How these bad trading habits can ruin your Trading career? What's the big deal with Trading
Psychology? Let's find out! After watching many different trading strategies tested 100
times on the Trading Rush channel, you probably know what trading strategies are good and
what strategies will make you lose money. As a trader, we always want to make money,
that's obvious. But if you make 200 random traders use the same profitable trading strategy,
there is a good chance that at least half of the traders will lose money, and the rest
half will be profitable. Why is that? Let's say you see your favorite trader use a strategy
that gives more than a 70% win rate, but when you try it, it gives completely opposite
results. Why can't you make money with the same strategy? Answer me this. Do you find
trades every time you open the trading charts? If your answer is yes, then you might have
a bad trading habit, that can stop you from becoming a successful trader! If you are new
to the Trading Rush channel, subscribe and ring that notification bell, because we test
many different trading strategies 100 times, so you won't lose money with them.
There are 3 main things you need in order to make money in trading. Number One is a
profitable trading strategy that you know actually works. If you have watched other
videos on this channel, you know what trading strategy to choose. The second thing you need,
which is just as important as a good strategy, is proper money management. I have talked
about this in more detail in one of the recent videos. And the third most important thing
you need to become a profitable trader, is the proper trading mindset. As you probably
know, many people come to trading with a get rich quick mindset. Trading is not a get rich
quick scheme, for most people, it's a lose money quick scheme. You see, on the internet,
people like to watch exciting stuff. So if one person makes a ton of profit in a very
short period of time, luckily or by using a strategy, it's common for people to show
interest in that story compared to someone who made the same amount slowly but consistently.
Because of this, someone who has never traded in their life, can think that the stock market
and forex is the place where people get rich quickly. But the truth is, trading is just
like any other business or profession. Now don't get confused and apply what I just said
on the recent market crash. Because many noobs made more money than some experienced traders
during the recent stock market crash. All you had to do was add 2 + 2 and money appeared
like magic, and that's how many people who never traded in their life made money during
this market crash. But the stock market does not crash every single day. So in normal market
conditions, trading is just like any other profession. For example, to become an engineer,
you first have to spend time studying engineering right? But in trading, people don't think
like that, many people don't want to spend time understanding something they have never
traded before. Everyone wants to get rich quick. Sure, you can get rich, but first spend
time understanding why 90 percent of the traders lose money. If you do that, you will realize
that most unsuccessful traders don't follow proper money management, and they think with
their emotions.
Now thinking with emotions is a very common thing among beginner traders. Before I started
making money consistently in trading, I was also thinking with emotions. At the beginning,
if a trade was lost, I couldn't wait to take the next trade to recover the current loss,
and because of this, I was taking stupid trades that I wouldn't have taken if I wasn't trying
to recover my previous loss. So I did a little trick, and you can do a similar thing as well.
Since I was not thinking clearly after a loss, I created a simple app that was based on the
if or else statements. You see trading strategies are basically if or else statements. For example,
if one indicator is giving a crossover signal, and if the price is above a moving average,
it's a buy signal. So what I did was, made an app that showed my strategy rules. It had
a text and a single button. The text asked a question like, to go long, is the price
above moving average? If Yes, press the button, if not, don't do anything and sit back and
relax. If the price is above the moving average, press the button, and then it shows the next
rule of the strategy. The point is, if you think with your emotions while trading, write
your strategy rules in a notepad, and read it like an if or else statement. This can
help you stay focused on your strategy rules even if you lose multiple trades in a row,
because writing my strategy rules down definitely helped as a beginner.
Now another thing professional traders do that beginners don't, is play the waiting
game. You see when you decide to wait for a good trading opportunity, you are deciding
to save the money that you could have lost on a bad trade. If you are a beginner, and
if you realize that you are not finding trades frequently even on a smaller time frame, then
you might be on the right track. Because if you are not finding trades frequently, then
you are most likely analyzing the market and are filtering bad market conditions. In other
words, you are very close to becoming a profitable trader. If you don't know how to filter bad
markets and take high probability trades, you should watch the "5 steps trading strategy
video" on the Trading Rush Channel. If you follow the steps mentioned in that video,
you can increase the win rate of your trading strategy, and have less number of losses in
a row.
Since we are talking about loss in trading, there is one thing you have to get used to
in trading, which many beginner traders struggle with. You see, when you do a job, you get
paid for the number of hours right? So in a job, you are not used to directly losing
money out of your pocket right? In a normal scenario, you go to work, and get paid. But
in trading, if you put in the work to take a position, there is a good chance of you
losing the money you just had in your hands. Many people who are not used to risking money
in order to make more money, get very uncomfortable after placing the trade. This can lead them
into taking bigger losses and smaller profits. As a beginner trader, you have to understand
that this is completely normal. If you follow proper money management with a good strategy,
your chances of making money in the long run even after losing multiple trades in a row,
are really good. For example, look at these different trading strategies you have seen
tested 100 times on the Trading Rush Channel. Many of these strategies have multiple losing
trades in a row, and still managed to make money in the end. So don't focus on few winners
and losers, focus on the big picture where proper money management and a profitable trading
strategy makes you more money in trading.
That's all. I hope you learned something new. Like the video if you liked it. Subscribe
to the Trading Rush channel and ring that notification bell, to see more trading videos
and because we test many different trading strategies 100 times, so you won't lose money
with them. Thanks for supporting the Trading Rush Channel
on Patreon. Check out the Official Trading Rush App, and Thanks for watching!