Summary of How To Become an Emotionless Trader (this will turn you profitable)

In the video "How To Become an Emotionless Trader," the presenter discusses the importance of managing emotions in trading to achieve profitability. The key points and strategies shared include:

Main Financial Strategies and Concepts:

Removing Emotional Connection to Money: Emphasizes the need to detach emotions from trading and money, as Emotional Trading often leads to poor decision-making.
Stable Income Source: Recommends having a stable job or side hustle to cover living expenses, allowing traders to learn without the pressure of needing immediate profits.
Demo Trading: Encourages trading on a demo account until confidence is built, which helps eliminate emotional ties to money during the learning phase.
Risk Management: Advises against risking money that one cannot afford to lose. Traders should only risk minimal amounts when starting with real money to acclimatize to the emotional aspects of trading.
Discipline and Consistency: Stresses the importance of sticking to a Trading Plan and being disciplined to avoid common Emotional Trading mistakes.

Step-by-Step Methodology:

Step 1: Ensure you have a stable job or income source to cover living expenses.
Step 2: Start trading on a demo account until you build confidence in your trading skills.
Step 3: Transition to a live account but only risk the minimum amount you are comfortable with.
Step 4: Set a single take profit and stop loss for each trade, then refrain from checking the trading app until the next day.
Step 5: Maintain discipline by following your Trading Plan and avoiding emotional reactions to wins or losses.

Common Emotional Trading Mistakes to Avoid:

Overleveraging and overtrading
Revenge trading after losses
Adjusting take profits or stop losses out of fear or greed

The presenter emphasizes that becoming a successful trader requires discipline, adherence to a Trading Plan, and a focus on Risk Management, rather than a desire for quick profits.

Presenter:

The video is presented by an unnamed trader who shares personal experiences and insights on Trading Psychology and strategy.

Notable Quotes

— 03:07 — « If you guys are getting into trading because you think you're going to make a certain amount of money in trading and you need that money right now, trading is never going to work out for you. »

— 03:30 — « If I stay disciplined, I will turn profitable. »

— 10:34 — « Do you think this is a get-rich quick scheme? Because it's not; it's a skill set. »

— 11:28 — « When you're not doing all that, it really gets super simple: stick to your trading plan and do what you're supposed to. »

— 13:20 — « I wish I could reach through the screen and stop you guys from placing more trades. »