Psychological Mistakes Traders Make AND How To Fix Them
ฝัง
- เผยแพร่เมื่อ 15 พ.ค. 2024
- #tradingstrategy #psychology #daytrading
I lost over $500k from making mental mistakes in trading.
Follow my socials:
- Instagram: / umarashraf
- Twitter: / umarashraf
I use TradeZella to track and journal my trades.
www.tradezella.com/?via=umar
Chapters:
0:00 - Intro
0:14 - Confirmation Bias
1:36 - Fomo
4:43 - Overconfidence
6:41 - Journaling & Tracking
13:23 - No Position Size Increase
13:57 - 3 Losses Max
14:52 - Time Period Cutoff
15:50 - When I'm Done, I'm DONE!
16:33 - I ONLY Follow My Gameplan
#trading #daytrading #tradingpsychology
I use www.TradeZella.Com to Journal!
Thank you Umar for all your work, you have helped me mentally more than you think. I am becoming better trader because of your videos!
Wen crypto exchange support? Amazing content by the way. By far the best trading knowledge on TH-cam!
Does Tradezella connect with E*Trade?
@@wendellwinafred yeah Umar is the founder.
My apologies but I’m a college student and can’t afford to pay $49 per month at the moment since I’m not profitable trading yet but I love how tradezella is and it’s features.
Could there be a free trial or a way if you link your student email. It could be cheaper. Thank you(would be glad if this might be considered)
Thought I should share my experience. Where i made my biggest losses is what you mentioned in this video. Not on my strategy but on my psychology. I can wipe out 2 weeks of profit in a day, and I did that recently. Im 2-3 years in my day trading journey and made the same mistake that I've made early in my journey, thinking why I did the same problem that I told myself never to do. I like what you said about, stop trading when you get that feeling of revenge trading, I should've closed my screen and come back the next day. If i did that, i would've saved tons of money. I'll be honest, I lack in journaling, and I know this is a habit I should implement doing. I thought the trade history is enough but I believe that's not what journaling is about. I failed doing this early in my journey and know it's something I have to do now. To all new traders, learn from my mistakes. Journal from day one even if you're not consistently profitable yet. You most likely find consistency earlier than later. Not journaling equals not knowing what the f you're doing.
Heyo. I'm 3 years in too! What would you say your main strategy is? I'd love to connect with likeminded traders
Each sentence mirrors my trading journey too..
@Nate_469 no thanks
@charltonallen3167 should we only write time ,date and amount and why we took trade and why we loss and learnings is this much enough for journlaaling trades plz reply ???
@@Akashwadeyes....
This hits home so much. As a new trader about 6 months in, I can say I've literally experienced every single thing in this video.
one of the most interesting things about risk that many people experience, including me is... you can read all the books in the world on risk management but seems like you don't really understand it until you're on the 25th floor, standing on the ledge and ready to jump. When you are close to tears and realizing all the money is gone and there is no way to get it back... and in trading there is no one to blame but you, it's not your boss, co-workers, company cultures, etc, In the corporate culture, etc, it's you.
Very lucky to have had a mentor like you at the beginning of my trading journey
Gems Bro Thanks for perspective 💯
Youve made me realise how close i actually am to profitable consistency, I simply need to do the simple things you mentioned and create rules on my PERFORMANCE. i thought trading plan rules were enough, but theyre not, and you have switched on a lightbulb in my mind with this. Thank you Umar
I just discovered you, what common sense advice, clear and precise, thank you.
You seem like a nice guy.
love this ! God bless
Great video! Over confidence and fomo are my 2 biggest mental mistakes
Best trading psychology video of TH-cam 2023!!! 🏆
Coming from a 7yr trader here. Nice job on this. Trading is 95% psychology.
Very few people on TH-cam talk like this about trading and phychology great content very help full for me specially thnku so much ❤
its like hearing my present trading journey but the difference is hearing the solution for each as future result , its not easy to apply as you describe but again that's the core of Day trading ( discipline ) , hope to be someday
Excited for the order flow video brother, thanks
Thanks, that was such a good video. I love the no-nonsense, simple rules you set for yourself. Simple, but not easy.
Thanks again.
We appreciate, the error are revenge trading and increasing size. I found it some times very hard to stop trading after losing a lot.
Your the best Umar, you are teaching me so much, I blew up my account a heap of times about 6 months ago and stopped even watching the market, now I’m back and not trading but reading trading books, trading courses and only watching your TH-cam channel, Much Blessings my Brother and Blessings to everyone trying to be profitable traders.
Very well explained. I need to work on discipline; Discipline is key to success for any trader and like you said follow your game plan. Any opportunity not related to game plan should not be traded
Well said!
A lot of trading mishaps are done when trading your balance . Stop thinking of the money .
Thanks for the info!
Thanks for the update I will make sure,I avoid the mistakes and deal with them in my trading❤😅😅
Mental errors that’s what’s killing me in my journey on the trading train and I’ve taken a lot from this great piece thank you once again Umar👌🏼
I'm starting May in MFF in my first trading days a make lot of money (in demo). I was confidence but when I get live account and start trading with real money a make so much mistake. In this moment almost done my account. I want to find solutions to my mental mistakes, your videos help me a lot, love you bro!
Your videos are nectar for the day trader’s soul! Must start journaling and stop revenge trading and the game plan is crucial. Thanks man!
Umar, this video is a gem. Not only did I journal this morning but I journaled this entire video. I’ve been consistently losing money in my evaluations but this past week I took a break to regroup and replan. Thank you for your tireless work in helping others! Cheers from Houston!
Which evaluation prop firm are u doing?
helped alot thanks❤
took alot of notes that will definitely help in my future of trading
Brilliant video. It outlines the mistakes that is common to all traders. Please can a video on risk management and how to stay profitable be made.
love this umar !!!
Journaling for me has become a game changer . I was in a losing streak and the last weekend i went back and reviewed those losing trades. Just like you said . At that time that trade looked phenomenal. But looking at my journal i was like "am i really this dumb". What you said is very relatable
Thanks so much for this beautiful content. Ive learnt a lot. And I'm willing to make a change. I won't give up.
Umar all MY trading problem u have fixed it Today and learn lesson from this video Thankful
Mate, watching this video was like going thru my own trading journey. I can relate with every single thing you mentioned here. My latest challenge has been taking trades outside my plan and letting the emotions get the better of me. This video will definitely help. Appreciate the time and effort you've taken making this video. Gratitude from Australia.
Thanks for your wise advices Umar!! Sharing past experiences unconditionally!! ❤ God Bless You
Very well said. Thank you very much for the eye opening statements! Sometimes it's so obvious but we are oblivious by it at the moment, or right now as im watching what you are saying should be obvious to me but then i needed to hear it to realize that. So really thank you, you explain so well and hope to keep learning from you. Keep it up! God bless
The biggest problem is with over analysis, aka paralysis by analysis
And this is related to the fact that you will not always win every single day
So people go back to the drawing board and mess up their strategy, ending up going round in circles
I am a victim of this... 😢
@@phemelomolefe9968Its called the cycle of doom
Easiest way to overcome this is stick to one strategy setup and expect that anything can happen not gon always win and you know that be ready for what ever be confident take yo setups you seen it happen over and over take it if wrong coo stay discipline have good risk management and be patient always adjust and adapt experience is key (mindset) keep goin
Wow you are so good in explaining things and those are so recognizable 😂🙈
thank you sir for the words of wisom. appreciate everything you have said in the video. it makes alot of sense
this is a tresor you give some free sauce i like you man keep doing more videos about psychological mistakes
I am surprised !! Such a gem 💎 content and so lesss viewss??
The holy grail of the truth and the real life of trading. Amazing video, amazing honesty . Appreciate you !
These videos are outstanding. Love the content.
I can say that mental psychology is key to success koz this week I analyzed market well and had good movement but never took the trade due to fear
I can 100% identify with what you are describing. To avoid getting sucked into emotional driven trades, most of which lose me money, I now stop watching the charts until my 15 minute alarm goes off. Then if I see the right pattern in the 15 minute time frame on my technicals, I check every 5 monutes thereafter to see a confirming signal on my 5 minutre technicals. Only then will I focus on the 1 moinute charts in order to time my entry and set my stop. That's the theory anyway, the challenge is to follow this relatively simple strategy religiously and to have no expectations money or time wise as to how much or when I can achieve a steady income. BTW I love your tradezella software😀
Such fantastic advice, thank you
So true, its look you are discussing all my trading problems
Excellent. Very well said. All of them what you said i can relate with my behavior i think for most of the traders has the same. This is really an eye opener and thank you so much for sharing it. God bless.
Fantastic Video ! Appreciate it !
Everything makes so much sense here 💯
Been trading since 2018 I got lucky the whole time last year or so I started learning the truth behind it all. Everything you say makes so much sense. Thanks for all the info 💪🏼💪🏼💪🏼💪🏼💪🏼💪🏼💪🏼
😮lkof😮
This was spot on!
Thank you. Really helped me
Thank you Umar, great information. Trading psychology is a bigger part of trading than I ever realised. If you could share with us more videos on trading psychology and how you improved, that would be fantastc! 🥰 New trader here, developed a system but time and time again, I've came to the realisation that psychology or mental toughness is a HUGE part of becoming a profitable trader. Because you may be profitable one week but then give it all back, plus some the next.
Great one ☝️
I love to hear you, it's feel like my problems are being said by you. When it's come to cut stoploss I don't want to cut it. I don't ride my profits. I take revenge trades and end up losing more money.
My latest challenge has been adapting to the changing market. Thursday and Friday pre-session market was characterized by stock moving up 2 to 3 candles, then tanking. Then, they would soar up to new highs. On Thursday I had no plan to combat this. I set reasonable stop-loss limits and got out of several losing trades in a row. On Friday I reduced size to 1/100th my normal size and told myself to hang on about 30 seconds to a minute past the point I was stopping out on Thursday. Friday was 6 winning trades in a row.
Sometimes it can be tough to realize your trading plan does not work in all markets. You must constantly be aware any plan needs tuning to match the current market you find yourself in. No trading plan is cast in stone.
Wealth is built in both bull or bear market and also wealth transfers from the impatient to the patient. One of the best way to succeed in crypto is by trading your assets with good strategy
Thanks so much 😊
Very Helpful.
Couldn't agree more.. " Need to make back what I lost on my previous trade" has been the leading cause for me to loose money.. I have a strict 0.75% risk per trade but always open 2 positions ( so 1.5% risk in total ) each going for a set tp 1 and tp 2. More often than not tp1 get's hit and I breakeven on the 2nd position that shoots for tp 2, hence a zero risk trade. It's when the opposite happens and tp 1 doesn't get hit that I end up taking a loss, then the " need to make back what i lost" mentality kicks in and im all over the place. As a rule I walk away from the screen for about an hour and come back again to trading and this has significantly helped me with my trading emotions.. Still get the FOMO feeling when i walk away from a loss but I force myself to do it.. It's the emotion aspect that takes quite the work to master more so than price action and a trading strategy..
Consistent profitability is a journey
Never ending journey. Have to show up everyday
Thanks for this vid man seriously
BRO THIS CONTENT IS PURE GOLD
Thank you for the video. Learnt lots of good stuff!
How often do you go back and review your trades? End of Day / Week / Month
One of the Best video i have ever watched truly i can related with myself .
🙏🔥
very very valueable information..
*Excellent!!! I really do have a question. For someone with less than $10,000 to trade, how would you recommend we enter into trading ? I am looking at studying some traders and copying their strategy rather than trading myself and losing money emotionally. I would greatly appreciate any suggestions or reliable trader to trade with.*
I would suggest to reach out Mr Morris what impresses me most about Mr Morris is how well he explains basic concept of winning before actually letting you use he's trade signals. And he will also teach you how to trade and achieve your aim. This goes a long way to ensure winning trades.
Wow!!! I'm a beginner where can someone reach Mr Morris.
He's mostly on Telegrams, using the user name
*Morris1961 💯.. that's it*
I'm a newbie in trading, but I'll linking up to your trader. This is useful info❤
why u gotta be a handsome and articulate bro
I meant im appreciative of this vid! thanks for always prodiving value big dawg!!!
thanks bro ,i thank you for this phycology knowledge
This is powerful...Thanks so much Umar👊👍
🙌
Thanks for the insight❤
Thank you for sharing!
The best things a trader can give back to society is true knowledge and his experience and that's what you are doing sir. Could you please make a video on how to prepare plan, what to look before making trading plans daily?
Thanks for letting me know
Great video. I am cutting my winners too soon that’s my main issue right now
Awesome video! Many thanks 🙏🏾
great 👍🏻 brother
2024 here. Been on this channel for two months. Watched many videos but am subscribing because of this particular video. Thanks 🙏🙏 alot
after watching a few of your videos explaining issues traders will come up against and what you should be doing to help yourself and learn about the mistakes. its very similar to going to gym to lose weight, get stronger and build muscle. there are different levels of people going to gym, some people just go in there with no plan, no knowledge about exercises and muscle groups. some get a program and go by that. others learn to do the exercises properly with good form etc. have you learnt the fundamentals? why are you are doing a specific program, is it for endurance, strength, weight loss, building mass? what each exercise does and for what muscle groups, ie will it help with compound lifts? mind - muscle connection. are you getting enough sleep? are you eating properly? are you hydrating properly? what are your short and long term goals? are you tracking every training session, sleeping cycles and nutrition? the more serious you get about it, the better your results will be.
Great session. I watch ur lot of video it’s help me lot. Thanks
I am a trading psychologist and you are really being accurate on many aspects 👏👏👏
FOMO is derinately a big one. Revange trading has happened frequantly. Also not knowing when to walk away!!!
THANK YOU BRO. NICE TALK
Great video!
Fire video 🔥🔥
Just started my trading journey
I just blowed my first prop firm acct today 😢 after passing the first stage then over confidence carried me to the verification stage which is required of me to make smaller profit.
Is really difficult to maintain good psychology but still am never giving,
This video jxt explained all the problems I have and am looking forward to taking the corrections
Thanks man😊
I lost a lot of money in revenge trading
sir, don't use ur money, take challenges and pass
Great video from the goat himself 💪🏾
thanks Umar! good lessons!
Excellent Video Umar
I developed a bad habit of following others and winning and now I had such a loss that kept me awake all day, night and the next day. I got sick and I'm mentally screwed because I didn't know how to cut off 'the snake's head' in time. I'm oversensitive. Too stubborn. Too fucking connected to money, because I don't have it and it's hard to get it and the loss hits me terribly.
Great drop brother thank you
I love this. Thank you so much
GENIUS 🎉 bro
Done revenge and fomo. Also removed stop loss because i didn't want to loose money wich made me loose more often after a good winning streak. Not at the big money trades yet so i have not become broke because of my mistakes. Also have had to high leverage were you get to nervous when you trade.
I can relate the same thing happening to me. Mostly FOMO and revenger trading.
0:12: 🧠 The video discusses mental errors that traders make, focusing on confirmation bias and how to identify and fix it.
2:45: 💢 Revenge trading can destroy your trading account if you are not aware of your emotions and how you're feeling.
5:46: 💰 The speaker discusses the dangers of overconfidence in trading and how it can lead to significant losses.
8:22: 💡 Keeping a journal of trades is crucial for self-reflection and learning as a trader.
11:02: 📝 To become a successful trader, it is important to understand the reasons behind your trading decisions and address any mental errors or issues that arise.
13:53: 😅 The trader has a rule of not taking more than three losing trades in a day to prevent emotional decision-making.
16:27: 📚 Avoid taking trades that don't fit your game plan to prevent bad habits and potential account blowouts.
Recap by Tammy AI
I am on my day trading journey now, and I am beginning to be consistently profitable. I used to watch your videos and found them very boring, frankly. However, that was also a very naive trader previous me. I have to say that now that I am really starting to become a consistent and potentially professional trader, your videos are very helpful in helping people to try to avoid the most common pitfalls- as it's usually the pitfalls that we fall into that make us fail instead of the trading strategy- because all strategies work. Thank you for your videos! Please continue making them!
Dude this video was amazing holy hell
Golden advise
thanks for the game big bro
Thanks. Great source of knowledge and real world experience.
Do you have tips for Swing Traders?