- Welcome to OverWise Trading forum.
Recent posts
#21
Open OverWise board / Real Trading Experience Trumps...
Last post by Henrik Ekenberg - Jan 01, 2025, 10:03 AMReal Trading Experience Trumps Reading Strategies
In the world of trading, knowledge is power, but execution is everything. You can spend countless hours reading books, consuming strategies, or attending seminars, but none of that will matter if you don't put your knowledge to the test in real market conditions.
---
Why Real Trading Experience Matters
Bridging the Knowledge-Action Gap
Emotional Mastery Through Practice
Market Adaptability
Building Trust in Your System
---
How to Balance Learning and Doing
Start Small
Apply and Refine
Keep a Journal
Embrace Mistakes as Lessons
---
Conclusion
Strategies are the foundation, but execution is the structure. While learning from others is valuable, the ultimate teacher in trading is your own experience. Success comes from doing—testing, failing, adapting, and growing. So, read the books, but don't stop there. Dive into the markets, face the challenges, and let your own journey shape you into a skilled trader.
In the world of trading, knowledge is power, but execution is everything. You can spend countless hours reading books, consuming strategies, or attending seminars, but none of that will matter if you don't put your knowledge to the test in real market conditions.
---
Why Real Trading Experience Matters
Bridging the Knowledge-Action Gap
- Reading strategies gives you the "what" and "why," but it doesn't teach you the "how."
- Real trading exposes you to the emotions, timing nuances, and decision-making pressures that no book can simulate.
Emotional Mastery Through Practice
- Trading isn't just a logical game; it's an emotional battle.
- Until you've felt the anxiety of holding a position during market volatility or the urge to deviate from your plan after a losing streak, you haven't truly understood what it takes to succeed.
Market Adaptability
- Theoretical strategies often assume ideal conditions, but markets are dynamic and ever-changing.
- Real trading teaches you how to adapt strategies in the heat of the moment while staying aligned with your core rules.
Building Trust in Your System
- Confidence in a trading system doesn't come from reading about it; it comes from seeing it work through your own trades.
- By executing trades repeatedly, you begin to internalize the system's probabilities and trust its edge over time.
---
How to Balance Learning and Doing
Start Small
- Begin with small positions to minimize risk while gaining hands-on experience.
- Use a demo account sparingly; real money trading introduces emotions that demos can't replicate.
Apply and Refine
- Take a strategy you've learned, apply it consistently, and refine it based on your real-world observations.
- Avoid jumping from one strategy to another without fully testing its potential.
Keep a Journal
- Record every trade—your thoughts, emotions, and results.
- Reviewing your journal will teach you more about your trading behavior than any book.
Embrace Mistakes as Lessons
- Every loss is an opportunity to learn and improve.
- The lessons from actual trading missteps are far more impactful than hypothetical examples.
---
Conclusion
Strategies are the foundation, but execution is the structure. While learning from others is valuable, the ultimate teacher in trading is your own experience. Success comes from doing—testing, failing, adapting, and growing. So, read the books, but don't stop there. Dive into the markets, face the challenges, and let your own journey shape you into a skilled trader.
#22
Open OverWise board / Trading’s Evolution: From Comp...
Last post by Henrik Ekenberg - Dec 31, 2024, 11:21 AMTrading's Evolution: From Complexity to Simplicity
When you start trading, it's natural to think that more indicators and tools mean better results. You pile on everything you can find—RSI, MACD, moving averages, Bollinger Bands, Ichimoku clouds, trendlines—turning your charts into something that resembles modern art. But as you progress and gain experience, you realize the truth: simplicity is power.
---
The Beginner's Phase: The Overloaded Chart
In your first year of trading, complexity feels reassuring:
The result? Indecision, over-analysis, and inconsistency.
---
The Veteran's Phase: One Line
By the time you've been trading for 10 years, you've learned some hard truths:
This evolution is not about cutting corners; it's about understanding that the market's simplicity is what makes it effective.
---
Why Simple Systems Work
---
The Journey to Simplicity
---
Final Thought
Trading is funny because it mirrors life: simplicity takes years to master. What starts as a journey into complexity ends with a deep appreciation for simplicity. One line, one level, one plan—that's all you need.
When you start trading, it's natural to think that more indicators and tools mean better results. You pile on everything you can find—RSI, MACD, moving averages, Bollinger Bands, Ichimoku clouds, trendlines—turning your charts into something that resembles modern art. But as you progress and gain experience, you realize the truth: simplicity is power.
---
The Beginner's Phase: The Overloaded Chart
In your first year of trading, complexity feels reassuring:
- The more, the better: You believe that adding more indicators will "confirm" your trades.
- False confidence: The web of lines and signals gives a sense of control, even when it leads to conflicting information.
- Analysis paralysis: Too many tools create confusion. Instead of simplifying decisions, they make it harder to act.
The result? Indecision, over-analysis, and inconsistency.
---
The Veteran's Phase: One Line
By the time you've been trading for 10 years, you've learned some hard truths:
- Most indicators are redundant: Many indicators are just different representations of the same data—price and volume.
- Clarity is key: A single trendline, a key support/resistance level, or a simple moving average often tells you all you need to know.
- Less is more: Simpler systems allow you to focus on execution, risk management, and psychology rather than overanalyzing every move.
This evolution is not about cutting corners; it's about understanding that the market's simplicity is what makes it effective.
---
Why Simple Systems Work
- Easy to Execute: Simple systems are faster to implement, reducing hesitation and mistakes.
- Focus on Price Action: When you strip away distractions, you focus on what really matters—price and volume.
- Consistency: With fewer variables to second-guess, you're more likely to stick to your plan.
- Adaptability: Simple systems are easier to adjust for changing market conditions.
---
The Journey to Simplicity
- Trial and Error: Most traders start with complexity because they don't yet know what works for them. The process of testing and failing is essential to discovering simplicity.
- Backtesting: Through thorough backtesting, you'll realize which tools actually add value and which just create noise.
- Confidence Building: Experience teaches you to trust price action over conflicting indicators, allowing you to trade with clarity.
---
Final Thought
Trading is funny because it mirrors life: simplicity takes years to master. What starts as a journey into complexity ends with a deep appreciation for simplicity. One line, one level, one plan—that's all you need.
#23
Open OverWise board / The Best Traders Never Stop Ed...
Last post by Henrik Ekenberg - Dec 31, 2024, 09:36 AMThe Best Traders Never Stop Educating Themselves
In trading, the learning process never ends. Markets evolve, strategies adapt, and new challenges arise every day. The best traders understand this and prioritize continuous education to stay ahead. Here's why constant learning is vital and how you can adopt this mindset.
---
1. Markets Are Always Changing
The financial markets are dynamic and influenced by countless variables such as economic data, geopolitical events, technological advancements, and changing investor sentiment. A strategy that works today might not work tomorrow. Staying educated allows traders to:
---
2. Knowledge Compounds Over Time
Each concept or skill you learn builds upon your existing knowledge, creating a compounding effect over time. The best traders:
---
3. Continuous Improvement Yields Consistency
Consistency is the key to long-term trading success. Education fuels improvement, and improvement fuels consistency. The best traders:
---
4. Emotional Mastery Requires Practice
Trading isn't just about strategies; it's about mastering emotions. Continuous learning helps traders better understand:
---
5. Tools and Technology Evolve
Trading tools and platforms are constantly improving. From advanced charting software to AI-driven analytics, staying educated ensures you:
---
6. Lifelong Curiosity Leads to Innovation
The best traders never settle. They approach trading with a mindset of curiosity, always asking:
---
Practical Steps for Continuous Learning
---
Final Thoughts
The best traders know that the journey to mastery is endless. They view every trade, every market condition, and every new piece of knowledge as an opportunity to grow. By committing to continuous education, you not only refine your skills but also develop the adaptability and resilience needed to thrive in the ever-changing world of trading.
In trading, the learning process never ends. Markets evolve, strategies adapt, and new challenges arise every day. The best traders understand this and prioritize continuous education to stay ahead. Here's why constant learning is vital and how you can adopt this mindset.
---
1. Markets Are Always Changing
The financial markets are dynamic and influenced by countless variables such as economic data, geopolitical events, technological advancements, and changing investor sentiment. A strategy that works today might not work tomorrow. Staying educated allows traders to:
- Adapt to new market conditions.
- Recognize emerging patterns and opportunities.
- Avoid becoming obsolete in an ever-evolving environment.
---
2. Knowledge Compounds Over Time
Each concept or skill you learn builds upon your existing knowledge, creating a compounding effect over time. The best traders:
- Study new strategies to enhance their toolkit.
- Refine their understanding of risk management and psychology.
- Learn from both successes and failures, turning every trade into an educational experience.
---
3. Continuous Improvement Yields Consistency
Consistency is the key to long-term trading success. Education fuels improvement, and improvement fuels consistency. The best traders:
- Regularly review and refine their trading systems.
- Backtest and forward-test new ideas.
- Seek feedback from mentors or trading peers to uncover blind spots.
---
4. Emotional Mastery Requires Practice
Trading isn't just about strategies; it's about mastering emotions. Continuous learning helps traders better understand:
- The psychology behind their decisions.
- Techniques for managing fear, greed, and impatience.
- How to maintain discipline under pressure.
---
5. Tools and Technology Evolve
Trading tools and platforms are constantly improving. From advanced charting software to AI-driven analytics, staying educated ensures you:
- Leverage the latest technology to gain a competitive edge.
- Understand how to use these tools effectively.
- Avoid falling behind as others adopt more efficient methods.
---
6. Lifelong Curiosity Leads to Innovation
The best traders never settle. They approach trading with a mindset of curiosity, always asking:
- How can I improve my risk-reward ratio?
- Are there more efficient ways to manage my trades?
- What can I learn from other successful traders?
---
Practical Steps for Continuous Learning
- Read Regularly: Stay updated with trading books, financial news, and research papers.
- Analyze Your Trades: Keep a detailed journal to learn from your successes and mistakes.
- Engage with the Community: Join forums, attend webinars, or collaborate with other traders.
- Invest in Courses: Take advanced classes on technical analysis, risk management, or trading psychology.
- Experiment Safely: Use demo accounts or small positions to test new strategies before fully committing.
- Reflect Often: Schedule time to review your performance and identify areas for growth.
---
Final Thoughts
The best traders know that the journey to mastery is endless. They view every trade, every market condition, and every new piece of knowledge as an opportunity to grow. By committing to continuous education, you not only refine your skills but also develop the adaptability and resilience needed to thrive in the ever-changing world of trading.
#24
Open OverWise board / Characteristics of Top Traders...
Last post by Henrik Ekenberg - Dec 30, 2024, 04:17 PMCharacteristics of Top Traders: The Blueprint for Success
Top traders are not born; they are shaped through disciplined practices, thoughtful strategies, and consistent actions. They approach the markets with a mindset that prioritizes preparation, process, and long-term success over immediate gratification. Here are the key traits and habits that define top traders and actionable insights to help you elevate your trading journey.
1. They Follow Rules, Not Whims
The Mistake: Many traders approach each trade with a new strategy or impulse, leaving their outcomes to chance.
What Top Traders Do:
Top traders follow a well-defined system or strategy with a statistical edge. They understand that consistent results come from adhering to rules, not improvising. Each trade is part of a larger framework, not an isolated attempt to outsmart the market.
Key Insight: Doing different things each time makes you vulnerable to the market's randomness, while sticking to rules ensures consistency.
2. They Don't Chase a Big Comeback
The Mistake: Trying to recover all losses with a single trade.
What Top Traders Do:
Losses and losing streaks are accepted as part of the system. They rely on extensive backtesting to anticipate drawdowns and understand that breaking the rules to recover losses transforms trading into gambling.
Key Insight: Losing streaks are inevitable, but they do not invalidate the edge of a tested system.
3. They Don't Overvalue Individual Wins or Losses
The Mistake: Becoming overly emotional about the outcome of a single trade.
What Top Traders Do:
They focus on the larger sample size rather than individual trades. Understanding that edge is realized over time allows them to detach emotionally from immediate results and think long-term.
Key Insight: Success lies in the accumulation of outcomes over hundreds of trades, not in a single win or loss.
4. They Test and Practice Thoroughly
The Mistake: Relying on theoretical knowledge without practical experience.
What Top Traders Do:
Extensive backtesting and live practice are the foundation of their confidence. By testing their system across a large sample size, they build trust in its edge and their ability to execute it effectively.
Key Insight: Experience transforms theoretical probabilistic thinking into actionable confidence during live trading.
5. They Use Thoughtful Position Sizing
The Mistake: Setting position sizes based on emotions or desired profits.
What Top Traders Do:
Position sizes are determined by the statistical performance of their system. They adopt sizing strategies that ensure zero risk of ruin, allowing them to survive losing streaks and drawdowns while capitalizing on winning trades.
Key Insight: Proper position sizing ensures the edge of the system can play out without risking total capital.
6. They Ignore Opinions—Even Their Own
The Mistake: Trading based on others' opinions or their own untested hunches.
What Top Traders Do:
They follow their system's rules without letting subjective opinions cloud their judgment. Emotional justifications are ignored, as their interest lies in consistent execution, not momentary predictions.
Key Insight: Success stems from following objective rules, not subjective opinions.
7. They Stay Consistent Through Losing Streaks
The Mistake: Doubting the system after a few consecutive losses.
What Top Traders Do:
Losing streaks are expected and do not shake their faith in the system. Instead of altering their behavior, they see losing streaks as opportunities to test their consistency and discipline.
Key Insight: Consistency during tough times differentiates professionals from amateurs.
8. They Have a Long-Term Perspective
The Mistake: Focusing on immediate results and short-term outcomes.
What Top Traders Do:
They understand their job is to execute a system with an edge, repeatedly and consistently, over time. This perspective shifts their focus from short-term randomness to the long-term process.
Key Insight: Success in trading requires patience and a focus on the bigger picture.
9. They Never Give Up
The Mistake: Quitting when the path becomes challenging.
What Top Traders Do:
They recognize that trading success is hard-earned and requires continuous learning, preparation, and self-improvement. Resilience and persistence are non-negotiable traits for those who succeed.
Key Insight: The traders who succeed are the ones who never stop learning and never give up.
How to Apply These Traits
Conclusion: The Mindset of a Top Trader
Top traders succeed because they prioritize consistency, preparation, and a long-term perspective over immediate results. They approach trading as a disciplined process, focusing on what they can control—following their system and managing risk—while trusting that their edge will manifest over time.
Success in trading is not about being right every time; it's about executing your strategy consistently, regardless of the market's ups and downs. Start by adopting the habits and mindset of top traders, and you'll be well on your way to achieving sustainable success.
Top traders are not born; they are shaped through disciplined practices, thoughtful strategies, and consistent actions. They approach the markets with a mindset that prioritizes preparation, process, and long-term success over immediate gratification. Here are the key traits and habits that define top traders and actionable insights to help you elevate your trading journey.
1. They Follow Rules, Not Whims
The Mistake: Many traders approach each trade with a new strategy or impulse, leaving their outcomes to chance.
What Top Traders Do:
Top traders follow a well-defined system or strategy with a statistical edge. They understand that consistent results come from adhering to rules, not improvising. Each trade is part of a larger framework, not an isolated attempt to outsmart the market.
Key Insight: Doing different things each time makes you vulnerable to the market's randomness, while sticking to rules ensures consistency.
2. They Don't Chase a Big Comeback
The Mistake: Trying to recover all losses with a single trade.
What Top Traders Do:
Losses and losing streaks are accepted as part of the system. They rely on extensive backtesting to anticipate drawdowns and understand that breaking the rules to recover losses transforms trading into gambling.
Key Insight: Losing streaks are inevitable, but they do not invalidate the edge of a tested system.
3. They Don't Overvalue Individual Wins or Losses
The Mistake: Becoming overly emotional about the outcome of a single trade.
What Top Traders Do:
They focus on the larger sample size rather than individual trades. Understanding that edge is realized over time allows them to detach emotionally from immediate results and think long-term.
Key Insight: Success lies in the accumulation of outcomes over hundreds of trades, not in a single win or loss.
4. They Test and Practice Thoroughly
The Mistake: Relying on theoretical knowledge without practical experience.
What Top Traders Do:
Extensive backtesting and live practice are the foundation of their confidence. By testing their system across a large sample size, they build trust in its edge and their ability to execute it effectively.
Key Insight: Experience transforms theoretical probabilistic thinking into actionable confidence during live trading.
5. They Use Thoughtful Position Sizing
The Mistake: Setting position sizes based on emotions or desired profits.
What Top Traders Do:
Position sizes are determined by the statistical performance of their system. They adopt sizing strategies that ensure zero risk of ruin, allowing them to survive losing streaks and drawdowns while capitalizing on winning trades.
Key Insight: Proper position sizing ensures the edge of the system can play out without risking total capital.
6. They Ignore Opinions—Even Their Own
The Mistake: Trading based on others' opinions or their own untested hunches.
What Top Traders Do:
They follow their system's rules without letting subjective opinions cloud their judgment. Emotional justifications are ignored, as their interest lies in consistent execution, not momentary predictions.
Key Insight: Success stems from following objective rules, not subjective opinions.
7. They Stay Consistent Through Losing Streaks
The Mistake: Doubting the system after a few consecutive losses.
What Top Traders Do:
Losing streaks are expected and do not shake their faith in the system. Instead of altering their behavior, they see losing streaks as opportunities to test their consistency and discipline.
Key Insight: Consistency during tough times differentiates professionals from amateurs.
8. They Have a Long-Term Perspective
The Mistake: Focusing on immediate results and short-term outcomes.
What Top Traders Do:
They understand their job is to execute a system with an edge, repeatedly and consistently, over time. This perspective shifts their focus from short-term randomness to the long-term process.
Key Insight: Success in trading requires patience and a focus on the bigger picture.
9. They Never Give Up
The Mistake: Quitting when the path becomes challenging.
What Top Traders Do:
They recognize that trading success is hard-earned and requires continuous learning, preparation, and self-improvement. Resilience and persistence are non-negotiable traits for those who succeed.
Key Insight: The traders who succeed are the ones who never stop learning and never give up.
How to Apply These Traits
- Build a System: Develop a trading strategy with a proven edge through backtesting.
- Define Rules: Write clear rules for entries, exits, and risk management.
- Practice Extensively: Use simulations or demo accounts to build confidence in your execution.
- Stay Disciplined: Commit to your system and avoid deviating based on emotions or outcomes.
- Think Long-Term: Measure success over months and years, not days or weeks.
Conclusion: The Mindset of a Top Trader
Top traders succeed because they prioritize consistency, preparation, and a long-term perspective over immediate results. They approach trading as a disciplined process, focusing on what they can control—following their system and managing risk—while trusting that their edge will manifest over time.
Success in trading is not about being right every time; it's about executing your strategy consistently, regardless of the market's ups and downs. Start by adopting the habits and mindset of top traders, and you'll be well on your way to achieving sustainable success.
#25
Open OverWise board / The Reality of Success: Why Tr...
Last post by Henrik Ekenberg - Dec 30, 2024, 02:05 PMThe Reality of Success: Why Trading is No Different
In virtually every profession, success requires years of dedication, education, and practice. Yet, for some reason, many traders expect to achieve financial independence and wealth in mere weeks or months. Let's explore why this mindset is flawed and how adopting a long-term perspective can lead to sustainable trading success.
The Parallel of Mastery
Why is Trading Any Different?
Trading, like any other field, is a skill that requires time, effort, and experience to master. Yet, most new traders enter the market with unrealistic expectations, believing they can bypass the learning curve. This mindset leads to frustration, impulsive decisions, and inevitable failure.
The Harsh Reality:
99% of traders fail because they:
The Path to Sustainable Trading Success
Trading Success Takes Time
Think of trading as a marathon, not a sprint. It may take years to develop the discipline, strategy, and emotional resilience required to succeed. But the rewards—financial independence, personal growth, and freedom—are worth the time and effort.
Final Thoughts
If it takes a decade or more to excel in other fields, why should trading be any different? Shift your mindset from quick gains to sustained growth. Approach trading with patience, humility, and a commitment to lifelong learning. Success doesn't happen overnight, but with persistence and discipline, it's within your reach.
In virtually every profession, success requires years of dedication, education, and practice. Yet, for some reason, many traders expect to achieve financial independence and wealth in mere weeks or months. Let's explore why this mindset is flawed and how adopting a long-term perspective can lead to sustainable trading success.
The Parallel of Mastery
- 10+ Years in School: Formal education lays the groundwork for basic knowledge and critical thinking. It takes time to build foundational skills before applying them in a career.
- 10+ Years of Job Experience: Climbing the corporate ladder, learning industry-specific nuances, and developing expertise requires a decade or more of steady growth and learning.
- 10+ Years for Professional Athletes: Behind every "overnight success" is a decade of intense training, sacrifice, and discipline. Professional athletes don't just wake up one day ready to compete at the highest level.
- 10+ Years for Performers: Musicians, actors, and artists spend years honing their craft, facing rejection, and learning how to perfect their skills before they see success.
Why is Trading Any Different?
Trading, like any other field, is a skill that requires time, effort, and experience to master. Yet, most new traders enter the market with unrealistic expectations, believing they can bypass the learning curve. This mindset leads to frustration, impulsive decisions, and inevitable failure.
The Harsh Reality:
99% of traders fail because they:
- Underestimate the Time Needed to Learn: They focus on shortcuts rather than building foundational knowledge.
- Ignore the Importance of Practice: Instead of backtesting or using paper trading, they jump straight into live markets.
- Overestimate Immediate Returns: Unrealistic goals lead to unnecessary risks and emotional trading.
The Path to Sustainable Trading Success
- Treat Trading Like Any Other Profession:
- Just as you wouldn't expect to become a doctor or engineer overnight, don't expect to master trading in a few months.
- Commit to learning the fundamentals, studying charts, testing strategies, and understanding market psychology.
- Adopt a Long-Term Perspective:
- Focus on incremental progress, not instant wealth.
- Set realistic goals for growth over years, not days.
- Commit to Continuous Education:
- The market evolves, and so should you. Successful traders stay students of the market, always refining their edge.
- Practice Before You Trade:
- Backtest strategies rigorously to understand their strengths and weaknesses.
- Use demo accounts to simulate trades before risking real money.
- Manage Expectations:
- Understand that consistency, not rapid gains, is the key to success.
- Be prepared for setbacks and use them as opportunities to learn and grow.
Trading Success Takes Time
Think of trading as a marathon, not a sprint. It may take years to develop the discipline, strategy, and emotional resilience required to succeed. But the rewards—financial independence, personal growth, and freedom—are worth the time and effort.
Final Thoughts
If it takes a decade or more to excel in other fields, why should trading be any different? Shift your mindset from quick gains to sustained growth. Approach trading with patience, humility, and a commitment to lifelong learning. Success doesn't happen overnight, but with persistence and discipline, it's within your reach.
#26
Open OverWise board / Tre steg mot framgång på markn...
Last post by Henrik Ekenberg - Dec 30, 2024, 12:46 PMTre steg mot framgång på marknaderna – och ett tack för 2024
Att coacha människor som vill lyckas på marknaderna har lärt mig att framgång alltid bygger på tre avgörande förändringar. Oavsett bakgrund eller tidigare erfarenheter sker samma resa hos de jag coachar innan de når sin fulla potential. Här är de tre stegen som skiljer framgångsrika traders från resten:
1. De tar ansvar för sin egen framgång
Ingen blir framgångsrik genom att jaga mirakelsystem eller förlita sig på någon annans lösningar. Den stora vändpunkten sker när en person slutar leta efter genvägar och istället inser att deras framgång ligger i deras egna händer.
Ansvar innebär att äga både sina vinster och förluster och förstå att utveckling kräver ett medvetet, långsiktigt arbete.
2. De är redo att arbeta hårt
Marknaderna belönar inte passivitet. De som lyckas är de som är villiga att lägga ner timmarna – förbereda sig, analysera, lära av sina misstag och ständigt förbättra sina strategier.
Ingen framgång är gratis, och när någon förstår det börjar de ta sin utveckling på allvar.
3. Det "klickar" – aha-ögonblicket
Den mest inspirerande delen av resan är när det "klickar". Efter allt arbete, alla misstag och all träning når personen ett avgörande ögonblick av insikt.
Det kan vara att se marknaden med nya ögon, förstå hur allt hänger ihop eller hitta sitt unika sätt att handla. Från det ögonblicket vet de vad som krävs för att lyckas – och ingenting kan stoppa dem.
Jag vill tacka er alla för ett fantastiskt 2024. Att få vara en del av er resa och se er utvecklas har varit en sann glädje. Jag ser fram emot ett ännu mer spännande 2025 tillsammans, där vi fortsätter bygga vidare på framgång och lärdomar.
Låt oss göra 2025 till året då vi tar tradingen till nästa nivå! 🌟
Att coacha människor som vill lyckas på marknaderna har lärt mig att framgång alltid bygger på tre avgörande förändringar. Oavsett bakgrund eller tidigare erfarenheter sker samma resa hos de jag coachar innan de når sin fulla potential. Här är de tre stegen som skiljer framgångsrika traders från resten:
1. De tar ansvar för sin egen framgång
Ingen blir framgångsrik genom att jaga mirakelsystem eller förlita sig på någon annans lösningar. Den stora vändpunkten sker när en person slutar leta efter genvägar och istället inser att deras framgång ligger i deras egna händer.
Ansvar innebär att äga både sina vinster och förluster och förstå att utveckling kräver ett medvetet, långsiktigt arbete.
2. De är redo att arbeta hårt
Marknaderna belönar inte passivitet. De som lyckas är de som är villiga att lägga ner timmarna – förbereda sig, analysera, lära av sina misstag och ständigt förbättra sina strategier.
Ingen framgång är gratis, och när någon förstår det börjar de ta sin utveckling på allvar.
3. Det "klickar" – aha-ögonblicket
Den mest inspirerande delen av resan är när det "klickar". Efter allt arbete, alla misstag och all träning når personen ett avgörande ögonblick av insikt.
Det kan vara att se marknaden med nya ögon, förstå hur allt hänger ihop eller hitta sitt unika sätt att handla. Från det ögonblicket vet de vad som krävs för att lyckas – och ingenting kan stoppa dem.
Jag vill tacka er alla för ett fantastiskt 2024. Att få vara en del av er resa och se er utvecklas har varit en sann glädje. Jag ser fram emot ett ännu mer spännande 2025 tillsammans, där vi fortsätter bygga vidare på framgång och lärdomar.
Låt oss göra 2025 till året då vi tar tradingen till nästa nivå! 🌟
#27
Open OverWise board / Respect the Market, Protect Yo...
Last post by Henrik Ekenberg - Dec 30, 2024, 09:18 AMRespect the Market, Protect Your Capital
Trading requires humility and discipline. The market is an unforgiving force, indifferent to individual traders and their plans. If you don't respect the market, it won't respect your capital. This simple truth is a cornerstone of trading success. Here's what it means and how to apply it to your trading journey.
1. The Market Doesn't Care About You
What It Means:
The market operates on its own dynamics, driven by millions of participants and unpredictable forces. It doesn't cater to your emotions, opinions, or plans.
How to Apply It:
2. Respect the Rules
What It Means:
Trading without rules or ignoring them is a recipe for disaster. Respecting your own system is how you protect your capital from unnecessary losses.
How to Apply It:
3. Manage Risk Religiously
What It Means:
Disrespecting the market often manifests as poor risk management—taking oversized positions, ignoring stop-losses, or chasing trades. These behaviors invite losses.
How to Apply It:
4. Stay Humble
What It Means:
Arrogance leads traders to believe they can outsmart the market, often resulting in unnecessary risks and avoidable losses.
How to Apply It:
5. Respect Market Conditions
What It Means:
The market moves in cycles—bull, bear, and sideways. Disrespecting current conditions by trading against the trend or ignoring volatility often results in losses.
How to Apply It:
Final Thoughts
Respecting the market is about recognizing its power and unpredictability. It means following your rules, managing risk, and staying disciplined. When you respect the market, you safeguard your capital and position yourself for long-term success.
Remember: If you don't respect the market, it won't hesitate to take your capital. Approach trading with humility, preparation, and discipline, and the market will reward your respect with opportunities.
Trading requires humility and discipline. The market is an unforgiving force, indifferent to individual traders and their plans. If you don't respect the market, it won't respect your capital. This simple truth is a cornerstone of trading success. Here's what it means and how to apply it to your trading journey.
1. The Market Doesn't Care About You
What It Means:
The market operates on its own dynamics, driven by millions of participants and unpredictable forces. It doesn't cater to your emotions, opinions, or plans.
How to Apply It:
- Trade based on evidence, not hope or fear.
- Accept that losses are a natural part of the process.
- Avoid overconfidence—success requires constant learning and adaptation.
2. Respect the Rules
What It Means:
Trading without rules or ignoring them is a recipe for disaster. Respecting your own system is how you protect your capital from unnecessary losses.
How to Apply It:
- Always follow your trading plan, including stop-losses and position sizes.
- Avoid emotional decisions—let the rules guide your actions.
- Review and refine your rules based on performance, not on market whims.
3. Manage Risk Religiously
What It Means:
Disrespecting the market often manifests as poor risk management—taking oversized positions, ignoring stop-losses, or chasing trades. These behaviors invite losses.
How to Apply It:
- Never risk more than a predetermined percentage of your capital on a single trade.
- Use stop-loss orders to protect against unexpected moves.
- Diversify your trades to avoid overexposure to a single position.
4. Stay Humble
What It Means:
Arrogance leads traders to believe they can outsmart the market, often resulting in unnecessary risks and avoidable losses.
How to Apply It:
- Approach every trade with humility and a willingness to learn.
- Accept that no system is perfect, and adapt to changing market conditions.
- Focus on consistency over quick wins.
5. Respect Market Conditions
What It Means:
The market moves in cycles—bull, bear, and sideways. Disrespecting current conditions by trading against the trend or ignoring volatility often results in losses.
How to Apply It:
- Trade with the trend, not against it.
- Adjust your strategy based on the current market environment.
- Be patient—sometimes the best move is to wait for clearer signals.
Final Thoughts
Respecting the market is about recognizing its power and unpredictability. It means following your rules, managing risk, and staying disciplined. When you respect the market, you safeguard your capital and position yourself for long-term success.
Remember: If you don't respect the market, it won't hesitate to take your capital. Approach trading with humility, preparation, and discipline, and the market will reward your respect with opportunities.
#28
Open OverWise board / The Power of a Short-Term Memo...
Last post by Henrik Ekenberg - Dec 30, 2024, 09:03 AMThe Power of a Short-Term Memory in Trading
In trading, holding on to past outcomes—whether wins or losses—can cloud your judgment and disrupt your focus. The best traders understand the importance of staying present, detached from the past, and fully engaged in the next trade. Here's why cultivating a short-term memory is essential for success.
1. Be Quick to Forget Your Losses
Why It Matters:
Dwelling on losses can lead to frustration, overtrading, or revenge trading. Every trade is unique, and holding onto past failures only distracts you from executing your system with clarity.
How to Do It:
2. Be Quick to Forget Your Wins
Why It Matters:
Overconfidence after a win can be just as dangerous as frustration after a loss. It can lead to complacency, bigger risks, or breaking rules.
How to Do It:
3. Stay Present and Focused
Why It Matters:
The market doesn't care about your last trade. Success comes from responding to the current conditions with discipline and focus, not being distracted by past emotions.
How to Do It:
4. Focus on the Next Trade
Why It Matters:
The next trade is always a new opportunity, unconnected to what came before. By approaching each trade with a fresh mindset, you increase the chances of consistent execution.
How to Do It:
Final Thoughts
The best traders have a short-term memory. They don't carry emotional baggage from one trade to the next. Instead, they stay present, focused, and ready to execute their system with precision.
Remember:
In trading, holding on to past outcomes—whether wins or losses—can cloud your judgment and disrupt your focus. The best traders understand the importance of staying present, detached from the past, and fully engaged in the next trade. Here's why cultivating a short-term memory is essential for success.
1. Be Quick to Forget Your Losses
Why It Matters:
Dwelling on losses can lead to frustration, overtrading, or revenge trading. Every trade is unique, and holding onto past failures only distracts you from executing your system with clarity.
How to Do It:
- Accept losses as part of the process.
- Use a journal to reflect briefly, then move on.
- Focus on following your rules for the next trade.
2. Be Quick to Forget Your Wins
Why It Matters:
Overconfidence after a win can be just as dangerous as frustration after a loss. It can lead to complacency, bigger risks, or breaking rules.
How to Do It:
- Celebrate briefly, then return to your process.
- Remember that one win doesn't define long-term success.
- Stay humble and consistent.
3. Stay Present and Focused
Why It Matters:
The market doesn't care about your last trade. Success comes from responding to the current conditions with discipline and focus, not being distracted by past emotions.
How to Do It:
- Practice mindfulness—focus on the trade in front of you.
- Set clear criteria for your entries and exits, keeping emotions out of it.
- Treat every trade as an isolated event in the bigger picture.
4. Focus on the Next Trade
Why It Matters:
The next trade is always a new opportunity, unconnected to what came before. By approaching each trade with a fresh mindset, you increase the chances of consistent execution.
How to Do It:
- Reset your mindset after every trade, win or lose.
- Stick to your trading plan and trust your process.
- Focus on executing your edge, one trade at a time.
Final Thoughts
The best traders have a short-term memory. They don't carry emotional baggage from one trade to the next. Instead, they stay present, focused, and ready to execute their system with precision.
Remember:
- Forget your losses.
- Forget your wins.
- Stay focused on the next trade—that's where your attention belongs.
#29
Open OverWise board / Trading and Life Lessons: Effo...
Last post by Henrik Ekenberg - Dec 29, 2024, 04:48 PMTrading and Life Lessons: Effort, Discipline, and Perspective
In both trading and life, the idea of "effortless success" is a myth. The path to mastery is built on persistence, discipline, and self-belief—qualities that are developed, not inherited. Here's a breakdown of these principles and how they apply to trading, personal growth, and the broader view of life.
1. Effortless is a Myth
The Truth: Success in any field, especially trading, requires effort, resilience, and continuous learning. The market doesn't reward shortcuts or half-hearted attempts.
In Trading: Every profitable trader has spent countless hours backtesting strategies, analyzing losses, and refining their approach. There's no "easy" path to consistent success.
In Life: Growth comes from facing challenges head-on and putting in the effort to overcome them. The more you invest in your journey, the greater the rewards.
Takeaway: Embrace the grind—it's the foundation of genuine success.
2. Belief in Yourself Has to Be Earned
The Truth: Confidence isn't something you're born with; it's something you build through experience and preparation.
In Trading: Belief in your system and your ability to execute it comes from hours of practice, testing, and sticking to your rules, even during losing streaks.
In Life: Self-belief grows as you prove to yourself, time and again, that you can overcome obstacles and persevere.
Takeaway: Earn your confidence through preparation, consistency, and small wins.
3. Grit > Gift
The Truth: Hard work and perseverance often outperform natural talent. The ability to keep going when things get tough is a more valuable asset than innate ability.
In Trading: Many gifted traders fail because they lack the discipline to stick to their rules. Grit ensures you learn from losses and keep improving.
In Life: Persistence in pursuing your goals will take you further than relying on natural advantages alone.
Takeaway: Focus on cultivating resilience—it's a superpower in trading and life.
4. Discipline is Talent
The Truth: While discipline may seem like an intangible quality, it's a skill that can be developed and honed. In trading, discipline is more valuable than intelligence.
In Trading: The ability to follow your system, manage risk, and stick to your plan—even when emotions are high—is the cornerstone of success.
In Life: Discipline helps you make consistent progress toward your goals, even when motivation fades.
Takeaway: Treat discipline as a skill and work on it daily—it will set you apart.
5. Trust and Loving the Process is Talent
The Truth: The best traders and professionals love the process, not just the outcomes. Trusting your system and enjoying the journey is a form of talent.
In Trading: Falling in love with the process of analysis, execution, and reflection helps you stay consistent and resilient, regardless of short-term results.
In Life: When you find joy in the journey, every step becomes meaningful—even the tough ones.
Takeaway: Shift your focus from the destination to the process, and success will follow.
6. You Can Do Your Best and Still Lose
The Truth: Even with the best preparation, execution, and effort, losses are part of both trading and life. Success is about how you respond to setbacks, not avoiding them altogether.
In Trading: Accept losses as a natural part of the game. They don't define you; your ability to adapt and learn from them does.
In Life: Failure doesn't negate effort. Sometimes, external circumstances prevail. What matters is how you move forward.
Takeaway: Measure success by your commitment to the process, not just the results.
7. Life is Bigger Than the Stock Market
The Truth: While trading can be a fulfilling career or passion, it's just one aspect of life. Family, health, relationships, and personal growth matter more.
In Trading: Avoid letting the market consume your identity. Maintain balance and perspective to ensure trading remains a part of your life, not the whole of it.
In Life: Achieving balance allows you to find joy and purpose beyond any single pursuit, making setbacks easier to handle.
Takeaway: Keep perspective—life is rich and multidimensional, far beyond any one success or failure.
Final Thoughts
Success in trading and life isn't about perfection; it's about persistence, discipline, and perspective. Effortless is a myth. Grit beats gift. Discipline and trust in the process are talents you can cultivate. And perhaps most importantly, life is bigger than any one endeavor, including the stock market.
Embrace the journey. Learn from the challenges. Find fulfillment in the process. That's where true success lies.
In both trading and life, the idea of "effortless success" is a myth. The path to mastery is built on persistence, discipline, and self-belief—qualities that are developed, not inherited. Here's a breakdown of these principles and how they apply to trading, personal growth, and the broader view of life.
1. Effortless is a Myth
The Truth: Success in any field, especially trading, requires effort, resilience, and continuous learning. The market doesn't reward shortcuts or half-hearted attempts.
In Trading: Every profitable trader has spent countless hours backtesting strategies, analyzing losses, and refining their approach. There's no "easy" path to consistent success.
In Life: Growth comes from facing challenges head-on and putting in the effort to overcome them. The more you invest in your journey, the greater the rewards.
Takeaway: Embrace the grind—it's the foundation of genuine success.
2. Belief in Yourself Has to Be Earned
The Truth: Confidence isn't something you're born with; it's something you build through experience and preparation.
In Trading: Belief in your system and your ability to execute it comes from hours of practice, testing, and sticking to your rules, even during losing streaks.
In Life: Self-belief grows as you prove to yourself, time and again, that you can overcome obstacles and persevere.
Takeaway: Earn your confidence through preparation, consistency, and small wins.
3. Grit > Gift
The Truth: Hard work and perseverance often outperform natural talent. The ability to keep going when things get tough is a more valuable asset than innate ability.
In Trading: Many gifted traders fail because they lack the discipline to stick to their rules. Grit ensures you learn from losses and keep improving.
In Life: Persistence in pursuing your goals will take you further than relying on natural advantages alone.
Takeaway: Focus on cultivating resilience—it's a superpower in trading and life.
4. Discipline is Talent
The Truth: While discipline may seem like an intangible quality, it's a skill that can be developed and honed. In trading, discipline is more valuable than intelligence.
In Trading: The ability to follow your system, manage risk, and stick to your plan—even when emotions are high—is the cornerstone of success.
In Life: Discipline helps you make consistent progress toward your goals, even when motivation fades.
Takeaway: Treat discipline as a skill and work on it daily—it will set you apart.
5. Trust and Loving the Process is Talent
The Truth: The best traders and professionals love the process, not just the outcomes. Trusting your system and enjoying the journey is a form of talent.
In Trading: Falling in love with the process of analysis, execution, and reflection helps you stay consistent and resilient, regardless of short-term results.
In Life: When you find joy in the journey, every step becomes meaningful—even the tough ones.
Takeaway: Shift your focus from the destination to the process, and success will follow.
6. You Can Do Your Best and Still Lose
The Truth: Even with the best preparation, execution, and effort, losses are part of both trading and life. Success is about how you respond to setbacks, not avoiding them altogether.
In Trading: Accept losses as a natural part of the game. They don't define you; your ability to adapt and learn from them does.
In Life: Failure doesn't negate effort. Sometimes, external circumstances prevail. What matters is how you move forward.
Takeaway: Measure success by your commitment to the process, not just the results.
7. Life is Bigger Than the Stock Market
The Truth: While trading can be a fulfilling career or passion, it's just one aspect of life. Family, health, relationships, and personal growth matter more.
In Trading: Avoid letting the market consume your identity. Maintain balance and perspective to ensure trading remains a part of your life, not the whole of it.
In Life: Achieving balance allows you to find joy and purpose beyond any single pursuit, making setbacks easier to handle.
Takeaway: Keep perspective—life is rich and multidimensional, far beyond any one success or failure.
Final Thoughts
Success in trading and life isn't about perfection; it's about persistence, discipline, and perspective. Effortless is a myth. Grit beats gift. Discipline and trust in the process are talents you can cultivate. And perhaps most importantly, life is bigger than any one endeavor, including the stock market.
Embrace the journey. Learn from the challenges. Find fulfillment in the process. That's where true success lies.
#30
Open OverWise board / Trading Is Not Gambling: Debun...
Last post by Henrik Ekenberg - Dec 29, 2024, 04:19 PMTrading Is Not Gambling: Debunking the Myth
One of the most common misconceptions about trading is that it's no different from gambling. This belief often comes from people who misunderstand the discipline, structure, and effort that go into becoming a successful trader. The truth is, trading couldn't be further from gambling when done right. It's about edges, calculated risks, consistency, and discipline.
Let's break down the key differences and why trading, when approached correctly, is a professional skill—not a game of chance.
Why People Think Trading Is Gambling
1. Lack of Understanding:
- Many assume trading is about guessing market direction or chasing quick profits, which mirrors gambling behavior.
2. Emotional Reactions:
- Traders who rely on instincts or impulsive decisions often resemble gamblers, reinforcing the stereotype.
3. Stories of Losses:
- Headlines about traders losing their life savings due to overleveraging or poor risk management create the illusion that all trading is reckless.
What Trading Really Is
1. Trading is About Edges
- What It Means:
An edge is a systematic advantage that gives you a higher probability of success over time. It could be a proven strategy, a deep understanding of market patterns, or an ability to exploit inefficiencies.
- Why It's Not Gambling:
Gambling relies on pure chance or unfavorable odds (e.g., the house always wins). In trading, a well-researched edge tips the probability in your favor.
2. Trading Involves Calculated Risks
- What It Means:
Every trade involves assessing how much you're willing to lose relative to the potential gain. Risk management ensures no single trade can wipe you out.
- Why It's Not Gambling:
In gambling, you often bet more than you can afford to lose. In trading, calculated risks are taken with predefined stop-losses and position sizing to minimize potential damage.
3. Trading is an Emotional Fight
- What It Means:
Success in trading depends on mastering your emotions—fear, greed, impatience, and overconfidence can destroy even the best strategies.
- Why It's Not Gambling:
Gambling thrives on emotional highs and lows. Trading requires emotional discipline, where decisions are based on logic and planning, not impulse.
4. Trading Demands Consistency
- What It Means:
Successful trading isn't about a single big win—it's about executing your strategy consistently over hundreds or thousands of trades.
- Why It's Not Gambling:
Gambling often relies on luck and one-off results. Trading builds wealth through steady, disciplined application of a proven system.
5. Trading Focuses on Long-Term Goals
- What It Means:
Traders work towards sustainable growth over months and years, prioritizing capital preservation and compounding profits.
- Why It's Not Gambling:
Gamblers often aim for immediate gratification, while traders take a marathon approach, understanding that success is built gradually.
6. Trading Requires Countless Hours of Practice
- What It Means:
Traders spend countless hours backtesting strategies, studying market behavior, and improving their skills.
- Why It's Not Gambling:
Gambling involves minimal preparation or reliance on skill, whereas trading is a craft honed through continuous learning and refinement.
Key Differences Between Trading and Gambling
Final Thoughts: Trading is a Profession, Not a Bet
The idea that trading is gambling stems from a lack of knowledge about what trading truly entails. While both involve risk, trading is a calculated, skill-based profession that rewards preparation, discipline, and consistency. Gambling, on the other hand, is a game of chance with the odds stacked against you.
If you want to succeed as a trader, focus on building edges, managing risk, and staying consistent over the long term. These principles separate professionals from gamblers—and turn trading into a sustainable path to financial growth.
Remember: It's not about luck. It's about skill.
One of the most common misconceptions about trading is that it's no different from gambling. This belief often comes from people who misunderstand the discipline, structure, and effort that go into becoming a successful trader. The truth is, trading couldn't be further from gambling when done right. It's about edges, calculated risks, consistency, and discipline.
Let's break down the key differences and why trading, when approached correctly, is a professional skill—not a game of chance.
Why People Think Trading Is Gambling
1. Lack of Understanding:
- Many assume trading is about guessing market direction or chasing quick profits, which mirrors gambling behavior.
2. Emotional Reactions:
- Traders who rely on instincts or impulsive decisions often resemble gamblers, reinforcing the stereotype.
3. Stories of Losses:
- Headlines about traders losing their life savings due to overleveraging or poor risk management create the illusion that all trading is reckless.
What Trading Really Is
1. Trading is About Edges
- What It Means:
An edge is a systematic advantage that gives you a higher probability of success over time. It could be a proven strategy, a deep understanding of market patterns, or an ability to exploit inefficiencies.
- Why It's Not Gambling:
Gambling relies on pure chance or unfavorable odds (e.g., the house always wins). In trading, a well-researched edge tips the probability in your favor.
2. Trading Involves Calculated Risks
- What It Means:
Every trade involves assessing how much you're willing to lose relative to the potential gain. Risk management ensures no single trade can wipe you out.
- Why It's Not Gambling:
In gambling, you often bet more than you can afford to lose. In trading, calculated risks are taken with predefined stop-losses and position sizing to minimize potential damage.
3. Trading is an Emotional Fight
- What It Means:
Success in trading depends on mastering your emotions—fear, greed, impatience, and overconfidence can destroy even the best strategies.
- Why It's Not Gambling:
Gambling thrives on emotional highs and lows. Trading requires emotional discipline, where decisions are based on logic and planning, not impulse.
4. Trading Demands Consistency
- What It Means:
Successful trading isn't about a single big win—it's about executing your strategy consistently over hundreds or thousands of trades.
- Why It's Not Gambling:
Gambling often relies on luck and one-off results. Trading builds wealth through steady, disciplined application of a proven system.
5. Trading Focuses on Long-Term Goals
- What It Means:
Traders work towards sustainable growth over months and years, prioritizing capital preservation and compounding profits.
- Why It's Not Gambling:
Gamblers often aim for immediate gratification, while traders take a marathon approach, understanding that success is built gradually.
6. Trading Requires Countless Hours of Practice
- What It Means:
Traders spend countless hours backtesting strategies, studying market behavior, and improving their skills.
- Why It's Not Gambling:
Gambling involves minimal preparation or reliance on skill, whereas trading is a craft honed through continuous learning and refinement.
Key Differences Between Trading and Gambling
| Aspect | Trading | Gambling |
| Control | Follows a defined plan | Relies on chance |
| Risk Management | Uses stop-losses and sizing | All-in mentality |
| Skill vs. Luck | Based on skill and strategy | Primarily luck |
| Timeframe | Focused on long-term growth | Instant gratification |
| Emotional Approach | Requires discipline | Driven by highs and lows |
Final Thoughts: Trading is a Profession, Not a Bet
The idea that trading is gambling stems from a lack of knowledge about what trading truly entails. While both involve risk, trading is a calculated, skill-based profession that rewards preparation, discipline, and consistency. Gambling, on the other hand, is a game of chance with the odds stacked against you.
If you want to succeed as a trader, focus on building edges, managing risk, and staying consistent over the long term. These principles separate professionals from gamblers—and turn trading into a sustainable path to financial growth.
Remember: It's not about luck. It's about skill.