From TradingView · · 1m 30s
Trading Formula - 30% Market, 30% Psychology
Trader's framework for success: 30% market knowledge, 30% psychology, 20% people, 10% persistence, 10% luck.
In brief
Trader's framework for success: 30% market knowledge, 30% psychology, 20% people, 10% persistence, 10% luck. A trader's formula for success combines 30% market knowledge, 30% psychology, 20% people, 10% persistence, and 10% luck. Originally reported by TradingView.
Trading Formula Overview
A trader's formula for success combines 30% market knowledge, 30% psychology, 20% people, 10% persistence, and 10% luck.
30% Market Knowledge
Understanding liquidity, stop levels, price behavior after breakouts, and market cycles helps traders avoid costly mistakes.
30% Psychology
Psychology affects trade execution: doubling positions after wins, moving stops, and closing winners for relief.
20% People
Conversations with others challenge assumptions and provide new perspectives on trade setups and risks.
10% Persistence
Persistence involves reviewing trades, skipping poor entries, and taking breaks to avoid burnout.
10% Luck
Luck can dominate short-term results but requires room for mistakes and unexpected events.
Real-World Example
Mehmet Coban's 2025 sell signal was ignored due to his expectation of a bull cycle, leading to significant losses.
Practical Application
Before entering trades, write down scenarios for price movements in favor, against, and no movement.
Formula Integration
Knowledge builds the plan, psychology executes it, people challenge assumptions, persistence reviews the process, and luck provides room for errors.
Key Takeaway
Which part has cost you the most money, and what did you change because of it?
What to remember
A trader's formula for success combines 30% market knowledge, 30% psychology, 20% people, 10% persistence, and 10% luck.
