Join 40,000+ getting mindf*cked with trading tips every week while reading The Geek Letter

(youā€™ll learn a bit about life & business too.)

Ā 

How I Trade with Zero Stress & NO Emotions

Aug 20, 2023

You have been analyzing the charts for the past 15 minutes.

You start to see a trading opportunity that lines up with your trading plan.

A morning star candlestick pattern is formed at a key support level.

Moving average has also crossover, giving you another signal to enter for a buy.

You have all the confluences and confirmations in the world to enter that trade.

But you start hesitating.

Your palms start sweating.

Your heart starts beating faster.

You are scared to lose money. 

“What if I lose this trade again?”

You start to feel anxious.

You ended up not taking that trade.

The next thing you know, the trade ended up going in your way and you regret not taking the trade.

This is a problem that most traders including myself have faced and if you don’t fix this,  you will missed out on a ton of good trading opportunities.

If you don’t fix this, you will never become a profitable trader.

That is why I want to share with you the exact process, the exact steps that I take to trade with zero stress and no emotions.

1) Use limit orders and alerts

Don’t chase the market, let the market come to you.

Good traders are alert and patient so when a setup that they have been waiting for shows up, they take it without hesitation.

Until that time comes they are not fazed by the random price fluctuations that bait all the other traders.

Just like anything in life, whatever you chase runs away. 

If you chase that girl you like and put her on a pedestal, she will be turned off by you and runs to the bad boy who does not give a shit about her.

Same thing in trading. 

The profits goes to the trader who does not give a shit about whether he wins or lose. He is not chasing trades. 

He is waiting for the best trading opportunities to come to him

You wake up this morning and you think to yourself that “Wow today is a good trading day. I definitely have to make some money!”

So you open up your charts and start analyzing the market.

3 hours later, you still don't see any opportunities. 

“BUT I HAVE TO MAKE MONEY TODAY”

So you end up forcing trades and take a few trades randomly which you know that will not work. 

I was doing this almost everyday. 

Here’s the solution!

Use limit orders instead of market orders and let the market come to you. 

Use alerts on TradingView to notify you that the currency pair is at your desired level.

2) Change the colors of the candles

Lets say you entered for a BUY here and price starts going up and then you start seeing some red candles and the trade starts going against you

You entered for a buy on EUR/USD.

Price starts going up by 10 pips.

And then you noticed some red candles being formed.

“Oh no, the trade is going against me.”

“Better cut my losses early and get out right now”

In reality, it was just a retracement, which means you got out of a good trade.

A trade where you could have potentially made money on.

But you got out because of the colours of the candles.

The solution is right in front of you. 

Change the colour of the candles.

Color affects your brain and your emotions which means it also affects your ability to trade. 

If you want to trade well, you need to trade in a neutral or unbiased state of mind

If you feel anxious when you have a trade that is open, change the colour of the candles to any other colours other than red.

Feel free to use grey, white, blue, purple. 

ANY COLOURS OTHER THAN RED! 

3) Journal your trades

“ You don’t become confident by shouting affirmations in the mirror, but by having a stack of undeniable proof that you are who you say you are. Outwork your self doubt. ” - Alex Hormozi

Trading anxiety comes from not knowing what you are doing. 

There’s only 3 reasons on why you feel nervous when you are trading

  • You don’t have a winning trading strategy that works
  • You dont have a concrete trading plan
  • You dont keep a trading journal

The key is to use your trading journal to track your trades when you are at your best and when you are at your worst. 

Record down all your losses.

Think about the times where you make mistakes like forcing trades or revenge trading

Download the Winning Trading Journal and start journalling.

4) Place your Stop Loss correctly

How many times have you enter a trade just to get stopped out in the next 5 minutes?

Chances are your Stop Loss is way too tight or you are placing your stop loss wrongly. 

My advice for you is to firstly place your SL correctly at a price point where it will invalidate the whole setup if the trade goes against you.

In this case, if the trade goes against you, your losses at minimized.

Next give your SL breathing room by placing a wider SL.

This prevent you from getting stopped out often

Bear in mind that if you are using a wider SL, you must use a smaller position size. 

Determine what lot size to use by using a position size calculator.

The lot size that you’re using should be so small that neither a loss nor a win will affect your mindset and your ability to keep trading

5) Losses are good

If you want to win in life or in trading, you need to learn how to fail, learn how to lose.

To become a successful trader, you need to keep doing what works and stop doing what doesn’t works, which means you need to repeat your winning trades and learn from your losses so you do not repeat the same mistakes over and over again.

Losing money can be a valuable experience if you understand why you lost

Making money is pointless if you dont understand why you are winning because you cant repeat it.

You cant understand why you are winning without first understanding how you could have lost in that same situation.

So start by changing the way you think about losses and your trading will change itself.

 



Join 40,000+ getting mindf*cked with trading tips every week while reading The Geek Letter

(youā€™ll learn a bit about life & business too.)

Ā 

We hate SPAM. We will never sell your information, for any reason.