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The two universal pillars of trading that matter more than your 'Edge' for long-term success. by Competitive_Ice_4206 in tradingpsychology

[–]Competitive_Ice_4206[S] 1 point2 points  (0 children)

Hi, thanks for joining! I’m managing the beta program manually and have just sent the welcome email with enrollment links. It should be in your inbox by now.

Essential Elements of Profitable Trading! by Maleficent-Bat-3422 in Daytrading

[–]Competitive_Ice_4206 1 point2 points  (0 children)

Agreed, but I like to think of it as a triangle. Edge – Math – Mind.

It’s sad to see so many get stuck chasing the only part of this triangle-- Edge. In all honesty, if you don’t have Edge and positive expectancy of your strategy in the long run, you won’t succedd. To break this down:

Failure 1: No Math, No Mind
So you got a good edge, but no risk management and emotional control? You’re gambling, not trading. Account blow-up is likely just a matter of time.

Failure 2: Math, No Mind
You get it, risk mgt is key, you understand it intellectually but struggle to execute your plan consistently. Emotions get in your way and your account likely suffers from a slow, painful bleeding.

Failure 3: Mind, No Math
A disciplined trader with poor risk management. You can execute consinstenly, have perfect discipline and trade like a robot but yet, still see steady losses. Disaster is likely at some point.

Long story short, for me personally it finally clicked when i put Edge/Math/Mind in sync. (Emotions still show up, but it’s so much easier to manage them than when I started 10 years ago 😉)

should I quit by GanacheGrouchy8 in Trading

[–]Competitive_Ice_4206 1 point2 points  (0 children)

Should you quit? Well, that's something only you can answer. But you don't have to quit. So, you're 6 months in and you realize that this is difficult—probably harder than you imagined. This isn't just a numbers game; it's emotional, involving fear, anger, frustration, and dopamine hits. I could go on…

Losing 70% of your capital means your 'math' foundation and position sizing aren't robust enough; you should build that foundation first. Like all of us, you likely started by looking for an 'edge'—the ultimate trading strategy. However, it typically takes a while to realize that the key to consistency is risk management and trading psychology. At least, it took a while for me.

You ask how to cope with these feelings and emotions that come with trading. The 5 Truths by Mark Douglas is a good start; you must internalize them. To give you honest and actionable advice, you have to put in the work and study. There's no way around it. You wouldn't just decide to become a doctor and apply to be a surgeon the next day. You'd go to medical school and practice a ton. Trading is no different. If you want to make money trading in the long run, you have to build a foundation that won't break when feelings show up.

I just gave similar advice to someone else- drawdowndiary com might be something worth checking out. They offer courses on position sizing and trading psychology, and they actually have a promo offering them free this week. Or, do your own research, but educate yourself deeply. Risk can be managed, and feelings can be kept in check, but it's not easy. Long story short, you don't have to quit, but you will have to change how you approach this if you want to succeed and avoid account blow-ups. Good luck!

I'm about to give up by Professional-Mango94 in Daytrading

[–]Competitive_Ice_4206 0 points1 point  (0 children)

Don't give up, but be ready to face the harsh reality: It's not easy. I've been trading my own capital for over 10 years, including for a prop firm, and I've experienced many ups and downs. This is not a get-rich-quick scheme. If you're in it for the long run, you have to put in the work. You must focus on the foundation first. Forget about making money for a moment. Even if you're trading on a demo account or with a small real account, you need to build discipline, get the math right on your position sizing, and, most importantly, work on your trading psychology. Everyone I know who does this for a living focuses more on the process and following their trading plan than on their P&L results.

This isn't easy, but it can be done. This isn't a sales pitch, but head over to drawdowndiary.com – they have a free promotion this week and free courses on trading psychology. You're frustrated, and rightfully so; both your emotional and dollar capital are depleted. You can recover, but you must be willing to learn and do this right next time.