Trader Mindset Weak Trading Goals Are Why You Abandon Your Trading Rules
Sep 29, 2023
Delve into the emotional complexities of trading and understand how self-awareness can dramatically influence your success. Discover why embracing losses is crucial and learn strategies to maintain emotional control. Explore the importance of self-reflection and how addressing subconscious motivations can pave the way for personal growth. Let go of unproductive habits and gain insight into achieving effective trading goals.
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Positive Expectation Beats Accuracy
- Trading success relies on positive expected value, not accuracy alone.
- Being correct 40% of the time can still yield profits if winners are larger than losers.
Emotionally Accept Low Accuracy
- Train yourself emotionally to accept lower accuracy like 40% as normal.
- Focus on consistent small losses and letting winners run for overall equity growth.
Big Winner Covers Multiple Losses
- Michael Martin lost on four or five trades but was saved by one big winner in NVIDIA.
- His account was still up for the week despite multiple losses, demonstrating the trading principle.