12 Feb, 2025
One thing that many people try and do is switch between strategies constantly. This is setting you up for failure, and if the concept of probabilities is truly understood, you will comprehend the reasons why a single strategy will work.
Any strategy is not going to have a 100% win rate, so first, you should attempt to get 50% of your trades right. After that, mastering a 2:1 reward-to-risk ratio is what will make you profitable. Trying to juggle many strategies will have you working tirelessly but not moving forward in any particular one.
Many people have the misconception that spending countless hours in front of the screen looking for potential setups is the key to success. However, that is completely wrong.
I now spend minimal time looking at charts and setups. Instead, I highlight key levels, set alerts, and simply wait for the market to head there. Time spent looking at charts should be focused on education—mastering your strategy through backtesting and understanding previous data.
Anyone that knows me knows how big I am on trading psychology and how I believe it is the most important aspect of trading.
Emotions in trading can be one of your greatest enemies, leading to failure even after initial success. Winning trades can lead to overconfidence and irrational decisions, making you believe you can outsmart the market. On the other hand, losses can create self-doubt and hesitation, preventing you from taking good setups.
This is why the market needs to be approached with a completely neutral mindset. Once you understand that for every person on one side of a trade, there is someone on the opposite side, you will begin to see that the market itself is just a collection of neutral information moving in nobody’s favor.
Affirmations are powerful and have helped me in all aspects of life, not just trading. Writing down your goals is crucial to manifesting them into reality.
All ideas first begin in the mind before becoming physical. Your goals need to be solidified, definite, and written down so that your mind and body align with them.
Every single day, read your goals aloud, envision them in your mind with every bit of detail possible—this is the first step in making them a reality.
There is no need to rush a single thing in your trading journey. Believe me, every time I tried to rush, I failed.
People attend university for years before entering a career, yet many traders expect to master trading in just one year. Patience is required—whether it’s on the charts, with your strategy, or with your learning curve.
If you aim to make trading a lifelong career, then taking your time is the first step. Nothing great comes from rushing, especially in the markets.
Based on your strategy and understanding of probabilities, several key principles will help you manage your trades correctly:
Your stop loss is placed where the trade is invalid, and it is determined before entering the trade. If you find yourself moving your stop, ask yourself why. Most of the time, it is due to fear of losing money. Accept your loss and let the trade stop out—it was placed there for a reason.
If you have a well-developed strategy, trust that your winners will outweigh your losers. Avoiding trades due to fear could mean missing out on your most profitable setups.
Many traders enter winning trades but fail to exit at the right levels, leading to unprofitable results. Your profit is not yours until the trade is closed. Define a system for exiting your trades effectively.
Yes, you have heard it a thousand times, but risk management is the single greatest factor holding most traders back from success.
Many traders have great strategies and good reward-to-risk ratios, but without proper risk management, they ultimately fail.
I've seen traders over-leverage on a trade just because it "looked too good"—only for it to be the worst of the bunch. Others have lost tremendous amounts, not because they had 100 bad trades in a row, but because one single trade wiped them out.
Master risk management, and you will be ahead of those with even the best strategies but poor risk management.
The only way to improve in any area of life is to first recognize what needs change and then work on it.
A trading journal is essential for tracking your strengths and weaknesses. Honesty is key—lying in your journal is only lying to yourself.
If you are serious about improvement, you must identify your flaws and actively work on them.
You should never feel discouraged or behind. Trading is one of the biggest psychological challenges, and that is exactly why not everyone succeeds. Instead of seeing setbacks as failures, see them as opportunities to grow.
Trading teaches lessons that extend far beyond the markets—it will shape your discipline, patience, and mindset in all aspects of life.
Mamonex TeamMamonex TeamMamonex Team
Trade smarter, Grow faster
