Money managment or just a logical thinking ?
How many of you can say : " i can earn constantly 10 dollar /euro per day !"
The first question is of course if it is possible . My answer is deffinitely YES! To make this more easier lets ask :
"How many of you are able to earn constantly 5 dollars/euro per day ?! "
It sounds very easy but that is not true . The main problem is in thinking and in YOU. Let me show you how the human mind is working during the trading . This thing is called as "mind-set" (nothing new but very usefull for demonstration). We can demonstrate it in two situations ( bad mind set and good mind set ):
Bad mind-set :
- everything is leading to the next step
Concentrating on what is happening on the market ---------)
Concentrating on pasages where you could potentionaly earn money (possible feeling of : "how couldnt i seen this one?" ) ---------- )
Concentrating on how much money you could earn ---------)
Concentrating more on your feelings than on what you seen in your graph -----)
Changing of our own rules during few seconds --------)
The result of changing rules leads to braking our trading plan ---------)
Looses ---------)
Bigger and greater feelings of disapointment and bad feelings
Actually cant see here in bad "mind-set" any positive thing . Under the microscope we can see that from the moment we start to thing about money and how is it possible that you dont earn them you become less concentrated and you start changing your rules that leads to looses.
The right traders mind -set
Concentrating on our patterns and trading system -----)
Total ignorance of market and what it does -------)
Believing to our system and patterns --------)
Concentrating on patterns and own system for detailed execution of your trade-------)
AGAIN !!! Concentrating on patterns and own system ------)
AGAIN !!! Concentrating on patterns and own system ------)
AGAIN !!! Concentrating on patterns and own system ------)
AGAIN !!! Concentrating on patterns and own system ------)
AGAIN !!! Concentrating on patterns and own system ------)
Creating of profit with cumulative character
The final satisfaction and feeling : " Yeeaaah my system is working!"
As you can see here there are two points how traders are thinking (am i right ? ) The secret of trading is only iiin your HEAD
For now im not really sure who said it but i can remenber and im repeating this one each day :
" Dont let the money to lead your steps , but learn to lead the steps of your money ! "
As i have written we have some typical thinking of traders . Some bad mind-set and good mind-set.
Lets concentrate on the good one ,... please for now stop thinking about trading like you must be a SUPERMAN/SUPERWOMAN ....nope that is not true. All you need is to just concentrate on thing which we have written till now ( do you remenber ? check list , your personal analyzis , daily plan etc mh ? ) . So now lets describe how the good mind-set trader is thinking.
- WHATEVER the market is doing he/she is like an ice and he/she concentrate on entry/exit points , patterns and his trading strategy.
- HE/SHE NEVER !!!!!! think about what the market is doing , or he/she doesnt think about money
- HIS/HER MIND is concentrated on details, like values of indicators or waves or what is needed
- HE/SHE REALIZE the cumulative factore of profit . That means that he also have some looses , but in the summary the trader has still profit ! (Easy math mh ? Just calculate and thats it)
4 easy sentences but so hard to realize.
Now lets join this together . I have asked you , how many of you can say : " I can earn 5 dollars /euro per day constantly ?"
Just lets vizualize these things and explain some calculations and the point of CUMULATING THE PROFIT : ( lets see)
1 trading day = 5 dollars / euro
20 trading day = 100 dollars / euro ( cca 1 month of trading )
12 months = 1200 dollars/euro
( of course i realize the different value of dollar and euro ) but the point is the same. How many of you can say and proof this one ? .
Nobody is talking that from now you should earn only 5 dollars/ euro daily ,...no , definitely no : )Lets say you will after 2 months rise tha daily target from 5 dollars/euro to 7 dollars/euro per day and after that each two months rise this value by two so the final resul would be :
1,2 month - daily target 5 dollars/ euro = 20 days of trading during month = 100 dollars / euro
3,4 month - daily target 7 dollars/ euro = 20 days of trading during month = 140 dollars / euro
5,6 month - daily target 9 dollars/ euro = 20 days of trading during month = 180 dollars / euro
7,8 month -daily target 11 dollars/ euro = 20 days of trading during month = 220 dollars / euro
9,10 month -daily target 13 dollars/ euro = 20 days of trading during month = 260 dollars / euro
11,12 month -daily target 15 dollars/euro = 20 days of trading during month = 300 dollars / euro
The total earning for the whole year will be = 2400 dollars / euro (i think this one is more interesting ).
This one could be for you a NEVERENDING proces . And if you ask why we should rise after two months the profit by 2 ? I dont know ,... lets say we want just SAVE trading By the end of this now realize and take by heart the CORRECT mind-set and lets work on it . If we join this with some money managment rule this could be for you very usefull. So again
How many of you can do this ? :P Wish you many green pips guys
