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Trading Mindset for Consistent Profits

The document provides advice to a forum member on improving their forex trading consistency based on developing the right beliefs and mindset. It suggests answering questions about their past trading experiences to identify problems and formulating a clear trading plan and risk management strategy based on data analysis. Key tips include having clearly defined rules, aiming higher than 10 pips per day given average daily ranges are much larger, focusing on process over money, and continually learning and improving over many years of practice.

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Trading Brothers
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45 views2 pages

Trading Mindset for Consistent Profits

The document provides advice to a forum member on improving their forex trading consistency based on developing the right beliefs and mindset. It suggests answering questions about their past trading experiences to identify problems and formulating a clear trading plan and risk management strategy based on data analysis. Key tips include having clearly defined rules, aiming higher than 10 pips per day given average daily ranges are much larger, focusing on process over money, and continually learning and improving over many years of practice.

Uploaded by

Trading Brothers
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
  • Introduction and Personal Insights
  • Trading Strategies and Mindset

  

SteFX85

 Joined May 2015 | Status: Member | 894 Posts | Online Now


 Nov 16, 6:27am (3 hr ago) | Edited Nov 16, 9:06am

I have a feeling when starting this post that I'm looking at novel size, but I'll try to keep it as short
as possible .
What comes next is maybe something you can use or maybe you can not, I hope it helps!
Either way, writing down my beliefs and how I see things to keep trading consistently profitable
helps me to get confirmation and can point out where I can make improvements. Posting these
beliefs on a forum like this can only help other traders, as it helps me improving.

My first tip is that You should probably do the same. Everyone has his own beliefs, there is no
shame in being wrong.
I have been wrong hundreds of times the last few years, every time I posted it someone would tell
me about why they think it's wrong.
It still happens, and I'm thankful for that.
At first I was too hard headed to learn from other people, until I got a little older and stopped
ignoring other peoples comments on my views. That doesnt Mean someone Else is always right
however, you need to act on your own belief . But you can question yourself on why you might be
wrong!

With everything in life, It's by acting on your beliefs that you create your own reality.
Maybe your beliefs are wrong to become a consistent trader.
Someone can tell you his/her beliefs and you could agree with them, but it's only when it starts to
become your own belief that your reality will start to change.

Why do I begin this post with this? Because I believe that it all starts with this.

You can read every book on the forex market, technical analysis or risk management ...
You can use every indicator there is available (what I don't suggest you do btw)...

When your beliefs are wrong, you'll continue to sabotage yourself.

If you believe it's hard, it will be hard.


If you believe it's impossible, it will be impossible.
If you believe there are crooks in play, you'll get sabotaged (or at least you'll think that.)

If you believe it's easy, it's easy!

What's the difference between a succesful person and an unsuccesful person?


A succesful person fails 1000 times does not give up and tries the 1001st time.. Until it works.
I see you joined this forum in 2014, you're well on your way! Congrats for sticking around and to
not give up.

A succesful person also learns from his/her mistakes.

Let me ask you a few questions, answer them for yourself to maybe find out what the problem is.
It's only when defining the problem that we can find a solution!
And for every problem there IS a solution.

Until now, because you're aren't consistent in your trading, what do you think is the main reason
of this?
Since 2014, what did you learn about your trading?
Since you like intraday AND scalping, what will it be?
Do you have your rules written down?
How do you believe the market works?
You have a 10pip a day target, it's good to have a target! But is it also the limit?
Do you also have a limit on losses per day?

When your target is 10pips and a good risk reward ratio is > 1/2, do you use a stop loss of about
5pips or do you plan to win 90% of your trades?
Why don't you aim a bit higher?
I did some data analysis in python on EUR/USD a while ago. The average daily range, taking every
candle into account since 2010 is 70 - 80 pips I believe.
I can look it up to make sure tomorrow.  As you can see going intraday there is a LOT more upside
potential.
A trade in profit can also exceed the daily holding limit.

Are you trying to predict the future or acting on the present moment?
Are you sticking to one strategy or switching strategies because you have a few losing trades?

Answer them for yourself, maybe you can figure out what the problem is.

It's only when working on your beliefs that you can create a tradeplan that suits you.
Never stop evolving, take ata for for example. Has plenty experience, still adding new rules using
half lotsizes.
Thé rules need to be fixed and you need to stick to it, learn from winning periods as from losing
periods.
Maybe there is something you can spot that Will keep you out of thé market to prevent these
periods of Losers?

When practicing and eventually becoming profitable you Will gain trust in your own system and
actions.
In time it Will become effortless, always with room for more improvement.

If you want I can give you a few pointers on what works for me, what you need to define first, how
I think you should go about risk management etc.
Just let me know.

But first you need to read these two books and do exactly what's in it:

 Trade your way to financial freedom by Van. K Tharp


 Trading in the zone by Mark Douglas

These books and a couple of 100 youtube videos helped me to alter my beliefs, another book
helped me to analyse the markets.
But I think after 4 years you'll probably get that too?

The people on this forum helped me, by showing me their way of working, to develop a strategy
that fits me.

Learn about yourself first, and what you want to achieve.

Setting a 10Pip a day target is one thing, setting up a plan for the next 10 years is another.
I think your aim should be to become the best trader in the world, not focusing on the money but
focusing on the process (and thé rest Will follow).
There is always something you can do better. You need to be able to know what to do in every
situation.

I want to say a lot more, but this post is becoming novel size as expected  , and we're on the
eurusd thread, so If we can learn from each other feel free to send pm or to answer the post here!

Grtz

Common questions

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Setting a long-term trading plan is recommended as it shifts the focus from short-term gains to long-term objectives and personal growth. The document suggests that aiming to become the best trader rather than focusing solely on monetary gains fosters a process-oriented mindset that enhances overall trading skills. Such a plan enables continuous self-improvement, helping traders handle various market scenarios adeptly, thereby contributing to sustained success .

Learning from both winning and losing periods impacts a trader's professional growth by fostering adaptability and resilience. The principle encourages traders to analyze outcomes objectively, recognizing patterns that led to success or failure. By using these insights, traders can refine their strategies, strengthen their risk management, and build confidence in their decision-making processes. This continuous learning cycle enhances overall competence and prepares traders for various market scenarios, contributing to sustained growth and success .

Setting both a daily pip target and a loss limit provides structure to a trader's strategy, merging goal orientation with risk management. The text implies that having a pip target motivates achievement, while a loss limit mitigates potential financial damage. This balance helps traders remain disciplined and avoid emotional decisions during stress, promoting a stable trading environment and long-term success .

Feedback from a trading community contributes to a trader's development by offering diverse perspectives and constructive criticism. The document illustrates how community interactions can highlight flaws in a trader's beliefs and strategies, prompting reconsideration and refinement. Engaging with others allows traders to learn from communal experiences, benefiting from the collective knowledge and evolving their strategies to fit their unique style and objectives .

Documented trading rules are crucial for maintaining consistency as they provide a fixed framework that a trader must adhere to. The discussion emphasizes that rules should be followed strictly to manage risks and learn from both positive and negative trading periods. Proper documentation ensures that a trader does not deviate from their plan due to temporary emotions or market fluctuations, fostering long-term learning and improvement .

The document suggests that continuously switching trading strategies, particularly after a few losing trades, can hinder consistency and effectiveness in trading. It implies that instead of changing strategies frequently, traders should focus on refining a single strategy that aligns with their beliefs and goals. This consistency helps in learning from both winning and losing periods, building trust in one's system, and creating a trade plan suited to the trader .

The author argues that belief is foundational to trading success. He suggests that traders' perceptions of difficulty, possibility, and external interference translate into self-fulfilling realities. For instance, believing trading is hard or impossible makes success elusive, while believing it's easy can lead to smoother success. He emphasises that actions based on one's beliefs shape their trading reality, highlighting the importance of aligning beliefs with desired outcomes .

The books 'Trade Your Way to Financial Freedom' by Van K. Tharp and 'Trading in the Zone' by Mark Douglas are recommended for developing a trader's mindset. They provide strategies for changing beliefs and enhancing mental frameworks, which are crucial for trading success. By offering insights into risk management, psychological resilience, and strategic approaches, these books help traders alter their beliefs and gain clarity on market analysis, thereby supporting personal growth and strategy refinement .

The importance of distinguishing between reacting to present market conditions and attempting to predict future movements lies in maintaining objectivity and adaptability. The document suggests that acting on present conditions prevents emotional trading based on speculative forecasts, which can often be inaccurate. Being responsive to current data and trends helps traders make informed decisions, reducing the risks associated with speculative predictions and increasing the reliability of their trades .

The document suggests that belief significantly impacts market perception, where a trader's mindset profoundly shapes their interpretation of market conditions. It states that if traders believe in the integrity of the market and the achievability of profits, they are more likely to pursue trading actively and adjust strategies appropriately. Conversely, beliefs about market manipulation or difficulty can lead to self-sabotage and hinder effective decision-making. This underscores the necessity of aligning internal beliefs with external perceptions to enhance trading outcomes .

   SteFX85  Joined May 2015 | Status: Member | 894 Posts | Online Now  Nov 16, 6:27am (3 hr ago) | Edited Nov 16, 9:0
You have a 10pip a day target, it's good to have a target! But is it also the limit? Do you also have a limit on losses per d

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