Expectations and Trading

Expectations and Trading

By Crypto4light | crypto4light | 27 Apr 2023

Expectations and Trading

When you trade, you look at chances that either come true or don't. You can't expect or demand anything from the market or from other people who take part in the market. No one owes anyone anything in this world, and trading is no different. 
In trading, you have complete freedom of expression; you can do almost anything and however you want. This freedom will show you how irrational people are and how they can't just control their thoughts, feelings, and actions. 

All traders lose money because they take too many risks and don't have enough self-control. How long does it take for a trader to lose control of himself? A feeling of being left out  It all starts with the idea that money has been lost. This feeling is exactly what makes people want to take more risks. 

You open the chart and see that the price of your favorite asset has been going up for more than a day. Then you start thinking about how much you could make and where you could spend that money. This makes you want to buy an asset with a larger volume so you can make more money.  You make a trade that is set up to have the best possible outcome, but you have no idea or acceptance of the possible consequences. 


Take a look at what you have done so far. Are you ready to put everything on the line? If the answer is no, you should ask yourself, "Why do I want to put everything I have at risk?"  Most likely, you feel this way because you want to make a big change in your life. But do you really know what's at stake? 

"Filter of perception" or what are the risks of expectations? 

What happens after you have set up the expectation that the trade will go well for you? When you go into a trade with more money than you need, you somehow set yourself up for a good result. Your mind starts to ignore information and signals from the market that don't fit with what you already think, as if you were wearing blinders. You won't know for sure how this filter works until you close the deal and stop having false hopes. 

Is trading something that everyone can do? 

Trading is not something that everyone should do. To get good at this craft, you have to work on yourself all the time, get over your emotions, control your thoughts, and question your own decisions while always following the rules. Don't give up on trading if you think it's not for you. You can be successful if you only do what you really want and work to improve yourself and show off your inner potential. 

What is it to trade? 
Trading is a game of chances, and you should have the right mindset for it.  You shouldn't feel bad when a stop loss happens, because if you use a method that has a certain chance of working, you know that in the end, you'll still have made money. It's just a matter of time.  You can survive and put off the so-called "trader's cycle" only if the trading process makes you feel good. 

System trading 
System trading means that you only make a trade under a certain set of rules. Your system could include chart patterns, candlestick formations, indicators, a certain astrological date, and more. No matter what, it's important that the chance of success and the risk vs. reward are both high. As soon as you make your own trading system, start keeping a trade diary, write down the rules of your trade, and answer when you enter a trade, you will be in the big leagues of traders, and nothing can stop you from making money on the market. If you stick to your own rules, you'll be happy with both your take profit and your stop loss, knowing that you did things in a planned way. It is not your fault that the stop loss worked or your credit that you got a take profit. 

Worry and concern 
Before making deals, many traders are afraid and have doubts. These feelings are bad for you, so don't give in to them. They will only get in the way. You might be scared to open trades because the amount of money you risk in each trade is too high.  Let's draw an analogy. You and a friend make a bet on the flip of a coin. The coin is strange, so it comes up heads 70% of the time. If it comes up heads at least once, you lose. If it comes up heads twice in a row, you win.  Can it happen that heads come up twice in a row by accident? What's four? Yes, it sure can! Your task is in increasing the number of coin flips to win the bet as often as possible over time. The same is true of the business you do. When you act in a systematic way on the market, you might get four stop losses in a row. But at the same time, you shouldn't lose a lot of money that will change the way you live.  One to two percent of your capital is the best amount to put at risk in a single trade. Getting a stop loss only won't throw you off your emotional balance and let you fall into the "trader's cycle" if you have so much used volume.  If you don't think this is enough, ask yourself, "Is the goal of your trading to try to increase the size of your capital no matter what, or to keep it and grow it?" 

How often you trade ?
Overtrading, which leads to "trading burnout," is not a small mistake made by new traders. Your job is to wait in a humble way for a new system to set up on the chart. You don't have to look at the chart every ten minutes. Instead, decide on your own what timeframes you will use to trade, and keep in mind that the longer the timeframe, the more reliable the signal. 

Take profits and stop losses in a row 

The most important thing to remember is that you must keep acting according to your trading system, no matter how many stop losses you get in a row, and you must keep not acting against your trading system, no matter how many take profits you get in a row. The market can be irrational, and technical analysis may stop working at those times, but that doesn't matter. What matters is whether you are acting in a systematic way and whether you are in control at this moment. We can get several stop losses in a row if we only follow our trading system, but we don't have to worry about losing a lot of money or feeling bad about ourselves because we know that over the course of a few years, we are statistically certain to succeed if we trade on system entry points that have a 70% chance of working out and a ratio of possible profits to possible losses of at least 2:1, which guarantees us a profit even if we lose. 


Real traders trade probabilities based on market signals in the moment instead of building expectations, because they know that expectations lead to unfulfilled expectations and missed opportunities. You can only make money with a system, self-control, and time.

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