TRADE LESS BUT MORE EFFECTIVELY?

Extracted from Alden's writings!

For newcomers, this may sound paradoxical, but in trading, things that go against intuition are sometimes the most effective. Almost all traders have experienced phases of staring at charts for 12 hours a day, opening every time frame, even the 1-minute frame, continuously refueling with coffee, as if entering trades was the only way to survive in the market. When there are no trades, they feel uneasy. There is a feeling that if they do nothing, they are 'wasting opportunities'. But gradually, they realize that the more trades they enter, the thinner their accounts become. From there, doubts arise about the market, doubts about the system, doubts about themselves, doubts about the very path they are on...

1. MORE TRADES DO NOT MEAN MORE PROFITS

The truth is that out of 100 people, 99 of them, when first stepping into the market, trade not because they see opportunities, but because they feel compelled to make a profit; they cannot stand the feeling of waiting. The brain craves dopamine. It is accustomed to action, it is used to the feeling of 'doing something'. But the market is not a place to satisfy your need for action.

Try to take some time to review the most recent trades you have made, or many of you may not even keep a trading journal to evaluate those trades. They trade continuously, but if given the chance to review, they will realize that only 10% of the trades made are truly worth betting on. The rest are emotions, greed, and the depletion of life energy through trading.

2. OPPORTUNITIES ARE NOT ALWAYS AVAILABLE AND NOT EVERY TRADE MUST BE TAKEN

There is a truth in the market that Alden often refers to as the rules of the game in trading, but many people refuse to accept it: 'There isn’t always a trade to take.'

The market is not just about opportunities and profits for you to strike continuously. It is like the profession of a sniper, patiently observing, holding your breath, waiting for the right moment, and pulling the trigger. A good trader knows when to enter a trade. Knows how to wait. Knows when to stand aside. Knows to observe nine times to only act once.

3. TRADING LESS IS A WAY TO PROTECT YOUR MENTALITY AND ACCOUNT

If you pay attention to your emotions, you will notice that with each trade, whether winning or losing, it takes away a part of your energy, part of your mentality, part of your emotions, part of your confidence. Analyzing, tracking, worrying, expecting. If you get an unnecessary loss, it is not just losing money, but also losing confidence for good trades.

"When you trade without discipline, what you lose is money, and what you gain is negative mentality" - Alden Nguyen

If you are trading all day, you are burning your life energy in the largest casino in the world. Trading less not only helps you be more balanced, but it also keeps you sharper in decision-making. When you maintain a clear mind, you can see the market more clearly. You have the courage to stand outside. And sometimes, standing aside while buying and selling forces are still in contention is a victory.

4. A TRAP FOR NEWCOMERS

The illusions of new traders are that the busier they are, the more effective they become. For instance, trading on a small time frame to enter and exit continuously for profits. Theoretically, that is true, but it will only be effective and within the capabilities of those who have enough trading experience, who can control principles, master the system, and importantly, master their own emotions. For newcomers, if you set a goal to trade continuously like that, then 99.99% of the time you will fall into the overtrade vortex leading to a loss of control over your actions and mentality. This has scientific research, Alden will share with you later the reasons why.

The market does not pay based on the number of trades you make, but it only rewards those who act at the right time. There are periods in the market when there are no good trades for a whole week, and your job is to accept the rules of the game and sit still, and with just one correct entry, you can earn a profit, or maybe not; that high-probability case might turn out to be an unusual situation, you accept a small loss and continue waiting, the next opportunity may bring you profit.

But most people do not believe that. They need the feeling of doing something. They enter trades to kill time, to recover, to regain their feelings... and then they push everything further away.

The key is to constantly remind oneself to act according to principles, according to the system, at the right time, without hurry, without panic. Trading shares the same essence as hunting; a wise hunter never raises their gun and fires continuously, they wait for the right prey, the right moment, the right scope, to minimize risk.

And Alden concluded that in trading, knowing 'not to do anything' is a type of skill, knowing 'to wait' is a capacity that needs to be honed, and 'knowing enough' is a form of intelligence!