š "Trading Without Rules: The Fastest Road to Self-Sabotage"
If you're a NEW trader or STRUGGLING trader, PAY ATTENTIONāļøāļøāļø
One of the most damaging things to a traderās psychology is breaking your own rules.
Beyond the financial loss, whatās truly harmful is how it erodes your self-discipline and the ability to trust yourself. Each broken rule weakens your mental edge and chips away at your confidence.
Take, for example, a simple trading rule: always define your stop-loss and take-profit before entering a trade. If you ignore this and jump in without clear targets, you're essentially a traveller without a destinationāor worse, without a map. Youāre at the mercy of every twist and turn the market throws at you.
As the saying goes, "If you don't know where you're going, any road will take you there." And in trading, thatās a dangerous path.
To conclude, The market is unforgiving to those without a plan, but even more so to those who have one and choose not to follow it.
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š "Itās shocking how many traders pray for a pullback to get a better entry⦠but when the market finally gives it to them, fear keeps them frozen."
The pullback they wanted becomes the entry they ignore.
Trading is not just about strategy ā itās about mastering your emotions when the market finally delivers what you asked for.
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š¢š“āProfits Arenāt Real Until You Take Themā ā A Hard Lesson for Traders.
To all NEW traders as well as STRUGGLING traders: PAY ATTENTION āļø
A lot of new and struggling traders know the pain all too wellāwatching a once-profitable trade bleed into losses. Just a few days ago, Bitcoin hit a new all-time high of $123K, and nearly every altcoin followed with juicy pumps. But guess what? Many traders still walked away empty-handed because they didnāt take profit.
When I first started trading, the euphoria of screenshotting unrealized profits felt more rewarding than actually securing the gains. Iād watch those green numbers with pride⦠only to see them vanish hours later.
That pattern cost me.
Sometimes, Iād close trades too early out of fearāsettling for crumbs. Other times, Iād hold on too long, chasing ājust a bit more,ā only to be dumped on by the market.
So I made a simple decision: Take profit when the market gives me a 1:1 or 1:2 reward-to-risk ratio.
Now, if Iām at the chart and the market offers me profits equal to or greater than my risk, and I see a bearish close at resistance zoneāI donāt hesitate. I lock it in.
To conclude, Donāt feel bad for taking profitsāespecially in a volatile market where nothing is promised. The only traders who consistently win are the ones who have the courage to press the sell button when it matters.
You're only profitable if you have the balls to take profits.
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šØ Charting My Emotions: Lessons From 6 Trades in 5 Days!!!
šTo all NEW traders as well as STRUGGLING traders!!! Over the trading period between 18th and 22nd July, I executed trades across six different assets: $FET, $SEI, $DIA, $EPIC, $CFX, $UMA. My entry criteria were generally met for all trades, and I maintained a calm mental state prior to execution. However, reviewing my Thought Process During (TPD) trades revealed recurring psychological and behavioral challenges that must be addressed for long-term consistency.
Identified Trading Psychology Challenges 1. Stop-Loss Anxiety & Adjustment: When price nears my stop-loss, I tend to get anxious and often re-adjust the SL to "give the trade more room," which almost always results in deeper losses. 2. Early Take-Profit Trigger: Upon reaching 1:1 risk-to-reward, I frequently manually close positions out of fear the trade may reverse, instead of allowing it to naturally hit my take-profit target. 3. Multi-Trade Overload: Managing multiple trades simultaneously leads to loss of focus, slower reaction time, and poor execution. 4. Emotional Revenge Trading: After a stop-loss is hit, I tend to re-enter the market impulsively to recover losses, often compounding them instead.
Corrective Measures & Trading Guidelines To combat these behavioral flaws, Iāve outlined the following rules and habits to guide my trading moving forward: ā Embrace Probabilities: Accept that every trade is a probability event, and outcomes are not always in my control ā only the execution is. Define SL/TP Clearly: Set realistic stop-loss and take-profit levels before entering the trade. These should align with both market structure and risk management principles. One Trade at a Time: Avoid opening multiple trades simultaneously. Focus on one high-quality setup to improve clarity, execution, and emotional control. Detach from the Chart: After setting SL and TP, walk away from the screen. Staring at every price tick only feeds anxiety. Let the trade play out. š Two SL Hits = Pause: If I take two consecutive stop-losses, step away from the chart. This prevents emotionally driven decisions and overtrading.
To conclude, A problem identified is truly a problem half-solved. This reflection has highlighted the emotional triggers and habits undermining my performance. By implementing the above adjustments, I aim to become a more disciplined and emotionally balanced trader.
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Jump In or Stay Out: The Market Doesnāt Wait !!!
šThe market environment is more like a river constantly flowing, with no beginning or ending with almost no structure.
šOnce you jump in the river, it can change directions at any moment. It may have been flowing north when you jumped in; however, without any notice, it can start flowing south. It's unstructured to the point where you make up all your own rules to play by, with a great deal of latitude to do so.
šYou will have to decide if and when you're going to jump in and with how much force. If you are already in, you have the option of increasing the force you apply at any time or of decreasing it. There are no rules preventing you from jumping out at any moment to change your intended direction to flow with the market, or you can jump out and stay out, and the market just keeps on flowing.
To conclude, In an unstructured and unlimited environment, it is essential that you establish rules to guide your behavior.
$HFT $MAV Note: Don't forget to do your own research and follow me @The_Pathfinder for more crypto contentā ļø
$FET Price update! The price of fetch.ai currently at a clean support zone of $0.65 -$0.66. If buyers jump in at this demand zone, we could price bounce up to retest the $0.72 area of resistance. #NFAā Note: Don't forget to do your own research and follow me @The_Pathfinder for more useful crypto content.
To identify a reversal on charts, you're looking for signs that a current trend (up or down) is weakening and may change direction. Hereās how to do that effectively:
1. Reversal Candlestick Patterns
These often signal a trend change:
Bullish Reversal Patterns (appear at bottom of a downtrend):
Hammer
Morning Star
Bullish Engulfing
Piercing Line
Double/Triple Bottoms
Bearish Reversal Patterns (appear at top of an uptrend):
Shooting Star
Evening Star
Bearish Engulfing
Dark Cloud Cover
Double/Triple Tops
2. Trendline Breaks
Draw a trendline along the current trend.
A break of the trendline (with strong volume) often signals a potential reversal.
3. Volume Confirmation
Reversals are more reliable when accompanied by a spike in volume.
Example: A bullish engulfing candle + high volume = stronger reversal signal.
4. Indicators for Reversal Detection
Relative Strength Index (RSI):
Overbought (above 70) or oversold (below 30) levels.
Look for divergence (price makes new highs/lows, RSI doesnāt).
MACD (Moving Average Convergence Divergence):
Signal line crossover and divergence from price.
Stochastic Oscillator:
Shows overbought/oversold levels and divergence.
5. Chart Patterns
Reversal patterns include:
Head and Shoulders (bearish)
Inverse Head and Shoulders (bullish)
Double Top / Double Bottom
Rounding Bottom / Top
Checklist for Reversal Confirmation
Trendline break? ā
Strong reversal candle? ā
Volume spike? ā
Divergence in indicators? ā
Reversal chart pattern? ā
Note: Don't forget to do your own research and follow me @The_Pathfinder for more crypto contentā ļø