Today's article will be entirely devoted to reflections on such wonderful topics as: psychology, risk, workspace management, and analysis.
20% effort gives 80% results
Many people probably heard about Pareto's law, the so-called 20/80 principle.
Whether you agree with it or not, let us project this statement to the approach to trading as a technical analyst. What is the 80% result obtained with 20% of effort? I believe that only with the right psychological approach and attitude trading will give 80% of the result with 20% of effort.
Hence the simple truth even a child can be taught to trade. But it doesn't mean that he/she will bring a stable and guaranteed income in the long run. I mean technically trading is a very simple thing, if not complicated.
Is it difficult to find the trends according to Dow's theory? Find the right patterns on the chart according to Steve Nisson or price action methods? To delve into Elliot waves or swings to apply them in practice? All these things may scare only a beginner trader.
But this article is not for beginners, it is for people who have some experience in trading. Thus, the bare technical aspect gives only 20% of the result and the rest will fall on your shoulders.
The obstacle to successful trading is the trader
We all can agree that the main obstacle to successful trading is the trader himself. You can distinguish an implication in favor of algorithmic trading, and a bold disadvantage in the manual trading. I would not say so, for the simple reason that it is easier for a trader to adjust to the current market situation and the process that is not included in the logic of the algorithm.
But for this it must be developed a sixth sense: intuition, NOT your technical skills. By intuition and a sixth sense I mean, of course, only experience and knowledge, embedded at a subconscious level, rather than trading at random.
And what are non-technical skills? It is clear that these are such basics as risk and money management, because this is the root cause of all troubles and misfortunes for a trader if he doesn't follow them.
Often, during active trading, most traders have words like discipline, willpower in their minds and of course excitement, greed and pursuit of money. These are the exceptional, aggressive emotions that lead to the draining. I can't teach you how to deal with it, everyone's character is different, but you need to break down these emotions.
It's impossible to make a million in a month, six or a year out of a thousand. No matter how you look at it, if you break the rules your MM you’ll get a guaranteed loss. But if you work systematically and according to the rules, you can have stability and turn over a profit.
The small things we miss.
It's no secret that life consists of the little things, put together in large formations. If you leave them out, in an instant they will all pile up and collapse like a snowball at the most inopportune moment. One of these little things is the workspace.
The ergonomics of things in your room (chair, desk, device, color of curtains, view out the window) to the color of the bull candle on the chart. The little things that are subconsciously perceived every day. And it's up to you whether they will help, or vice versa, press and aggravate.
Is it possible to trade successfully when there are screaming children, an un-walked dog, or an uncomfortable chair? You're staring blankly at a poisonously colorful schedule and trying to trade. It may well be that everyone has their own view of cozy and comfortable work, but what I see in this picture is a lack of focus on all levels.
We need to remove all outside triggers so that nothing distracts from seeing the essence. Make hours of silence in the house so no one bothers you during that time.
So, here's what gets you 80% of the results: order, discipline, deliberate action, motivation. It's not as much effort as charting. It comes to the aid of a variety of types of organization and management, once you radically put order in yourself, in your life, and you will do it always and then the results of trading will noticeably improve.
20% effort gives 80% results
Many people probably heard about Pareto's law, the so-called 20/80 principle.
Whether you agree with it or not, let us project this statement to the approach to trading as a technical analyst. What is the 80% result obtained with 20% of effort? I believe that only with the right psychological approach and attitude trading will give 80% of the result with 20% of effort.
Hence the simple truth even a child can be taught to trade. But it doesn't mean that he/she will bring a stable and guaranteed income in the long run. I mean technically trading is a very simple thing, if not complicated.
Is it difficult to find the trends according to Dow's theory? Find the right patterns on the chart according to Steve Nisson or price action methods? To delve into Elliot waves or swings to apply them in practice? All these things may scare only a beginner trader.
But this article is not for beginners, it is for people who have some experience in trading. Thus, the bare technical aspect gives only 20% of the result and the rest will fall on your shoulders.
The obstacle to successful trading is the trader
We all can agree that the main obstacle to successful trading is the trader himself. You can distinguish an implication in favor of algorithmic trading, and a bold disadvantage in the manual trading. I would not say so, for the simple reason that it is easier for a trader to adjust to the current market situation and the process that is not included in the logic of the algorithm.
But for this it must be developed a sixth sense: intuition, NOT your technical skills. By intuition and a sixth sense I mean, of course, only experience and knowledge, embedded at a subconscious level, rather than trading at random.
And what are non-technical skills? It is clear that these are such basics as risk and money management, because this is the root cause of all troubles and misfortunes for a trader if he doesn't follow them.
Often, during active trading, most traders have words like discipline, willpower in their minds and of course excitement, greed and pursuit of money. These are the exceptional, aggressive emotions that lead to the draining. I can't teach you how to deal with it, everyone's character is different, but you need to break down these emotions.
It's impossible to make a million in a month, six or a year out of a thousand. No matter how you look at it, if you break the rules your MM you’ll get a guaranteed loss. But if you work systematically and according to the rules, you can have stability and turn over a profit.
The small things we miss.
It's no secret that life consists of the little things, put together in large formations. If you leave them out, in an instant they will all pile up and collapse like a snowball at the most inopportune moment. One of these little things is the workspace.
The ergonomics of things in your room (chair, desk, device, color of curtains, view out the window) to the color of the bull candle on the chart. The little things that are subconsciously perceived every day. And it's up to you whether they will help, or vice versa, press and aggravate.
Is it possible to trade successfully when there are screaming children, an un-walked dog, or an uncomfortable chair? You're staring blankly at a poisonously colorful schedule and trying to trade. It may well be that everyone has their own view of cozy and comfortable work, but what I see in this picture is a lack of focus on all levels.
We need to remove all outside triggers so that nothing distracts from seeing the essence. Make hours of silence in the house so no one bothers you during that time.
So, here's what gets you 80% of the results: order, discipline, deliberate action, motivation. It's not as much effort as charting. It comes to the aid of a variety of types of organization and management, once you radically put order in yourself, in your life, and you will do it always and then the results of trading will noticeably improve.
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bit.ly/3spSQqC
🔻FREE Telegram channel🔻
t.me/DeGRAMChannel
🔻Contact for Paid SIGNALS🔻
t.me/DeGRAMForex