The following points solely apply to indraday trading. I read and internalize them every morning before I start looking at charts and sometimes in between. Our mind is a beast or is full of beasts (I don't know) and it needs to get readjusted and reset for trading all the time; at least at my state of mind & trading.
- always expect to be wrong
- always expect the worst case
- always be prepared to get hit within seconds or less by 100 up to 500 points against you
- don’t do never overtrade: never means not even for a moment
- markets tend to move to their extremes
- control yourself
- get aware of yourself
- be patient, what’s a 1M, 5M, 15M or 1H bar in relation to your goal?
- is your goal 5min away or a couple of months or years?
- always be prepared to manage minus:
- managing the minus:
being in minus is the default condition; if you lose or win depends on how you deal with it on your account
and with your mind. You need to know about your margin power means which size you can trade and manage.
Can you afford to have 100 or 200 points against you in the next moment?
Do you know what you will do in that situation? Do you have a plan?
If optimism is your plan, you’re doing it wrong; in trading even pessimists are optimistic..
- handling the trades that go against you is the job not taking profits
- you need to become comfortable in being in and managing the minus
- always be aware and be afraid, caution is too little
- manage your margin, not your fear or dreams
- be sure: the big move (50-300 points) will come, 50-100 points on half of a session for sure
- you may want to wait
- know where you are:
- zoom out
- look at the complete field not just where the ball is
- field is W1-H1 for orientation
- detect the ranges of the different timeframes
- fomo (fear of missing out)? just zoom out, there’s never a reason for fomo,
it’s just a beast in your mind; if there’a fomo on being long it might be the best to sell short
- always reverse the picture your mind creates, see the situation from the other side; that is a very healing and enlightening exercise
- always have your mind open to learn, be assured of nothing
- if you want to be right you will be wrong
- watch the markets parallel, never focus on one
- if optimizm is your strategy you’re doing bad; even pessimists are optimists in trading, think about it
- never feel comfortable
- replace any kind of emotion by learning mode in your mind
- emotions doesn’t help, but an open mind
- don’t think or expect anything, just be open minded and open to learn
- on long term nothing has a chance against and nothing is stronger than a learning mind, learning from errors and mistakes, able to adapt and recognize any situation
- don’t have your mind filled by wanting something
- don’t think the market should follow your thoughts, better let your thoughts follow the market
- you need a clear open mind for observing, otherwise you can’t learn
- no one is against you (not personally), it’s a huge market, full of big players and millions of algos moving the price
- accept what is and manage it
- in daytrading the position management by far is more important than the position itself;
if it’s long or short and wherever it was filled. this doesn’t mean I just open any position;
I’ve a plan of entrypoints because it’s the anchor for my management.
this plan is dynamic as the market and therefore can’t be coded
- reflect your expectations. given an 500€ account, what do you want to make a day in average?
1% or 20%? 20% would mean 100€/day what means 20k on a 100k account.
doesn’t that sound a bit megalomaniacal? Make a spreadsheet, take 500€ and add 1% a day
and see what happens, isn’t that a nice little goal? see from 100€ to a million in 4 years or The 5% per week plan
- be prepared to win; if you don’t feel it you probably won’t and you should be in practise mode