People don't trade for money, they trade for other reasons without realising.
Many new traders, start with a point to prove. Although in the crypto space it seems to be "how to turn $100 into a Lambo" The issue is you know the majority of the comments will be from people that are way overleveraged on money they don't have.
Then you have individuals who are successful in another field, and they come to trade, thinking it's easy and they can win here as well.
The market has a way of humbling people quickly.
Gamification is more to do with people who "need to be in the market" - more trades equals more wins and more profits.
The issue is, well at least for most. Is that they dive in without really learning how to manage risk, actually no clue how to manage money properly not just the risk.
I wrote this post back in 2021 -
Click it to open.
The psychology part of trading is the biggest thing most people seem to fail to understand.
It isn't just about risk management, it's about how you manage your emotions, the ability to not jump into revenge trades and beyond all of that it's about reading the markets with an appreciation of what the gamers are looking for.
Have you ever lined up a trade, you have your TP and SL mapped out, you have a clear plan - you assume your trading with an edge and you see an expected move like this?
Yet, as soon as you enter you get a run.
You see, when you are too focused on the game, you fail to read the story. Instead, you play each level as it's own map.
I covered a topic of relevance here;
This is about how you can structure the ranges, mechanically and take away the emotions and the guesswork.
When you fail to spot the signs, it's like missing a power up in a game.
The market often leaves behind footprints; these footprints help build a bias and in turn, give you more confirmation for each setup.
In this post, I explained that many new traders go seeking a silver bullet; they look for more data, indicators, screens, and instruments to trade.
I can't stress enough - less is more!!!!
Trading isn't about hoping you can turn your last $500 dollars into a retirement fund. It's about winning big and losing small. Then you refine and adjust so the win rate increases and doing it all again next week, next month, next year.
Now look at that image above and see the obvious when you zoom out.
As clear as day you can see an impulsive move, followed by a corrective move.
Instead of playing the game, try learning the map first.
This will help 100% with your win rate, that will ease your emotional anxiety and put you on the right path.
There are tools available today such as prop firms where you can reduce/limit your exposure, learn to trade as if it's a skill and not a game, and you will surprise yourself!
Stay safe! Have a great week!
Disclaimer
This idea does not constitute as financial advice. It is for educational purposes only, our principal trader has over 25 years' experience in stocks, ETF's, and Forex. Hence each trade setup might have different hold times, entry or exit conditions, and will vary from the post/idea shared here. You can use the information from this post to make your own trading plan for the instrument discussed. Trading carries a risk; a high percentage of retail traders lose money. Please keep this in mind when entering any trade. Stay safe.
Many new traders, start with a point to prove. Although in the crypto space it seems to be "how to turn $100 into a Lambo" The issue is you know the majority of the comments will be from people that are way overleveraged on money they don't have.
Then you have individuals who are successful in another field, and they come to trade, thinking it's easy and they can win here as well.
The market has a way of humbling people quickly.
Gamification is more to do with people who "need to be in the market" - more trades equals more wins and more profits.
The issue is, well at least for most. Is that they dive in without really learning how to manage risk, actually no clue how to manage money properly not just the risk.
I wrote this post back in 2021 -
The psychology part of trading is the biggest thing most people seem to fail to understand.
It isn't just about risk management, it's about how you manage your emotions, the ability to not jump into revenge trades and beyond all of that it's about reading the markets with an appreciation of what the gamers are looking for.
Have you ever lined up a trade, you have your TP and SL mapped out, you have a clear plan - you assume your trading with an edge and you see an expected move like this?
Yet, as soon as you enter you get a run.
You see, when you are too focused on the game, you fail to read the story. Instead, you play each level as it's own map.
I covered a topic of relevance here;
This is about how you can structure the ranges, mechanically and take away the emotions and the guesswork.
When you fail to spot the signs, it's like missing a power up in a game.
The market often leaves behind footprints; these footprints help build a bias and in turn, give you more confirmation for each setup.
In this post, I explained that many new traders go seeking a silver bullet; they look for more data, indicators, screens, and instruments to trade.
I can't stress enough - less is more!!!!
Trading isn't about hoping you can turn your last $500 dollars into a retirement fund. It's about winning big and losing small. Then you refine and adjust so the win rate increases and doing it all again next week, next month, next year.
Now look at that image above and see the obvious when you zoom out.
As clear as day you can see an impulsive move, followed by a corrective move.
Instead of playing the game, try learning the map first.
This will help 100% with your win rate, that will ease your emotional anxiety and put you on the right path.
There are tools available today such as prop firms where you can reduce/limit your exposure, learn to trade as if it's a skill and not a game, and you will surprise yourself!
Stay safe! Have a great week!
Disclaimer
This idea does not constitute as financial advice. It is for educational purposes only, our principal trader has over 25 years' experience in stocks, ETF's, and Forex. Hence each trade setup might have different hold times, entry or exit conditions, and will vary from the post/idea shared here. You can use the information from this post to make your own trading plan for the instrument discussed. Trading carries a risk; a high percentage of retail traders lose money. Please keep this in mind when entering any trade. Stay safe.
Pubblicazioni correlate
Declinazione di responsabilità
Le informazioni e le pubblicazioni non sono intese come, e non costituiscono, consulenza o raccomandazioni finanziarie, di investimento, di trading o di altro tipo fornite o approvate da TradingView. Per ulteriori informazioni, consultare i Termini di utilizzo.
Pubblicazioni correlate
Declinazione di responsabilità
Le informazioni e le pubblicazioni non sono intese come, e non costituiscono, consulenza o raccomandazioni finanziarie, di investimento, di trading o di altro tipo fornite o approvate da TradingView. Per ulteriori informazioni, consultare i Termini di utilizzo.