10,000 hours worth of trading psychology in 13:52 minutes

Most traders lose money in the markets before they have even entered into a buy position or a sell position. Now, this is not because of their trading strategy. This is because they are going into the markets with the wrong state of mind. Now, what if I was to tell you becoming a profitable trader is not all about your strategy? It is mostly about your psychology and the way that you look at the markets. And in this video, I'm going to be showing you why psychology is so important, why you are making rash decisions, and why traders make rash decisions when trading. And most importantly, I'm going to be showing you how to control your emotions when trading so you can actually benefit from the markets and take consistent profits out of the markets. Now firstly, your emotion state decides your behavior. Then your behavior decides your decisions, and your decisions decide your results. Remember, when you are trading, there is a reason why you are doing what you are doing. What you need to be able to do is understand why are you making that decision, and then understand how you are going to change that so you are consistently making the right decision. Because I promise you, you can. As hard as you think as your emotions and the psychology of trading is, there is a simple fix, and that is exactly I'm going to be telling you about in this video. So let's jump straight into it. The invisible problem— this is what you cannot see physically. This is what is affecting your trading emotionally and what you need to fix. Before you even touch the charts, your emotional state is already deciding the quality of your trades. Now what I mean by that is, let's say that you go into the market, you are feeling stressed, Stress is going to cause tunnel vision. Tunnel vision stress is going to cause you chasing clarity in the markets. Let's say you are feeling excited when you are going to trade. If you're feeling excited, what this is going to cause is you are going to over-risk. You're simply going to risk too much money. You might enter into trades that you should not be entering into. Boredom. Boredom is going to be forcing trades. You are getting bored trading, so what do you do? You create setups that are not actually in the market. Then you have fear. Fear causes hesitation. You hesitate. This could be hesitating to get into a trade. This could be you're hesitating to get out of a trade or hesitating to take partials. Your psychology has a lot more to do with trading than you think, and all of these reasons right here are linked to it. Your frustration equals revenge trading. If you're angry going into the markets, You're going to revenge trade and take trades that you regret. Now, it has nothing to do with the markets. It has everything to do with your emotional state going into the markets, and this is what we are going to fix. Now, you have your emotional brain. You have your amygdala. What this does is it reacts instantly. Your emotional brain is designed to protect you from danger. Your emotional brain does not know the difference between a lion and a red candle. It sees threats everywhere, pushes you to take action now. So I'm sure you have been in the situation when you are trading, you have entered into the trade, and then you instantly regret it. You instantly think, why have I just entered into a trade that I know I should not have entered into? Now, the emotional brain wants the feeling of control. You want to be in control when you are trading, and the way that your brain thinks that you should be in control is is by entering into the market. Because when you enter and you take action, your brain and your body automatically thinks that you are in control of the situation. But as you may have found out, or as you know now, you can never be in control of the markets. You don't know what the market is going to do if you rush into things. You need to be patient and relaxed and wait for the trade to come to you. Your emotional brain is extremely good for survival, but it is terrible for trading. And this is what it causes. It causes FOMO, fear of missing out, fear, frustration, revenge, and overconfidence. Everything is linked to your emotional brain. The emotional brain fires before the logical brain can even think. Now, that's why you sometimes take a trade and instantly think, why did I do that? It wasn't you, it was your emotional brain acting up before you can even think about it. Now, this is where we come to the logical brain. The logical brain is the part that knows your rules. It's your strategy and your plan, but it is slower and it can get overwhelmed easily. So your logical brain makes calculated decisions. When you are looking at the chart and you need to figure out your risk management, This is all your logical brain. It handles discipline. Make sure that you stay disciplined, you don't overtrade in the market, because discipline is extremely important. It processes the prob— it processes the probabilities. When you see a trade setup, it weighs up the decisions. Is this a good trade? Yes or no, and why? Is this a bad trade? Yes or no, and why? This is extremely important. It keeps you patient and controlled, one of the most important things when it comes to becoming a profitable trader. Now, your logical brain controls absolutely everything of the decisions that you make— your risk management, your patience, you're following your rules, your ego, your detachment to the markets. All of the qualities of a professional trader come from the logical brain. Now, I know it's not as easy as it may seem. You can't just pick and choose what your brain wants to do. At least you think you can't. When it comes to using your logical brain, you— it's not enough. You can't just use your logical brain. You need to have a mix of both. And this is why knowing your strategy also isn't enough. You cannot be a disciplined trader with a hijacked brain. The problem isn't that traders don't know what to do. The problem is that you can't access that part of your brain that you know what you want to do, but you actually can do it. You need to be able to do it when you're trading. Everybody knows what you have to do to become a profitable trader. You know what it takes to become a profitable trader. You hear it all the time on social media, but why can't you do it? Once the emotional brain starts to take over, you're not thinking anymore. You're just reacting to your emotions, and that is never good. Now you might be wondering, why can I not just remove the emotional part out of trading? Now guess what? Newsflash: you cannot just remove the emotional part of your brain. But what we can do is control it, control the emotions. The profitable traders in the market are not traders who don't feel emotion. They are simply traders who can control their emotion. But you can't stop it from controlling your trading. You can't let your mind take over your trading in a bad way. You need to stay composed. So how do we fix it? How do you fix your psychology? I've explained what everything is, but how are you actually going to make change? And how are you going to become a profitable trader? Now, this is what I want you to ask yourself every single day. And as well as this, you need to make sure that you are journaling these things I'm about to mention So in the future, you can look back at your journal and see what works and see what doesn't work for you. Because of course, not every single person watching this video is going to be the exact same. If your mind isn't neutral, then your decisions won't be either. Okay, so ask yourself, are you neutral? Are you excited? Are you not excited? Are you stressed or are you feeling not stressed? Are you bored or are you fine trading. You need to be neutral because remember, all of these things that I've just listed here all come back to this right here. If you're stressed, you're going to be tunnel visioned. Excited, you're over-risking. So you need to try and be as neutral as you possibly can. Now, this is even more things that you need to ask yourself, and this is the most important part about controlling your psychology. If your goal is to make money today, you are already in an emotional compromise. You're already compromised. If you are going into the markets and the first thing that you are asking yourself is, am I trading to make money, or are you trying to execute well? If you're going into the market thinking, okay, I need to make $500 today trading, you're already putting yourself at a disadvantage. When I'm going into the market every single day, the last thing that I'm doing is thinking about the amount of money that I need to make or want to make. The only thing that I'm thinking about is, okay, if I get my setup in the market, I'm going to take my setup. I don't care about the result, I just care about entering into the correct trade. You should be happy, and you need to be happy if you want to become a profitable trader, with one, taking losses and 2, taking wins. I know that sounds strange, but you can't let wins affect your mental state. Now what I mean by that is many traders will take a win. Let's say you are targeting a 1:2 risk-to-reward ratio. That 1:2 risk-to-reward ratio hits, you see the money in your account, you get excited because that money is now in your balance. You're up $500, let's say. You see green on the screen. What does your brain instantly want to do? You want to make more money, you want to get more profitable, but that is not how trading works. You need to control your emotions, sit back. You need to ask yourself, am I trying to make wins back? Am I trying to win back something? Are you trying to make wins back? If you take a loss, what you should never ever do— you've definitely heard it before— is revenge trade. Revenge trading only leads to being unprofitable. And guess what? People get lucky. If you've lost money in the market, I know you are watching this, I know you have done this. You've lost money in the market, you've entered into a random position, and you've made that money back. If anything, you've made even more money back. The moment you are trying to win back your losses is the moment you are no longer following your strategy. You're not trading with your strategy, you're trading with your emotions. This might work, and this will work one or two times, but if you want to make trading a reality in your life, then you cannot do this on a consistent basis. That is extremely important to note. And then the next question you need to ask yourself: are you okay with taking zero trades? Now, the best traders in the world are not trading every single day. If you want to become a profitable trader, You cannot take a trade every single day. It is that simple. You need to be okay with going into the markets, sitting at your desk, looking at the charts, and not entering into the trade. I don't care if you've traded for 1 hour and not took a trade. Many traders will trade for a 1 hour 30 session, a 1 hour 30 minute session. They won't take a trade in the first hour, then that last 30 minutes they see a low quality play and they enter into that low quality play. This is not good. If you can't walk away with zero trades, you're not in control. The market is controlling you. You need to be relaxed. You need to make sure you're— you may need to treat trading like a business, okay? That is extremely important. Just be patient. Don't randomly enter into the markets. When you look at this checklist I've just made, when you pass this checklist, you're trading from your logical brain. When you fail it, you're trading from your emotions, and that is where traders lose, okay? Okay, traders lose when you trade with your emotions. Ask yourself this simple checklist: are you neutral, not excited, not stressed, not bored, anything that might be affecting you? Are you trading to make money or to execute? Are you trading to win something back, or are you okay with taking zero trades? It's not a lot of things to think about, but if you think about these few things every single day going into the markets, you make sure your brain and your psychology is on a fresh slate every single day, I promise you 100% you will become a better trader. Then you just stay consistent and make sure you do it every single day until you get to where you want to be. I hope you found this video useful. I really enjoyed making this type of video. I know it's a bit more— a bit of a different video I've made on my channel. If you did enjoy this video, please leave a like and comment below. And if you want to become a consistent, profitable trader and want me to mentor you, then the link is in my bio to do that. If you click the first link in the description, you can apply to get one-on-one mentored by me. I would love to teach you, especially if you have made it this far in the video, because I know that you are an extremely serious trader. Thank you for watching, and I will see you very, very soon.