“6 Psychological Rules for Beginners in Trading”

Have you ever wondered why some traders show consistent profit
results and gain generational wealth while others buy a brand new car and
next month sell it to pay bills and cover food expenses?

There are two reasons that might cause such a scenario.

They are strategy and consistency in trading.

So basically these two reasons come down to one simple truth. You
won’t be successful in trading if you let your emotions control your
decisions. That’s why today we’re going to share some advice from our team
experience on how not to lose everything you’ve earned in one trade

There is one sad story that could rival tear-causing melodramas in

terms of its level of sadness. The equivalent of Hatico in the trading world I
would say. Last year our team was mentoring one guy, say it was John, who
was a beginner but pure talent at the same time.
So coming back to the story:

“Our guy learned all the needed basics with us on the demo account and
started trading with real money. And then boom, the first month and John
starts making ‘to the sky’ profits. Everything goes very smoothly, he follows
our strategies and asks us if he is not sure about trade, and we advise him,
just the perfect case. But then, one day, we don’t see messages from John.
He just disappeared for one day but it was enough for him to lose almost
everything he earned before. Turned out that after a couple of successful
trades, John thought that he was Warren Buffet already and didn't need our
advice anymore. He returned to us saying that he lost control and after
making 5k profit that day, he forgot about discipline and strategy, hoping to
earn as much as possible. Of course, he started losing his profit, and
afterward, obviously, he turned to a gambling guy who just wants to get
even.”

The story ended well, other traders from our community helped John
to get funding so he could continue trading.
 So after showing a real example of how your psychology is important
during trading sessions, I think we are ready to begin. Our list is not so long,
but short is not bad if you know how to use it, yeah?

● First of all, AVOID OVERCONFIDENCE.

From our experience, we can say that this rule
applies more to beginners but you never know. A lot of
experienced traders also often fight this demon who is
sitting on the left shoulder saying, ‘You already made a
couple of thousands today, you are the king of the trading
world, earn some more!’
And the voice of this demon is so tempting but
even if you are king of the trading world or king of Great
Britain, don’t listen to that thing, remember the example
of our John, alright? Especially trading has nothing to do
with luck.

People who believed in that stuff either worked in

KFC because they ran out of deposits or sold those crypto
courses because they didn’t know other ways to make
money on trading. I guess you know how the probability of
a coin flip works.

Imagine that you made a bet with your friend that

you’ll toss a coin six times and each time it’ll be heads.
You are tossing a coin and five times in a row you are
getting the desired result... So you might think ‘Wow, I
managed to get what I needed five times. For sure the
luck will be on my side the next flip’.

And on the sixth time when you toss it, you are
waiting for a head like it’s Mia Khalifa instead of a coin.
At first sight, it might sound logical because it’s been tails
five times already, but in reality, the new result of tossing
a coin doesn’t depend on the previous one, it’s 50/50
each time.
If you follow the right strategies and have good
skills in analyzing the market, your chance of getting a
profit will be higher than 50%, but still, it doesn’t mean
 that having a couple of successful trades earlier somehow
affects the probability for you to gain profit on the next
trade.

● The second rule is DON’T ENVY.

Yes, you heard it right. No, I haven’t gone mad and
it has a direct influence on your trading performance. All
these pics and videos of mega super successful people on
Instagram and TikTok, young millionaires and not-so-young
billionaires. This list is long but.. Screw it all. How do you
think you are going to focus on your trades and strategies
if you have the permanent thought ‘Everyone is better
than me’?

If you are dedicated enough, you’ll get what you

want, it has the same level of truth as the phrases ‘the
grass is green’, ‘the sky is blue’, and ‘Toyota Prius is the
worst thing ever made by humanity’.. Sorry, that was
quite personal.

● The Third rule I wanna tell is more technical rather than

psychological. Write down 3 rules.

It’s not that hard but it might save you thousands of

your benjamins. The idea is the following - you’ll come up
with rules for yourself when you enter a trade.

Of course, I’m not a government media but I would

advise you to trust me here. After you write down your
rules, you will know that when entering a trade, you
follow your strategy, not your emotions.

● The following rule is WORK TO LIVE. NOT THE OTHER WAY.

 This rule might sound very simple but have you ever
thought about how really important it is? Even if you are
Elon Musk, you are still human so you have to have time
to relax and chill.

It doesn’t mean you have to act like a jew on

Saturday - don’t do any work and wait for the money to
come to you... Sometimes you have to work hard.
However, you should remember that taking a rest is
normal if you feel tired. You don’t need to strive to earn
all the money in this world. Yeah, it might sound
disappointing but it’s impossible. Going on vacation and
skipping a couple of trading sessions is okay. Yes, you
might skip some good states of the market therefore
you’ll have a bit less profit. But who cares? If you are
consistent and follow good strategies, you’ll earn
everything you need anyway.

● This rule is the continuation of what we just discussed. DO NOT

CARRY THE MARKET EVERYWHERE

Seriously, when you go out to chill, just leave this

precious market at home. It’s not your dog who will tear
up the slippers and leave unexpected stinky surprises all
over your place if you lock them at home. Instead, It’s
always much better to give your 100% focus during trading
sessions.

● Rule number six is DO NOT OVERTRADE.

What does it mean?

Well, imagine a guy who is trying to be super

productive during his trading sessions.
He spends some time analyzing the USD to CAD pair
but then he remembers that the British pound shows good
performance, at the same time he tries to understand the
 pattern of the Swiss franc movement and guess what
happens next?

Of course, some traders make a profit with such an

approach but we wouldn’t recommend you do that. Too
many charts, and too many indices flying around. For
what? Focus on one, maximum of two pairs. The forex is
for sure the case when you have to value quality over
quantity.

We’ve talked about the overall emotions, but there is one emotion
that we want to focus on separately.
It’s the same emotion that you experience when your bro puts his
girlfriend in the front seat of the car and not you. Yeah, you got it right.

Anger.

Anger at the market that you lose to be more precise. You feel unfair
that you lost money, you think you were very close and you start to enter
the ‘I want to take a revenge’ mindset. Once that happens, you just have to
pray you won’t lose all your deposit. In essence, it’s the worst thing that
could happen to you during trading sessions. You have to keep yourself away
from that gambling mentality as far as you can

See you next time.

Take care