Trading Psychology is Bullsh*t... here's why.
ฝัง
- เผยแพร่เมื่อ 4 มิ.ย. 2024
- I use TradeZella to track, journal and backtest my trades.
www.tradezella.com/?via=umar
Follow my socials:
Instagram - / umarashraf
Twitter - / umarashraf
#daytrading #tradingpsychology #trading
Should I make a video on HOW to develop an edge? If so let me know👇
Definitely
yes!
Yes
Maybe make a better video on trading psychology first, because this shows how little you know about it.
Yes
Just wondering from your shared investing ideas, what do you think will be the next Apple/Microsoft in terms of growth?
None! 🚩the market is so volatile RN. It's getting harder to satisfy Wall Street.
Not true at all... Companies are making record profits... Believe it or not, the market isn't as bad as some people have made it look... In all honesty, as a beginner investor who knows next to nothing, I have made over $15k net profit in a few months of day trading ... I'm a retiree, and I am using these extra resources to keep body and soul together that I want.
Hi Mr Ducky, your profit margin is quite impressive for a beginner. Can you share your spreadsheet or journal? Thanks if you reply.
I have never drawn up a spreadsheet... It's of no relevance to me... I do practically everything through an investment expert, Kelly Marie Matwick... You can look her up she's registered.
I have a 3 fund portfolio consisting of 33% S&P, 33% Total stock, and 33% international. I feel a need to focus on complete growth so I went 100% stocks, but does the SP500 and TSM overlap too much to make sense holding both? However I’ve been in the red for a month now. I work hard for my money, so investing is making me a nervous sad wreck. I don’t know if I should sell everything, sit and just wait but watching my portfolio dwindle away is such an eye -sore.
There are many other interesting stocks in many industries that you might follow. You don't have to act on every forecast, so I'll suggest that you work with a financial advisor who can help you choose the best times to purchase and sell the shares or ETFs you want to acquire.
I agree, that's the more reason I prefer my day to day investment decisions being guided by an advisor, seeing that their entire skillset is built around going long and short at the same time both employing risk for its asymmetrical upside and laying off risk as a hedge against the inevitable downward turns, coupled with the exclusive information/analysis they have, it's near impossible to not out-perform, been using my advisor for over 2years+ and I've netted over 2.8million.
I think this is something I should do, but I've been stalling for a long time now. I don't really know which firm to work with; I feel they are all the same but it seems you’ve got it all worked out with the firm you work with so i surely wouldn’t mind a recommendation.
Finding financial advisors like Marisa Breton Dollard who can assist you shape your portfolio would be a very creative option. There will be difficult times ahead, and prudent personal money management will be essential to navigating them.
Marisa has the appearance of being a great authority in her profession. I looked her up online and found her website, which I reviewed and went through to learn more about her credentials, academic background, and employment. She has a fiduciary duty to protect my best interests. I sent her an email outlining my objectives and also booked a session with her; thanks for sharing.
Yes Umar, correct.
1) Psychology is the hyped logic to sell their courses.
2) You can take bad decisions when you don’t have your setup defined
3) As long as your setup is defined exits and entries must be refined through that
4) Your psychology helps you in different vantage points and approaches
5) Rule book helps you in Overtrading too.
6) Your psychology comes in play when you can’t let your winners run and let your losers run
best comment on this post 💯💯💯💯
I've been sayin this since it dawned on me too, a rock solid strategy trumps "psychology" and to develop that takes time, but once you have it down you just follow your strategy to the T and a true strategy has many nuances and subtleties because it needs to adapt to any environment, volatility, seasonality, different types of market etc, and that requires a lot of repetition, experience, screen time so on and so forth
once you've completed all these stagies you're just a robot, executing the program, this is the final level, and we know robots don't have emotions therefore no need for "psychology"
@@scorpioindigoo thanks mate
"Facts: It's hard to be patient when you don't know what you're supposed to be waiting for. Work on that playbook, then work on your discipline and patience to stick to it."
Exactly not having a playbook trigger wrong psychology, impatient
Need more Blcktken300 content. Converted my ETH to BTC but kept my Blcktken300
Psychology does not equal emotion. Psychology is about your beliefs and your mindset - the way you think. Emotions are then physiology - a body/chemical response to the thoughts.
Your beliefs about trading can impact HOW well or poorly you design your edge... as well as how you react to price when trading that edge.
In my opinion, better mindsets unlock better edges and aid better emotional management down the road.
1. Psychology should come first. Understand the game AND how to think about it. Understand yourself, the responsible party clicking buttons.
2. Let that knowledge help you build and refine your Edge.
3. Finally, emotional awareness, breath work, and meditation can unlock clarity and better execution.
of course, one will probably only move through things in that order if they have a mentor directing them... which I wish I had when I started
Powerful, coming from someone about to get started at 50! This dog's gone learn some new skills.
That makes sense by making sure you have a winning strategy to begin with, it will eliminate a lot of the emotion before you even place a trade.
It doesnt though because you never know whats gonna happen next lol ("making sure?" there is no certainty... ZERO) you never know if you have a winning strategy because any strategy can make money, intuition is the "holy grail". Eliminating emotion is a by product of taking conscious control of the emotions themselves and changing the beliefs that trigger the emotions so theres no longer any potential to feel those negative emotions. YOU DONT NEED TECHNICAL ANALYSIS PEOPLE, ANY FORM OF IT, ZERO, ZIP, SQUAT! No offense to Umar, great trader, but Mark douglas has this dude beat by a mile. Trading Psychology is the only thing that matters. "Edge" is literally everywhere.
That's why the late Mark Douglas always said that he expected people already had an edge before he could start his psychology lectures...coz his work was not to teach edge.
I wonder how it gonna looks like when a new trader without experience in trading decide to learn trading by reading trading in the zone at the first place... Cuz, i dont think they gonna absorb or understand the information what is going on if they never experience the trading process itself.
I dunno. Mark Douglas told me to not worry about psychology, and just buy cheap OTM weekly call options.
@@deedsofdecapitation7477i buy otm options and yesterday turned 200 into 1105.
What matters is defined strategy and trending market
On my experience when a person have an edge that's he truly understand he probably have a good phycology automatically.
Great video. Im a huge Blcktken300 fan and love your videos on it.
THANKS. Just what I needed to watch. My husband and I are administrators of our farming business and our own properties, as well as small pensions. I am almost 56, my Wife is 52. We have started saving for retirement from the farm and maybe live off rental income, I would really appreciate it if you would do a video on how to earn passive income online and retire comfortably let's say 1 million bucks.
As with my big financial decision,it’s important to keep your guard up for economic risks.
However, smart planning, time management and getting a professional trader can help keep you and your money safe.🎉
Agreed. It's always wise to be proactive and consider diversifying our investments to manage risks in uncertain economic times. I delegate my day-to-day investing to an advisor ever since suffering a major steep-down late 2019, amid rona-outbreak, and as of today, I'm semi-retired with barely 25% short of my $1m retirement goal after subsequent investments
Whats'app
┼ 1
33440
simple video but sometimes the simple ones are best. Important to judge where you are at with your edge. Define where you have an edge and make sure it is real through testing and practice. I have really very few tools that give me an edge, but I have found ways to combine those tools and use them to trade different scenarios/setups. I still need to work on improving those setups to know the best ways to trade them through back and forward testing. I am sometimes too anxious to trade setups when I have not clearly defined how I SHOULD trade them based on an analysis of data I have collected. I have to start with clearly defining my setups and having a framework for how I should trade each setup. Only after that happens can I focus on improving the execution and controlling emotions. I definitely had this backwards for a long time and I still sometimes let myself think my problem is emotion when it is more about not having a clearly defined strategy and method for trading that strategy.
I love watching Umar Ashraf, Stock Brotha, & Everything Money. Love them all! ❤ ❤ ❤
One of the best explain of
Edge & Emotions👏👏👏
Top video. Sounds quality was a bit off for some reason though. hope you fix it. not major thought bcz content is always king!
Great info! Conquering the emotions💯
Blcktken300 is the embodiment of crypto euphoria! 🌟
SO glad you posted this! I noticed this with myself. Since I’ve become profitable over the last year I’ve seen how strategy/edge is truly the first thing to get down and THEN the psychology follows because mentally you must adapt to your style of trading based on your edge whether it be certain timeframe, risk appetite, etc. but that all formed from having a edge and system! Thanks so much brother confirmation right here for sure
Nice info and tips, I do have an edge, worked on it in isolation for 2 years straight. The only problem I have now, that I need to figure out is when I draw my levels and take no action when it gets hit, its a perfect level, perfect entry. When I do the exact same and I go in, its a totally wrong entry, as many can imagine, thats absolutely annoying, but nothing else to do than to go back to the lab again for the final touches. Good luck to everyone!
Extremely grateful for your ability to teach in such simplicity. Grateful for your channel !
This really make sense. You're always my Inspiration.
what program do you use to stream what you are writing on pen/paper onto the video like this?
Is it a special tech pen/pad?
Thanks for your free course it’s been awesome in accelerating my training!!
*Excellent content! I really do have a question. For someone with less than $10,000 to trade, How would you recommend we enter into trading as a newbie? I am looking at trading with professional trader and copying their strategies rather than trading myself and losing money emotionally. I would greatly appreciate any suggestions.*
Wow!!! I'm a beginner where can someone reach Mr Morris.
Wow!!! I'm not shocked that Mr Morris name was mentioned and recommended. I learn and earn through he's analysis. Which speaks volumes about him. I wonder if he trade with magic power. 48k made last week.
I'm a newbie in trading, but I'll linking up to your coach. This is useful info❤️♥️♥️
Instead of 10,000$ bring that down to 1000$ in the meanwhile understand how markets work and start taking the heat of the markets by maybe buying stocks worth 100-300$ this will help you in understanding the schematics and mechanism
Avoid copying trades, once you understand the mechanism you will start to like the process and develop more confidence as well
Futures trader here - When you backtest, do you have a program that inputs all the parameters and just like...highlights them? Like ctrl F. Or do you manually scroll and find each setup 1 by 1? Trying to get my shit togethet and thats one backtesting question im working through
I disagree, I think emotions play a role during the entire process. From the very beginning and it’s something you must continue improving in if you want to continuously grow in trading. But I also agree that there’s a lot of beginner traders that blame emotions when in reality they haven’t developed a trading edge.
are you profitable.. do you make at least 6 figures a year trding?
I know traders who have no care about motions that jumped right in nd made money and continue to until this day. They knew nothing of psychology. It is simply buy and sell starting with a 50/50 chance. Build from there.
@@godsoracle1212 true bro, but the consistency curve of profitability doesn’t last long without an edge
The man I look up to, always speaking facts, no bs.
Thank you.
I've just come out of the second phase, and I can say you're correct 💯
Thank you for your support and all the best for your future
Thank you for your videos. A quick question, is there any reason to be worried about liquidity trading SPY's 1 day expiration options in a normal market if you are trading 100 contract a a time?
The sequence is beautifully explained brother 🖤
Hey Umar, what would you consider to be a realistic annual returns? something like 24% ?
Great video. I also think, the only time emotions/psychology plays a role, is if a trader is not confident in their setups/strategy. A professional trader doesn't have that problem, he/she will always be confident in their setup/strategy, win or loss, because they have back tested their strategy and they know that over a series of trades, they will be profitable, so they don't care if they lose 3 trades in a row, if thats a part of their playbook/strategy.
Claiming trading psychology oversimplifies things. Emotions impact trading decisions, and ignoring that can lead to mistakes. It's crucial to recognize the role of psychology without entirely dismissing it.
Absolutely. Emotions can cloud judgment in trading. Acknowledging the challenge and seeking advice from a financial advisor who understands both the market and human behavior is key. It's not about ignoring psychology but managing it wisely for better outcomes.
Like Carl Jason Cohen
Hey Umar, please what is the app you’re using to take down this note on your iPad you’re using to illustrate on the video. Thanks
For how much time you forward test a strategy for?
Thank you for this. This was perfect. Never thought of it like that.
That's what I have always thought. A lot of "mentor" say psicology is more than 80% and that's where I know is a bad mentor and maybe even not profitable
Psychology is important, but you should focus on it once you've developed a profitable strategy...
What trading platform or app do you use to place your trades? Thank you.
I was just thinking of developing an edge by watching your interview with first thing thrust .......and how can i do that .....what is the proper way ....and this video uploaded ....thank you universe ......thank you sir ....this videos means alot to me
Great information in the video but also really divisive. We all have different backgrounds and this “edge is more important than psychology” idea really undermines where we individually come from. Some people’s psychology is preventing them from even being able to consistently identify or craft an edge and caps their growth potential (I’m a prime example of that lol)
Great insight, one of your best if not the best.
Dude, that is so good! Clarity is a superpower
When will you come out with a trading course?
This is absolutely correct… yes you need both but I’d say learn your way around the markets first by understanding how to trade and having a process and when when your able to execute then psychology comes in.
Perfect video. Thank you ✍️😉🙏
How do you check if your edge is working ? It’s not possible until you do real trade which means emotion would come by default. So both work together not first and second.
This man has quickly become the Tony Robbins of trading.
Trading psychology is absolutely necessary for when the edge doesnt work.
Great video, Loving your content ....
Beautiful content!!
SImple and clear explanation of the fundamentals of trading. This kind of knowledge only comes from self reflection and experience.
Thank you Sensei, this video was exactly what I needed today.
You are always such an inspiration, and greatly appreciated!
Exactly what I was looking for. Thanks for sharing
Can you make a video on how you select which stocks to trade? What is some of the things you are looking for in your research?
Umar, mad respect for you, both your trading and your Tradzella venture (the Ferrari of trading journals). Your Vids are intelligent & to the point, your success without question, and I never leave with the feeling that you have an ulterior motive or don't give a dam about helping others. Thank you.
Without a measurable system (or Edge), we can't know if it's our system or our psychology or both causing PNL losses. Trading a sim account without real money is how to safely develop the edge & remove the psychological variable, then with real $$$ we can test our psychology.
If I could ask 2 wishes - 1) some real time examples of watching order flow in the tape or level II, you've teased more detail, but I can't find any vids with it. (i.e. showing a live tape and calling out what you look for and what you infer from the activity happening) and maybe 2.) unpacking at least few basic rudimentary playbooks you use often instead of the quick peeks we've seen that are of great interest to many! Thank you sir! You are appreciated.
Great lesson Sir.. You describe basic point to making edge
Could you please make a video about strategies/paterns that you look for when trading something like crypto. Like what kind of patterns you look for besids the footprint chart/dom. Like, what triggers you into something like 'OH! We git someting here... Could you make a real in depth widow about that? And what kind of books could you recommend to people who whats to start daytrading? THANKS!! you're helping me a lot understanding daytrading🙏🏽
This video gave me more guidance than any Trading psychology book. Thanks Umar.
This is so important. Without an edge, all the psychology in the world is useless. People in the comments are misunderstanding your video and think it’s an or argument.
It changed the game for me combining Retail trading plus SMC and actively reading candles movie to identify buying or selling power
rofl There's actually a video on this guy's landing page about "7 things he learnt in 10yrs trading" and the last section is "trading psychology" in which he explains that "trading is 90% emotion, there's so much psychology involved, I can't stress this enough." Clearly a very serious person.
100% bro. Very insightful video. Edge first and then psychology.
The trading world needs your mentorship!
Which EA/ robot would you recommend to trade? Plz reply
Sir , if I am using a multi timeframe strategy to trade , and my edge is observing a 15 min bullish candle for entering at 1 min swing low, can you please tell me what should be the exact stop..1)the 15M candle low(that I am using for entering) or 2) The 1 hr structure point on the basis of which I am considering the 15M candle as my entry?
We need a video of how to build your own strategy
Build a strategy is not hard. Building a strategy that's have an edge that's super hard.
Thank you very much boss. Great insight.
I will be forever grateful to you, you changed my entire life and I will continue to preach on your behalf for the whole world to hear you saved me from huge financial debt with just a small investment, thank you Katherine Flores.
Wow. I'm a bit perplexed seeing her been mentioned here also Didn’t know she has been good to so many people too this is wonderful, I'm in my fifth trade with her and it has been super.
She is my family's personal Broker and also a personal Broker to many families in the United states, she is a licensed broker and a FINRA AGENT in the United States.
You trade with Katherine Flores too? Wow that woman has been a blessing to me and my family.
I'm new at this, please how can I reach her?
I was skeptical at first till I decided to try. Its huge returns is awesome. I can't say much
Brilliant video. Thank you very much for it 👏🏼
you can have an edge and not make money consistently(due to lack of trading psychology)
You can have develop trading psychology and not have an edge(due to lack of developing a structure in an unstructured environment)
Solid video ❤️
What platform do you use when you trade thanks
Good one! Thank you
Atas or Sierra Charts? which one would you choose?
How to catch or understand the imbalance in buyers and sellers . Some days its obvious like sun and moon but on other days its hard to understand the imbalance.
It's my request bro, I'm a day trader and i have 4h as my higher time frame, 15min a structure time frame, and 1min as entries. Is it important to watch weekly, dailly, monthly chart and mark poi's from all the time frame? or just 4h's Poi's is enough for day trading?
Great explanation, I'll say this also, the emotions aren't as bad when you have done the work of back testing and forward testing. By that time a real trade is on you should have a lot of confidence in your set up and an understanding of how to handle it when it doesn't go your way. Trade what works for you and practice both the wins and the losses so your ready for anything market will throw at you.
Some disagreed with him but the reality is you’ve got to know what your plan is. Then you deal with sticking to it. That is the psychology side of it sticking to a known plan.
@@drleo6409exactly! I dont backtest , just follow my plan and becoming profitable, always ensuring losses are minimal. Only two trades per day. Three when the market is exceptionally good. That's it. I don't trade at all if i don't see my setup. Day trading doesn't mean trading everyday. You must wait for the setup, if it doesn't show up, no trade
Sometimes it's time to go long, sometimes it's time to go short and sometimes it's time to go fishing,
Jesse Livermore
I understand your point but i have been doing this for 3 years now and what i feel is from these two things your peychology is most important and then your risk management if you have these two even if u trade with the coin toss everytime u can make profit but its not and shouldn’t be the end goal
what an eye opener
100 % correct!!
the point of this video is if you don’t have a good strategy, you’re not be able to trade, yes having an edge is difficult but you follow your rules of your strategy, the psychology doesn’t affect your trades…
Hello sir tradezella is not available on Play Store, what can I do.....
How to Create Account in think or swim please with this video and make a tutorial of think or swim please ❤
Thankk you umar! Please can you give us some books recommendations
Couldn’t of said it better.
There is no doubt that trading psychology is extremely important, but it’s completely useless unless you can prove it’s an issue.
The only way to prove it’s an issue is to have an edge and display difficulty allowing that edge to play out.
Then and only then can you address it as a psychology issue.
Anything in trading is secondary to actually having an edge.
I love it that people are bringing more light to this, i have a friend he went live after two days of learning about forex, he didn't even know what a pip was and he was like i can't do demo there are no emotions, that's when i realised a lot of people don't really know how to trade😂😂😂😂😂
Solid advice.
Wonderful brother!!!!
I am a new trader.....started 2 months ago....
I can relate to wad you say...!!!!
Nd honestly....untill now....by default.....I am trying to approach it the other way..
.!!!
1st emotion...2nd system
And I end up blaming my psychology....
Felt it today itself...!!! After exiting my positions....!!!! SO A VERY FRESH EXPERIENCE 😂😅...
WELL
..YOUR WORDS HAVE MOTIVATED ME TO NOW CHANGE MY APPROACH.....
AND HOPE TO GROW....AND CHANGE
Thanks!
Hey Umar, can you do a video on how to build confidence as a trader
very very very well said! thank you
2 years back I was just trading with Price Action concepts....Now I have started using Data Analysis with Price Action and trading Opening Range Breakout & the results are improving....But as you said I've no control over emotions and many times I end up with frustration 😢
Incredible insight!! What a maturity at such a young age .. you are doing tremendous good to the world of trading
This is the summary about everything you need to be profitable i swear 😢 🙏🙏🙏🙏❤
Thank you,extremely valuable video.
True. Without positive expectancy strategy, all you can do by being psychologically strong is to confidently and consistently lose money. When there is proven strategy, no need to think hard, just follow plan and probabilities will do the rest. Unless a trader is on meds or mentally unstable, every healthy human is already psychologically strong enough by default to make money when there is a proven plan.
Thanks for sharing
Need more about this.
I've always wondered... the only way I can manage my emotions successfully is when I have a proven edge with rules. If I operate within my rules and my system I am not emotionally connected to the trades since I've followed my playbook. It's only when I break my rules my psychology becomes wrecked.
You the man brother!
what are you drawing on?
yo which app is most userfriendly for forex in pakistan i am beginner with low investment