4 Lessons that can only be learned, not taught: 🧵


1. Emotional attachment is gone, but not 100%

I find that most times, my ending day P/L has zero effect on the rest of my days emotions.

This took a long time to come to fruition.

It can’t be rushed.

Only with practice and experience can this actually happen.

There’s no “hack” to get rid of it.

Some days it does affect me and instead of trying to let it go, I’ll just accept it.

2. Increasing your size takes time

After finding profitability, the next focus is increasing size.

The best part of trading is you don’t have to do anything different to size up, other than the amount of contracts you are buying.

While it seems easy, it doesn’t take what I call “income relevance” into effect.

Income relevance is the idea that my risk as a trader tiptoes around how much money I deem as “too much” to the point where my emotions get involved.

Example 👇

For some, they risk $50 and it affects their emotions greatly.

For others, it takes $500.

Last year I sized up too quickly and started noticing my emotions draw into my trading.

I had a losing month and had to reset my risk to lower then what it was before.

The key is to look at a longer time horizon.

5 years, 10 years, 20 years.

The slower you compound, the faster you’ll grow.

3. Trading is boring

The fun in trading is figuring it out.

Once you have it figured out, trading becomes like homework.

Your teacher gives you a list of tasks/rules to do (your strategy) and then you follow it.

It’s part of the reason why I do small account “challenges”.

Not only to show you that it’s possible to grow a small account, but because it’s more fun and I can test different strategies/risk tolerances.

4. Absolute confidence is a necessity

The reason I’m able to take losses and have it not affect me is because I have confidence in my strategy.

Knowing that you have a statistical edge in the market allows you to have the confidence things will work out in the long run.

I’m able to tell you that my strategy nets me an

- Average 63.8% win rate
- Average 1.42 R/R.

Do you have those numbers on the top of your head?

If not, it will be tough to be a full-time trader.

Absolute confidence in your strategy = Emotional Detachment.

I hope you learned something from this thread

Being a trader has it's pros and cons but this is the reality of what it's like

Follow me @FT__Trading if you just found me because my thread on thursday you will NOT want to miss👍


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