Work-life balance as a trader – Miscellaneous – January 17, 2024

When we start trading we dream of becoming super rich and although it is possible, only 5% achieve it.

First of all, you need to know where the risk is and where the money is. You can’t truly make money if you don’t take risks.

There are different stages in a trader’s life that we will share in this blog.

1. Starting – As a beginner, traders only dream of making big money and get inspiration from content creators rather than real traders. They usually post edited screenshots of their earnings. This makes traders dream of being like them, but in reality real traders don’t have time to be on social media. They are busy enjoying life and don’t have time to create a cool banner titled “Sureshot strategy” on YouTube. Accept the facts and move on. If your goal is to gather information, watching content creator videos like “what is the william % indicator” search will not affect you psychologically in your dreams.

2. After initiation: At this stage, the trader may have gathered enough information to start trading with real money. He may even make a good profit of several thousand dollars or more, but if not today, then certainly tomorrow everything will be zero. Because only 5% reach that rare level of loss in the market. For day traders, taking a loss is not a problem as long as the entire position closes at a profit on the weekend or the same day.

Since the market is blind, the trader wins first and in some cases you will be rewarded even if you are wrong. But losing makes you want to learn more and work harder. You study more and come back now with stronger knowledge, but you are defeated again and this cycle of defeat never ends.

In fact, many novice traders I know have shared their experience of having win cycles of a week or more before completely wiping out their accounts.

This is because the market operates based on accumulation and distribution across multiple time frames. For example, a trader trading the lower time frame of 5 minutes and winning for several days means that he is all good until the upper time frame of H4 is in that particular zone. For example, starting from H4 when accumulating, distributing, if the risk is not managed well, the M5 trader’s account may disappear, and beginner traders have no idea how to manage risk at all, so there is a 99% chance that if not today, then tomorrow they will definitely be a loser. %no see.

At this stage, traders face emotional problems that can ruin their psychology and health as well. If you lose money and keep losing your mind, you tend to get back the money you lost, but I will give you one piece of advice that you should remember for the rest of your life. Historical losses should not be taken into consideration. What if your friend asks you what your total income was over the past year? When you look at a trade and see that it’s $50,000, it makes you weak and psychologically makes you more prone to making errors in your trades and making aggressive decisions.

You should think that what you lose in the market cannot be returned. Historical life is like a dead body; we cannot keep it alive, but we can make plans for our children.

You have a new day where you can take the risks you can afford and have the potential to make that day’s profits.

Conversely, if you maintain the opposite mindset and try to recover a $50,000 loss when you have to invest 3x the $50,000 that gives you a small hope of recovery, you are very likely to lose $50,000 or more, and it is very likely that you will incur a loss. It causes you great depression.

At this stage, traders usually lose their minds. He continues to look at the chart. Did you know that he can work up to 8 hours a day? Although some countries have laws preventing people from working more than 6 hours a day, the forex market operates 23 hours a day on weekdays and cryptocurrencies operate 24x7x365.

This makes retailers even more addicted.

Another problem arises at this stage when traders miss trades. Because it is impossible to capture every movement in the market. This makes traders more aggressive and prone to making more errors.

Remember that the market is blind. You just need to follow some laws of price action. That’s it.

At this stage, the trader’s health may begin to deteriorate as it is risky to work more than eight hours. I got to this stage in my research and development where I would work 18 hours a day in front of a screen until I found a system that worked. This took months and a logical approach such as bookkeeping, recording feedback in Excel files, creating flow charts, etc. The complex part was big data analysis and forward optimization.

Most things today can be purchased online. Today, apps give you what you want in minutes. I used to keep ordering everything online – groceries, food and even vegetables. This was very comfortable, but I soon realized it didn’t feel right. When you eat food that you cook yourself and feel special, once you realize that, even today,

Take a break from the business and go to the local vegetable market to buy groceries and other items that can be ordered online. I walk, stay active, and go to the gym. This time I spent about 3-4 hours of my day. When you come back and check your laptop, you will see that several profitable trades are missing, causing you to lose $$$$. But if you keep making money and sitting in front of your laptop, your health will suffer. So work-life balance is always important.

what do you think? If you continue to make money as a merchant, you will lose your health.

I think it would be more rewarding if I could work 3-4 hours a day and earn money by working 8 hours a day.

PS: We are not discussing EA, only manual trading.

We will discuss this in more detail in the next blog.