Trading Psychology Episode 1 - Starting From Scratch

Summary

This video explores trading psychology and self-care, emphasizing the importance of discipline and maintaining a balanced lifestyle. The speaker discusses breaking free from energy drink dependency, focusing on healthy habits, and using rewards to stay motivated. They share insights on how to handle losses in trading, avoid impulsive decisions, and the importance of stepping away from the charts. Ultimately, they stress that taking care of your physical and mental well-being directly impacts success in trading and life.

Takeaways

• 😀 Taking care of your body outside of trading is essential for success in the charts.
• 😀 Energy drinks aren't necessary for staying awake or focused; caffeine can be consumed in other ways if needed.
• 😀 Nicotine can have some benefits when consumed in moderation, but it's important not to overdo it.
• 😀 Losing a trade is inevitable; the key is not to chase trades or overreact to losses.
• 😀 Discipline and following a well-structured trading plan are critical for long-term success.
• 😀 It's okay to take breaks from the charts; if the market doesn't give you a good setup, don’t force a trade.
• 😀 Reward yourself for sticking to your trading plan and lifestyle goals, such as allowing yourself a treat after a productive week.
• 😀 Having a structured routine outside of trading (exercise, healthy eating) contributes to better focus and decision-making.
• 😀 Losses shouldn't derail your trading day; once you take a loss, step away from the charts to reset and refresh.
• 😀 Following personal rules, whether in trading or lifestyle, helps build confidence and discipline that reflect in your trading decisions.

Q & A

Why did the speaker stop drinking energy drinks?

The speaker stopped drinking energy drinks because they realized they didn’t need them to stay awake. They recognized that while they liked the caffeine, it wasn’t essential for them to function daily.

What is the speaker's approach to nicotine use?

The speaker uses nicotine in the form of Zins, which is a smokeless option. They mention that nicotine can have benefits, though they advise against smoking cigarettes. Their approach is focused on convenience and avoiding harmful habits.

How does the speaker handle losses in trading?

The speaker handles losses by not taking another trade the same day. They believe that losses are inevitable, and it's important to step away from the charts and not chase after more trades out of frustration.

What is the importance of self-care outside of trading according to the speaker?

The speaker emphasizes that self-care, such as exercising, eating healthily, and managing mental health, is crucial for success in trading. Taking care of oneself ensures that traders can stay disciplined and follow their trading plans effectively.

How does the speaker reward themselves for sticking to their trading plan?

The speaker rewards themselves with a treat, like ice cream, at the end of the week if they have followed their trading plan and maintained good habits throughout the week. This reward system helps to reinforce positive behavior.

What is the main message the speaker wants to convey about trading psychology?

The main message is that successful trading requires more than just technical knowledge—it also requires discipline, self-care, and controlling one’s impulses. Traders should focus on building habits that support their mental and physical well-being, which will improve their ability to follow their trading strategies.

Why does the speaker believe losses are not a reason to keep trading?

The speaker believes that losses should not drive traders to continue trading to make up for the loss. They highlight that chasing trades for dopamine or out of frustration often leads to further mistakes. It’s better to step away and only trade when a valid setup arises.

What does the speaker mean by 'the problem is you' in the context of trading?

When the speaker says 'the problem is you,' they are referring to the fact that a trader’s inability to stick to a plan or manage emotions during trading often causes issues. It's not the market or external factors, but personal discipline that is the key to success.

What role does creating goals play in the speaker's strategy?

Creating goals is central to the speaker's strategy. They suggest setting clear, achievable goals and rewarding yourself for meeting them, like controlling unhealthy habits or following a trading plan. This structure helps build discipline and focus, which supports long-term success.

How does the speaker suggest managing urges like eating unhealthy foods?

The speaker suggests creating a goal-based system, such as avoiding unhealthy foods throughout the week with the promise of a reward (like chips) if the goals are met. This helps build self-discipline and rewards good behavior, reinforcing positive habits.