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TJR explains why Solana memecoin traders would dominate futures trading “Not only is your risk tolerance way higher than it already needs to be to beat the futures market but on top of that, you guys have already beat the psychological game that is so difficult to overcome when...

432,215 views • 2 months ago •via X (Twitter)

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Professional trader Tom Hougaard on the single biggest psychological mistake that ruins most traders: He explains that the hardest part of trading isn't technical, it's psychological. It requires you to think in a way that directly contradicts how you operate in everyday life. In real life, we are trained to hunt for bargains. We compare prices at the supermarket and naturally gravitate towards whatever is cheaper. But Hougaard warns that applying this same instinct to markets is exactly what destroys most traders. TraderTom puts it simply: "You cannot be afraid of buying something that has already moved up significantly or you shouldn't be afraid of selling something that has already moved down significantly. And that's where the vast majority of people go wrong." The problem, according to Hougaard, is that markets don't operate the way shoppers think: "But the market doesn't operate with these principles of cheap or expensive. The market just has the prevailing price." He explains why this is so difficult for people to internalise: "Psychologically it's very difficult for us to accept because we are so brainwashed that we go to the supermarket and we see Pepsi Cola costs X but Coca-Cola is half price to Pepsi. So we all gravitate towards Coca-Cola because it's cheaper. But cheap in the market is a market that is going down. We don't want to buy that. We want to sell it short." Hougaard sums up the core challenge of trading: "The whole balance of being one person in real life and being another person in the market, that's what makes trading so incredibly difficult."

Big Brain Business

40,823 views • 4 months ago