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Gav's trading blog - Perseverance, Consistency, Confidence

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Why Most Traders Fail: The Psychological Traps That Destroy Your Profits

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Let’s cut the fluff. Most traders don’t blow their accounts because of bad strategies. It’s not the market, your broker, or some “manipulation” nonsense.

The real killer? Your own mind.

Trading is psychological warfare, against yourself. If you don’t master your emotions, you’re dead money. So let’s break down the biggest mental pitfalls wrecking your profits and, more importantly, how to avoid them.

1. Fear: The Account Killer

Fear turns traders into indecisive wrecks. You hesitate on good setups. You exit winners too early. You avoid taking trades entirely. Sound familiar?

What’s happening? Your brain sees risk and freaks out. It’s trying to protect you, but in trading, fear usually makes things worse.

Fix it:

Have a plan. If you know where your stop is and accept the risk before you click buy or sell, fear loses its power. Also, lower your position size if you’re sweating bullets—trading should feel calculated, not like a heart attack.

2. Greed: The Silent Assassin

Greed whispers in your ear: “Hold it longer. Double the position. This is THE move.” And just like that, you turn a winning trade into a disaster.

What’s happening? You see money on the screen and start thinking emotionally instead of rationally. You convince yourself the market owes you more.

Fix it:

Stick to your profit targets. If the trade is good, there will always be another one. Set trailing stops or scale out, but don’t let greed turn a winner into a loser.

3. Revenge Trading: The Tilt Machine

You take a loss. Your emotions scream, “Get it back NOW.” So, you slam another trade—bad entry, oversized position, no plan.

Boom. Another loss.

What’s happening? You’re not trading anymore; you’re gambling. You’re reacting instead of thinking.

Fix it:

Accept losses as part of the game. If you feel emotional, step away from the screen. Walk, breathe, punch a pillow, whatever. Just don’t trade in a mental fog.

4. Overtrading: Death by a Thousand Cuts

More trades don’t mean more profits. In fact, overtrading usually means death by commissions, bad setups, and emotional burnout.

What’s happening? Boredom. Impatience. The need to “be in the action.” You trade just to trade.

Fix it:

Quality over quantity. One solid trade is better than ten random ones. If nothing meets your criteria, sit on your hands. No trades are better than bad trades.

5. Lack of Discipline: The Slow Account Drain

You know your rules. You know your setup. But when it’s time to execute? You do the opposite. Why?

What’s happening? The market triggers emotions, and you cave. You become your own worst enemy.

Fix it:

Treat trading like a business. Have a plan, write it down, and follow it like a contract. No exceptions. If you can’t stay disciplined, take a break.

Lack of discipline isn’t a “bad habit”. It’s a direct path to financial ruin.

The Bottom Line

The market doesn’t care about your feelings. Your job? Control yourself.

Trading success isn’t about predicting every move. It’s about staying consistent, disciplined, and emotionally stable. You don’t have to be perfect. You just need to be better than the guy blowing up his account.

Master your mind, and the money will follow.

Now, are you going to trade smarter or keep making the same mistakes?

How to Do a Daily and Weekly Trade Review: A Step-by-Step Guide

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Most traders don’t review their trades properly. They think they do, but staring at a chart after a loss, shaking your head, and moving on doesn’t count. If you’re serious about improving, you need a structured, no-BS process.

Here’s how to review your trades properly so you stop making the same mistakes and actually improve.

Step 1: Record Every Trade (Yes, Every Single One)

If you don’t track your trades, you’re flying blind. Every trade should be logged. That means:

Entry & exit price – Where you got in and out.

Position size – Small size? Full size? Be specific.

Trade direction – Long or short.

Time of entry & exit – Timing matters.

Reason for entry – Be brutally honest. No “I just had a feeling.”

Outcome – Win, loss, break-even.

Screenshots – Before, during, and after. Your memory isn’t reliable—document it.

Pro tip: Use a Google Sheet or a journaling tool like Notion or Edgewonk. Pick something and stick with it.

Step 2: Review the Data (No Excuses, No Shortcuts)

Every day, go through your trades and ask:

Did I follow my plan? If not, why?

What worked? What did I do right, and how can I repeat it?

What failed? Be specific. “Got stopped out” isn’t enough—was my entry poor? Did I chase? Was the setup weak?

How was my execution? Fast and decisive, or hesitant and sloppy?

What could I have done better? Adjustments, not regrets.

Example: You shorted USDJPY because it rejected a key level, but you got stopped out. Looking back, price never actually shifted market structure. That’s a review-worthy mistake.

Step 3: Identify Patterns (Find Your Strengths & Weaknesses)

At the end of the week, look for trends in your performance. Ask yourself:

What setups worked best? Certain time of day? Market conditions?

What kept failing? FOMO trades? Bad risk management?

Are my winners bigger than my losers? If not, my risk-reward is broken.

Do I perform better on certain days/times? Some traders thrive in the morning and struggle in the afternoon.

Spotting these patterns helps you refine your edge.

Step 4: Adjust & Improve (Stop Repeating Mistakes)

Now take what you learned and apply it:

Cut out bad trades. If a setup keeps failing, stop trading it.

Double down on strengths. If a strategy works, trade it more.

Fix execution issues. Late entries? Hesitation? Work on it.

Adjust risk management. If losses are too big, tighten up.

A review is pointless if you don’t make changes.

Step 5: Set Goals for the Next Week

Forget vague goals like “I’ll do better.” Be specific:

“I will only take trades with a clear shift in market structure.”

“I will not chase after missed trades.”

“I will stick to my stop-loss and not move it.”

Make it black and white. No gray areas.

Final Thought: Treat This Like a Business

Pros review their performance. Amateurs hope for better results. If you want to make money, start acting like a pro.

Do your daily and weekly trade reviews. Identify what’s working, cut what isn’t, and refine your edge. Simple, not easy. But that’s trading.

Now, go do the work.

Afraid to Pull the Trigger? Here’s Why (and How to Fix It)

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Ever sat in front of your screen, finger hovering over the buy button, heart pounding like you’re about to defuse a bomb? Yeah, me too. It’s called “Afraid to Trade” syndrome, and it’s the silent killer of retail traders—especially those with small accounts.

Why? Because hesitation is expensive. The market doesn’t wait for you to get comfortable. If you freeze up, the move you’ve been waiting for will leave without you. Worse? You’ll probably jump in late, chasing price like a panicked tourist running after a departing train. Not a good look.

So, let’s talk about why this happens and, more importantly, how to fix it.

Why Are You Afraid to Trade?

1. You’re Overvaluing Every Trade

Let’s be real, when your account is small, every trade feels like it matters more. You don’t have the luxury of deep pockets, so every loss stings like a betrayal. But that mindset turns each decision into an emotional rollercoaster.

Fix it:

Think in probabilities. No single trade defines your success. A good strategy plays out over dozens, even hundreds of trades. Your goal? Execute well, manage risk, and let the math do its thing.

2. You Haven’t Truly Accepted Risk

Saying “I accept risk” and actually accepting risk are two different things. If the thought of losing makes your stomach tighten, you’re probably risking too much.

Fix it:

Lower your position size. Seriously. If your stop loss getting hit makes you want to punch a hole in your desk, your risk is too high. Scale it down until a loss feels like a paper cut, not a gunshot wound.

3. You Don’t Trust Your Strategy

When you hesitate, deep down, you don’t believe in what you’re doing. Maybe you haven’t backtested enough, or maybe you’ve been burned too many times. Either way, doubt is the enemy of execution.

Fix it:

Go back to the charts. Backtest your setups. Track your trades. Build confidence through data, not hope. If your setup is solid, your job is simple: execute it without hesitation.

I use Market Replay function of TradingView to test my strategies.

TradingView is my go-to platform for Live trading and Market Replay. It is cloud-based which means you can access from anywhere. And the ability to code in pine script opens up opportunities for traders to grow and profit. I am happy to recommend TradingView to traders at all levels.

4. You’re Chasing Perfection

News flash: no trade setup is 100% perfect. If you’re waiting for a flawless entry where risk is microscopic and profit is guaranteed, you’ll be waiting forever.

Fix it:

Accept imperfection. Edge, not certainty, makes money. Take high-probability setups and trust the process. If you lose? Fine. Next trade.

5. You’re Too Attached to Money

Trading with money you can’t afford to lose? Yeah, that’s a problem. If losing $50 on a micro lot trade feels like losing rent money, you’re in the wrong headspace.

Fix it:

Only trade with risk capital. If you’re depending on trading to pay bills, you’ll make emotional, fear-driven decisions. And fear-driven traders get eaten alive.

Practical Steps to Overcome Fear

  • Set a Daily “Pull the Trigger” Rule → Commit to taking X number of valid setups per day. No excuses.
  • Use a Trade Checklist → Define your setup criteria. If it checks out, you must take the trade.
  • Reduce Size Until You Feel Nothing → If fear is paralyzing, you’re trading too big.
  • Detach from Outcomes → Focus on execution. If the setup is there, take the trade. Win or lose, it’s just one step in a larger game.
  • Rewire Your Mindset → Winning traders aren’t fearless. They act despite fear because they know the long-term game.

Final Thought: Just Take the Damn Trade

Look, hesitation will kill your trading career faster than a bad setup ever could. Fear is natural, but letting it control you is optional. The only way through it? Trade. Make mistakes. Learn. Repeat.

Because the reality is, if you wait for fear to disappear, you’ll never trade at all.

So go on. Pull the trigger.

22 years of Trading: A Twitter Thread Worth Reading [2022]

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22 years of trading: A twitter theread worth reading

If you trade and are on Twitter, you have probably followed Tom (@Trader_Dante). Tom does not need any intro here. Go check out his tweets.

I found a recent thread tweeted by Tom which summarized his 22 years of trading. It is worth reading, for both experienced and new traders alike. The facts/rules that he mentioned, are not new. In most cases, you know them, understand them, but more often than not, failed to act on them.

You might already read the thread on Twitter. I am posting here just to keep a record and to ignore the noisy replies on the platform.

22 years trading

Here are some of the most important things I’ve learnt (Part 1/2): 

1. There is often a huge difference between what you want to do and what you’re good at doing.

Some traders may want the excitement of scalping but don’t have the time or the mental agility. They may be better suited to another style.

Play to your strengths to find your niche. 

2. To make it this business you’re in for the fight of your life.

And the biggest enemy is you. 

3. If you desperately need to make money to pay the bills or support your family, get another job first.

Needing to make money with urgency puts huge pressure on a trader. This pressure is not conducive to making effective trading decisions. 

4. If you want to hit the summit, then you’re going to have to make the climb.

Climbing takes a lot of hard work.

Your aim should be to take money from traders that haven’t put in the work you have and make sure that very few are putting in the level of work you are. 

5. Capital is king.

Respect this and preserve it at all times.

If you do not have capital, you cannot trade.

If you cannot trade, you cannot win. 

6. You need to know:

– What you want to see
– Where you want to see it
– When you want to see it 

7. If you don’t know something, you need to make sure you do.

For example, if you see a large gap in your market and you wonder to yourself how many times gaps fill, stop wondering and gather the data.

This is how you can grow to make confident decisions. 

8. You should try to enter the market as close as possible to where you are wrong on your trade idea. 

9. You need to learn to forget about the great prices you could have traded at.

The only question that matters is: Should you enter, add or exit, right now? 

10. R is not a static concept. It moves with the trade.

If you enter a trade with a 10 tick stop and a 100 tick target and are +90 with a stop at breakeven, you’re evolving R (Risk Reward Ratio) is 0.11. If you get stopped out, you have just lost 90 ticks.

There is no such thing as a free trade. 

11. If you can’t look at a market and see who the weak hands are, the weak hand is probably you. 

12. Finding and taking excellent trades is not the hard part.

The hard part is trying not to do anything stupid in between them. 

13. Intuition comes from studying the market and watching it over a long period of time.

If you get a strong feeling about a market, even if you are not completely sure why, act on it. But know that feelings can be wrong and be quick to act if the market does not confirm it. 

14. You need to grow a pair when you’re managing a trade.

The space is littered with traders calling tops and bottoms and taking a few ticks before micromanaging and getting out.

Don’t be one of them. 

15. The market almost always tips its hand to which way it is going.

If you can’t see this, you haven’t watched it long enough. 

16. The greatest opportunities, the ones that elevate your career massively, usually look very “risky”.

Have the guts to step up when you feel, deep down, that it is time.

Grow a pair and act decisively and don’t be a victim of the “if only I had…” mentality. 

17. Keep your transactions to yourself. Do not boast about wins or lament losses to other people – especially those that do not trade themselves.

Most will call you lucky when you win and a fool when you lose. If you get consistent, they will only pester you to trade for them. 

18. If you cannot adhere to the last rule and desperately feel the need to show someone where you got in a trade, make sure you’re out of it first.

Market turns occur when you screenshot open positions. 

19. Work on finding the base level of risk that is right for you. To do this, you should know your metrics (win/loss percentage etc)

You can’t afford to bet the farm on a trade. But if you trade like a pussy, you will never have a farm to be in the first place. 

20. Risk can and should be varied from the base level.

There are benefits to risking a fixed percentage per trade but there are times (and trades) when you should push the envelope.

If you do not understand when these times are, you do not have enough experience. 

21. Many traders make a mistake and then compound it in frustration by jumping into an ill-considered position or betting too big etc. This is illogical: If you have a flat tyre, you don’t get out of the car and slash the other three. Don’t be a cunt. 

22. It is a bad habit to make the same mistake twice.

It is unforgivable to make the same mistake a third time. 

23. Emotions should be dealt with like with calories. Absorb them and then burn them off before you enter the next trade. 

24. If you have a problem, the process to solve it is by asking yourself:

– What is the problem?
– Why do I have it?
– How will I solve it?

Many make the mistake of leaving out the second part. Without considering why you have a problem you cannot effectively solve it. 

25. Journal everything you do.

Question everything you read.

Test every idea you have.

Compare multiple outcomes on trades. (Start with whether it’s a good idea to move to breakeven. Go onto whether it’s beneficial to take partials) 

26. Take time off to recharge when you feel you need it.

Time is a great healer. 

27. Money comes and money goes as you win and lose.

The only number that matters is the amount you leave the casino with when you retire. 

28. The true cost of trading isn’t always limited to the money you think you’re risking, the education you pay for or the time you spend learning.

The true cost isn’t known at the start.

But one day, someone will bring you the bill and you’ll remember these words. 

FREE TradingView Indicator: Simple Charting Toolbox

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Free TradingView Indicator: The Simple Charting Toolbox
Free TradingView Indicator: Simple Charting Toolbox

I always try to achieve minimalism in my trading. Keeping my trading chart as clean as possible is essential. There are few reference levels that are always on my chart.

The 5 references I use and shown on my chart are:

  • Previous Day’s High and Low
  • Custom Time Range (It could be the opening range of any market session, etc)
  • Highs and Lows of the custom time range, and the extensions
  • ATR Projections
  • Market sessions (Tokyo, London, and New York)

There are many ways to use these levels to trade. I am not discussing them in this blog post. My purpose in writing this blog post is to share my TradingView indicator. Hopefully, it will help to make your trading life a little easier.

Table Of Contents
  1. What is TradingView
  2. Free TradingView Indicator – Simple Charting Toolbox
  3. Free TradingView Indicator: MotherBoard v1 – A Wrap-up
  4. Try Tradingview Pro Charting Platform For 30 days

What is TradingView

Tradingview is my go-to and charting platform for Forex and Cryptocurrencies trading. It is highly customizable, portable, and affordable. It offers both free and premium subscriptions.

You can find out details of TradingView’s features here. I highly recommend the platform.

Try Tradingview Pro Charting Platform For 30 days

Tradingview is my go-to FX charting and trading solution. I have done extensive coding and trading on the platform. I am happy to recommend them.

If you are interested in using Tradingview, you can try out the Pro membership FREE for 30 days. This is an excellent time to check out the powerful features of Tradingview charting.

Tradingview 30-day FREE Pro membership trial

Free TradingView Indicator – Simple Charting Toolbox

My goal is to have all the essential tools in a toolbox. I have spent some time coding them into one indicator.

In case you want to skip the description and use the indicator right away, here is the indicator page.

In this indicator, MotherBoard v1, you can:

  • Highlight Custom Time Range
  • Plot High and Low of the Custom Time Range
  • Plot ATR Projections
  • Plot previous day’s High and Low
  • Highlight Market Sessions

Here are the descriptions of each tool and how to use them:

Highlight Custom Time Range

settings for custom time range
Settings for custom time range

This tool allows you to highlight any time range of your choice with a transparent background.

The time is based on the exchange time of your Datafeed/broker. In my case, I am using Forex data from Oanda. It is using New York time.

In the example below, I am highlighting the first 2 hours of the London session open. (GMT-4, 0300-0500).

(note: this is just a demonstration of the tool, not a trade setup)

Highlight the first 2 hours of London session
Highlight the first 2 hours of London session

Plot High and Low of the Custom Time Range

Part of the Custom Time Range tool is the ability to extend the high and low of the range for the rest of the trading day.

The high and low extensions can be disabled by checking the “Do Not Extend TimeRange Hi-Lo” option.

Plot High and Low of the custom time range
Plot High and Low of the custom time range

Plot ATR Projections

The third tool in the MotherBoard indicator is ATR projections.

This is a simple indicator that draws the projected Day ATR High and Day ATR Low based on the previous day’s ATR and current high and Low.

ATR refers to Average True Range. You can find out more about ATR here.

The name of the levels might sound weird, or you can call anything you want to. The logic behind it is simple. It uses daily ATR calculation to project the current day’s extremes.

The construction of the indicator:

  • Daily ATR= 20-day ATR up to yesterday’s close
  • Projected Day High = Current Day’s Low + Daily ATR
  • Projected Day Low = Current Day’s High – Daily ATR
ATR Range Projection settings
ATR Range Projection settings
Plot ATR Range Projection on the tradingview chart
Plot ATR Range Projection on chart

Plot previous day’s High and Low

The third indicator in the MotherBoard v1 is Previous Day’s High/Low.

The indicator plots the High and Low of the previous trading day. It uses the exchange time of your broker.

In my case, with the Oanda data feed, the indicator takes the high and low from UTC-4 1701-1700.

Settings for previous day hi lo
Settings for previous day hi lo
Plot previous day's high and low on tradingview chart
Plot previous day’s high and low on chart

Market sessions (Tokyo, London, and New York)

The last indicator of the toolbox is the Market Session Highlight. The indicator highlights the market sessions with transparent backgrounds.

The last indicator of the toolbox is the Market Session Highlight. The indicator highlights the market sessions with transparent backgrounds.

The indicator uses the exchange time of your chart data and it allows you to customize session start and end time.

Market sessions settings for Tradingview
Market sessions settings
Highlighting Market Sessions on the tradingview chart
Highlighting Market Sessions on the chart

Free TradingView Indicator: MotherBoard v1 – A Wrap-up

There is no magic indicator here. I consolidated my codes into one toolbox for housekeeping purposes. This is what I use in my trading, hopefully, it helps some of my 13 readers.

The indicator is completely free to use and share. You can find the indicator here.

Enjoy, Stay Safe, and Good Trading.

Want more Free Tradingview Indicators?

I like to share my Tradingview indicators with traders. You can check out the links below for more free indicators:

If you are new to trading, make sure to check out my Back To Basics of Trading series.

If you like what I do on this site, you can buy me a coffee (absolutely no obligation!)

Buy Me a Coffee at ko-fi.com

5 facts about day trading

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5 facts about day trading

This post was written back in November 2007. I thought it offers some food for thoughts to new traders. I have edited and rewritten part of the original post with what I have learned over the years.

Here is the blog post.

5 facts about day trading

I have been day trading for quite a while. I am not a pro yet. But I guess, I can share a little bit about day trading. Since my friend, Faith Lu, a young gentleman from China, is keen to learn all about trading, I guess this might be a little helpful to him. Remember, these are not the rules, just some observation from experience.

#1

You are a day trader, not an analyst.

All you need to know is basic Technical Analysis, be cool, and trust your instinct. Bull shit? I don’t think so.

Our goal is to generate profit from trading. Very often, traders tend to spend too much time studying. While it is good to keep learning, all you need is to be well-versed in the tools that you use to trade.

For example, I rely heavily on volume profile in my trading, that’s what I focus on. I learn everything about volume profile, learn the best way to use the tool.

You don’t have to be a master technical analyst to day trade. Be good with the tools that matter to your trading, it might be drawing trend lines, Moving average, or reading market volume, etc.

Detailed market analysis is for gentlemen who get paid by writing reports, but not trading. Your job is to start the day with cash and end the day with more cash. Thinking too much is not helpful.

#2

You need to know a little bit about mathematics

Mathematics

Hold on, don’t panic. I know you probably hate Math in the school.

One of the most important math concepts you need to understand as a trader is the concept of Probability.

You will never know what is going to happen on the right side of your chart. We are playing with probability. We stack the odds before taking a trade.

Most of the time, it is 50:50. In this case, bear in mind that we want to earn $1, but with the only potential loss of $0.5.

When the market is moving in our favor, let it run, otherwise, leave, please. You don’t need a degree in Mathematics to know, risk $1 to earn $0.5, with a 50% winning chance, it doesn’t work in the long run.

#3

Tea break

A day trader does not need to trade every day

This is for retail traders. There are days that you would be better off sitting on your hands. If you’ve just pocket $1000 today, do not expect to earn another $1000 tomorrow. Every day is a new day. There are days that you just can’t trade.

For example, If you are not into trading news, then do not try to trade during big announcements like Non-Farm payroll, or Interest rate statements.

A professional trader who plays the order book can and normally, trade day in and day out. For retail traders, some days are better to stay away from the market. Go for a walk or jog in the park.

Day trading as a retail trader is just like doing your own business. We do not need to sit in the office every day.

#4

Focus on playing chess

Day trading is a mind game, and a decision-making task

Make sure you are in good condition mentally before start trading. For example, it is a damn bad idea to trade right after fighting with your spouse. You’ve to make decisions when trading, you need a clear mind for this task.

So if you are not ready for the task today, then come back tomorrow.

#5

Focus is required to trade well

You need energy and focus to day trade

This is particularly important to Asia Pacific traders who trade U.S or European markets. Trading in the late evening or even midnight puts you at a serious disadvantage.

Yes, it is possible to adjust your routine to trade in the evening. But the potential health issues are something you need to think about.

Secondly, day trading is a tedious task. You need to bring your 100% to the game. Can you focus and be energetic enough in the late evening? Don’t kid yourself, have a serious thought about this.

5 Facts About Day Trading: Wrap Up

Day trading is a business that allows you to earn a living. But choosing the right instruments, markets, and style is crucial.

There are skills that you need to acquire and there are facts such as your physical location or living environment you need to consider before starting to day trade.

Do you still have something to add on? Shoot me a comment.