Mental Well-being & Trading Psychology - The crypto industry acknowledges the impact of dopamine on trading decisions, potentially leading to losses [1] - The industry emphasizes the importance of managing urges to doomscroll or constantly check the phone, suggesting alternative activities like deep breathing [1][4] - The industry suggests limiting access to triggers that lead to unwanted behaviors, such as revenge trading, by using hardware wallets and keeping phones out of reach [2] - The industry recommends incorporating periods of inactivity and boredom into the daily routine to promote mental clarity [2] - The industry advises reducing external stimulation, such as podcasts, during routine tasks to encourage introspection [2] Productivity & Time Management - The industry advocates for scheduling specific activities, such as 6 AM BJJ classes, to create dedicated time for oneself and reduce market focus [1] - The industry recommends defining 1-2 key activities per day to improve focus and productivity [1] - The industry suggests using timers and alarms to track work time, limit doomscrolling, and transition between tasks [3]

Trading Psychology & Mindset - The trading industry emphasizes identifying and addressing personal mental flaws, as traits that lead to success in other fields can be detrimental in trading [1] - The industry aims to rewire the brain to think differently from the majority to achieve profitability in the top 5-10% of market participants [1] - The trading industry highlights the importance of not focusing on money directly, but rather letting it be a result of adhering to a well-defined process [46] Strategy & Methodology - The trading industry suggests keeping trading strategies simple, focusing on a core set of variables to minimize emotional decision-making [2] - The industry recommends focusing on trading one asset, one strategy, and one timeframe to achieve mastery through repetition [3] - The trading industry advocates for backtesting strategies using historical data to determine expectancy before deploying real capital [27] Risk Management & Performance Measurement - The trading industry stresses the necessity of measuring trading results to identify flaws and make data-driven decisions for improvement [5][6] - The industry emphasizes the importance of understanding and calculating expectancy (positive expectancy) to determine the profitability of a trading model [13][14] - The trading industry advises setting a daily loss limit to protect capital and prevent emotional trading decisions [34] - The industry warns against taking profits too early, as it can negatively impact expectancy and overall profitability [42]

Trading Psychology & Risk Management - Even high win rate systems experience losing streaks, emphasizing the importance of minimizing unforced errors [1] - Self-sabotage, such as FOMO, greed, revenge trading, and impatience, hinders the assessment of market conditions and normal variance in losses [1] - Breaking the trading plan and averaging losses are detrimental habits that should be avoided [1] - The trading industry emphasizes that adherence to a system, even in losses, provides valuable information [1] - Trading is inherently challenging, and avoiding self-inflicted mistakes is crucial for success [2]

Trading Psychology & Risk Management - Avoid emotional trading decisions, as they often lead to regret [1] - Refrain from revenge trading with leverage to recoup losses [1] - Spending time away from screens is advisable during volatile periods [1] Social Media Conduct - Avoid boasting about successful predictions on social media [1] - Do not become a motivational speaker on social media after market events [1]

Trading Psychology - The report explores the emotional impact of different trading outcomes [1] - It contrasts the pain of missing a potentially profitable entry point with the regret of selling an asset prematurely [1]

Trading Foundations - Trading involves creating rules and strategies to filter market data and generate profit over time [6] - Success in trading is not about being right, but about managing risk and reward, with win rates as low as 36% being profitable [7] - Traders analyze market data to identify areas where price is likely to change direction, aiming to make 5x the risked amount [7][8] - Key tools for day trading include Trading View for charting and analysis, brokers like Blowfin or Bybit for crypto, Topstep for stocks/futures, and a trade journal for data input [13][14] Technical Analysis - Identifying trends using trend lines helps determine potential areas for price reversals [27][28] - Fibonacci retracements (236%, 382%, 50%, 618%, and 786%) are used to find key levels for potential price reactions [31][32] - Fair Value Gaps, identified by gaps between candle wicks, indicate high-impact zones for potential entries [37][38] - Trend-based Fibonacci extensions, combined with five-wave patterns, can help predict the tops of trends [41][43] Trading Psychology and Risk Management - Trading success relies heavily on mindset, understanding that being wrong on a trade doesn't make it bad [45][47] - Risk management involves setting stop-losses and calculating position sizes to maintain a fixed risk factor, such as risking $100 per trade [51][52] - Even with a low winning percentage (e g 30%), profitability is possible by allowing profits to run and maintaining a good risk-reward ratio (e g 36%R average win) [59][60] Strategy Building and Testing - Building a trading plan involves observing patterns, creating a rule book with entry criteria, and testing in a simulated environment [67][68] - Backtesting using bar replay mode on Trading View and a trade journal helps quantify the strategy's winning percentage and average win/loss [70][71] - Paper trading on an exchange with demo funds allows for real-time execution in a simulated environment before risking actual capital [78][79]

Market Recovery & Mindset - The industry emphasizes the importance of self-care and a clear mindset for traders after market crashes [1] - The industry acknowledges the possibility of rebuilding and recovering from losses, especially for younger traders [2] - The industry suggests traders should adjust to their current capital base after experiencing losses [2] Risk Management & Trading Strategies - The industry advises traders to purge their all-time high net worth to avoid making poor decisions [3][5] - The industry recommends creating a new account to start fresh and reduce the impact of past losses [3][5] - The industry suggests sizing down positions to adjust to the new trade size and focus on a process-oriented approach [3][4] - The industry highlights the importance of using hard stops and isolated margin when using leverage to avoid portfolio-wide risk [4] - The industry recommends recalculating and adjusting position sizing to the new balance [4] Alternative Solutions - The industry suggests considering getting a job in crypto to have a stable income while trading [4] - The industry promotes exploring leverage trading platforms without liquidation risk [6]

Trading Psychology - Avoid revenge trading, focusing on present actions instead of past mistakes [1] - Remove portfolio all-time high and losses from consideration to maintain objectivity [1] - Focus on present and future actions to achieve success [1] Trading Strategy - Control current actions rather than dwelling on past events [1] - Winners concentrate on the present and future, while losers dwell on past errors [1]

Trading Psychology - Fixating on frustration after missing a trade can be detrimental [1] - Losing confidence in one's ability to find the next trade is a problem when dwelling on missed opportunities [1] - Staying upset about missing an "obvious" trade indicates a loss of confidence [1]

Trading Psychology - Trading success is heavily influenced by mental fortitude, accounting for 90% [1] - Emotional control is crucial, as emotions can override the importance of technical analysis (charts) [1]