Trader Dale Volume Profile
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Trading psychology<br />
Usually, people who start<br />
winning start to feel like<br />
they are invincible, they<br />
start to risk much more<br />
money, they enter more<br />
risky trades, they don't do<br />
their market analysis and<br />
trading preparation as<br />
properly as before, they<br />
start to bend rules, etc...<br />
Before they know it, they<br />
start losing money quickly and they are back where they began, or worse – they find themselves<br />
in enormous drawdown.<br />
People usually take a break after such experience and after few weeks or months, they start anew.<br />
Again, they start humble and hard working. When they start being successful and profitable, they<br />
repeat their mistakes and they become careless and they start feeling invincible again. Then they<br />
fail. This cycle repeats until the person quits trading, often blaming markets or the strategy for<br />
not being consistent.<br />
The trick is to stay humble and hard working all the time. When you have a winning streak or<br />
when your trading is going really well, then you need to be most vigilant and extra careful. Do<br />
your analysis properly, don't overtrade and most importantly, don't start trading with too big<br />
volumes! You may raise your trading volumes a little bit, but you need to do it little by little. When<br />
a losing streak hits you (this will happen sooner or later), you need to stay in the game and survive.<br />
Not to blow your account just because you have just doubled your positions because you felt<br />
invincible.<br />
How to handle losing<br />
A really important and helpful thing in trading is to have statistics of your strategy. If you are<br />
starting with a new strategy you can use statistics from your backtests and then start adding<br />
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