“Simplicity is the ultimate sophistication” — Leonardo da Vinci
Happy Sunday, my Friends!
It’s been two weeks without any article; I apologize for that. I also don’t want to write if I have nothing to say. I guess you already have enough spam in your inbox. The truth is, I’ve been trading more than ever, and I had little time to spend on this Substack or educational posts on Twitter. The irony is that’s the period I gained the most followers by doing nothing. We’re almost 2,000. Insane. Thank you so much.
Today, I want to discuss the mental game. I’m having such a weird start to the year that I’m trying to understand what’s going on. Last month I made $40k. I then struggled the first week of February, losing 4k, and in the second part of this week, I made close to $15k. Firstly, my goal is not to show numbers, but I have to, as it’s part of my growth. It helps me. And this substack is a selfish way to record my progress, emotions, setbacks, and everything that comes with trading. It’s important not to compare yourself with anyone. I’m following
who had a $700k day yesterday (he has an amazing free substack btw, highly recommends). Keep in mind that everyone is different, and we all are at a different parts of our journeys.What feels special for me right now is that during my first nine years of losing in trading, I lost approximately $45k, and I made more than this during the first 40 days of 2023. It doesn’t even feel like sweet revenge. I don’t feel euphoria. I feel focused on a mission and want to take advantage of that hot market for as long as it’s here. I could have freaked out in November when I lost a good chunk of my net worth on FTX. Instead, I doubled down on work and kept believing in myself through this nightmare scenario.
The first big drawdown of my professional career made me a better trader. I had to adapt my strategy and use more prop firms to use less of my capital (protection) and trade more freely, and it’s been paying off.
A few months ago, I wrote that my main goal was to normalize -/+5k days. That’s exactly what’s happening now. And I know I would struggle much more if it all was my capital. I had a few -4k days this year, which didn’t bother me. Knowing it’s not my money helps me sleep better at night and start fresh the next day. I’ve also been less harsh with myself after big fuckups. If you fuckup, you fuckup. Accept it and move on. Because in the end, you have to show up the next day and execute without second thoughts. You can’t let doubt gets into your mind. I feel like it’s been a massive progress I made over the last few months. Accept losses and move on. Focus on the next trade.
Of course, I get emotional in the moment, but I got better at accepting my situation.
I love the analogy of the Olympic champion: “if you win a gold medal, you’ll be an Olympic champion for the rest of your life. If you won $10k yesterday, no one will remember today, and you have to start back from scratch every single day”.
Every day is an opportunity. Seize it. Adapt to whatever the market is.
Below are my 2023 statistics on FTMO (only available for funded accounts, and I posted proof of payments on Twitter and, I think, in my previous Substack article).
Trading in February has been harder, and my stats are not great. I usually have a profit factor above 1.5. Anything below suggests too many poor trades, which has been the case. I had 9k of losses due to tilt and FOMO.
These two losses really hurt my trading for two reasons:
9k loss is obviously a big loss for me; and
opportunity cost.
What do I mean by opportunity cost?
If I take a massive loss due to me not respecting my rules, I know I have to step away from trading until I’m back in the zone. It usually takes a few hours. Well, guess what happens during that time? Trading opportunity arises. And guess who can’t take them? Me. Shifting away from my discipline cost me direct and indirect money by not being able to take the next legit trade. It’s a double punishment. Instead of having a great day, I have a shitty day losing a lot to see my ideal setup materialize without me. That’s an absolutely horrible feeling, and I really want to reduce these occurrences as much as possible in the next few months.
My plan for the next few weeks
Keeping it one trade at a time. No rush. Slow down when the market shifts to more unfavorable conditions, and risk more when favorable conditions come back. I need to get better at realizing it in real-time to maximize my returns and mental capital.
I’m definitely in a great place right now, but I know how quickly things can turn around. It’s one thing to appreciate the temporary success, it’s another thing to realize and accept that it’s all temporary and nothing is earned.
I will probably use some of my profits to buy more challenges through prop firms to keep diversifying my risks. I’ll keep trading bitcoin until the volatility fades away.
Finally, remember not to listen to online strangers, myself included.
I’m not writing to help you; I’m writing to help me! Sharing my thoughts is a great way to track my progress, and I wouldn’t do it otherwise. I encourage you to start doing the same. Don’t care about anyone who could judge you. In the end, trading is a lonely wolf type of life. If you care about what people think of you, this might not be your best career choice.
Thanks for reading, folks!
It would really mean a lot if you could share this article. One of my goals for 2023 is to have 5,000 subscribers on this Substack, and I would be grateful if you could help me grow it.
Until then, stay safe.
- Retail
PS: I had a few people reaching out to me on Twitter asking why they were not receiving my emails anymore.
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Twitter: @itsonlymoney12
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I’ve been on a social media break, your substack is the only thing added back and it my stay like that for a while. Great stuff sir!
Excellent quality. I find so much value in these mentality and discipline articles, all rounded up with complete honesty. Keep it up!!