RT Sonder (@sonder_crypto)Dopamine in my brain has been cooked. Honestly, that’s probably the biggest reason I got rekt in the markets. Extremely hard for me to turn off my brain.But this is what has been working for these past few weeks.- Signed up for 6AM BJJ class. The only time of the day I have to myself before the kids wake up. (Something to keep my mind from the markets)- Label the urge you get when you want to doomscroll, pick up your phone, etc. Think about how you feel before you do it. When you n ...

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]

RT Breakout (@breakoutprop)Even high win rate systems go through losing streaks.Your job is to minimize unforced errors.If you follow your system and lose a trade, that’s useful information.If you don’t follow your system and lose a trade, that’s self-sabotage.FOMO, greed, revenge trading, impatience, breaking your plan, averaging losses, and other bad habits get in the way.They make it difficult to assess whether market conditions have changed or if your losses are just part of normal variance.Trading is h ...

The worst things you can do:1) Revenge trade on leverage to make it all back.2) Become a motivational speaker on the timeline and tell people that it's not so bad.3) Take vitcory laps on the timeline and tell people how obvious it was that this would happenwale.moca 🐳 (@waleswoosh):On days like these, the best thing you can do is spend some time away from the screens.Don't get emotional, you'll make bad decisions that you will regret instantly.Touch some grass or other things of your choice ...

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]