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Don't let the ego win


Part 1


Ways to protect your process not to let the ego overtake decision-making processes that serve sample size low-risk probability trading:


don't trade too small time frames

-The closer to the market noise you are, the more likely it is to have data overloads and make intuitive decisions that are 100% wrong in a counterintuitive environment.

-Keep time frames below 15 min outside your main screen center to not be triggered by noise prints and unimportant market noise to keep your mind fresh and be able to top-down make decisions based on rules versus trying to read the market.

-Measure consistently that your process decision tree is at least dominated by a principle rule of 80 rule-based decisions and a maximum of 20% discretionary decisions.

-Set audio signal time-based scanning cycles versus overthinking and external stimuli-based market analysis that is exhausting and inefficient, i.e.:

If you are looking for a wide (=4 bar) 60 min double bottom entry, there is a minimum of at least two hour time sequence where you do not need to look at this sixty min chart. Walk away and use your exhaustible resources wisely elsewhere.


Please stick to your guns

-traders tend to change their rules, time frames, trading instruments, TA tools, etc. DONT!

If you are breaking your rules and thinking other markets or time frames would be easier to trade, then all you do is extend the learning curve unnecessarily and distort your data sets.

Once you have established a principle-based rule, adhere to it, measure the results, and know that 99% of the discrepancies are human mistakes and shortcomings.


Trade in datasets and sample sizes

Individual trades, in principle, are random in their outcome, while groups of trades aren't. Approach your methodologies accordingly and accept that any emotional entanglement with individual trades is meaningless and folly.


Self-confidence comes from the process.

Because you can't predict nor control the future, but the only control you can gain is gaining control over your behavior, make that process your focus.

Repeating the creation and execution of your rules orderly and gaining the confidence that you can do so under any circumstance allows for the growth of confidence necessary for proper trading execution.

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