I’ve spent years in clinical practice diagnosing and working out why people can’t change behaviour..
Even when they know exactly what they should do.
Traders have the same problem.
Im going to reveal something interesting about prop firm math that you may not have realized.
Let's assume that everytime you start the eval process, you spend $500
Simplifying.
This could be buying 5 accounts at a time.
Assume everytime you get a payout, it's for 10K (5x2K).
This means that if you got a payout only 5% of the time, you'd be breakeven.
If you're at 25% or more, you're wildly profitable, and probably getting banished from evals, and moved to live.
Ok, but what does this matter?
What matters is what's not being said.
It means that the firm needs traders that are consistently getting payouts less than 5% of the time.
Much less than 5% of the time if they want to run a profitable business.
This means they need to payout only the 1 or 2% of traders.
Once you understand this, everything changes.
You start to understand why they do the things they do.
The incessant discounts.
The absurd leverage to drawdown ratios.
I'll say the quiet part outloud for you.
They're all optimizing for your failure.
They're counting on you to tilt and oversize.
If you stopped doing these two things, you'd put them out of business.
Believe me or dont, but the math doesn't lie.
rule that saved me: 2 trades a day, max
trade 3 is always me chasing or revenge trading. nothing good has ever come from my third trade of the day like EVER
protecting yourself from yourself is the skill
Discipline isn't the fix for your trading challenges, despite what social media grind-core bro's might tell you..
because you can't willpower your way out of a emotional regulation problem.
But you can build a system around it.
The emotional state tracker:
For 30 days, before each session:
Rate emotional state (1-10 on calm/anxious, energized/flat, frustrated/content)
Track your adherence to your plan that trade
Pattern reveals which states produce best execution.
Adjust session frequency accordingly
I've had a few people tell me to post my webinars with @freedomteamTRD
So here we go.
The Trading Plateau That Leads to Overtrading
https://t.co/8rAWvQsLHY
The more you do something, the better you’ll get at it.
Think about this next time you hesitate or find yourself unable to execute your trades.
Don’t be perfect, be consistent.