Day 1 : Building a Watchlist and explaining the strategy
Day 2 : $PLTR Trade Idea
Day 3: Buying $HOOD
Day 4: Up 5% on $HOOD
Day 5: Entered $UA Trade
Day 6: Trading In Puerto Rico
Day 7: Introducing Beacon
Day 8: S&P 500 Record Highs
Day 9: Robinhood Makes Moves Into Crypto
Day 10: Roaring Kitty Meows
Day 11: $GME Trade Idea
Day 12: $NIO Trade Entry
Day 13: Taking Profits In $HOOD
Day 14: Stopping Out Of $UA
Day 15: Stopping Out Of Everything
Day 16: No FOMO
Day 17: 6 New Trade Ideas
Day 18: Entering $ACB Trade
Day 19: DXY Tells Us To Stay Out Of The Market
Day 20: "Shoulda, Coulda Woulda"
Day 21: $CCL Hits Target 1
Bonus: Using TraderSync To Track My Trades For This Account
Trading Psychology Book Club: Week 1
Today (Wednesday), our Trading Psychology Book Club kicked off with a deep dive into the introduction of, “Mastering Trading Psychology” by Andrew Aziz. This book isn't your standard trading guide filled with technical indicators and chart patterns. Instead, Aziz takes a revolutionary approach, focusing on the mental game that every trader must master, just like we do in our PB University!
This week we went over the introduction of the book, which immediately throws us into the heart of the struggle faced by many new traders. Imagine the adrenaline rush – you've finally entered the exciting world of trading, armed with your newfound knowledge. But then, reality bites. A couple of early losses leave you shaken. Frustration clouds your judgment, leading to impulsive decisions that snowball into a disastrous day. Sound familiar? This raw narrative, shared within the book's introduction, perfectly encapsulates the emotional rollercoaster many traders experience.
But there is good news! The very reason this anecdote finds its place at the forefront of the book is because there's a solution. Our Weekly Trading Psychology Live Sessions every Wednesday 5PM EST is your weekly roadmap to developing the winning mindset crucial for navigating the often-unpredictable markets. Throughout the book we will be going over, Douglas delves into the psychological pitfalls that sabotage traders and equips them with the tools to build resilience and emotional control.
By the end of our book club session, we were buzzing with takeaways:
"Many beginner traders believe they also have no choice but to blame their losses on their psychology when, in reality, they probably have not received sufficient education (including learning one solid strategy, practicing it, and then practicing it some more) in order to be profitable."
While an undisciplined mind can undoubtedly sabotage even the most well-laid plans, it's important to recognize that blaming every loss on a trader's mindset can be a disservice, especially for beginners.
The quote above we encountered resonates deeply: many new traders are bombarded with the question, "Did you follow your trading plan?" The implication is that a lack of discipline is the sole culprit behind losses. However, the reality can be more nuanced. Imagine an aspiring chef who walks into a professional kitchen equipped with nothing but the will to succeed. While a positive attitude is essential, it won't magically produce a Michelin-star meal without proper training and knowledge of fundamental culinary techniques.
Similarly, diving headfirst into the trading world without a solid foundation can be a recipe for disaster. New traders need to be equipped with the basics of market analysis and a well-defined trading strategy. This includes learning a single, well-understood strategy and rigorously practicing it through paper trading or a simulated account. Confidence in your chosen strategy is key, as it allows you to make clear-headed decisions based on your plan, rather than succumbing to emotional impulses. This is why we offer an extensive coaching program based on learning a single strategy and practicing it over, and over, and over.
"I stopped caring about those A+ setups and traded anything that looked marginally good."
This quote from the story in the picture above is what kills traders. The goal for most veteran traders is to learn how to find "A+ setups" that work best for them, find ways to limit their risk so that their wins outweigh their losses, and then use a positive trading psychology mindset to stick to the plan.
The allure of chasing quick wins can be tempting, especially when faced with early losses. However, abandoning your trading plan and trading anything that seems "okay" is a recipe for disaster. These "marginally good" setups often lack the strong confirmation you need for a high-probability trade. Sticking to your A+ setups, even if they take longer to appear, ensures you're trading with a clear edge and avoids the emotional rollercoaster of chasing after fleeting opportunities.
Imagine you're a seasoned hiker who meticulously plans your treks, always prioritizing well-maintained trails with clear markers. One day, eager to get some fresh air after a tough week, you stumble upon a barely-there path that looks like a shortcut. While tempting, taking this unknown route could lead you off course, into treacherous terrain, or even get you lost.
Similarly, in trading, meticulously following your strategy acts like a well-marked trail. It minimizes risk and maximizes your chances of reaching your destination (i.e., profitable trades). However, abandoning your strategy for a "marginally good" setup, like that tempting shortcut, is like venturing off the beaten path. These setups often lack the strong confirmation signals you wait for in your A+ trades. They might seem like a quick way to recoup losses, but they can easily lead to unexpected risks and emotional distress. Remember, patience is key. Wait for your high-probability setups and avoid the dangers of chasing after fleeting opportunities.
"Just telling yourself to be disciplined is not enough. Neither is it sufficient to take the time to develop a trading plan but then do nothing with it. To be a successful trader, almost everyone needs to make serious changes in their life, and then those changes must carry over into their trading. How to truly change, though, is the question."
This week's book club discussion highlighted a crucial truth: simply telling yourself to be disciplined isn't enough. As highlighted in the above quote from the book, the consistent application of that discipline that separates successful traders from the rest. Think of it like this: imagine joining a gym with the best intentions of getting fit. Signing up and creating a workout plan is a great first step, but it's the act of showing up day in and day out, pushing through challenges, that truly delivers results.
The same principle applies to trading. Developing a trading plan is essential. It serves as your roadmap, outlining your entry and exit points, risk management strategies, and overall approach. However, a plan left unused is nothing more than a good intention. The key lies in executing your plan with discipline. This might involve making adjustments to your lifestyle to dedicate time for focused trading sessions or education. It could mean setting clear boundaries to avoid emotional trading.
The book also poses a thought-provoking question: how do we truly change? Building lasting discipline requires consistent effort. Here are some practical tips:
- Start small: Don't try to overhaul your entire routine overnight. Begin with manageable changes, like dedicating 15 minutes each day to reviewing your plan.
- Practice makes perfect: Paper trade or use a simulated account to practice executing your plan without risking real capital. This builds confidence and hones your decision-making skills.
- Seek support: Surround yourself with other disciplined traders or join a trading community for accountability and motivation.
Remember, lasting change is a journey, not a destination. By taking consistent action and implementing these tips, you can transform your trading mindset and move towards becoming a truly disciplined trader.
"In reality, initiating a process of change is not very difficult. The real challenge is sustaining the change and overcoming the inevitable relapses. We’ve all been there. How many New Year’s resolutions are broken by January 15?"
Starting a new trading habit is easy. The real challenge? Sticking with it! Just like that gym membership that goes unused, trading discipline can wane.
The key is to view trading as a marathon, not a sprint. Relapses are inevitable, but they don't have to derail you. Identify your emotional triggers that lead to breaking your rules, and have a plan to deal with them (like taking a break or journaling). Learn from these setbacks, and use them to build even stronger discipline. Remember, lasting change takes consistent effort, but with the right approach, you can stay on track for trading success.
"While poker is a casual and recreational form of gambling for many, those who take it seriously and treat it as such can make a literally amazing living. Traders need to learn to differentiate between their new venture and their old career. Trading is a completely different endeavor, and you need to get ready for it."
This week's book club discussion explored the fascinating parallel between professional poker players and successful traders. Both require a unique blend of skill, strategy, and risk management. However, the quote emphasizes a crucial difference: mindset.
For many, poker is a casual game of chance. Professional poker players, on the other hand, hone a laser focus, emotional control, and the ability to make calculated decisions under pressure. Similarly, successful traders cultivate a professional trading mindset. This means approaching the markets with a detached, analytical eye, leaving emotions at the door.
It's also important to note, that Trading is a whole new ball game. Your brilliance in your current career (be it engineering, finance, or anything else) is a valuable asset, but it doesn't automatically translate to trading success. Here's the humbling truth: you're a student again. Embrace the learning process, be open to new information, and shed any preconceived notions. Trading demands a healthy dose of humility and a willingness to start fresh.
By adopting this student mentality and cultivating the right mindset, you'll be well on your way to transitioning from a casual trader to a potentially successful one.
"As an engineer and scientist, my working hazards were toxic nanomaterials as well as high-pressure explosive and toxic gasses. We learned about these hazards in a series of safety workshops and, while I was working in that field, I was very alert to them."
This quote offered a thought-provoking analogy. Imagine a scientist working with hazardous materials – toxic chemicals and explosive gases. These professionals undergo rigorous training to understand the dangers and implement safety protocols. Similarly, the quote highlights a crucial aspect often overlooked by new traders: Trading Psychology.
The markets, while exciting, can be a minefield of psychological pitfalls. Fear, greed, overconfidence – these emotions can lead to impulsive decisions and costly mistakes. Just like understanding the dangers of a lab environment, trading psychology education equips you to recognize these emotional hazards. You learn to manage your emotions, develop discipline, and avoid the mental traps that can sabotage your trading success.
The good news? You don't have to navigate the markets alone. Join us for our weekly Trading Psychology Live Sessions every Wednesday night at 5:30 PM EST in our Discord! In these interactive sessions, we'll delve deeper into the world of trading psychology, equipping you with the tools and knowledge to become a more mindful and successful trader.
"In trading, you need to be resilient to be able to succeed. You will fail many times, almost every day in fact, and there will rarely be a week in your trading life that you will not have had at least one very bad loss or one very bad trading day. You must be able to recover from those setbacks, but to do so requires a certain level of persistence that is not often found in other elements of life."
The quote paints a realistic picture – losses are inevitable, even daily occurrences. There will be bad days, and even bad weeks, that test your resolve.
However, the key to navigating this emotional rollercoaster lies in resilience. Unlike many aspects of life where setbacks are infrequent, trading demands the ability to bounce back quickly and consistently.
Developing resilience means accepting that losses are part of the game, but not letting them define you. Here are some ways to cultivate this essential trait:
- Focus on the process, not the outcome. Don't get bogged down by every win or loss. Instead, focus on executing your trading plan with discipline.
- Learn from your mistakes. Analyze your setbacks to identify areas for improvement. Losses are valuable lessons in disguise.
- Maintain a positive attitude. Believe in your strategy and your ability to adapt. A positive mindset fuels perseverance
"Without proper goals and realistic expectations, many will end up walking away from trading before they have even given it a fair shot."
Setting sail without a destination rarely leads to a successful voyage. The same holds true for trading. The quote emphasizes the importance of having clear goals and realistic expectations. Without them, traders become discouraged by losses or lack of direction, ultimately abandoning the journey before reaching their full potential. Expecting overnight riches is a recipe for disappointment. Building realistic expectations, understanding that losses are part of the process, sets you up for long-term trading success.
"Define yourself as a trader. In today’s world, so many people want to be someone else and so many people seek to borrow someone else’s success. Ninety- nine percent of the time, that does not work. You can’t merely follow to the nth degree another person’s path. To use some trading lingo, you can’t “mirror trade” someone else’s shortcuts."
This week's book club discussion concluded with a powerful message: discover your unique trading identity. In today's world, it's tempting to chase after someone else's success story. But as the quote reminds us, copying another trader's path rarely leads to sustainable results. Just like "mirror trading" in the markets, replicating someone else's strategy without understanding the underlying principles sets you up for failure.
So, who are you as a trader? What are your goals, risk tolerance, and preferred trading style? This journey of self-discovery is crucial for developing a personalized approach to the markets.
Here at Pennybois, we believe in empowering you to become a confident and independent trader. That's why we offer resources like our weekly Trading Psychology Live Sessions (Wednesdays, 5:30 PM EST), where we delve into the mental aspects of successful trading.
Our $500 Account Follow Along is not about blindly copying trades. It's a transparent window into how Jay's strategy unfolds in real-time. We use TraderSync to meticulously track every entry and exit, allowing you to see the strategy in action. This is your opportunity to observe, learn, and ultimately adapt the strategy to your own trading style, just like I am! Through this process, you'll refine your approach, identify your A+ setups, and build a trading identity that empowers you to achieve your financial goals.
Entering $NIO Trade
Both $UA got close to our entry level of interest today, but it was $NIO that ended up hitting entry. We entered the trade today as per our plan, buying 13 shares at $4.62.
$CCL already hit our Target 1 where we sold 5/7 shares. You can find the targets and stop losses for both $CCL and $NIO on the graphics at the top of the page.
