EURCAD 250 pips winner 📉Based on previous analysis, the EURCAD trade printed 250 pips 🤑💰
FOLLOW FOR MORE!
ALL THE BEST!
Successfultrader
The cycle of Doom- the biggest psychological trap everI am back with an exciting topic.
I am starting this topic with a simple question,
Are you finding consistent profit In your trading? If yes, then you can skip this chart and congratulations!
Now let's talk about the rest of the traders.
Indeed, most traders do not find profits consistently, instead end up losing their money. It doesn't matter which market they trade.
There can be many reasons for not getting consistent profits,
Like, it can be risk management or it can be a trading system, it can also be trading psychology.
But the truth is you are trapped!
Ladies and gentlemen,
I am showing you the most powerful psychological trap ever….
*The Cycle of Doom*
The cycle of doom involves three phases.
Phase 1: The search
Phase 2: The action
Phase 3: The blame
To become a successful trader, however, you will have to get out of the cycle of doom.
How can you destroy the cycle of doom?
First of all, you have to understand the cycle. You need to understand what is going on! So you can identify and move beyond the cycle of doom into the world of consistently profitable trading.
Phase 1: the search
In this phase, you are searching for a trading system. You may find it from different sources like well-known trading books, educational websites, trading courses, trading forums, YouTube or you may find your trading system from speaking to other pro traders at meetings or conferences. Just with this step, you have got into the cycle of doom. Now you are devising a strategy that will give you a profit and which is convenient for you.
If you cannot find a trading strategy that you are comfortable with, you are probably in phase 1. You will live phase 1 only once you find a trading system that truthfully exists, a system that you look forward to trading. In fact, Phase 1 of the doom is complete once you find a trading system that you simply can’t wait to trade.
Now you have entered the second phase.
Phase 2: the Action
Phase 2 is the action phase. This is the most exciting part; you begin to trade the system. You will have fun in this phase because every trading system looks decent. And the excitement of trading a new system is irreplaceable.
This excitement comes from unrevealed things.
Will this new trading system work?
Will you become a billionaire?
Such thoughts create more hope in your mind and increase the excitement.
You get so excited about trading a new strategy that you forget you have time to test that strategy. Only a small percentage of the traders do test a trading system before moving into the action phase. You may find that the trading system does well for an extended period. However, at some stage, things look hopeless; maybe profit pours early but eventually, the losing trades pile up.
A drawdown eventually appears. There are several losing trades in a row. This trade may have appeared just as you decided to increase the risk per trade and the system ran into a bumpy road.
This drawdown is the beginning of the end of phase 2.
It is proof that you lost faith in your trading system. And begin to move into the next phase.
3. The blame: phase 3 is the blame. You don’t trust your trading system because the trading system has not found consistent profits. And now you decide to dump the crappy trading system.
In this phase, you blame your trading strategy for the losses you incur. You decide it is time to move on to a new trading system.
Return to phase 1
You have completely given up on your trading system. You will enter phase 1 of searching for a new trading system. The search is on again. The circle repeats itself. Most traders think that profit is due to a trading strategy. This cycle makes it clear that trading strategy is not responsible for profits.
Another way to look at this is to consider that two traders may be trading using the same system, one trader is consistently finding profitable trades and the second trader is consistently losing money. What is the difference between both traders? They both trade using the same system. The difference is in the trader.
How to defeat the cycle of doom?
If you want to trade consistently, and you want to find a profit, it may be best for you to stick to a trading system that you believe in. If you want consistent profits, you should have faith in your trading system.
There is one way to get confidence in your trading is to back-test it. Because of back testing, we can find weak points of the strategy. You create your strategy with rules that suit you. It doesn't matter if you don't like to use indicators; you can use price action or any other theory because you are confident that the Indicator is not going to give you a profit.
In the next part, I will give you information on how to do back testing and how to create your trading strategy.
Now you are familiar with the cycle of doom and you know how to break this trap. It is hard to break this cycle but it's not impossible. Good luck with your new trading journey
