When i started research on market, i found many variation of same strategy. Everyday i used to find a new variation of a same trading method.
Soon i started confusing myself, What i was lacking? My mind started being confused. I used to forget things easily so i started recording videos of every discovery i made on trading research. Still i was full in confusion. The only reason of this was not documenting things properly
My friend was making good money but he was using martingale method which was not suitable to my trading style.
Then I started documenting everything in a proper way and found out that trading strategies are designed to work with different type of capital. When i had $100 in my trading account, i saw i was not being motivated even when $20 was made using $100 account, This was because the amount, however the return is high (20%), i still was not happy because i wanted to double my account using leverage and what i discovered,
but when i traded it with $1000 account, a $50 return which was 5% of cap, satisfied me and few trades of $50 profit in a day were also covering up my monthly expanses
i was not able to categorize them according to m=money management. So to solve all problems, I decided to discard all strategies which was not leverage friendly as my ultimate goal was to make money from scalping using leverage only.
Trading strategies which were backtested on higher timeframe like 15minutes or 1 hour were performing with very high accuracy however trading them was not possible with leverage, and i was too lazy to track hourly chart. I wanted things which give fast money even if it is $10 in one trade, this was my only goal so i decided not to step back.
The amount of confusion, no income and continue research on trading started giving me small amount of depression and i really wanted to go to holiday. I have left my high paying job for research in trading. However i still did not give up.
After few months, I knew that trading is a mindset game and if you want to trade for money, market will kick you out. Greed and fear both are needed to be eliminated from a trader’s mind, Why is that? Because market create fear when you place your orders at correct place, some shit on their pants and exit early and lose big reward. However if you want to eliminate fear, it is possible when your mind is calm, you don’t want money, You don’t think that your time is being wasted in trade, You wait for your entry with confidence and desperately.
Its not just with me, My friend’s mindset once also got disturbed and he was unable to make money because of that. So when your mindset gets disturbed, it is possible that for days, or even for months you started feeling fear in trading or make more human errors which makes your account lose.
I am going to discuss why this mindset problem occurs
1. Family issue
2. Greed, will to make money fast
3. Wanted to make money for emergency so placing bets with wrong position sizing, avoiding risk management and placing order with gambling mindset for money
4. Keep changing strategies because last one did not work well in last trade
5. Making human errors and blaming your own strategy to be less accurate
Always remember, Market is emotionless and kicks everyone out who don’t have guts to hold or are in fear of the amount they are risking
Market only reward those who are full confident, who applies valid risk and money management
Changing strategy is the most dangerous plan i have come across recently. If you are trading a strategy with 3 months minimum and are successful, It means you have achieved a Phd Degree in that. If you lose in one trade with same strategy or if you are bored from it and wanted to have something better, and if you found something better, and you started trading a new strategy then you are a Class 1st student at that time. I guarantee that you will lose money when you change a strategy and sometime even when you change a broker. The main cause of losing will be either change in mindset or increase of human errors.