Trader's Mindset Resource Guide
Trader's Mindset Resource Guide
Trader's Mindset Resource Guide
“If your goal is to trade like a professional and be a consistent winner, then you must start
from the premise that the solutions are in your mind and not in the market.”
- Mark Douglas
You might be wondering, “What’s a Trader’s Mindset and why is it important?” I know how to use indicators,
technical analysis and price action to trade, what more is there to trading? Queue the other challenges of
trading, learning to deal with the emotions and habits that are limiting your success. For many, trading will
highlight some of your weaknesses and present you with the opportunity to grow as a person as you work to
address the issue areas. You are on a journey to learn how to build the confidence, patience, good habits and
discipline to be a successful trader.
Your trading success isn’t solely based on your ability to read a chart. It’s also about your ability to recognize
your emotions and take the appropriate actions that support trading your plan with confidence. You aren’t
necessarily going to find yourself trading without emotions, you're not a robot after all, but you can learn what
actions to take to mitigate your bad habits and negative emotions. Learning how to achieve the trading success
you seek is a journey, not a sprint. Everyone has their own pace, go at your own and you will get there. You
can do this!
“Good trading is boring; bad trading is exciting and makes the hair on the back of your neck
stand up. You can be a bored rich trader or a thrill-seeking gambler. It’s entirely your choice.”
- Mark Minervini
Start Here:
If you haven’t taken the Trading Psychology mini course located in the Get Smarter section of TTF site,
please take a moment to do so now. There are great explanations for some of the most common trading
mindset hurdles and tips for how to address them.
https://www.trdfloor.com/products/ttf-education-center/categories/2152221970/posts/2165456094
#2 Talking About Trading With Significant Others, Family, Friends and Trading With Kids:
https://www.trdfloor.com/products/ttf-education-center/categories/2152645876/posts/2165456107
Podcasts:
Trader’s Mastermind:
https://podcasts.google.com/feed/aHR0cHM6Ly9mZWVkLnBvZC5jby90cmFkaW5n
Desire to Trade:
https://podcasts.google.com/feed/aHR0cHM6Ly9kZXNpcmV0b3RyYWRlLmxpYnN5bi5jb20vcnNz
Books:
1. Most popular trading psychology book: Trading in the Zone by Mark Douglas
2. Learning to make small adjustments to achieve great successes: Atomic Habits by James Clear
3. Foundations of creating a solid trading mindset (evaluation and correction): The Mental Game of
Trading by Jared Tendler
4. How we think about money and investing, better your money mindset: The Psychology of Money by
Morgan Housel
5. Mind management program, learning your behaviors and how to manage them: The Chimp Paradox
by Prof Steve Peters
6. Trader mindset book, learning about the trader’s mindset through the 10 habits that shape a successful
trader: Trader’s Pendulum by Jody Samuels
7. Interviews With Well Known and Unknown Traders, their journeys, tips and perspectives: Unknown
Wizards and Market Wizards by Jack Schwager
8. The importance and power of focusing on the one most singularly important task and how to identify it:
The One Thing By Gary Keller
9. Wrong expectations and finding fulfillment and happiness (starter on this subject): Happy Sexy
Millionaire by Steven Bartlett
10. Practical guide to finding satisfaction, sense of being and simple happiness no matter the
circumstances: Solve For Happy by Mo Gawdat
11. Tips and techniques from a founder of a prop firm and long term trader: One Good Trade by Mike
Bellafiore
12. Insights from a high-stakes retail trader: Best Loser Wins by Tom Hougaard
13. Go beyond internal limits and release your fears: The Big Leap by Guy Hendricks
😉
In life, and in trading, we try and over complicate something when it really doesn’t need to be. @alp27hd and I
have found this to be very true in our trading. But it wasn't until we KISSed it that we began to find our true
success. The KISS (Keep It Simple Stupid) journey was one of our ah ha (click) moments. @alp27hd spent
two months trying to eliminate losses – he added EMA, VWAP, Daily High and Low, etc. to his trade system all
in the pursuit of removing those pesky losses. This is despite knowing his system returns 2RR @ 50%+ win
rate. All this did was dilute his profits and leave him exasperated. I too spent months changing out aspects of
my trading trying to eliminate losses and find that PERFECT TRADE SYSTEM. This is a fallacy, the perfect
system doesn't exist. Losses happen and this is ok. What does exist is the perfect system for YOU.
If you have a tried and tested system that you have thoroughly backtested and that has an edge, then please
trust it, trade it like you backtest, and accept the losses. At 50% WR, you will lose half of the trades you enter,
and that’s ok. Losing a trade doesn’t make you a loser and being wrong doesn’t mean there is something
wrong with you. It's simply your edge/probability playing out. Your job as a trader is to execute your trading
plan, trust your edge, secure profits and protect your capital.
Rather than exhausting yourself (and trust us it is exhausting), why not just simplify your trade system and your
trading. See your entry, hit go on the trade according to your rules and let your edge do its thing. Besides, who
doesn’t love a KISS?
Tip 7: Desperate For Success
We all want to succeed at trading, that's a given. Many of us are used to pushing ourselves and seeing the
hard work pay off in a successful outcome. But trading doesn’t always work out that way, frequently your drive
to push yourself and see that success sooner actually nets you the exact opposite. Another blown account or
failed challenge. It’s perfectly fine to want something badly, but in trading it’s not just the skill component that
creates success, it’s the mental game too. Many of you see successful traders and think, I want that too and
NOW. Here’s your reality check, successful traders are successful because they have been persistent,
consistent and patient. Want proof of that, check out Christy’s Instagram story. You will see 48k in winnings,
wow right? That’s not one or two trades, that’s the culmination of consistent smaller wins adding up. That’s
years of persistence, practice and patience playing out in consistent growth and trading success. It did not
happen overnight, but came about step-by-step. Lean into learning and implementing patience in your trading.
It’s a journey, not a race.
Tip 8: Patience
Part 1 - In trading, we all want to be successful right away. We are happy to do the courses, watch some
videos, etc. However, when it comes to backtesting, we say "Do I have to?". For most, this seems slow and
unnecessary. I am here to stress that it is VITAL. Having the patience to work through the stages builds
confidence beyond measure when you enter the live market.
Part 2 - You then have the act of patience when waiting for a trade to set up that fits your rules. Many enter
before candle close or before their setup. It's FOMO or that rush of excitement to be in a trade. You know you
have done this because despite the outcome you feel a little hollow inside after. You know what you did deep
down in the pit of your stomach.
Patience is not an absence of action. You are not being lazy staying out of poor trades and waiting for the
quality trade that meets your rules. You are being wise, sensible and overall patient.
Patience is timing and the ability to act at the right time, to your plan and without pause. Drawing on the trust
you built in the system you tested so patiently and thoroughly. Trust yourself when you wait for that correct
entry, letting the subpar trades wash over you until the perfect time to act presents itself. When it does move
swiftly without hesitation.
When you trade with patience by your side, you don't have that hollow feeling in the pit of your stomach
because no matter the outcome you will have won. Patience is key.
Tip 9: Fear
The biggest obstacle a trader will experience is fear. It will often mask itself, hiding in the decisions you make,
the narratives you play out in your head, and the actions you inadvertently take to reduce it. For example:
1. You move your stop loss a little further away. Your narrative is a tiny bit more room will make the difference,
it's necessary for this trade as your initial analysis was off. The real reason is you are afraid of losing and by
leaving the stop in place and letting it hit, it solidifies that loss.
2. You see a trade moving in your favor, you see the unrealized aka “paper" profits going up. You are still 10
pips away from your take profit, but you close the trade early. The narrative you spin is “you can’t lose if you
are in profit” or “I made back what I lost yesterday". The real reason: fear of handing back your unrealized
gains or fear that the trade will lose.
Your trading journey learning from your mistakes, finding and addressing your mindset challenges has built or
is building trust. Trust in yourself to show up each day ready for whatever the market throws your way, to
bench yourself when you know you shouldn’t play, and the mindset to see each day as its own unique
experience with new opportunities not hampered by the successes or challenges of the previous day. A calm
and comfy trader goes about their day and waits for the right time to play, then brings their A game.
The SAS do interrogation training at which time they do not know how long it will last, what time has passed,
etc. They start looking at the big picture of when will this end, I can’t do this for days, etc. When the Navy
Seals are in the surf during BUDS they are asked the same questions – I am cold, hungry, tired. How long can
they keep us like this, etc. These outlooks will often break them.
The ones that pass these courses are the ones that break it down to its smallest sum. I can last 5 minutes, I
will just go from small block of time to small block of time. They approach the test based on when each meal
comes, or one test at a time, not how many days are left!
Tip 12: Are You Recharging and Finding Balance?
The importance of enjoying the simple moments, like a sunset. More importantly the unexpected ones like
when you think the show (sunset) has ended, but you are given another moment to just breathe and enjoy.
Trading can be intense moments of focus, but to stay at the top of our game we also need to learn how to
recharge. A quick 5 minute break, a walk, time with family or even a vacation. To stay ready to go and able to
trade, you have to also bring balance into your life. Think of it like a battery, it can hold a lot, but it can only be
pulled on for so long before it reaches empty. In your eagerness to trade, lay the groundwork for balance too so
💜
you can do this long term. So, I'll pose this to you, are you taking the time to recharge your battery? Best of
luck this week y'all.
For me I would be doing this deep dive analysis of your trades for whatever period you have journaled/back
tested. Below is a list of things I would like to see you consider as you move into Jan 2023.
We are doing something a little different with our Mindset Tips this year. We have created an image and saying
to go with the tip (there'll be a collection by the end). We hope you can connect with these and use them as fun
reminders of what you are building. Best of luck, Mindset Team
Tip 15: You Are At The Controls
When you begin your trading journey you will often try and set a time limit, deadline or time-based goal. We
hear a lot - I want to be funded in 3 months, when can I give up work, or I need money to pay the bills next
month, or something similar. This is dangerous and challenging to your trading journey because it puts
unrealistic expectations on your trading. It can cause you to rush into live trading, skip steps like back-testing,
or even blow an account in your haste.
To combat this, we suggest you follow the TTF Road Map listed on the website. This is a pathway that takes
you through the courses, get smarter videos breaking down the basics, strategy introductions and right
through to demo and eventually live trading. It's a systematic approach to your trading education.
The bad news is that time flies. But you need to remember, you are the pilot of your journey. You fly where you
steer your course to and your destination and arrival are in your hands. If you rush to live trades, then you will
find that six months down the line you will be in the same place you started. Many find themselves flying in
circles or veering off course. Be patient, trust the process, as the pilot you chart your path and destination,
then hold steady on your course and you will be amazed at where you end up.
Tip 16: Focus On Your Physical and Mental Foundation: Health, Well-Being &
Gratitude
Habit #1
I'm not sure if you've ever tried trading when you are unwell, stressed, tired, etc. It's not easy. In fact, most
parts of your day/life and trading are much harder. Your health and well-being have a direct correlation to your
effectiveness in the markets and, ultimately, in life.
😉
combining something fun and active like football, soccer, golf, winter sports, or working in the yard (that's fun
right ). The list is endless.
Remember exercise doesn't have to involve heavy lifting. Try getting out in nature, away from the screen, for
some fresh air and connection with the world around you.
Mental 1) Gratitude - think each day about what you are grateful for (thing, time, experience, person, pet, etc.),
write it down, reflect on the wonders your life offers and enjoy what you have now, not just what's to come, 2)
Meditation - quiet time, reflection, or even just sitting quietly with a coffee to start your day, and 3)
Friends/Family - spend time connecting with others as quality connections enhance our minds and our
well-being.
This success habit is very much about nourishment for the whole package. Find and bring that balance into
your life. If you grant yourself the time to improve your health and well-being, your trading will likely see
explosive, rapid improvement. Health and gratitude run full circle, the more you put in, the more you will get
out.
Tip 17: A Love of Learning, Being Open and Teachable
Habit #2
Most of us come to trading focused on money, the opportunity to change your life, quit your job, etc. Fairly
quickly into your journey, it will become apparent that the difference between success and failure lies in a
potentially unanticipated direction. Your ability to learn and apply that knowledge paired with a solid mindset. It
should come as no surprise that you will find many successful traders in the community are always learning
new things and pushing for new growth. Those that truly embrace the art of trading also develop a love of
learning too.
Falling in love with learning will serve you well. Might sound corny, I know, but a thirst for knowledge and
building the skill of knowledge application is a powerful combo. Be it a new sport, hobby, job or even a
relationship with a partner, all of these endeavors require being open and teachable. A new job or sport brings
new skills, a new set of systems to learn, and new tools to master. And a relationship, this is one of life’s
biggest teaching and learning experiences as you explore the new person in your life.
There are so many different ways we learn: visual, auditory, written, kinesthetic (experiential) and multimodal.
Do you know how you best take in new info and retain it? There are so many opportunities to acquire
knowledge: books, podcasts, videos, mentors, colleagues, your partner, etc. Be open to learning new things
and new experiences, open mind, and you will likely flourish in all aspects of life. Learning new things should
never stop, it’s a lifelong journey. Are your eyes open to the journey ahead of you, to learning and being
teachable?
You need to take the steps to 1) know your goals and direction and 2) determine how you can best use the
time from when you wake up to when you go to sleep to achieve these. Yes, many have work or school in the
middle, but look at the 16+ hours each day that you are awake. Where in there can you fit in 15+ minutes of
fitness, 30m+ studying, 15m planning trades, etc.
Many feel like they don't have time, but that isn't the case. Do you have a lot of obligations, things you've said
yes to? I'm sure you do and this is why routines and processes are important. They are your daily roadmap for
achieving your goals. If you haven't put conscious effort into planning out where you are going, then it can
seem like there is no time. When you start looking, you will see little pockets of time in your day. Your 20m to
1H drive to work, 30m in the morning that you would spend on social media or the news, your 30m lunch
break, or 30m before you go to sleep.
We all have hopes and dreams. But how many of us take the time to evaluate if our actions truly align with
where we want to go. Not many make and execute on a plan, let alone ensure their daily actions take them in
the right direction. This is your call to action. Create a roadmap of where you want to go and put in place the
routines and processes that support the life you want. Start now, not later when that someday comes. Don't
squander your time, carve it out and make it work for you.
You’ve heard us speak of process over outcome many times. This fourth habit is no exception. What you build
into your life will only strengthen your trading. We don’t find success by forcing something to be. It comes with
cultivation of consistency in our actions, a rooting in discipline, and strengthening of our patience muscles.
Success comes more naturally and freely if we let it develop at its own pace. We feed it with our consistent
practice, our discipline of showing up each day, and our fortitude to see this through each challenge along the
way (our patience and persistence). As you build habits, repeating the same positive actions over and over,
you will find that it becomes easier and more natural to you. You support your growth with constant application
of discipline.
Take exercise, something that many find challenging to both start and be consistent. You join a gym and at first
getting up early seems so hard, it requires a lot of effort. After a few weeks, things begin to ease - it becomes a
habit. You throw your gym bag in the car without thinking about it, the early morning alarm is met with
enjoyment not trepidation. You say hi to people and build connections. The more you exercise these mental
muscles, the stronger they will become and what seemed like a chore becomes effortless.
This relates to anything in life that you wish to master. We often say trading is the slowest way to make quick
money and this is very much rooted in the need to build patience and discipline. Not focusing on your ultimate
goal, but the consistency you build by patiently waiting for your setups. Trading profits flow from consistency.
It takes effort, dedication, consistency and patience to master anything in life. Let your next step bring you
closer to your destination: consistent and comfy trading.
Comfy trading differs a bit from person to person, but for me comfy trading comes when I trade within my
means and my trading style. Both from a lot size perspective, trading style and mindset.
Risk Management: If I trade 0.5% risk per trade, I feel very comfortable. It doesn't cause me anxiety during a
trade, which in turn is comfy.
Timeframe: Then, there's the timeframe I trade on. You may find the 1m timeframe is just too fast and stressful.
So, you switch out timeframe to the 5m, 15m or 1 hour till you find something that clicks and feels comfy.
Style: Now, you are sitting comfy waiting for your trade setup. You're not fretting about when it may happen,
because you know you have your plan and you know what your best setup looks like (be it PA or a
shoe/smiley/lightning bolt/etc. signal.
Alerts: Then, job done and you are entered into a trade and it's set and forget time, alerts. This helps you to not
stare at the screen living through every tick of the market. Instead, you're comfy and letting the trade do what
it's going to do.
Mindset: Above all, you are listening to yourself and trading when you are on your game and when life is crazy
you are taking a break. When you are trading you are sitting with your emotions not reacting, but taking action
based on your plan. Your emotions aren't driving your actions.
This could be your comfy. You will discover that when you get it right it will feel very natural and that it fits for
you. It feels like putting on your favorite jumper, hoodie or pjs. Comfy!!
So, take some time to discover what comfy means to you. We want to see more comfy trader, join the
movement. Find your comfy trading.
Tip 22: Your Biggest Challenge
There comes a time when your technical skill & strategy aren’t the limitation, you are. Your lack of discipline
and patience are holding you back from being a consistent, profitable trader. Your Trader’s Mindset isn’t fully in
place. Now you could give up and many do. Instead, I challenge you to dig deeper and build a solid mindset,
pushing past the hurdle you face. Build a foundation for your daily life and your trading that is rooted in
discipline and patience. Don’t be limited by your inability to sit patiently waiting for your trades and your lack of
discipline holding you back from executing trades to plan. The wolf waits to strike, patiently waiting for the right
moment. These markets have been a bit tougher of late with some of the US banking turmoil. This is a great
time to practice and solidify your Trader’s Mindset. Be the hunter, be patient and disciplined. Your Mindset
Team, @Roxie and @alp27hd
Tip 23: Be a professional
It's important to reframe your mind when it comes to the aim of trading. It’s often how you view both yourself
and your goals that is the difference between success and failure. Are you here just to make money but have
no real passion for the art of trading? Does the simple act of analyzing a market and executing that plan get
your motor revving even when no money is on the line.
Read the next 2 sentences and whilst similar they are very different in terms of mental framing and how you
perceive yourself in this profession (I was going to say game – but this is not a game)
Sentence 1: I trade to make money.
Sentence 2: I am a highly skilled, professional, competent trader who makes money.
See the difference!! This focuses the mind on you as a trader, the skill set, the pride in your work. It's important
to view yourself as a professional with a business and you are the Managing Director. It’s your baby to love,
protect, grow and become a success. You are the custodian of your trading accounts, the book stops with you.
Do you want to be the gambler who blows accounts, takes silly risks or do you want to be a highly skilled
professional?
Give your trading the respect it deserves, with you as the professional and you will see big improvements as
you grow. Your mindset team @Roxie and Ian
Professional, correct trading is the space/time between the trades, its the time of waiting, patience, analysing
for the perfect A+ trade. It is vital to allow your trading to truly sing. How often have you taken a trade out of
boredom, FOMO, etc as you sit waiting for that perfect set up. If you allow yourself to play music between the
notes all you will be left with is a noisy, indistinguishable mess of sound.
Instead sit back, let the notes ring out as you wait for the next to arrive, not too early, not too late - right on
time. Do this and your trading will be a beautiful symphony any composer would be proud of.
Tip 27: Trading Motivations
A community member reminded me that a significant motivator for people is MONEY. They found it
discouraging to be told that’s not a valid motivator. Instead they should focus elsewhere on loving backtesting,
the process of trading, charting, etc. No one should tell you your motivations are wrong and we are not aiming
to do that here. I started with a money motivation too. But to say that money is my motivation isn’t the whole
picture. Really, it’s what that money represented and could change in my life that was the deeper motivation.
Travel, time freedom, no 9-5 JOB, more family time and yes, a few niceties that money can buy.
Your motivation might be leaving a job you hate, money to support your family, a better house or car, or
mastering new skills/career. No matter your motivations, your journey and what motivates you is your own.
Finding your trading consistency can be a long road. What motivates you needs to be strong enough to keep
you going even when you hit the low points, the challenges, and the rough days. I hope your motivation is
something that excites you and encourages you to keep reaching and growing. So, what can motivate you to
keep going not only each day, but long term too and keep you excited to keep on learning and trading?
Now, I will encourage everyone to find parts of the learning/trading journey that they can connect with and
enjoy. This can give you a great, repetitive daily element that helps you along your journey. Maybe that’s the
morning routine you developed to better support your trading (meditations, mindfulness, exercise, etc.),
backtesting to find that combination that creates a profitable strategy, or the challenges in analyzing a chart
(patterns, trends, etc.). An enjoyment around trading is meant to be paired with your other motivations, not
replace them. Stay excited and keep going because what you want is worth it.
Tip 28: Mindset Tip Pass the Test
We have touched on this several times in the mindset room and in our Mind Set Shorts series. **We call it
Pass the Test.** The reason I bring this to the forefront now is that I have struggled of late with discipline and
remembering how powerful this is has got me back on track. If you have a bad habit you want to break or a
good habit you want to instill then this should help you a lot. So what is **Pass the Test**.
Picture this – you have your back tested system, your trading plan is in place for entries, exits, etc. You even
have a rule for 2 losses in a row you close, or maybe 3 wins and you are done. You have your posh tailored
training journal, your favourite pen for taking notes during, motivational quotes on the walls, post its, etc.
Everything is in place for you to be successful. I would think we have all been there with the best of intentions.
Then the day starts and things don’t go to plan, maybe you take a few losses to plan early doors. You are then
in a position where you have to stick to your 2 max loss rule. **This is the test you have to pass** . You know in
your heart that your day is done after 30 minutes, you should close the charts but that little voice whispers one
more. This could apply to moving stoploss, closing trades early in profit, too much size. A combination of them
all. *These are your tests.*
You’re at a crossroads and a massive one mentally. This is the time where you can be the professional trader,
the business owner, the master in control of being consistently profitable **OR** you can take the easy road.
The easy road being take that extra trade, move that stop loss, over trade, be hesitant, etc. Hey, it doesn’t
matter because you will pass the test tomorrow!
When this moment arrives, you need to acknowledge - **this is the test** - It sneaks up on you after 2 good
days, or 5 good trades. Thing is you will be tested in a numerous way – keeping journal updated, following loss
rules, entering too early, hesitating, moving stops. Imagine if for each of these examples you stopped and told
yourself **THIS IS THE TEST**, and you do the right thing. Stacking one good day after another.
Here is what I would love you all to do. For 1 week starting Monday I challenge you to pass the test, do the
right thing in each aspect of your business. Each time you pass a test I want you to give yourself a +1. Updated
journal +1, entered to plan and let trade play out +1, stopped after X losses +1, over and over. Set yourself
mini goals of say +10, then +20.
You will be amazed at how much stronger you will become when you do the right thing. **The test is here and
what are you going to do about it!**
Tip 29: Keep It Simple
Feeling like you just keep looping on the same stuff. Feeling overwhelmed or uncertain? I always come back to
one principle, Keep It Simple. Whether it's life or trading, we can easily lose sight of our goals as things work
their way in and complicate it. But frequently the simple solution is the answer. That goes for approaching a
goal, task, or learning a skill. Break whatever it is down into simple actionable components. Important next
step: Tackle them one at a time! This helps with the overwhelm when you have a list and you focus on one
step then the next and so forth. Before you know it you've reached the end.
Your trading is no different. You start with a goal and you break it down into actionable steps. Learning steps,
demo steps, etc. Your strategy is the same. Complicated becomes hard to follow. Don't do that! Instead,
uncomplicate that shit and just Keep It Simple. Look at what helps you understand the market's movements,
that you can do on repeat and use that as the basis for trading the markets.
When you break something into smaller component steps, there's less need to analyze and think about it.
Instead it's framed into actions taken. For the market, simple confluences stacked creates the picture of your
grade A entry. Are you keeping things simple?
Wanted to talk to you about trade insurance or as its better known a stop loss. If you buy/rent a property, you
get home insurance (building and contents). You don’t anticipate your house burning down or flooding, but if it
did you would be damn glad you had insurance. It stops you panicking every time you cook a meal or have a
shower.
If you buy a car, you get car insurance. Again, you don’t plan on having an accident, but we all know accidents
are bound to happen with distracted drivers on the road. Incidents happen outside of our control and when they
do, again, you will be very pleased to have that cover. Health insurance is also a prime example for obvious
reasons.
In the words of Winston Churchill
“If I had my way, I would write the word “insure” upon the door of every cottage and upon the blotting book of
every public man, because I am convinced, for sacrifices so small, families and estates can be protected
against catastrophes which would otherwise smash them up forever.”
So, back to trade insurance. When you enter a trade, you do it with the best of intentions, you enter to plan.
You enter because your planned edge says so. You do it without hesitation, but with the knowledge it comes
with risk and no system wins 100% of the time. This is were the stop loss comes into play.
It is the cornerstone of your risk management, the safety cushion for your account when the trade floods or hits
a bump in the road. It is the difference between a small loss and a blown account. It’s the thing that lets you
enter with confidence knowing you are covered and the thing that separates the professional traders from the
gamblers.
No need for an ending with a flourish; just a single line. USE A STOP LOSS
Let's take the market as an example and how you can disrespect it. If you don't use a stop/move your stop
outside your plan you are disrespecting the market, if you enter trades on a whim with no plan you disrespect
the market, fail to back test and you guessed it - disrespect the market. These add up and eventually the
market will humble you, take your money and show you the meaning of respect.
Respect yourself and treat yourself the way you would treat others. Be kind to yourself when you make a
mistake, keep the talk positive and don't beat yourself up. I was the worst one for negative self talk - Ian you
idiot you messed up, how could you be so stupid, you don't deserve this, etc. Never would I treat myself the
way I would treat say Roxie or Speedy, etc. I would offer a hug, an ear and a kind word of support.
Finally, treat others with respect. We are all at different levels in our journey through trading and life. Some
people are much further down the road than you and others just starting out. Whatever stage you are at treat
others with respect and be humble. Even when you have millions in the bank, a nice home, consistency in
trading, etc never forget where you started and those who helped you become a success.
If you treat all aspects of your life with the respect it deserves it will be rewarded in abundance.
Tip 33: Community Support
This is a short one for you. Trading can be challenging and lonely. But know that with the TTF community and
Mindset Room you are never alone. While trading might feel like you are navigating the hardest of obstacle
courses or running through a minefield, you are never without people to help guide you through and support
you. When you have questions, don't hesitate just reach out in the community and ask. TTF community is full
of a diverse set of people, some just starting out and some with years of trading experience. Know this is a
welcoming place to learn and grow as a trader. To the new people, welcome; to those doing Strategy Wars, I
wish you the best of luck; to everyone else, keep reaching out to those around you when you need support,
advice, or just want a fun chat because community supports you through your trading journey
Tip 34: The Car Salesman
Being a trader is a little like being a car salesman. Wait wait, hear me out on this. I'm not referring to the
stereotype of the pushy or underhanded sales person. I'm saying, the guy/gal who starts each day not knowing
if today you will sell a car or not. Some days you sell loads of cars and are financially successful. While other
days its quiet and not a lot happens. Yet, the salesman sits patiently, ready to jump into action when a good
opportunity presents itself.
You ultimately don’t know when a customer will arrive, it is out of your control much like the market is out of our
control. You cannot force things to happen. I'm pretty sure if you drag a customer off the street kicking &
screaming they are unlikely to buy a car from you. You forcing the issue simply leads to a failed sale/trade,
frustration and ultimately disappointment. Even if poor Rick, whom you dragged onto the sales floor, does buy
a car from you, do you really want to run your business that way? Why would you want your trading business
to be full of forced trades and half-assed attempts?
Turn up each day, turn on your computer, do your work professionally, wait for the right moment and do your
job the right way. Comfy trade through patience and discipline.
Tip 35: The Market Doesn't Care: Quality Trades Win Out
The market doesn't care if you are taking a challenge or not. It doesn't care if you are on demo, prop firm
challenge, funded account or personal account. It doesn't care if you are have $100 or $100,000 in funding.
Your trades are the same either way. Trading is a business. Your job as a trader is to build a profitable and
tested strategy and then to take the trades that fit your strategy. The rest is just noise. Watch for quality trades
that fit your strategy and follow your process.
Tip 36: The only tool you need
Think of trading like baking cookies. You only really need one good cookie cutter and enough dough to keep
baking. Trading is a lot like this. We start off with a drawer full of different cookie cutters at our disposal. The
choice can be overwhelming, but as you learn more you realize you don't need lots of different tools. In fact
one excellent one will do just nicely. The only thing you need is the dough to keep using it to make perfect
results.
The beginner uses too many tools, too much dough, runs out, spoils batches, etc. Your dough is the risk
management and capital. The cutter is your strategy/model. You only need one tried and tested model. If you
manage your ingredients correctly, you will always have enough to make another batch.
Tip 37: Overthinking
We often stress the importance of KISS (keep it simple stupid) in trading. We have even done mindset shorts
on it in the past. Keeping your trading simple allows you to execute in the moment without other things
clouding your head and offering doubts. I have been suffering a lot from this recently with paralysis by analysis.
I have been testing a variety of things and honestly at one stage couldn't see the woods for the trees.
So, I took a step back. I went to the absolute basics of where the price is now, where the liquidity is and where
it is likely to go. When we start trading, we are bombarded with 100’s of indicators offering lots of bells and
whistles. Our charts often have more things to behold than Las Vegas on spring break. Over time, you find out
what works for you and what doesn’t. Keep your trading simple, rules crystal clear and this will help you avoid
overthinking. Enjoy your KISS ;)
Lessons Learned & Community’s Tips:
Roxie’s Advice For Getting Back On Track
When you hit a rough patch here are some things to consider. Have you done these?
1) Practice your system repeatedly to build confidence. Track your trades to show yourself your improvement
over time.
2) Backtest your strategy to prove that it works and track the results.
3) Risk only what you are willing to lose. The risk you put on the trade is the price of seeing if your
analysis/edge plays out.
4) Lower your risk on the trade to the point where you feel more comfortable taking it and build back to what
you consider full risk.
5) Look at the trades that produce confident winners for you. What elements are making it a quality, confident
trade for you?
6) Fully define your system and keep it simple so it is repeatable.
7) To build back, make your goal to take one quality trade, win or lose that day. Then repeat that the next. Not
more, just one that you know checked all the boxes.
8) Be patient with your trades and yourself. Give yourself grace to be wrong in your analysis and know that
losses happen. Tomorrow always provides more opportunity, it's up to you to have the patience and
perseverance to show up and see what it provides.
9) Literally every day is a winning day. Even if your account took a hit, find the lesson or improvement you can
learn/make or if you followed your plan to a T, then that is your win.
Sven Recommendations
The first one is "The ONE thing" by Gary Keller. It is basically a book about focusing on the one most single
important task and how to identify it; and that for different aspects of life (work, health, family, etc.) and how to
prioritize between them. Since learning to trade takes up lots of time and dedication, it really helped me to get
things done without going totally bonkers and end up as nomad.
The next two tackle the same topic about your real motivation and what really has value for bringing you long
term satisfaction or happiness. Some people here will aim to becoming full time traders and while this job has a
lot of benefits it massively lacks on important social feedback that we as social beings feed off and need to find
our balance. So it is of utmost importance that you make yourself aware why you are doing it and that you
should also enjoy the journey and not only wait for getting there. This gets even more important for traders as
we can very easily wipe out years of hard work if you lose our grip.
#2 is "Happy Sexy Millionaire" by Steven Bartlett which is a hands-on experience from multi millionaire Steven
and how he found out about his wrong expectation even though he surpassed all his goals. It is an easy read
and does not go into details. Therefore it is a good starter for this topic.
#3 is "Solve for Happy" by Mo Gawdat which is a practical guide to find that satisfaction, sense of being or
simply happiness no matter the circumstances (he and his family even found happiness after tragically loosing
her son). While this can make your life more enjoyable for you and those surrounding you, imagine what it
does do your trading if you are able to always step into your trading zone from a place of happiness.
1.) The Law of Pure Potentiality: Applied by taking the time each day to just sit and be silent. Meditation. Also
communing with nature and starting each day with the phrase "Today I shall judge nothing that occurs". Big
takeaway from this is learning how to be mentally still. Meditation is going to be key for me. I want to get better
at it. Roxie Note: Practice being in the moment, not the past not the future, but the now as it is.
2.) The Law of Giving: "If you want to be blessed with all the good things in life, learn to silently bless everyone
with all the good things in life". Constant positive thoughts towards your life and everyone around you. This is
about not only getting back what you give, but constantly wishing people happiness, joy, and laughter when
you meet them, but silently in your head. That is still giving! Roxie Note: Practice acknowledging and smiling at
others, simple but so helpful and giving to those around you. You might be the only one that does smile at them
that day.
3.) The Law of Karma or Cause and Effect: Witness and think about the choices we make. Each and every one
matters. There are 2 questions to ask myself before any choice I make that will determine the karma from that
choice. "What are the consequences of this choice that I am making?" & "Will this choice bring fulfillment and
happiness to me and also to those who are affected by this choice?"
4.) The Law of Least Effort: Nature always has and always will take the path of least resistance. This is the only
way to live in harmony with everything around us. The main takeaway from this law is acceptance. Learning to
accept that reality is an interpretation, with each person having a different way of interpreting it is huge. If we
can learn to accept the things we cannot control and understand that nature works in harmony with itself (and
us), than every so-called torment, issue, or "bad thing" that happens to us turns into nothing more than a
teacher.
5.) The Law of Intention and Desire: Intention is the power behind desire. This ties into releasing attachment to
outcomes and enjoying the journey as it comes. Something as simple as making a list of your true desires and
reading them throughout the day will help implement intention.
6.) The Law of Detachment: When we experience uncertainty in life, we are on the right path. We do not need
a massively rigid idea and plan for what will unfold in our life. The ability to roll with the punches of what life
throws is one of the hardest things anyone can do. The better we understand detachment, the less we are
compelled to force solutions to problems that don't need them, most of the time just creating more problems.
Uncertainty is a key ingredient to our life experience.
7.) The Lay of "Dharma" or Purpose in Life: Every single person has something within them that they are best
at and destined to do. Few people actually find it. This is about finding your talent, honing in on it, perfecting it,
and here is the kicker that matters 100% the most in my opinion: This ability, knowledge, gift, skill, etc. It needs
to be used in service to humanity. Give back to people, that is our sole purpose.