26/10/2023
Simplicity is what works. That's the consensus among successful traders.
The purpose of a system is to control the emotions of fear and greed, that's why we use systems. As long as you follow the rules of the system and master how to deal with fear (by setting stop-losses) and greed (by having clear exit points), you can trade free from the burden of emotions.
Success in this industry comes from focus. The more focused you are, the more successful you become. Fantasies have no place here; trading with the trend is reality. Learning to follow reality instead of chasing hopes is how you'll break through and become a successful trader.
I've spent a lot of time studying losing trades. It's not because I lack experience; it's because I believe that in this game, if you've never had losses, you're a pretty exceptional trader. The secret to winning here is getting out of losses as quickly as possible, holding onto profitable positions.
I've clung to things I should have let go and let go of things I should have held onto. My beliefs became my obstacles because I couldn't face reality.
If I was convinced I would incur losses, I would trade cautiously and always stick to conventional trade management, which means setting stop-losses and exiting when my methodology told me to.
Now I know that if the price is too high, I'll wait for it to fall, and if it's too low, I'll hesitate to buy. Trends begin with price breakouts, and new trends last until a new price breakout occurs in the opposite direction. Trends start with a big reversal. You don't need to know the future of the world to make money. What you need is sustained advantage in the game.
I didn't lose because I wanted to lose. My losses came because I did things wrong; losses disrupt my emotions or trading methods.
Making money always takes time. It's related to time, and time is related to patience. Making money requires great effort and long-term learning; there's no divine gift involved.
A successful speculator understands the patience needed to wait for opportunities. Many people don't have this level of patience; they'd rather take a chance as soon as possible. Seasoned speculators have the patience to wait for the right moment to act because they know that's when profits are at their maximum.
The more you focus on what you're doing, the easier it is to succeed. Experts who work wholeheartedly earn more money than the average person.
Don't always try to buy at the lowest price; buy when the breakout starts. You might miss the absolute low, but it's much better than getting stuck at a low point. In trading, don't let your emotions run wild, avoid overtrading, do the right thing, and manage your emotions during trades.
