Your Biggest Enemy in Trading

Dear Traders,

I have been receiving many emails and messages from traders who are worried about the stock market and the impact of war.

Trump tweeted this morning, saying he’s in talk with Iran and postponing the critical decision about the Straits of Hormuz. So the markets spiked premarket, but then some news came out saying Iran never negotiated with the US. The markets turned weaker again and closed red today.

Most new traders think the market is trying to trick them. They think Trump is controlling the market, or hedge funds trying to liquidate the retail traders. But the truth is, the biggest enemy is yourself, not the market makers.

Because you allowed your emotions to affect your trading after reading the news. That’s dangerous in day trading. 

When you let emotions or news sentiment affect your decision making, you are going to make the worst trading mistakes, such as chasing and entering trades without following your plan. Then the irrational trading decision leads to more revenge trades as you try to make your losses back.

You quickly forget about your risk management rules, ignoring your max loss per day just to make the profits back.

Just like that, all your profits and the progress you made in becoming disciplined are all gone.

Does this experience sound familiar to you?

Then you need to understand this: You are your worst enemy in trading.

If you really want to make trading work, it’s not impossible. In fact, it’s not difficult.

The first step to get rid of your bad habits is to forget about being smart. You need to start focusing on a simple system, one simple strategy is all you need.

Because in trading, a good system is a system you can follow for a very long time.

If a system is too complicated, or too psychologically stressful, you won’t maintain it. And trading isn’t a game of a few days. It’s a game of many years.

That’s why truly mature traders usually simplify everything. Instead of making everything more complicated, focus on three essential things:

1. Read the price action.

Price action is always right. Good traders react to price action, not the news or emotional bias.

2. Risk management.
Every big loss starts from a small loss that you fail to cut.

3. One simple tradebook. 
Learn a repeatable strategy that our traders use every day. You don’t have to re-invent the wheel. Just learn what is already working and master it.

When you really focus on these 3 areas, you will see progress and stability sooner than you think

If you’re ready to stop bouncing around and start building a real process, join our community of serious traders and find your accountability partners here.

See you in our chatroom,

Andrew