☀ How to Think Like a Trader!

Trading is a game of number recognition, where you either succeed or fail, but at some point, you will inevitably face failure. Trading is difficult because you do not need to know your state while trading, even if your analysis ultimately proves to be 'completely' correct. In the absence of needing to know, it is essential to manage your expectations reasonably, and managing expectations requires a thorough understanding of your mental environment.

Not needing to know refers to identifying which states (like market fluctuations, news reports) are unnecessary during trading, thus avoiding being disturbed by them; by understanding your mental environment (such as stress levels, decision-making habits), you can better manage your emotions and avoid impulsive trading. The ultimate goal is to achieve a state of 'trading automation'—where decisions are based on rational rules rather than being influenced by external disturbances or internal emotions.

The first stage is the mechanical stage. In this stage:

1. Establish the necessary confidence in an infinite environment.

2. Learn to execute a trading system without flaws.

3. Train your mind to think in probabilities (5 basic facts).

4. Create a strong, unwavering belief to become a consistently successful trader.