Panu🌞

Sharing experiences in finance, 6 years of investing, 4 years as a trader. in order to achieve effective learning

[Panu🌞 @GujioT83062]

@ShahelTrades That's a very good comparison.

[Panu🌞 @GujioT83062]

@samuraipips358 Thank you for your answer. You've changed my life. My trading has improved because of your perspective. What you've done is invaluable. I respect and admire it.

[Panu🌞 @GujioT83062]

@samuraipips358 The system is clear, repeatable, and the decisions are consistent every time.
The difference lies between me and that student.
The point I was trying to make is that he didn't create this system himself; he simply copied it using the checklist I wrote for him. Is that possible?

[Panu🌞 @GujioT83062]

@samuraipips358 Thank you for the insightful answer.
Further details:
The system has been verified to have a positive expected return.
The risk of losing capital is close to 0%.
There are clear rules for buying, selling, setting stop-loss points, take-profit points, and non-actions.

[Panu🌞 @GujioT83062]

@samuraipips358 Can we have someone else perform backtesting themselves, and then view the statistics and copy information about the system from their testing, without having to perform the backtesting ourselves?

[Panu🌞 @GujioT83062]

Trader.
Came in because of thirst
Failing because of greed and fear
Returning because of faith and determination, Succeeding because of understanding and peace.
Panu. Have a nice day🌞

[Panu🌞 @GujioT83062]

If you want to see a rainbow, you have to endure the rain. Good night🌞

[Panu🌞 @GujioT83062]

Trading is an individual skill that requires a big amount of introspection and self-work. It’s a beautiful journey when you shift your focus from results to process.

[Yumi🌸 @samuraipips358]

Amateur traders don't backtest, so they think their system is failing after just three losses.
It's like stepping into the boxing ring without practice and getting shocked when punched.
There's no boxing without taking punches.
It's completely normal.
Good night😪

[Ceren Demir @cirendemirtrade]

You gotta admit that you’re not always gonna win

But when you start feeling like a winner even when you’re losing, you’ll know you’ve changed your perspective for good

Success starts at this very point

[Ceren Demir @cirendemirtrade]

Having “trader” friends is one of the most comforting things in a trader’s life.

They understand the struggle, pain and happiness

They don’t think you’re bragging when you talk about your success

And they don’t think you’re a hypocrite when you talk about your losses

[Yumi🌸 @samuraipips358]

Good morning☀️
It's Monday. First, read this:

- Do you have a trading plan?
- Close the charts and do something else until a signal appears.
- Don't rush; wait patiently for the signal.
- Set a stop loss and always calculate your position size.
- When a signal appears, don't hesitate to enter.
- Don't try to find meaning in wins or losses.
- If you followed the rules, do not regret it.
- Your job is to follow the rules "only."
- All wins and losses that occur after following the rules are part of the system.
- Don't engage in revenge trading.
- The edge of your system will be drawn out not now, but far in the future.
- If no signal appears, don't trade.
- Don't think you need to trade a lot to make money.
- The quality of trades comes from doing nothing.
- Even if someone on social media is making big profits, it has nothing to do with your trades.
- No matter how much the charts move, if you can't trade according to your rules, it has nothing to do with you.

[Yumi🌸 @samuraipips358]

Wait without waiting✋

Most of our work as traders is waiting.
To improve the quality of our work, we must master the art of waiting.

Many novice traders feel anxious when they are not participating in the market and tend to force trades, but this is a big mistake.
The job of a trader is to use a validated system with an edge, collect a large sample of trades under the same conditions, and maximize the edge of the system.
To do this, it is essential to wait for the right timing.

A large sample size is necessary to take advantage of the law of probability, but many people misunderstand this and think they need to "trade a lot."
The more you try to increase the number of trades, the more likely you are to make forced trades.
This is because the number of trades is not something you can increase by trying to increase it.
As a result, you end up producing a lot of unnecessary trades and lowering the quality of your trade samples.
Do not focus on trading a lot.
It is not something you can control, and what matters is that "as a result of continuing to do only the trades that should be done over time, a large quantity has accumulated."

You need to narrow down the trades you should do and only trade at the points with the most edge.
If, as a result of focusing on the points with the most edge, you can only trade a few times a week, or even if you can't trade at all for a week, that's okay.
For traders like me who trade on the 1-hour timeframe, even if there are only about two trading opportunities per week, more than 100 high-quality trade samples will be collected over the course of a year.
That's good enough.
Probability works on the trade samples you collect.
It is important to build a large sample size over time with only high-quality trade samples.
It is important to think with a long-term perspective, not a short-term one.

Traders who cannot wait may lack understanding of their strategy or may not properly understand probabilistic thinking and the law of large numbers.
If you fully understand what positively influences the outcome of a trade, you will never take actions that lower the quality of your trade samples.
Improving the quality of our work as traders often stems from "doing nothing."

If the timing of a trade is not clear, repeat backtesting and practice to clarify ambiguous rules.
If there are points where you are unsure of your judgment, it is important to investigate statistically advantageous options.

If you thoroughly carry out all the necessary preparations and fully recognize the job of a trader, you will naturally be able to wait.
There is no sense of impatience there.
You know you are doing the right thing.

By the way, when I am waiting for a trade, I don't think about trading at all without any impatience, so I do other things besides trading.
I always even forget that I am waiting.
Just take the right action at the right time.
To give an example, you are neither waiting for the next time to brush your teeth nor eagerly anticipating it.
When the time comes, you simply brush your teeth.
This is what it means to "wait without waiting."

The recognition that doing nothing is the right thing to do now, and the ability to "just wait without any impatience" is an invisible but significant skill that separates great traders from the rest.

[Panu🌞 @GujioT83062]

What you should have is not iq or prediction ability. But it's about controlling risk and following the plan.

[Yumi🌸 @samuraipips358]

It is often said that 'trading is not a battle with the charts, but a battle with yourself!' but ultimately, there will be no battle at all.
The battle with yourself is just a little game until you fully understand what trading is all about.

I am no longer fighting with myself either.
I have no conflicts because I fully understand what I am doing.
I don't have any feelings of wanting to avoid losing, fear of entering, or feeling compelled to force myself to make a move in order to get back what I lost.
There is nothing within myself to fight against, nothing to forcefully suppress.
I just do things according to the rules today.

If you think that no matter how great a trader you become, you always have to fight with yourself every time you trade, and that you always need the strength to win against yourself, there is a possibility that you are mistaken in your way of thinking, your goal as a trader, or your approach.
Remember that if you truly become an excellent trader, you will no longer need to fight with yourself.

[Yumi🌸 @samuraipips358]

Regardless of winning or losing, the results that follow the rules increase the sample size of trades, and as the trade samples increase, they converge to the true probability, stabilizing the edge drawn.
In other words, whether you win or lose, increasing the number of trade samples is a step closer to success.
However, it doesn't mean that you should increase the number of trades randomly.
It's important to form trade samples only with high-quality trades.
The number of trades is not something you can control.
More than how to trade, waiting patiently and how not to trade are extremely important, and it's crucial to focus only on what you should do.
In other words, never compromise on following the rules.
Nothing takes priority over that.

[Yumi🌸 @samuraipips358]

The Consistency of the Elite🤓

There are too many excuses in trading that justify breaking rules and compromising consistency.
Just because you're on a losing streak doesn't mean you should change your system.
In the end, you're changing your actions based on results.
You say you don't get caught up in the results, but you prioritize results above all else and believe it's okay to break consistency for the sake of results.
Conditional consistency like "I will continue to follow the rules 'as long as I don't have a losing streak'" is not true consistency.

Losing streaks will never completely disappear.
In trading, losing streaks do not negate the edge of the system.
Losing streaks are a common occurrence and not worth worrying about.
Instead, you should be more concerned about your inability to maintain consistency, blaming losing streaks, and quickly doubting your edge when swayed by results.

Commit to following your system for a year.
And build enough trust in your system "beforehand" to be able to do that.

You need to understand with a greater sense of urgency that prioritizing losing streaks over consistency is fatal as a trader.
The reason you can't feel a sense of crisis about breaking consistency is because you don't think it's a bad thing.
You think you have "improved."
You think you did what was necessary to avoid a losing streak.
You think it can't be helped to break consistency for the sake of doing what's necessary.
Unfortunately, that thinking is wrong.
Traders who prioritize results over consistency cannot succeed.
Ironically, breaking consistency in pursuit of results won't yield the desired outcomes.

The reason you're always concerned about results is because you arrogantly think you can meddle and interfere whenever you feel it's necessary, making changes to the system as you see fit.
Unfortunately, you are just an employee who must continue to follow instructions, not the boss.
You don't need to closely monitor today's sales.
Make sure to pay the costs according to the strategy set by the boss.

Professionals absolutely never change their approach during losing streaks or drawdowns.
They may say things like "the market is tough right now," but they keep doing the same thing, "steadily incurring losses and losing streaks," and rake in profits when the market favors their system.
They understand well from the beginning that those losing streaks are already factored into the system, and they also understand well from prior testing that the returns will ultimately exceed the losses.
The professionals who were stubbornly following the rules and experiencing losing streaks, saying how painful it was (although they didn't really think it was painful), are now significantly increasing their assets a few months later, while the amateurs who were overjoyed at the time have all disappeared. The time frame they are looking at and the sample size they are using are vastly different. No matter how much the market rages, everything is powerless in the face of a large sample size. That's how great sample size is, and that's why consistency is so important.

Consistency is easier said than done, more difficult and important than you think, and is the foundation of being a trader.
Continuing to follow your system without changing it, even during losing streaks, and not letting results affect your actions is a highly advanced skill possessed by superior traders.

Losing streaks will never disappear forever.
Losing streaks do not negate your edge.
After creating a system with a large sample size, don't change your actions based on results.
Take this to heart.

[Yumi🌸 @samuraipips358]

System, mindset, and risk management are all important, and some people say that mindset is the most important, while others say that risk management is the most important.
However, originally, everything is connected and forms successful trades, so there is no such thing as which is the most important.
System, mindset, and risk management are all interconnected.
If you think you lack one of them, you probably don't fully understand the other two either.
It is impossible to have perfect understanding of the system or perfect understanding of probabilistic thinking, yet not be able to manage risk.
That means you don't understand the other two either.

For example, if you truly have a perfect understanding of the system, you know the maximum drawdown and maximum consecutive losses that will occur when repeating the system 1000 times, so you will naturally adopt a position size and risk management with 0% bankruptcy risk to continue the system. You will not feel fear or anxiety at the points where you should enter, and you will more naturally trade based on probabilistic thinking.
In the first place, a system is not just about determining entry and exit.
A system is not meant to win the trade in front of you, but is premised on being repeated while generating losses and consecutive losses.
These understandings naturally promote probabilistic thinking, risk management, and ease the attachment to the results in front of you.
Before separating them into mindset problems or risk management problems, we must also consider that everything stems from a lack of understanding of trading.
Conversely, if you gain a deeper understanding of any one aspect, you will also further understand the other important aspects.

[Steve Burns @SJosephBurns]

Trading is:

33% Psychology
33% Risk Management
34% Systematic Edge

If you lack one the other two won’t work either.

[Yumi🌸 @samuraipips358]

@MoneyTradeEdge Diligently striving for laziness.