The syndrome of spectacular trading

Imagine that you have 50,000 PLN in your account. Every month brings small losses because you are waiting for that spectacular profit. Over the course of a year, you lose 10% of your capital – that's 5,000 PLN. You often try to increase the stakes by investing in risky assets that could yield high returns. But instead of a home run, you end up with more losses – an additional 2,000 PLN. That's a total of 7,000 PLN per year. Multiply that by a few years and suddenly you realize that in the pursuit of one big profit, you have lost 35,000 PLN.

Psychologically, you are waiting for that spectacular trade due to the pursuit of instant gratification. Your mind has associated large profits with success, and you want to feel the adrenaline and satisfaction. Every small profit is not exciting enough for you. As a result, you ignore the smaller, steady win in favor of risk. It's as if you are constantly playing roulette, hoping that eventually it will land on your numbers.

Practical experience shows that most traders who wait for that one big profit end up with less capital than they started with. The market is too volatile to regularly predict large movements. In fact, smaller but more frequent profits are more stable and predictable. Experience indicates that those who try to 'hit' a big trade lose not only money but also time that they could have spent on more effective strategies.

The 1% Rule: Instead of waiting for spectacular gains, focus on consistently achieving small profits. Set yourself a goal – 1% profit per week. It may seem small, but over the course of a year, that's a 52% profit. Calculate what that means for you – with 50,000 PLN, that's an additional 26,000 PLN per year. Concentrate on strategies that allow for steady, small gains. Leverage the power of regular, small wins, and save the home runs for special occasions.

Switch to a 1% profit strategy weekly for the next week.