My Lessons Learned (Retro)

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I believe that psychology in trading is more than 50% of success. Each trader goes through ups and downs and it takes time to generate one’s own trading system. The most sophisticated guys develop their own algo strategies, robots, nowadays we talk about AI as a next step. Even in automated trading systems the role of human being is crucial and psychology is a key.

I started trading in 1999 and it took years and decades to understand the importance of psychology. I’m sure most of the traders get to the point much faster. It really depends. I’d like to share with you my recent Lessons Learned from 2013 to 2023 in a short version (full version is available in Pro Course). During this period I concentrated most on US markets, cryptos, commodities, Forex. Hope, you’ll find it useful and it could save you a lot of nerves and money. It’s kind of long read, but let’s start.

PART 1

1. Think with your own head. Trade according to your own signals and system.
2. Markets are non linear.
3. Levels are more important than candles.
4. Сandles become obsolete. In today’s world they are more often misleading. Only the most obvious options should be considered.
5. Do not trade just because you need money for something.
6. Correct entries lead to quick profits that must be fixed. Otherwise it can also quickly turn into a loss.
7. Big initial deposits lead to excessive self-confidence and relaxation, which leads to quick big losses.
8. What is easily achieved, is little appreciated.
9. Too far stop losses create only the appearance of risk management, or they do not exist at all.
10. Too much volume of positions even if they are in the right direction due to the non-linearity of the market lead to margin calls and stop outs, which can bring the deposit close to zero.
11. Night sessions near the monitor are unnecessary and very harmful unless there are no extreme movements in the market.
12. IF FIXED ALL THE PLUSES, I WOULD PROBABLY BECOME A MILLIONAIRE.
13. During a calculation of position, there should be maximum concentration, nothing should be distracting, no news, scandals, etc.
14. With manual trading, the number of transactions is directly proportional to profitability.
15. Profitable positions must be closed with a ladder, gradually, by Take Profits.
16. Just idintify who you are: bulls, bears, pigs, sheep, hares, wolves, lemmings, moose.
17. Say “no” to situational trading, when you sit and look at the candles on the monitor around the clock, then impulsively make a decision, so you become “a mass trader”.
18. RESPECT THE MONEY AND THE MONEY WILL RESPECT YOU.
19. Arrange for your own trading system and test it on a micro account.
20. Quick profit is the right profit.
21. Trade only with a clean brains and in psycological balance.
22. ECOTRADING
23. Metals and Energies are the most dangerous instruments for myself. Be especially careful with the volumes.
24. MOST OF THE TIME IS IN CASH.
25. And what can not be, one day can also be.

PART 2

26. The euphoria from large amounts is similar to alcohol intoxication and alcohol in unlimited quantitites, which leads to a loss of self-control.
27. If you trade with a leverage, MAINTAIN AT LEAST 700% MARGIN.
28. The market is “thin” at night, the spreads are widening. During volatility periods the same.
29. The market is non-linear, take an example from aces pilots, who prefer fleeting battles over short time intervals. Most of the time in the market is flat, trends are 30% only. Impulse entries are good, but you need to fix profits in time.
30. Most often I lose money on Metals, Energies, during periods when I can not see the market, as well as from sleepless nights, physical and psychological fatigue.
31. Most of the time is in cash. One of the strategies is to catch impulses, not to catch trends. Rare transactions.
32. Ideally, there is no change in already opened position. To place the entire bunch at once: Entry-Stop-Take.
33. Look at daily economic calendar always. I’ve lost a lot not knowing that the Fed rate is coming out that day, or Unemployment rate, or CPI.
34. Never go ALL IN. Margin should be at least 700%.
35. Do not trade on a full moon.
36. The larger the scale and the longer the transaction, the greater the uncertainty. I risk my own money and pay for this uncertainty with additional risks: nerves, sleep, rest, health.
37. Do not trade or make trading decisions when you are hungry.
38. “Popcorn” candles is classics how to deceive a trader.
39. Feel yourself totally comfortable while with open positions, again, margin should be at least 700%.
40. The fundemental law of investing is uncertainty of the future. You won’t not be right any time.
41. Do not trade cryptos with 100$ leverage unless its weekends, or low volatility.
42. The real price action is especially clear and strong at an hour end. There is often a reverse movement at the beginning of a new hour.
43. Depending on the strategy, its absolutely necessary to withdraw profits at least once a week, or once a month.
44. Drawdawn is everything. The goal is consistent return with low drawdawn.
45. The volatility of cryptos can be 30%-50%, then its time to buy/sell.
46. Scalping. Start open positions from support/resistance levels with small volumes, when the flow is obvious and visible, add more volumes with narrow stops for 30-40 seconds, then jump out. It is important to make desisions quickly. Otherwise, fucked up.
47. Short-term decisions are correct, but the market is non-linear, long-term ones are likely to be wrong.
48. Do not trade drunk. Alcohol makes you relaxed and leads to loosing concentration and mind.
49. Believe in prophetic dreams.
50. Pigs get slaughted.

PART 3

51. In medium and long-term trading strategies the main rule of trading is to let profits grow and cut losses. A few trades with good profits will offset many trades with small losses. If there is a profit, move a stop-loss to breakeven.
52. Do not set far stop-losses, they are meaningless.
53. The market is flat 70% of the time and its in trend just 30%.
54. One of the main reasons of loses is a one’s confidence that he still can get the new funds, so , it can be fucked up and its unexhaustable comfort zone that, in fact, can end at any moment.
55. Avoid an unreasonable renewal of a position after being stopped out, or re-open a position with a short stop-loss, which often makes sense.
56. When the market is in the “saw” we see the worst results.
57. Do not trade when the deposit is less than … It’s up to you to set the volume. Either withdraw the remaining money, or wait for a new transfer to the initial deposit.
58. Trade in a maximum comfortable environment.
59. Avoid dopamine rat effect, don’t be in the market 24/7, looking round the clock in the monitor.
58. Do not open positions while eating. The brain does not work at this time.
59. Avoid losers, communication with them and their phrases how they regularly lose money. Otherwise, their karma is transferred to you.
60. Very conservative, the main task is not to lose.
61. You should always have a cashpillow for life at least for 6 months and … limit for trading (define yourself).
62. WE ARE FINAL. THE MARKET IS ETERNAL.
63. Don’t buy highs and don’t sell lows. You’ve already heard about this many times, right ?
64. Do not allow gambling, 50/50 situations, be able to wait for optimal moments for opening of positions.
65. Avoid trading during any conflicts.
66. Analyze and select from a wide range of instruments.
67. If the position is not short-term, do not look at the monitor for 15 minutes after opening it.
68. Trading is about a result, not about just trading. The feeling of risk, adrenaline, dopamine – leave it for other activities.
69. Profits on Forex earned most hard, because of higher leverages and higher volatility.
70. If I wake up early, then I need to wash myself, prepare myself psychologically, and only then proceed to market analysis and trading.
71. Always look at different sources graphs W1, D1, H4, H1, M5, M1, before opening positions.
72. Most often a sideways move in the market leads to “tilt” and the deposit is lost in it.
73. On weekends limit trading activity. Give yourself a rest 1-2 days a week from the market.
74. Place stops a bit in a distance from resistance/support levels.
75. Ideally, to open positions the one should wait for abnormal movements in the market.

PART 4

76. A long-term portfolio in equities with a leverage 1:20 is meaningless. A maximum is 1:5.
77. Sometimes there is a leading movement in one of the leading instruments in crypto,
78. No need to look for signals, if there are none.
79. The maximum allowable drawdown from the account is 10%, track ROI weekly.
80. Trade only rested and well slept.
81. Its better 2-3 trades per day, but with a maximum probability of profit
82. If you restart trading,  do it on a new deposit with a small volume. Avoid a feeling like
“I have a lot of money, I can lose some of it painlessly.”
83. If I trade an instrument, then I must know it thoroughly, including the price calculation formula.
84. No one and nothing should distract myself from position calculation and trading.
85. Livermore: “It never was my thinking that made the big money for me. It was always my sitting. Got that ? My sitting tight.”
86. Risk and capital management
87. Managing emotions. How to not be your own worst enemy. Learning/managing your human trigger points.
88. Treating trading as a business. Metrics.
89. Millionaires don’t use astrology, billionaires do.
90. Shoot rarely, but accurately. Pilots aces. Tactics of thousand injections.
91. The saber strike is the more certain the more cooly you direct it and the better you hold the saber. Deadly blows are injections,
others only hurt.
92. Mr.Market is a river that washes away the money and does not pay attention to those who swim and trade without a system.
93. If you feel that the system is broken, or you do not stick to the rules, exit the market immediately, or adjust everything back to the system and reduce positions.
94. 100 profitable transactions in a raw. Challenge.
95. Its better to have an automated tested trading system based on own signals.
96. The market is a place whwere hundreds of thousands of professionals and millions of amateurs work against you. You have to be smarter and more cunning than them in order to earn.
97. To minimize risks not to be in positions before release of important economic news
98. Trader is nothing more than a glorified order enterer
99. While trading with leverage if you choose the wrong direction you lose. If you fix a profit once you get it, you earn. Having no leverage you can wait as long as necessary until the price is back to the opening level.
100. Going against the crowd is often the right decision.

PART 5

101. Fear is a trader’s enemy. The one needs a little flair.
102. If you do not take a trade when you should take it, you MUST learn to stay on the sidelines. There will always be another trade.
103. Look at the graphs in the following way: W1, H4, H1, M5, M1
104. Professional traders understand that the goal of trading is to make money, not to be right.
105. All gaps are going to be closed sooner or later.
106. In many ways, being a pilot and a trader are quite similar. Pilots have detailed checklists and contingencies to which they must submit.
107. Just like pilots, traders must undergo a medical examination before the start of each trading session.
108. Opened a position, set S/L, T/P, turned on the “autopilot” and you fly in a given direction.
109. Traders and professional athletes also have a lot in common. Diet, sleep, all this affects how the athlete performs and a trader trades, at the end of the the day it affects the bottom line.
110. Low volatility is a harbinger of a strong move.
111. The answer is a number.
112. We do this not because we love formulas, but because without formulas we will lose money to people with formulas.
113. The father beat his son not because he played, but because he wanted to recoup.
114. Try to turn on the necortex (the upper cortex of the brain) when you trade.

Most traders with two or more years of experience know what they need to do to be successful. The problem is doing it.

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