◎Trading skills are the skills to increase money. Fund management is the skill to keep money. Mental management is? ~Mind, technique, and body—none can be skipped~

Tengen Mental Management.07

A trader’s mind, skill, and body are all important.
Mind → Mental Management
Skill → Trading Skill
Body → Fund Management
Only when the three are united does trading become stable.

Is a steady stream of small wins and big losses due to lacking trading skills?
Was there already an issue with fund management?
Was the mental state good?
All are essential, but the skills and the body feel natural once you practice them.
In short, time will take care of trading skills and fund management.
Of course.
If you keep doing the same thing, you’ll get used to it and things will work out.
But the mind, the core of heart, mental state cannot be solved simply by time.
Humans have emotions, and these emotions cause the mental state to swing greatly.
Moreover, outside factors can move the mental state regardless of trading, adding pressure to trading itself.

Balance is important

As mentioned at the start, mind, skill, and body are a triad that stabilizes when united.
They all support each other.
When trading skill is lacking, fund management saves you; when fund management is lax, mental management compensates, and improved trading skill and increased funds refresh the mind.

So?
That’s the point.
I started winning in FX.
So?
Margin increased and monthly profitability was achieved!
So?
What are you trading for?
You’re trading to enrich your private life by growing money through challenging FX, aren’t you?
Are you giving back?
Buy something with profits. Eat well.
Because of withdrawals, there are fees…
How much would you have to reach before you withdraw…
Just pie in the sky. Idle paw meant to count skins of a bear that isn’t there.
What should you do to avoid this?
Make withdrawals.
Also due to fees, at least transfer funds and prepare for withdrawal.
And whether you win or lose at least once a month, if you don’t withdraw and give back, you’ll end up in a state where you don’t know what you’re trying to achieve by uniting the triad.
The fact that you withdraw becomes an enormous maintenance for mental management.
Withdrawing reduces margin and changes fund management; it also reinforces focus as a trading skill.
Even if unrealized losses become large, you can endure because there is margin, and unrealized gains will grow accordingly, but the Prospect Theory can interfere and make it hard to grow.
Normalization of unrealized losses and small profits signals a warning sign of caution in steady, incremental gains.
◯ Create days to rest from trading
◯ Withdraw to secure profits
◯ Lower your lot size
◯ Reassess the environment and wait for maximum drawdown
Care for these mental aspects is also an important part of mental management.

Holding solid profits while minimizing losses starts from a strong will.
To have this strong will, mental state is indispensable.
Until you can trade with a strong will...
You haven’t even started.
That’s what I told myself, and I became a full-time trader.
I’d like to output mental management from another angle as well.