Trader Dale Volume Profile

Trading psychology
good thing about such trade (from the educational point of view) is that you get immediate
feedback (Stop-loss) for your lack of discipline.
Hopefully, you will be clever enough not to repeat your mistake again. There is no reason for you
to be mad about making such a trade if you are new to trading. Think of it as a scholarship fee.
Just try to learn from your mistake and don’t repeat it.
How to never break a rule
An interesting fact about trading psychology is that everybody knows how to handle it
theoretically. When it comes to real trading though, most people find out that it is not so easy
and there are barriers in their heads. Such barriers prevent them from executing trades as easily
as they would like to.
One of the most common problems is that people are quitting their trades earlier than they
originally planned. For example, their Profit Target is 10 pips, but when they are 8-9 pips in open
profit, they close their position because they are afraid that the price will turn. So, instead of
taking full 10 pip profit, they take “at least something“. I was also like this, so I know what I am
talking about. There is nothing rational behind such behavior. People are just afraid. The strongest
emotions traders face are fear and greed.
The fix to this is to use a trading journal and start doing a simple statistics of your trades. You do
this in order to collect some hard data. Write down what your actual result was and in another
column write what your result would be if you stuck to the rules. After some time you will see
a big difference between the two. Statistics and hard data that you collected will show you
something that you won’t be able to deny. Whenever you will be tempted to break or bend your
rules again – just remember the statistics that you did. You will know that statistically speaking –
breaking a rule hurts you and you won’t do it ever again.
Cycle of doom and despair
I know that Cycle of doom and despair sound silly. I wanted to change the name of this chapter,
but I decided I won’t because it just fits.
134