Psychological Mistakes Traders Make AND How To Fix Them

#tradingstrategy #psychology #daytrading
I lost over $500k from making mental mistakes in trading.

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I use TradeZella to track and journal my trades.

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

[NicholasBall]

Becoming a skilled trader requires time and patience. When I first started trading, I was liquidated twice and lost my entire mortgage deposit. Although I could have given up, I chose instead to learn how to trade and apply that knowledge. Four years later, I'm glad I made that decision.

[charltonallen]

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.

[dennisshulz]

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.

[puseletsobushy]

I lost a lot of money in revenge trading

[TheOlRazzleDazzler]

Coming from a 7yr trader here. Nice job on this. Trading is 95% psychology.

[UmarAshraf]

What are some mental mistakes you make as a trader??? Also give this video a thumbs up if you found value! :)

[aggerleejones]

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.

[rakeshbmadhwani]

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

[lilytea]

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

[skynosaka]

Psychology is why I don’t paper trade anymore. Paper trading is fake trading. If you fake trade you’ll trade with fake emotions. I have never been able to replicate my paper trade track record when I move on to trading a live account. This is why I practice with a really small funded account with the amount of money I’m ok to loose. This way I trade with real money and real emotions. This is the only way to practice effectively and develope a track record that really shows How you’re performing.

[tsilver]

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 YouTube channel, Much Blessings my Brother and Blessings to everyone trying to be profitable traders.

[CharindaElikewela]

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..

[ahsanyamin]

Very lucky to have had a mentor like you at the beginning of my trading journey

[jimcudasnyder]

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!

[jayeshkhokale]

One of the Best video i have ever watched truly i can related with myself .

[Caezarsworld]

Best trading psychology video of YouTube 2023!!! 🏆

[zainqureshi]

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

[skaltamash]

Very few people on YouTube talk like this about trading and phychology great content very help full for me specially thnku so much ❤

[___]

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.

[finanzferdinand]

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