Mindset
Article on the mindset for trading.
Expectations
There's a reason why people get into trading financial markets, and the most popular reason is to gain more financial freedom by increasing their net worth over time. Now, when I mention over time, there are some serious issues that come to mind: How long will it take me to make money? How fast can I achieve my financial goals? How do I know if I am actually profitable and not just lucky? Those expectations, like almost every other aspect in trading, need to be managed.
Beginners
The mindset of the aspiring trader is very different from the novice trader. Aspiring traders expect to make money fast, meaning they rely on luck more than anything else. Managing risk is something they simply lack the time or knowledge for.
I do little to no analysis before executing my trades.
I only look for reasons to enter a trade.
I look for confluence on social media.
I always expect to be right, never wrong.
Now, the above is nothing new; we all start by doing the wrong things, looking at the wrong people, and making the same mistakes over and over again. Luckily, when performing the above, you will be running out of money in a short amount of time, putting a cap on the never-ending Spiral of Doom.
Spiral of Doom
All aspiring traders find themselves in a layer of hell once they start their journey into financial markets. I call this layer the Spiral of Doom, a place where there is no positive outcome, just false hope and despair. Getting out is one of the hardest things the aspiring trader has to face, as it usually starts with overcoming financial loss and symptoms of depression.
Trading addiction is real and can cause serious psychological issues. If you think you are experiencing trading addiction seek professional help.
Fear
Usually, when talking about fear, we expect more negativity. Fear wants to protect us; it makes us aware of danger. Embrace fear to get out of the Spiral of Doom.
False hope is part of the Spiral of Doom.
I have to adjust my mindset to reality.
Money is infinite; I am not.
I have to start protecting myself and my capital.
Once you embrace fear and accept the changes you have to make to protect yourself from getting back into the Spiral of Doom, your journey can finally begin.
Still here
You did it; you got out of the endless layers of trading hell and climbed your way out of the Spiral of Doom. You accept that the only thing that has to change is you, and the only real enemy keeping you from achieving your goals is... you.
I am no longer gambling; I respect time.
I perform my own analysis, finding confluence in data.
I expect worst-case scenarios to play out.
I embrace the pain of taking losses.
I know the Spiral of Doom is always nearby.
Comfortable
When using PinoAPI, we take away many of the psychological barriers aspiring traders face. This way, users without any experience are capable of making money. The worst thing anyone can do is get comfortable with this process. By being comfortable, you (unintentionally) start to ignore the fact that the Spiral of Doom is still looming around the corner. It is still there to suck you back in. And no matter how long the comfortable process works out for you, it will eventually get you.
I look for flaws in my analysis.
The market is ever-evolving, and so am I.
I never accept that money is easy to obtain.
Algorithms assist my mindset, not control it.
Learn more about who you are, and what you should be as a Trader.
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