades
- you don't have to pick the exact top or bottom
- trade with your free and clear mind
- don't revenge trade just because you had a big loss last day
- cut losses
- cut losses
- cut losses
I enjoyed this talk and I hope you'll enjoy it too. Please share what you think about this.
So, stick with your rules and cut your losses on time! Happy trading.