What do your expectations do to you?

Expectations are the hidden variable in every trade: expecting 20% a month makes 2% feel like failure, and feeling like failure produces bad decisions. Calibrating expectations is psychological work.

What do your expectations do to you? — risk-reward diagram
A risk-reward ratio of 1 to 2

What did you expect, and what happened?

  • the expectation you started with
  • how it distorted your decisions
  • the recalibration that helped
What do your expectations do to you? — candlestick anatomy diagram
The parts of a candlestick: wick, body, open and close

The retail loss percentage guide is a useful reality check.

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