My trading constitution.

[Bananington]

Trading is 90% psychology,

For something like trading, that a lot of skill is required, 90% is too much for psychology alone, and 10% is too small to quantify the amount of skills needed. Even traders who have very little knowledge and skills are not advised to start trading on a funded account to prevent blowing up the account, just to show that skill in trading is very important.  A psychologically strong individual with any or very little skill in trading will still not be successful. Trading requires psychology and skills, but skills most importantly.

[Obari]

- you can't be disciplined without a profitable system.

How do you mean by this maybe you need to explain on this  Being disciplined IMO is not about having a profitable system because you can be loosing while being discipline as losing can also be temporary.

Well I think the discipline comes more even and faster when the losses are more or am I missing out  on something?
There is this saying that if you want to taste the discipline  of a man, he should  be given money and power  a d I think same also applies in this case and if you really want to see how committed on is to its system l, I think the losses has to come very often and then you can judge because I'm 85% sure that many persons will abandon their almighty profitable strategy  the moment the losses are getting too much but it takes only the fateful to be committed to their strategy  in losses and not just losses but rapid losses.

Trading is 90% psychology,

A psychologically strong individual with any or very little skill in trading will still not be successful. Trading requires psychology and skills, but skills most importantly.

Exactly  and I also wondered as much as I think 90% is way too much to push to only psychology because i think skill and also trading capital has alot of role to play in trading  aside just psychology.

[teosanru]

Trading is 90% psychology, but

- you can't build confidence without a profitable system.

- you can't have consistent gain without a profitable system.

- you can't be disciplined without a profitable system.

- you can't win without a profitable trading system.


Trading gives you money, in order to to protect your money risk management is paramount.

No but i think it works vice versa as well. You won't be able to build a profitable system on day 1. You'll have inconsistent gains, you'll lose, you'll be quite indisciplined and yet you'll have to keep that 90% psychology correct for you because only that is the thing which will work for you and take you places and it's the only thing that can help you build the system as well. So the money that you'll get is obviously because of psychology that you once made.

[Faisal2202]

Trading is 90% psychology, but

I agree with all of your points but what is that aforementioned "Profitable System", because in the title you said "My trading constitution" and just shared some basic facts that we all know or i should say shared some problems we all faced by didn't share the solution. As Confidence can be built if you make more profit but how? same goes for others.

No wonder, when you enter in trading you learn many psychological behavior (which you already have but just realized after starting trading). For instance, when i started trading i was like so stunned to learn the basic skill of risk management as before i have never performed such a task that needed money involvement in strategic ways so that i can reduce risk while covering more profit. After learning Risk management (no doubt at a basic level or at least when i get familiarized with it and some strategies) i developed a skill to control my emotions and anger which could be a reflection of market behavior. And before trading, i was like a little strict with words (more likely frustrated and angry all the time) but by doing something on my own, managing strategies to manage risk, and developing a sense of market and confidence i started to control my emotions.

But Trading is not all about emotions, most of the time, you have to focus on facts and figures too, because emotions help you out only a few times (only when you are lucky) but most of the time when you trade with emotions you always lost, I have already shared my experience on this topic before --> Emotion and Trade? So, i hope this might help you out.

[GreatArkansas]

- you can't be disciplined without a profitable system.

- you can't win without a profitable trading system.
(....)

I agree with this because most of the new traders who are starting out are not properly learning the cores or the basics before they start trading.
This is required proper risk management which will help you to have profitable system, by this way, it will help to protect or preserve your capital and maximize profits.

[wxa7115]

- you can't be disciplined without a profitable system.

How do you mean by this maybe you need to explain on this  Being disciplined IMO is not about having a profitable system because you can be loosing while being discipline as losing can also be temporary.

I think that what they mean is that it is way easier to stick with your strategy if you know for sure it is a profitable one, and I think this is true, since one of the big problems new traders have to face is that when they begin to experiment some losses they lose confidence on their strategy, and instead of sticking to it they begin to experiment and do something completely different than what they have trained.

However someone which backtested their strategy and which is completely sure it is a profitable one can make profits with their strategy way more easily and deal with such short term losses.

[Zilon]

- you can't be disciplined without a profitable system.

This should be the other way round. You can't have a profitable system if there is no discipline. It is the discipline that brings about the profit. A disciplined trader sticks to the strategy/analysis that works and anything that doesn't seem clear is avoided. As for every other thing listed in OP they need a profitable system to maintain them but discipline is the reverse.

[Bitcoin_people]

Trading is 90% psychology, but

- you can't build confidence without a profitable system.

- you can't have consistent gain without a profitable system.

- you can't be disciplined without a profitable system.

- you can't win without a profitable trading system.


Trading gives you money, in order to to protect your money risk management is paramount.

Trading requires 100% psychology and you cannot do trading. Trading requires confidence and long term statement. There are many people who before trading think that they will earn huge profits by investing in the future. But they did not think that in order to trade, they must know the details of the market. Those who have not acquired good knowledge about trading, if they go to invest, they have a huge amount of risk in business. So before trading it is very important to know the pros and cons of following a trader here. With all these concepts and gaining knowledge later investing with trading skills, there will be no business risk, so you should be careful about all these things.

[TheUltraElite]

Trading does involve the emotions but calling it a complete mind game is not correct in my opinion. You can say that trading needs skills and luck and you would not be profiting of you were only making predictions based on your gut feeling. The gambling aspect of it comes from the fact that you might get addicted to it and there are non-Spot modes of trading that are very risky.

If you can keep track of how to trade, mainly buy low sell high, you shouldn not get into trouble. That too if you are keeping a ledger and following your sells with your buys.

Just don't trade only based on emotions, see the charts and previous trends and then decide what trade to place.

[michellee]

- you can't be disciplined without a profitable system.

This should be the other way round. You can't have a profitable system if there is no discipline. It is the discipline that brings about the profit. A disciplined trader sticks to the strategy/analysis that works and anything that doesn't seem clear is avoided. As for every other thing listed in OP they need a profitable system to maintain them but discipline is the reverse.

Not many traders can maintain their discipline, especially when the market changes drastically. At that time, traders only think about how much profit they can get while they forget that the increase can stop and go back down again.

That makes them trapped and because they have lost discipline, their emotions are also disturbed and in the end, they will choose or decide something they should not have chosen. And that causes them to suffer losses in trading.

Many traders have experienced it. Some can learn, while others keep repeating the same mistakes. Disciplined traders can adapt to unstable markets and even make good decisions to avoid losses that can occur at any time.

[xSkylarx]

You really have a profitable system, but if it involves your mentality, like controlling your emotions, it is still useless. Just imagine you have those systems and confirmations in place before doing an entry, but because you lack patience and are greedy and overconfident on a trade, you'll hit the entry without following your confirmations. Emotions really play a big factor in your system; it is not only about the method; emotions are also needed.

[Peanutswar]

Trading is 90% psychology, but
- you can't build confidence without a profitable system.
- you can't have consistent gain without a profitable system.
- you can't be disciplined without a profitable system.
- you can't win without a profitable trading system.
Trading gives you money, in order to to protect your money risk management is paramount.

Seems more ideal is 50 percent of knowledge comes from the sources of information you can use and apply with your trading journey, and 50 percent for decision making why? because most of your trading will depends on this if you know what are the possible price movement the technical indicators you could use gives you an idea to entry or to exit, but in that case, your emotions give you a doubt or a guts to place the position.

You really have a profitable system, but if it involves your mentality, like controlling your emotions, it is still useless. Just imagine you have those systems and confirmations in place before doing an entry, but because you lack patience and are greedy and overconfident on a trade, you'll hit the entry without following your confirmations. Emotions really play a big factor in your system; it is not only about the method; emotions are also needed.

Emotions could be a cycle if you make a trade when it comes to get profit for sure you'll get greedy but with the use of your TA sometimes you are trying to get more than focusing to your plan, and getting lose to decide to cut your loss or still holding your coins.

[cydrix]

Trading relies on keeping track of a particular currency's economic flow. If you can determine this flow precisely, investing will be simpler. The profitable system can only be achieved with an immediate input to the precise coin, however, until you figure out a trading strategy. This makes the process more difficult. Your entire goal is to make a profit from trading, but in order to do so, the trader must first construct a profitable trading strategy.

[gabbie2010]

Trading is 90% psychology, but

- you can't build confidence without a profitable system.

One of the first requirement and prerequisite is a profitable trading strategy though it's 100% perfect because there isn't any Holy Grail therefore money management should be utilize in trading.

- you can't have consistent gain without a profitable system.

Consistency in earning profits will in a long run enable the trader to have an edge over the market therefore the trading strategy should have a reasonable rewards to risk ratio.

- you can't be disciplined without a profitable system.

Trading requires strict discipline by following the lay out rules to trades defying such rules will result to incurring losses.

Trading gives you money, in order to to protect your money risk management is paramount.

Above all money management is the key to a successful trader how well a trade is managed by trailing stop a winning with a Stop Loss.

[AnonBitCoiner]

- you can't build confidence without a profitable system.

this point is good and understandable because if a person regularly wins then it is possible to achieved the desired goals so confidence in that person increases therefore he will talk about his trading system with confident attitude to the others.

But I think making a profitable trading system will requires time it cannot happen quickly and during this duration you will face losses as well as gaining so I think that confidence will create only when you see different situations. A profitable trading system can only originates when you have complete knowledge about the crypto market and have spend lots of years for getting the basic point to be a successful trader.

[merekamo]

For point number 1, I say may be that. Trading is heavily influenced by psychology, as emotions and mindset play a significant role in making decisions. But, I wouldn't necessarily say it's 90% psychology, as there are many other factors to consider. A profitable system is indeed crucial for success, as you've mentioned.

While psychology is undoubtedly a significant factor, it's not the only determinant of success. A well-rounded approach that considers all aspects, including a profitable system, psychology, and risk management, is more likely to yield favorable results. Without a profitable system, it's challenging to build confidence, achieve consistent gains, maintain discipline, and ultimately win in the trading world.

In my brain, a profitable system is the foundation of successful trading, while psychology and risk management act as essential pillars that support and enhance the overall performance. It's vital to strike a balance between these elements to achieve long-term success in trading.

[adaseb]

You can’t really build and code a system and trade that way. It will work for a while but eventually it will stop working and you will have to adapt and tweak your system. This is why those trading bots never make money in the long run.

Only way to do this is basically experience and you can’t teach experience you just need to put in the hours. When you have enough screen time you will see what is going to work and what wont. And with enough screen time you will still need to manage risk properly so you don’t revenge trade and lose your entire account.

[Husires]

I see that many have responded above. Each one assumes what the word "profitable system" means, but we still do not know its meaning, or at least what @OP means.

It's like saying "In order to make a profit in trading you have to be smart, stupid people always lose" which is a correct sentence but what is the definition of intelligence and what is the criterion that determines smart from stupid?

There is no such thing as a "profitable system", as trading in itself is subject to profit and loss, and there is not always the possibility of profit, but there is always the possibility of loss, and therefore there is a "losing system", but there is no "profitable system".

profit and loss is making by probabilities of what the demand will be in the future.

[Framelover]

Trading is 90% psychology, but

- you can't build confidence without a profitable system.

- you can't have consistent gain without a profitable system.

- you can't be disciplined without a profitable system.

- you can't win without a profitable trading system.


Trading gives you money, in order to to protect your money risk management is paramount.

Yeah, Absolutely. While psychology is a crucial factor in trading, it's crucial to keep in mind that a profitable system is just as essential. A profitable system aids in developing confidence, achieving consistency, maintaining discipline, and ultimately prospering in trading. Risk management is indeed vital in safeguarding your investment. Hence, it's imperative to create a sound trading strategy, adhere to it and manage risks efficiently. Remember that trading is an adventure that requires patience, persistence and a constant drive to learn and enhance your skill

[Mauser]

- you can't win without a profitable trading system.

That's an interesting point, but how do we get a profitable trading system in the first place? I agree with you that it makes sense to create a trading system around our profitable trading ideas. Probably most beginners have the same problem to find trades that will make money consistently. Doing research and using technical analysis is a great way to find such trades. But it also requires a lot of testing to see if our trading system is correct. Just because we make money during a few weeks doesn't mean that our trading system is profitable long term. For example, if the general crypto market moves into our favor it will likely rise all our positions, even if we didn't pick the best coins. A constant form of oversight and testing can protect us from losses, I wouldn't trust a trading system blindly just because it was right in the past.