so you're probably watching this video
because you lost a lot of money
day trading the forex markets crypto
whatever
so i'm here to help you with your
trading
psychology the mindset that you have to
have
to be a day trader and to be a
successful day trader
is very systematic so in this video i'm
going to give you
five rules that you must follow in order
to be a good trader to
improve your trader psychology and to
relax
when day trading
[Music]
welcome back to the channel everybody my
name is artie and this
is the moving average a show where we
discuss everything day trading to keep
you profitable on a consistent basis
okay so people do not type in trader
psychology into the search bar
unless they've lost a substantial amount
of money so first let me say i'm sorry
that you lost money
but second let me tell you that i have
done the same
and i'm here to help you with your
trading psychology here's what you're
probably doing
you are getting into the markets you're
watching price action
and you're seeing movement and you get
in on a trade with no other analysis
besides the fact that the price is
trending up like crazy we just had this
huge spike i'm going to get
in i'm going to get out as quick as
possible you know just scalp a little
bit make some money
walk away you get into profit you don't
take it because you think it's going to
go even higher
then it goes reverse and you're like no
no no it's going to go back to where it
was and then i'll make more money
and then it keeps going down and down
and down and down and you're like no no
eventually it'll go back up to where i
entered and i'll get out
at break even this snowball effect
completely
[ __ ] you you got in on a trade with
emotion and you didn't get
out even when you were in profit and
your loss
threshold does not exist so you blew
your account eventually
if this is you welcome to the club you
are a part of the 95 percent of traders
that lose money
but that's okay because i have a
solution for you guys so
jumping onto the charts i want to show
you one example of how this happens
day in and day out now i can't express
to you enough how perfect this is ready
we see this big sloping green up
everything's going we get this massive
bullish engulfing we've broken previous
levels of whatever
you get in on a trade the next candle
starts going red
but because you don't have a good
strategy and your stop losses are too
tight
these two next red candles stopped you
out then it starts consolidating and
then you get another bullish candle and
you're like
oh my god i'm going to get in on this
it's going up so you buy again
stop losses are way too tight next three
candles stop you
out this next candle goes up and you're
like oh my god see i knew it was going
up the whole time i'm gonna get in on
this and i'm gonna hold it
stop loss is too tight you get stopped
out it happens again
and again and again and again to the
point where you're like okay last one
i'm holding it forever and all it does
is go down
this is the typical waiting for the
gambler mentality of trading like people
capitalize on this
day in and day out this is why you have
to have a rules-based
trading strategy what do i mean by
rules-based trading strategy
when you are starting out day trading
you have a strategy right and then you
back test it
and then you demo it forward testing it
this strategy is the only thing that you
should use
so say for example your strategy is a
moving average strategy
and you only go for short positions when
it's below the 21 sma
and long positions when it's above what
you also need to have
is multiple confluences so we are
below the 21 sma we're showing bearish
momentum that's
two and then let's say you're using doji
candles as part of your strategy
then you get a doji bearish engulfing
and you're like cool i'm in on a trade
that is three confluences that you use
to enter your trade
that's what having a rules-based trading
strategy
is you have to have these three things
minimum to hit
in order for you to enter a trade you do
not get in on a trade because the price
is going
that's wrong never place a trade
literally
just get a piece of paper write down
your rules
you do not enter a trade until these
three things or four things or five
things
are met when you're looking at the
charts and you're seeing something
don't click the buy or sell button check
your list
make sure you've hit every single one of
those
then you'll know it's not emotional it's
strategic
then you get in on a trade so rule
number one
is rules-based trading you have to trade
on rules science bro rule number two
do not trade on motion like i mentioned
before
when you get emotional that's the
gambling mentality
that's market manipulation at its finest
basically teasing you with something you
fall for it
and you're stuck in a trap it happens
time and time again and it's why 95
percent of traders lose
so rule number two do not trade on
emotion now rule number three
is an extremely long topic i've made a
separate video on that
it is risk management right here proper
risk management
when day trading is the most crucial
thing ever
because if your rules-based trading
strategy is set to where
you're risking one to four
meaning that if you're risking one to
two percent per trade
and your reward for that is anywhere
from four to eight percent
that means if you win one trade you can
afford
to lose the next four and still be break
even proper risk management
is paramount when day trading and it
helps your psychology
because it's no longer emotional trading
it is
systematic it is rules there are
techniques that you must
follow in order for you to do a trade
think of your day trading
as now being a program your trading
brain
now will not execute a trade unless
these parameters are met
programming is the same thing they're
all if and then statements
so rule number three is proper risk
management
never ever click that buy or sell button
without having a specified take profit
and a specified stop loss in place
rule number four is do not over trade
the tendency for most people especially
if they're like me and they can sit in
front of a computer and watch the charts
all day is to get in on
this pair this indices this crypto and
it's like
57 trades running at the same time and
it's breaking apart your focus
you're looking at too many different
things at the same time and that's where
mistakes come into play
i've done it several times where i'm
looking at usd cad
doing my analysis on that then i pull up
my phone on metatrader4
i type in you know whatever and i place
a trade and i realize that i'm
i just placed a trade on gbp jpy when
i'm doing all my analysis on usd cad
do not over trade do not look at too
many
indices too many 4x pairs focus
on two or three too many pairs too many
indicators
too many lines on your charts simplify
it
it's not complicated so rule number four
keep it simple and the most important
rule of all
rule number five do not revenge
trade what's revenge trading say you
just lost two thousand dollars on a
trade
and you're like boiling inside just
furious and so you're looking for the
next move and like trying to get your
money back because
it's my money and the market just stole
it from me and you start getting angry
and you're completely throwing away your
rules-based system
you are over trading like a crazy person
trying to get that money back as quickly
as possible
and what happens when you trade with
emotions you lose
time and time again because the markets
are looking for people like you
getting emotional falling for trap after
trap after trap
and instead of just losing a couple
thousand dollars on a trade
you end up losing 10 15 or 20 000
dollars throughout the day
because you're angry and you're revenge
trading so rule number five
is do not revenge trade if you are in a
bad
mood if you've had an argument with your
spouse
stuck in traffic super anxious
do not trade if you are angry turn off
your phone
turn off your laptop get away from the
charts
do not trade it is the worst thing you
could possibly do
ever doing these things practicing on a
demo account
really having a strategy that is
rules-based it completely alleviates
all of the emotion from trading i used
to be such an emotional trader where i
would get in a trade and i'd start
sweating and like
oh my god is this gonna go now when i
place a trade
i look and i have my system and i get in
a trade
i set my take profit and stop loss and
then i walk away i'll go have a coffee
read a book like i have no emotion
behind it because
my strategy has proven to be successful
over time
so i just do the trade and i like i'm
calm all the time i don't worry i don't
stress about my trades
and it's really really really refreshing
compared to how i used to trade
covered in sweat so just relax man keep
it simple
have rules watch all of my videos if you
want to learn specific strategies
on how to day trade i mean some people
like to scalp some people like to hold
positions for a few days
my videos have a plethora of all of that
information so go through my videos
set up a demo account start trading
casually it's no risk with a demo
account so
that'll calm you down immediately then
after a month
of you know constantly trading day in
and day out
you'll see yeah my system works now i
can pay in real money
maintain my system and just slowly get
profit over time building and building
and building and building your forex
account or your trading account or your
crypto account
whatever you're looking for so if you
guys have stayed here this long
that means that you like the video so
make sure you leave a like
on the video and if you have not already
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like this
and we will see you in the next one