9 Advanced Trading Psycology
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Advanced Trading Psychology
IntradayMoney.in
www.intradaymoney.in
The harsh reality is that the vast majority of all traders lose.
www.dailyniftytips.in Sticking to any trading system for any length of time is nearly impossible only sure shot tips..!
without having confidence in it!
Confidence does not equal discipline!
Quietly destroying your confidence
IntradayMoney.in
Not treating trading seriously
“Half-Ass” studying charts
Consecutive losing trades
One step forward – winning trades & one step backwards – losing trades….feels like your not making progress
www.intradaymoney.in
anxiety
happiness
www.dailyniftytips.in only sure shot tips..!
fear
guilt
IntradayMoney.in gradual acceptance
moving forward
www.intradaymoney.in This can
DENIAL Change? What change?
Yippee! Finally, Can I it’s handle this? working!
What’s the impact here? How will this A affect me? www.dailyniftytips.in
A AD A
A A B A A only sure shot tips..! Uh-oh… A A AC this is more A A than I bargained A for! AE What was A I Athinking? HAPPINESS AF ANXIETY FEAR A
actually work! And it’s so rewarding!
DISILLUSIONMENT
I’m outta here! This is SO not for me!
A A G A
I can see it now! My future, that is!
A AJ A
A AK A
MOVING FORWARD
IntradayMoney.in Who Aam I?
GRADUAL ACCEPTANCE
A H A
THREAT GUILT
DEPRESSION HOSTILITY
A A M A
I will make this work even if I die trying!
www.intradaymoney.in
www.dailyniftytips.in The allow only markets sure shot tips..!
you to
chose between
Self Fulfillment
Self-Fulfillment
Self IntradayMoney.in Destruction Self-Destruction and
continuously.
www.intradaymoney.in
Trying to rationalize markets behavior without a paradigm
www.dailyniftytips.in Lack of work ethic, only sure shot tips..! Trading without a trust worthy plan,
Low trading self-esteem
Existing personality traits – conflicting with being “open” to interpretation of the markets
IntradayMoney.in
Afraid of “lots of trades” or trading opportunities and experience
Most setups are perceived as “risky” – especially without the necessary understanding and skills.
www.intradaymoney.in
All-In-At-Once methods www.dailyniftytips.in When should you jump
“All-In-At-Once?”
only sure shot tips..!
Does that mean use your entire maximum position size?
How do you determine how many shares/contracts to use at entry?
Can I jump “All-In-At-Once” in on any setup?
Scaling In methods
IntradayMoney.in
When should you scale in?
How should the incremental position sizes be determined?
Where should you scale in at?
What setups should you consider scaling in afterwards?
www.intradaymoney.in
www.dailyniftytips.in only sure shot tips..!
Scaling In
Scaling Out
Scaling In
Scaling Out
All-InAtOnce
AllOut-AtOnce
All-InAtOnce
AllOut-AtOnce
IntradayMoney.in
Multiple entries and One Exit
Multiple Entries and Multiple Exits
www.intradaymoney.in
www.dailyniftytips.in only sure shot tips..!
Scaling In
Scaling Out
Scaling In
Scaling Out
All-InAtOnce
AllOut-AtOnce
All-InAtOnce
AllOut-AtOnce
IntradayMoney.in
One Entry and One Exit
One Entry and Multiple Exits
www.intradaymoney.in
Traders should consider being psychologically prepared to trade
www.dailyniftytips.in Prepare to accept financial risk for something (e.g., the market) over only sure shot tips..!
which you have no control
Trading is more a psychological issue than a methodological one
Without an understanding of trading psychology, the chances to overcome the fear, confusion, and despair that is inherent in trading are pretty much zero.
IntradayMoney.in
After a series of consecutive losses, method becomes replaced with a feeling (e.g., psychology) that it is impossible to do anything right. This is a perfect example of why psychology can be more critical than method.
www.intradaymoney.in
So it goes, it is said that trading is 90% mental and 10% techniques.
www.dailyniftytips.in This does not imply that regardless of trading tactics, a trader that has only sure shot tips..!
control over their emotional issues will be a profitable trader, or vice versa.
Trading techniques is the sole determinant of “high odds” through the
IntradayMoney.in
ability to understand and maximize its strengths and minimize its weaknesses.
www.intradaymoney.in
The root cause of the trading psychology problem … www.dailyniftytips.in Knowingly taking a “bad” (non-method/non setup) trade only sure shot tips..!
Having to accept this action/behavior when there is a loss.
Keep in mind that a losing trade that is base on some method is NOT a
bad trade
IntradayMoney.in
Because the risk of loss from 'some' percentage of previous trades has
been accepted.
www.intradaymoney.in
www.dailyniftytips.in only sure shot tips..! 3. Sideways Topping Action
3-Bar Bearish Reversal
3-Bar Bullish Reversal Bull Trap Bear Trap Bullish Piercing Bullish Engulfing Opening Range – Higher Low
1. Sideways Bottoming Action
IntradayMoney.in Bearish Piercing
Bearish Engulfing
Opening Range – Lower High
1. Sideways Bottoming Action
www.intradaymoney.in
www.dailyniftytips.in only sure shot tips..!
Minor support area
IntradayMoney.in Major support areas
www.intradaymoney.in
www.dailyniftytips.in only sure shot tips..!
Bullish
Bearish
Engulfing
Engulfing
IntradayMoney.in 50%
Bullish 50%
Piercing
Bearish
Piercing
www.intradaymoney.in TARGET
Price Action
STOP
(1R)
www.dailyniftytips.in only sure shot tips..!
RISK
(multiple R) REWARD
ENTRY
ENTRY
IntradayMoney.in
REWARD
(multiple R)
RISK
(1R)
TARGET
STOP
LONG Entry •Up trend •Higher Highs & Higher Lows
Short Entry •Down trend •Lower Highs & Lower Lows
www.intradaymoney.in Price Action
TARGET
STOP
(1R)
www.dailyniftytips.in only sure shot tips..! Profit from entry
RISK
(multiple R)
1st
REWARD
ENTRY
ENTRY
Profit from 1st entry
IntradayMoney.in REWARD
(multiple R)
RISK
(1R) STOP
TARGET
www.intradaymoney.in TARGET
Price Action
www.dailyniftytips.in only sure shot tips..! (multiple R)
RISK
STOP
REWARD
RISK
STOP
IntradayMoney.in
REWARD
(multiple R)
TARGET
www.intradaymoney.in
www.dailyniftytips.in only sure shot tips..!
Reference: Scaling In vs. All-In-At-Once
IntradayMoney.in
www.intradaymoney.in Transition Among Phases
www.dailyniftytips.in only sure shot tips..!
3. Sideways Topping Action
IntradayMoney.in 1. Sideways Bottoming Action
1. Sideways Bottoming Action
Indicator provides signal
Buy
SOH
Short
SOH
www.intradaymoney.in
Typically built to assist with determining directional/trending Price Action
Up Trend with Higher Highs (HH) and Higher Lows (HL)
www.dailyniftytips.in Down Trend with Lower Highs (LH) and Lower Lows (LL) only sure shot tips..! Oscillators typically used to gauge “extended” Price Action
Markets spending significant time in non-trending direction
Consolidation
Congestion
Range-Bound
IntradayMoney.in
Usually NOT designed to provide multiple entries as price action is going in your favor…”Scaling In”
Should be obvious that most designed for a “All-In-At-Once” strategy
Indicators and “All-In-At-Once” usually lead to very high likelihood of “big losses”
Additional efforts required to get multiple signals for entries using indicators
www.intradaymoney.in
There are huge perceptions about Scaling In vs. All-In-At-Once as two www.dailyniftytips.in diverse trading approaches only sure shot tips..! Traders believe they are better than there performance demonstrates
Traders gravitate towards “instant gratification” and “bigger profits” Traders have little “endurance” and patience for “learning to trade” without
IntradayMoney.in
generating profits in the short-term
The focus is usually on the “big reward” of a trade with a big position and
not the “big lose” if the trade moves in the wrong direction and against you.
www.intradaymoney.in
Trading psychology is distorted … I can’t making any money by scaling in www.dailyniftytips.in only sure shot tips..! My setups are “really good” so I can always just exit and cut the lose
Most traders cannot stick to a single trading system for extended period of time
As a trader…you’re going to lose your confidence at some point!
As a trader…you’re going to “screw up” and not have any discipline
After a series of consecutive losses…
IntradayMoney.in
You replace logic with feelings/emotions (e.g., psychology)
Then markets constantly test your “will to succeed”
As an active trader, you will get tired…it’s natural and human nature
As a trader you will knowingly take “bad” (non-method/non setup) trades
www.intradaymoney.in
Adopt a Three-Prong-Approach www.dailyniftytips.in Minimize loses in each and every trade as much as possible only sure shot tips..! Maximize profits in winning trades
Manage and reduce the amount of “paper” profits given back from winning
trades
IntradayMoney.in
So which method addresses the objectives of creating the “best” trading psychology mindset?
www.intradaymoney.in
Simple techniques usually are the most effective in trading
www.dailyniftytips.in Typically you don’t know it’s trending price action until you get “confirmation” with
only sure shot tips..!
either
Higher Highs and Higher Lows, or Lower Highs and Lower Lows
More profits since price action is directional
Trending price action comes with natural retracements
IntradayMoney.in
Potential to give back some of profits with price action fluctuations
Preserving your trading capital should suggest to you to scale in to trades first
Look for confirmation that the setup is correct and price action is moving in your favor
You minimize the potential lose of trading capital with scaling in
www.intradaymoney.in
Not a lot of profit opportunity available in non trending price action moves
www.dailyniftytips.in Non trending price action typical comes with overlapping candlesticks
only sure shot tips..!
Scale In at support or resistance
Use previous trend as a reference
Only use “All-In-At-Once” with “tight and adequate stops” for minimal risk of loses
IntradayMoney.in
www.intradaymoney.in
All-In-At-Once comes with “big” profits…also comes with the unfortunate quality of “big” loses www.dailyniftytips.in only sure shot tips..!
Scaling In protects you by limiting the initial risk and lose at entry
Scaling In allows you to naturally build confidence in “adding” to winning trades
All-In-At-Once guarantees the potential for the biggest lost at entry
Scaling In provides less profits as price action goes in your favor
All-In-At-Once guarantees maximum profit when price action moves in your favor
Not the best characteristics to use to describes your trade execution demeanor
IntradayMoney.in
Low % of winning trades (Wrong more often) High % of winning trades (Right more often)
Better Question: “Does the trade initially go in your favor?”
www.intradaymoney.in
Usually traders switch to a money management mindset after their entry
www.dailyniftytips.in As price action moves in the right direction, only sure shot tips..! you have to have a balanced mindset of
Initial Trade Setup Target # 1
“Scaling In” more in trending price action & money management
Hence, some traders adopt easy way out “All-In-At-Once” method
Typically money management focus
IntradayMoney.in
Not really focusing on whether price action is trending or non-trending
Must have balanced “Plan of Attack”
Scaling In
All-In-At-Once
Before you trade! ENTRY
www.intradaymoney.in
If you are consistently losing money in trading, then “All-In-At-Once” www.dailyniftytips.in should NOT be an option for ANY of your trading setups only sure shot tips..!
If you are a breakeven trader then there should be select setups where you scale-in and others where you can “jump” All-In-At-Once
If you are generating some profits and want to generate more, then be very
IntradayMoney.in
clear about only using “All-In-At-Once” when price action is trending!
Otherwise…Scale In ALL your trades
IntradayMoney.in
www.intradaymoney.in
The harsh reality is that the vast majority of all traders lose.
www.dailyniftytips.in Sticking to any trading system for any length of time is nearly impossible only sure shot tips..!
without having confidence in it!
Confidence does not equal discipline!
Quietly destroying your confidence
IntradayMoney.in
Not treating trading seriously
“Half-Ass” studying charts
Consecutive losing trades
One step forward – winning trades & one step backwards – losing trades….feels like your not making progress
www.intradaymoney.in
anxiety
happiness
www.dailyniftytips.in only sure shot tips..!
fear
guilt
IntradayMoney.in gradual acceptance
moving forward
www.intradaymoney.in This can
DENIAL Change? What change?
Yippee! Finally, Can I it’s handle this? working!
What’s the impact here? How will this A affect me? www.dailyniftytips.in
A AD A
A A B A A only sure shot tips..! Uh-oh… A A AC this is more A A than I bargained A for! AE What was A I Athinking? HAPPINESS AF ANXIETY FEAR A
actually work! And it’s so rewarding!
DISILLUSIONMENT
I’m outta here! This is SO not for me!
A A G A
I can see it now! My future, that is!
A AJ A
A AK A
MOVING FORWARD
IntradayMoney.in Who Aam I?
GRADUAL ACCEPTANCE
A H A
THREAT GUILT
DEPRESSION HOSTILITY
A A M A
I will make this work even if I die trying!
www.intradaymoney.in
www.dailyniftytips.in The allow only markets sure shot tips..!
you to
chose between
Self Fulfillment
Self-Fulfillment
Self IntradayMoney.in Destruction Self-Destruction and
continuously.
www.intradaymoney.in
Trying to rationalize markets behavior without a paradigm
www.dailyniftytips.in Lack of work ethic, only sure shot tips..! Trading without a trust worthy plan,
Low trading self-esteem
Existing personality traits – conflicting with being “open” to interpretation of the markets
IntradayMoney.in
Afraid of “lots of trades” or trading opportunities and experience
Most setups are perceived as “risky” – especially without the necessary understanding and skills.
www.intradaymoney.in
All-In-At-Once methods www.dailyniftytips.in When should you jump
“All-In-At-Once?”
only sure shot tips..!
Does that mean use your entire maximum position size?
How do you determine how many shares/contracts to use at entry?
Can I jump “All-In-At-Once” in on any setup?
Scaling In methods
IntradayMoney.in
When should you scale in?
How should the incremental position sizes be determined?
Where should you scale in at?
What setups should you consider scaling in afterwards?
www.intradaymoney.in
www.dailyniftytips.in only sure shot tips..!
Scaling In
Scaling Out
Scaling In
Scaling Out
All-InAtOnce
AllOut-AtOnce
All-InAtOnce
AllOut-AtOnce
IntradayMoney.in
Multiple entries and One Exit
Multiple Entries and Multiple Exits
www.intradaymoney.in
www.dailyniftytips.in only sure shot tips..!
Scaling In
Scaling Out
Scaling In
Scaling Out
All-InAtOnce
AllOut-AtOnce
All-InAtOnce
AllOut-AtOnce
IntradayMoney.in
One Entry and One Exit
One Entry and Multiple Exits
www.intradaymoney.in
Traders should consider being psychologically prepared to trade
www.dailyniftytips.in Prepare to accept financial risk for something (e.g., the market) over only sure shot tips..!
which you have no control
Trading is more a psychological issue than a methodological one
Without an understanding of trading psychology, the chances to overcome the fear, confusion, and despair that is inherent in trading are pretty much zero.
IntradayMoney.in
After a series of consecutive losses, method becomes replaced with a feeling (e.g., psychology) that it is impossible to do anything right. This is a perfect example of why psychology can be more critical than method.
www.intradaymoney.in
So it goes, it is said that trading is 90% mental and 10% techniques.
www.dailyniftytips.in This does not imply that regardless of trading tactics, a trader that has only sure shot tips..!
control over their emotional issues will be a profitable trader, or vice versa.
Trading techniques is the sole determinant of “high odds” through the
IntradayMoney.in
ability to understand and maximize its strengths and minimize its weaknesses.
www.intradaymoney.in
The root cause of the trading psychology problem … www.dailyniftytips.in Knowingly taking a “bad” (non-method/non setup) trade only sure shot tips..!
Having to accept this action/behavior when there is a loss.
Keep in mind that a losing trade that is base on some method is NOT a
bad trade
IntradayMoney.in
Because the risk of loss from 'some' percentage of previous trades has
been accepted.
www.intradaymoney.in
www.dailyniftytips.in only sure shot tips..! 3. Sideways Topping Action
3-Bar Bearish Reversal
3-Bar Bullish Reversal Bull Trap Bear Trap Bullish Piercing Bullish Engulfing Opening Range – Higher Low
1. Sideways Bottoming Action
IntradayMoney.in Bearish Piercing
Bearish Engulfing
Opening Range – Lower High
1. Sideways Bottoming Action
www.intradaymoney.in
www.dailyniftytips.in only sure shot tips..!
Minor support area
IntradayMoney.in Major support areas
www.intradaymoney.in
www.dailyniftytips.in only sure shot tips..!
Bullish
Bearish
Engulfing
Engulfing
IntradayMoney.in 50%
Bullish 50%
Piercing
Bearish
Piercing
www.intradaymoney.in TARGET
Price Action
STOP
(1R)
www.dailyniftytips.in only sure shot tips..!
RISK
(multiple R) REWARD
ENTRY
ENTRY
IntradayMoney.in
REWARD
(multiple R)
RISK
(1R)
TARGET
STOP
LONG Entry •Up trend •Higher Highs & Higher Lows
Short Entry •Down trend •Lower Highs & Lower Lows
www.intradaymoney.in Price Action
TARGET
STOP
(1R)
www.dailyniftytips.in only sure shot tips..! Profit from entry
RISK
(multiple R)
1st
REWARD
ENTRY
ENTRY
Profit from 1st entry
IntradayMoney.in REWARD
(multiple R)
RISK
(1R) STOP
TARGET
www.intradaymoney.in TARGET
Price Action
www.dailyniftytips.in only sure shot tips..! (multiple R)
RISK
STOP
REWARD
RISK
STOP
IntradayMoney.in
REWARD
(multiple R)
TARGET
www.intradaymoney.in
www.dailyniftytips.in only sure shot tips..!
Reference: Scaling In vs. All-In-At-Once
IntradayMoney.in
www.intradaymoney.in Transition Among Phases
www.dailyniftytips.in only sure shot tips..!
3. Sideways Topping Action
IntradayMoney.in 1. Sideways Bottoming Action
1. Sideways Bottoming Action
Indicator provides signal
Buy
SOH
Short
SOH
www.intradaymoney.in
Typically built to assist with determining directional/trending Price Action
Up Trend with Higher Highs (HH) and Higher Lows (HL)
www.dailyniftytips.in Down Trend with Lower Highs (LH) and Lower Lows (LL) only sure shot tips..! Oscillators typically used to gauge “extended” Price Action
Markets spending significant time in non-trending direction
Consolidation
Congestion
Range-Bound
IntradayMoney.in
Usually NOT designed to provide multiple entries as price action is going in your favor…”Scaling In”
Should be obvious that most designed for a “All-In-At-Once” strategy
Indicators and “All-In-At-Once” usually lead to very high likelihood of “big losses”
Additional efforts required to get multiple signals for entries using indicators
www.intradaymoney.in
There are huge perceptions about Scaling In vs. All-In-At-Once as two www.dailyniftytips.in diverse trading approaches only sure shot tips..! Traders believe they are better than there performance demonstrates
Traders gravitate towards “instant gratification” and “bigger profits” Traders have little “endurance” and patience for “learning to trade” without
IntradayMoney.in
generating profits in the short-term
The focus is usually on the “big reward” of a trade with a big position and
not the “big lose” if the trade moves in the wrong direction and against you.
www.intradaymoney.in
Trading psychology is distorted … I can’t making any money by scaling in www.dailyniftytips.in only sure shot tips..! My setups are “really good” so I can always just exit and cut the lose
Most traders cannot stick to a single trading system for extended period of time
As a trader…you’re going to lose your confidence at some point!
As a trader…you’re going to “screw up” and not have any discipline
After a series of consecutive losses…
IntradayMoney.in
You replace logic with feelings/emotions (e.g., psychology)
Then markets constantly test your “will to succeed”
As an active trader, you will get tired…it’s natural and human nature
As a trader you will knowingly take “bad” (non-method/non setup) trades
www.intradaymoney.in
Adopt a Three-Prong-Approach www.dailyniftytips.in Minimize loses in each and every trade as much as possible only sure shot tips..! Maximize profits in winning trades
Manage and reduce the amount of “paper” profits given back from winning
trades
IntradayMoney.in
So which method addresses the objectives of creating the “best” trading psychology mindset?
www.intradaymoney.in
Simple techniques usually are the most effective in trading
www.dailyniftytips.in Typically you don’t know it’s trending price action until you get “confirmation” with
only sure shot tips..!
either
Higher Highs and Higher Lows, or Lower Highs and Lower Lows
More profits since price action is directional
Trending price action comes with natural retracements
IntradayMoney.in
Potential to give back some of profits with price action fluctuations
Preserving your trading capital should suggest to you to scale in to trades first
Look for confirmation that the setup is correct and price action is moving in your favor
You minimize the potential lose of trading capital with scaling in
www.intradaymoney.in
Not a lot of profit opportunity available in non trending price action moves
www.dailyniftytips.in Non trending price action typical comes with overlapping candlesticks
only sure shot tips..!
Scale In at support or resistance
Use previous trend as a reference
Only use “All-In-At-Once” with “tight and adequate stops” for minimal risk of loses
IntradayMoney.in
www.intradaymoney.in
All-In-At-Once comes with “big” profits…also comes with the unfortunate quality of “big” loses www.dailyniftytips.in only sure shot tips..!
Scaling In protects you by limiting the initial risk and lose at entry
Scaling In allows you to naturally build confidence in “adding” to winning trades
All-In-At-Once guarantees the potential for the biggest lost at entry
Scaling In provides less profits as price action goes in your favor
All-In-At-Once guarantees maximum profit when price action moves in your favor
Not the best characteristics to use to describes your trade execution demeanor
IntradayMoney.in
Low % of winning trades (Wrong more often) High % of winning trades (Right more often)
Better Question: “Does the trade initially go in your favor?”
www.intradaymoney.in
Usually traders switch to a money management mindset after their entry
www.dailyniftytips.in As price action moves in the right direction, only sure shot tips..! you have to have a balanced mindset of
Initial Trade Setup Target # 1
“Scaling In” more in trending price action & money management
Hence, some traders adopt easy way out “All-In-At-Once” method
Typically money management focus
IntradayMoney.in
Not really focusing on whether price action is trending or non-trending
Must have balanced “Plan of Attack”
Scaling In
All-In-At-Once
Before you trade! ENTRY
www.intradaymoney.in
If you are consistently losing money in trading, then “All-In-At-Once” www.dailyniftytips.in should NOT be an option for ANY of your trading setups only sure shot tips..!
If you are a breakeven trader then there should be select setups where you scale-in and others where you can “jump” All-In-At-Once
If you are generating some profits and want to generate more, then be very
IntradayMoney.in
clear about only using “All-In-At-Once” when price action is trending!
Otherwise…Scale In ALL your trades
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