Trading Psychology

How do you stay disciplined during market fluctuations and What role does psychology play in successful trading?

Hello Traders,

I am experiencing such problems of emotional out of control especially after win trades. So far, I made various attempts to control it such as assigning specific targets per trade, procedure for position sizing, splitting financial goals to 25 trades for every successful stage.

Currently I am working to target 11 win traders per week, and if a loser trade occurs, simply keep trading to recover and register desired win trades. Though it is very ambitious goal, I would like to trade to a million dollar with the following plan:

Current Portfolio: 40
11 Win Trades Per week, each trade will lift the account balance by 5 until GBP 65, and then each trade target profit GBP until GBP100, another win trade proceedings is regarded for any swap or broker fees.

Once the the Portfolio Balance is GBP100, target for each trade GBP10 for the next 5 win trades to bring the account balance to 150, then trade with profit target of GBP20 for another 5 win trades to bring the account balance to GBP250.


I will share the background to this idea if anyone shows interest.

This plan targets to achieving adding a '0' to the account balance ie 100 to 1,000 then 1,000 to 10,000 and then 10,000 to 100,000 and at the end 100,000 to 1,000,000.

Each stage so far present a complex and new surprises and I tried and failed many times, but now I am working the these experience to try and eliminates the mistake temptations of overtrading, skipping a stage step, hurrying.


below is the goal outlook:

Task Schedule Day Trading - Q1 2024

Month One: €135

Week 1: €0 €0 | €0 €0
Week 2: €0 €0 | €0 €0
Week 3: €25 €2 | €3 €40
Week 4: €60 €5 | €7 €100
Week 5: €50 €10 | (Month End) €150

Month Two: €9,850

Week 1: €100 (Month Start)| €20 €250
Week 2: €400 €30 | €50 €650
Week 3: €850 €70 | €100 €1,500
Week 4: €2,500 €200 | €300 €4,000
Week 5: €6,000 €500 | €700 €10,000

Month Three: €390,000

Week 1: €15,000 €1,000 | €2,000 €25,000
Week 2: €40,000 €3,000 | €5,000 €65,000
Week 3: €85,,000 €7,000 | €10,000 €150,000
Week 4: €250,000 €20,000 | €30,000 €400,000

Month Four: €14,600,000

Week 1: €600,000 €50,000 | €70,000 €1,000,000
Week 2: €1,500,000 €100,000 | €200,000 €2,500,000
Week 3: €4,000,000 €300,000 | €500,000 €6,500,000
Week 4: €8,500,000 €700,000 | €1,000,000 €15,000,000

Month Five: €635,000,000

Week 1: €25,000,000 €2,000,000 | €3,000,000 €40,000,000
Week 2: €60,000,000 €5,000,000 | €7,000,000 €100,000,000
Week 3: €150,000,000 €10,000,000 | €20,000,000 €250,000,000
Week 4: €400,000,000 €30,000,000 | €50,000,000 €650,000,000

Month Six: €350,000,000

Week 1: €600,000 €70,000,000 | (Reassess) €1,000,000,000

Important Notes:
Daily physical workout is essential to maintain work stress and it could improve decision making process while market brings constant surprises;
Include a skills learning unrelated to day daytrading to achieve an extra edge while watching and observing the market i.e. learning a language or working on development of social media account, learning drawing, which are not related to money making;
Healthy eating and lunchbox planning for busy work days would save extra unnecessary stress;
A minimum of one outdoor activity per week to get refreshed and energised for the next week market sessions;
Read books and aspire to improvements;
See possibility of work process to turn into a book that might get published; and
Do not fall for No Action bias as mentioned in the book “Thinking Clearly”

Staying disciplined in market fluctuations is about embracing a strategic mindset. Psychology is the backbone of trading success; self-awareness and emotional control are key.

connorbennett posted:
Staying disciplined in market fluctuations is about embracing a strategic mindset. Psychology is the backbone of trading success; self-awareness and emotional control are key.

That's right! Even though managing emotions can be difficult, I always try to stay focused rather than rushing.

I live the ambition of making 350 million euros in 6 months but if it was that easy then we would all be doing that. The reality is that you will probably lose all your money

Maverwallace_5 posted:

connorbennett posted:
Staying disciplined in market fluctuations is about embracing a strategic mindset. Psychology is the backbone of trading success; self-awareness and emotional control are key.

That's right! Even though managing emotions can be difficult, I always try to stay focused rather than rushing.

There is a literature in China called Taoism, which contains the theory of Yin and Yang. My understanding is that there is gain in failure and loss in success. It inspires me to stay normal even though I know that’s hard to do.

I mean, there is stoicism that everyone goes on about here and there, and it can be useful, sure. But I think you can just accept what you're stepping into and know that it's going to be tough and there will be losses and all that, and once you do that, you don't need a psychological strategy or guideline to go with.

Trading psychology plays a pivotal role in success. Emotions like fear and greed can cloud judgment, leading to impulsive decisions and losses. Discipline, emotional control, and resilience are crucial. Developing a balanced mindset, sticking to a plan, and managing risk are key to navigating the psychological challenges of trading.

Staying disciplined during market swings is tough, no doubt. For me, it’s all about sticking to the plan—like having clear entry and exit points set before emotions kick in. When the market’s all over the place, I just remind myself that panicking won’t help. I’ve learned to walk away if I feel like I’m about to make an impulsive move.

Psychology? Man, that’s half the battle. If your head’s not in the right space, even a good strategy can fail. Controlling fear and greed is key. I used to chase every spike, but now I know it’s about playing the long game.