The 90-90-90 Rule
In the trading world, there is a famous saying: 90% of retail traders lose 90% of their capital within the first 90 days. Why? It isn't because they lack a good strategy; it is because they cannot control their emotions.
Fear and Greed: The Two Killers
When the market moves against you, Fear takes over. You might exit a good trade too early or hold a losing trade hoping it will come back. When the market moves in your favor, Greed kicks in, making you take too much risk or "Over-Leverage" your position.
How to Build a Professional Mindset
- Accept Risk: Before clicking "Buy," you must be okay with the amount you might lose. If you are nervous, your position size is too big.
- Stick to the Plan: A professional trader is a "Boring" trader. They follow their rules regardless of how they feel.
- Log Your Trades: Keeping a trading journal helps you identify your emotional triggers. Are you revenge trading after a loss? Your journal will tell you.
The Concept of Probabilities
You must realize that any single trade is random. However, a series of 100 trades with a "Positive Expectancy" system will lead to profit. Stop obsessing over one loss and focus on the next 20 trades.