Vincent emphasized the importance of maintaining a consistent trading strategy each day to achieve long-term success. He pointed out that many traders falter because they approach the market without a clear plan, leading to confusion and discomfort. By sticking to a specific methodology, such as his "break and retest" approach, he has found stability and profitability. This consistency allows for a more focused mindset when analyzing trades and positions, giving traders the confidence they need to succeed.
2. Trust in Technical Analysis
Vincent advocates for a fully technical approach, asserting that emotional noise should not distract traders from their core strategy. He suggests that traders stay alert to macroeconomic events but primarily rely on technical analysis when making trade decisions. By filtering out distractions and focusing solely on technical levels, traders can improve their chances of success and reduce the anxiety that often accompanies trading.
3. Understanding Market Phases
Vincent explained that understanding different market phases—whether bullish, bearish, or ranging—is critical to successful trading. He mentioned that traders must adapt their strategies based on the current state of the market. Failure to do so can lead to losses, especially if one continues to apply tactics that worked in previous, different market conditions. Recognizing these shifts allows traders to calibrate their expectations and actions accordingly.
4. Learning from Experience
Experience has taught Vincent that managing emotional responses is crucial. He confessed that earlier in his trading career, he struggled with respecting stop losses and often felt pressured to make back losses immediately. Over time, he learned that accepting that losses are a part of the trading process allows for better emotional control and improves decision-making. Building resilience and learning from past mistakes is fundamental to developing as a trader.
5. Importance of Data Collection
Vincent stressed the necessity of reviewing one’s trades and maintaining a trading journal. He underlined that many traders overlook this practice, thinking it unnecessary, but tracking performance provides insights that lead to better decision-making over time. By analyzing his setups and results, Vincent has been able to identify what works best for him, develop confidence in his approach, and refine his strategy for future success.
6. Position Sizing and Risk Management
Vincent argued that proper risk management is essential for growth in trading. He pointed out that many novice traders fail to consider their account's risk capacity, leading to losses and emotional decisions during downturns. Understanding how much to risk on each trade relative to one’s overall capital can create a sustainable trading strategy, mitigating the fear that arises from potential losses.
7. Disconnecting from Dollar Values
Vincent shared that as traders progress, particularly transitioning from five to six or six to seven figures, the key is to disconnect emotional reactions from dollar amounts. He believes that true trading success lies in treating the craft as a business rather than focusing on profit and loss figures. By making this mindset shift, traders can focus on their strategies and execution without the emotional weight of money.
Join the newsletter (free for now) curated by our flagship model
Value-packed daily reports covering news, markets, on-chain data, fundraising, governance, and more – sent to your inbox. Saving you 1 hour of research daily.
