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**Source:** [[The secret Mindset]]
**Type:** #litnote #todevelop 

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# Stop relying on indicators
- There is no magical indicator that is going to make you wealthy. To rely on indicators without learning price action is a major mistake.
- *Price action comes first before anything else.*

# The Sleeping point
- If you are not able to sleep after placing a trade, its not a good trade. Lower down your position size. Reduce the trade to a sleeping point
- Your emotional and mental health are more important that position sizing
# Watch multiple time-frame. Zoom out.
- When trading in short time frames, its not enough to watch at one time-frame.
- Evaluating on different time-frames will help you confirm your trade and make better informed trades
#  Don't change your mind too often
- There's a lot of market noise. Don't let it change your mind. Make your trades and stick to your decisions. Filter the noise
- Give your trades enough time before acting emotionally

# Risk Management
- Even a profitable system will fail if your risk is too big.
- Kelly criterion

# Don't Overtrade
- Trades that occur outside your plan are less likely to perform well.
- If the market is quiet or you don't have any signals. Just wait and watch. 
- New opportunities comes every single day.

# Plan and structure every trade
- Decide your entry points, when and why?
- What will you do if trade goes against you
- What you'll do if you are in profit?
- Your plan should be complicated enough to be effective and simple enough to make snap decisions.
 
# Setting more hours doesn't mean more profit
- Day trading is often chaotic and full of stress.
- 4 hours of concentrated time per day is enough

# Don't take it lightly
- Its not for everyone. 
- It needs years to build the knowledge to trade good
- Don't give up your primary source of income to trading.
- Better income stability will allow you to trade better with less emotional attachment to money.


# Different strategies work on different markets
- Backtesting is the most underused trick.
- It helps to check your trading plan and how well it would perform if you had used it previously.

***Without backtesting, you are essentially trading blind***