What's underrated in trading psychology?

The quiet practises nobody markets: sleep, exercise, honest journals, taking breaks, talking to someone. The underrated list is boring, effective and rarely taught.

What's underrated in trading psychology? — drawdown and recovery diagram
An equity curve during a drawdown and its recovery

Share:

  • the underrated practise that helped you
  • how you discovered it
  • why it gets ignored
What's underrated in trading psychology? — risk-reward diagram
A risk-reward ratio of 1 to 2

The journal guide is on most people's underrated list.

Background: How to keep a trading journal that actually improves your trading

A journal turns a pile of trades into evidence. What to record, the numbers worth calculating and a weekly review routine that takes less than an hour.

What should a trading journal include?

For each trade: the pair, direction, size, entry, stop, target, risk, the reason for the trade, how you felt, the result in money and in R, whether you followed your plan, and chart screenshots.

How do I calculate expectancy?

Multiply your win rate by your average win, then subtract your loss rate multiplied by your average loss. Measured in R, a positive result means the approach has made money per trade on average.

Read the full guide

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