My trading constitution.

[Jatiluhung]

I have established my own trading constitution as a guide for my investment efforts. I am committed to a long term perspective, discipline, knowledge and approach to other financial markets. I thoroughly research and analyze fundamentals and technicals before investing in anything. Moreover, prioritizing risk management and following a specific strategy aimed at consistent growth rather than quick profits. I am committed to learning from both success and failure. I pledge to strive for financial success by upholding the trading constitution through patience, resilience and ethical practice.

I like your basic principles or Constitution of trading/investing and everything makes more sense and what you have to say shows that you have quite a lot of insight and experience in trading and investing. Because basically everything has to start with a careful analysis of the various aspects of the approach that we are reaching out to. Be it from a fundamental or technical point of view. After we analyze, we know where the right entry point is and start planning everything from risk management and so on. then carry out the plan and stick to the trading plan that we have made. and all of that requires patience both in analysis and in execution and of course if it's for the long term then we also have to be more patient waiting until the profit or time we plan is reached.

[1714519370]

1714519370

[1714519370]

1714519370

[1714519370]

1714519370

[1714519370]

1714519370

[Fivestar4everMVP]

OK, so everything falls back to having a profitable system..
Would have been much easier if you had told us what a profitable system mean to you, as I personally understand that this system could mean different things for different folks.

For some., a profitable system could me a bank/cryptocurrency exchange, for those trading Forex, it could be the broker, or maybe the financial market itself, or generally, it could mean the government and their economic development and policies, or it could mean the economic world at large.

So, what exactly do you mean by profitable system?
If you don't mind me asking of course.

[Wiwo]

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 protect your money risk management is paramount.

What do you mean by profitable systems,  I hope you don't mind giving further explanation to that since it seems you have been mentioning it over and over again and if you don't give further clearance to what you mean it becomes obvious that you may not get the right replies for this thread.

At some point,  I thought what you mean by a profitable system is a workable trading mechanism or skills that give constant profits.

[wxa7115]

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 protect your money risk management is paramount.

What do you mean by profitable systems,  I hope you don't mind giving further explanation to that since it seems you have been mentioning it over and over again and if you don't give further clearance to what you mean it becomes obvious that you may not get the right replies for this thread.

At some point,  I thought what you mean by a profitable system is a workable trading mechanism or skills that give constant profits.

A trading strategy or trading system is nothing more than a series of steps a trader follows which according to them and their backtesting will on average give them profits.

However a trading system is not everything, because if it was then becoming a winning trader would be as easy as just finding those steps and follow them no matter what, but there are many traders out there with solid strategies that still lose money even with such system, so we need to find another way to explain the failure of those traders other than blaming their strategy.

[Zilon]

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.

I have a different view mate. You can build confidence without a profitable system, You need discipline to build a profitable system, You can have a consistent gain without a profitable system but those consistent gains don't happen frequently and it doesn't last too. A profitable trading  system when the trader have a plan as well winning strategy.

[ancafe]

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

How do you try to build a profitable system and do you know that trading doesn't always turn out to be profitable? Trading is not always considered suitable for some people because there are many things that need to be learned.

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

Management is needed in trading and skill is one that will bring us to the stage of making profits and risk management is an important force that can limit one's psychology to what will happen in trading. You have mentioned the system many times in the discussion and I also want to know what system do you mean?

Trading does not always make money when we do not have basic knowledge and even people who have experience in trading are also unable to avoid losing money at certain times.

[wtsimis]

Every trader has his own trading constitution. I also have my own trading constitution which I always try to follow. As per my constitution I try to approach financial markets with disciplined knowledge and long term perspective. Before I invest anywhere I independently do my thorough research and analysis. I follow risk management strategies and do thorough research while reinvesting. I think I learn from the financial losses I incur through trading to improve my future performance. I try to stay aware of market trends global events economic indicators and above all I keep my patience consistent thinking long term investment thinking rather than short term investing. I think with these principles I will achieve success in my trading at some point.

[Fuso.hp]

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 completely depends on your own skill. The more skill you have, the more likely you are to profit from trading. Most of us traders take trades based only on a guideline rather than using our skills. The guideline is that the price of a coin has gone up a lot and has gone from a lot up to a lot down. But the trading system does not follow this principle at all. A person has to acquire adequate knowledge about trading only then that person becomes fully skilled about trading.

[Ziskinberg]

Trading completely depends on your own skill. The more skill you have, the more likely you are to profit from trading. Most of us traders take trades based only on a guideline rather than using our skills. The guideline is that the price of a coin has gone up a lot and has gone from a lot up to a lot down. But the trading system does not follow this principle at all. A person has to acquire adequate knowledge about trading only then that person becomes fully skilled about trading.

Well, the results depend on these things;
 - skills/strategies
 - knowledge (this includes TA)
 - market approach or decision making

And we only gain success when we don't stop learning and investing more time in doing this. More experience - more knowledge which means that learning instantly is impossible but we could get this along the way while we are still active in trading. That is why we can't expect instant success while we are newbies, that will take time.

[Viscore]

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.

It gives me the feeling that I'm reading an advertisement that I used to see on pop up ads on websites that are partnered with Google ads. They keep on telling about profitable system.

But actually, it's true that when one doesn't have that. Well, that means that there's no profit at all and it's a struggle for that trader.

And for one to learn that, it requires experience and capital and upon having those, it's true that risk management is also a must.

Everything starts with risk management as you can’t be a good trader in the process if you never take some risk and manage it. And once you develop that profitable trading system, then it become easier for you to gain discipline and self-confidence, and consistent gains and profits will be more possible if you stick with the profitable system. That clearly shows that trading needs to be work for, and follow a process to make it work.

[nlovric]

Every trader has his own trading constitution. I also have my own trading constitution which I always try to follow. As per my constitution I try to approach financial markets with disciplined knowledge and long term perspective. Before I invest anywhere I independently do my thorough research and analysis. I follow risk management strategies and do thorough research while reinvesting. I think I learn from the financial losses I incur through trading to improve my future performance. I try to stay aware of market trends global events economic indicators and above all I keep my patience consistent thinking long term investment thinking rather than short term investing. I think with these principles I will achieve success in my trading at some point.

It is great that you have your own trading philosophy and approach the markets with knowledge discipline and a long term outlook. Your dedication to making well informed decisionand safeguarding capital is evident in the substantial independent research and analysis you conducted before making an investment as well as in how closely you followed risk management plans. A key skill is the ability to use financial setbacks to better one performance moving forward. You stand out because of your knowledge of market trends world affairs and economic indicators as well as your persistence and persistent long term investing thinking. You improve your chances of succeeding in trading by remaining informed and avoiding short term thinking. You are on the correct track to achieving your trading objectives if you are persistent and apply your trading constitution.

[TheUltraElite]

Trading completely depends on your own skill. The more skill you have, the more likely you are to profit from trading. Most of us traders take trades based only on a guideline rather than using our skills. The guideline is that the price of a coin has gone up a lot and has gone from a lot up to a lot down. But the trading system does not follow this principle at all. A person has to acquire adequate knowledge about trading only then that person becomes fully skilled about trading.

The only skill one needs is buying low and selling high. Keep patience through through the price changes and you will do well in the long run. Trading is a long term game not a one day affair hence patience becomes very important.

This becomes complicated if you are going with altcoins trading and not keeping yourself limited in the number of assets. The altcoins carry higher risk and the risk appetite of every person varies. Traders learn this over time and it's vital to recognise - most traders can handle the stress only if they are doing this well.

[wxa7115]

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.

I have a different view mate. You can build confidence without a profitable system, You need discipline to build a profitable system, You can have a consistent gain without a profitable system but those consistent gains don't happen frequently and it doesn't last too. A profitable trading  system when the trader have a plan as well winning strategy.

Confidence is not something you can gain overnight, people often say that you need to fake it until you make it and other silly statements like that, however confidence is built with a good performance over the years and the knowledge you have of your strategy being very good.

So trying to gain confidence and confidence alone is a completely useless exercise, as a trader could have all the confidence on the world, but if their skills are not up to par then soon enough the market will remind them their confidence is unjustified.

[MingMining]

I keep my patience consistent thinking long term investment thinking rather than short term investing. I think with these principles I will achieve success in my trading at some point.

Long term investment is better than short term investment. In long term investment you stay calm and don't get disturbed by various news in the market. You know that no matter how much the market falls, your investment is not for a short period of time but for a long period of time that you will have to wait for. It does not affect the affairs of your life.

Whereas in short term investment you are constantly connected with the market. Sometimes your fear increases when the market falls due to any bad news.You have to keep yourself updated with every moment of market news and constantly monitor the market.Sometimes, contrary to our expectations, our guesses may turn out to be wrong. The point is that short-term trading requires you to be very mentally engaged.So you are right that long term investment should be preferred over short term investment.

[shivansps]

I liked this thought and i'd like to add that:
The longer you trade, the higher your confidence
How do you deal with your mistakes and what happens with them?
It is important to remember that trading is not a sprint, a marathon and loss is a neccesary part of it.
Seeing other people trade and trading by yourself are two different things.

90 percent includes very subjective.
Why not 91 or 60?)
But I agree that trading is a very emotional thing and a lot depends on psychology

Confidence should be tied to our competence, a trader with years of experience and good results on this market has all the right to be confident as they know they have the skills to back that confidence.

But many newbies have all the confidence on the world about the potential they have to obtain a good performance, but that confidence is completely out of place as they do not have the skills to justify it, and when the market proves them wrong they still have the nerve to think the market is wrong and they should become profitable given enough time, a mistake as they are not willing to change their ways and improve due to their overconfidence.

I agree with you. This is what I said, experience and a good result give self-confidence. It is worth noting that a good result may not come immediately.
As for newbies, the longer they think they're right and the market is wrong, the better it is for the whole market because someone has to lose money so someone else can make money.

[RasheedAdams]

I've come to understand that psychology plays a significant role—about 90%. However, I've realized the importance of having a profitable system as the foundation.

[TheUltraElite]

I've come to understand that psychology plays a significant role—about 90%. However, I've realized the importance of having a profitable system as the foundation.

The mindset needs to be fixed and then it is no longer in conflict, this is what I have seen. If you are knowing that the bullmarket is the time to sell and not buy like FOMO-madman, you are doing it correct and the opposite in the bearmarket, although the crowd sentiment might be different. This applies to bitcoin and all the big company stocks, because they are here for the long term.

This may or may not work for altcoins and shitcoins, which I never recommend to a newbie or even a veteran trader.

Also patience is essentially important to be able to time your trades properly.

[batang_bitcoin]

I've come to understand that psychology plays a significant role—about 90%. However, I've realized the importance of having a profitable system as the foundation.

That profitable system that you all are saying is about the strategies that you're going to apply in trading. There's so much to look at with all of these "systems" and "strategies". But the important part here is how profitable they are. Because if they're not profitable at all, you need to make sure that they've been tested and whichever works for you, that's the actual thing that you've been looking for and can that it is your profitable system as the backbone of why you're into trading because you've discovered how to be profitable on it.

[Assface16678]

Trading completely depends on your own skill. The more skill you have, the more likely you are to profit from trading. Most of us traders take trades based only on a guideline rather than using our skills. The guideline is that the price of a coin has gone up a lot and has gone from a lot up to a lot down. But the trading system does not follow this principle at all. A person has to acquire adequate knowledge about trading only then that person becomes fully skilled about trading.

The only skill one needs is buying low and selling high. Keep patience through through the price changes and you will do well in the long run. Trading is a long term game not a one day affair hence patience becomes very important.

This becomes complicated if you are going with altcoins trading and not keeping yourself limited in the number of assets. The altcoins carry higher risk and the risk appetite of every person varies. Traders learn this over time and it's vital to recognise - most traders can handle the stress only if they are doing this well.

But it is not an easy thing to just know you need to buy low and sell high. How can you execute that if you don't know when the price of the market will be considered low now and later on it will go up? The core skill a trader should have is critical thinking. A trader should be able to come up with his or her own technical analysis, applying the things he or she learned, indicators, trends, and many more ways in order to come up with a technical analysis that you will follow and execute, and if your predictions are right, that's when you can say you buy at the low price of the marketof the market and are ready to sell at the high price. Don't make trading as simple as that because we know how risky and dangerous it is. About the OP, we can't understand what the meaning of "profitable system" is. The OP should elaborate on what this "profitable system" is, what it does, and how you can consider it to be profitable?.

[Natsuu]

I've come to understand that psychology plays a significant role—about 90%. However, I've realized the importance of having a profitable system as the foundation.

That profitable system that you all are saying is about the strategies that you're going to apply in trading. There's so much to look at with all of these "systems" and "strategies". But the important part here is how profitable they are. Because if they're not profitable at all, you need to make sure that they've been tested and whichever works for you, that's the actual thing that you've been looking for and can that it is your profitable system as the backbone of why you're into trading because you've discovered how to be profitable on it.

You can have a perfect system and good psychology but can you execute your plan? Because trading is not just that, it's also about performance. How do you journal, how do you look back to trading days and study charts, how do you tweak your system better, how do you prime your mentality before the new trading week.  Trading is a rabbit hole. What you repeat you become. So if you are so inconsistent executing your profitable plan, you may still lose your account any given trading hours.