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What Does REEDD Mean In Trading?

I came up with the term REEDD to encapsulate Resilience, Experience, Environment, Discipline and Dedication. It reads as the colour RED, but with double EE and double DD, as I wanted it to relate to a RED FLAG.

RESILIENCE

Let’s first touch on Resilience, which I essentially see as the inability to bounce back after a string of losses is encountered. In my opinion, this has to do with a combination of lack of self-belief, which comes from failing to gain confidence through a thorough backtesting of a strategy through all types of market environments. Resilient traders can see that this adversity is short lived. They have refined the skill to keep the focused in the ‘now’, detached from past outcomes. This enables them to overcome obstacles much easier.

EXPERIENCE

Next one is experience, and while you may not like what I am about to say, better be told how it is. Unless you accumulate years of experience through your own purposeful journey, which allows to create unique imprints on how markets tend to behave, how you respond to stressful situations, etc. there will be gaps that still must be assimilated. That, unfortunately, only comes by deliberate practice and time. You can’t just be told the theory and by magic perfect the game in no time just because you understand things on paper. Be a hustler.

ENVIRONMENT

The third one is the environment, in particular, making sure you are moving away from a toxic one, which is essentially letting outside noise affect your decision making via following trading signal providers, chatrooms with negatively-charged comments, an unstable relationship, the wrong type of friends, you get the gist… You must be able to create the type of conditions outside and during your trading that are conducive to perform physically and emotionally at your optimal level.

DISCIPLINE

Next is discipline. It’s not enough having written a trading plan, the next stage, where you’ll prove to yourself how committed you are is to be able to stick to the rules you’ve defined by imprinting this code of behaviour no matter what. Highly disciplined traders don’t deviate from any of the rules stated in their trading plan.

DEDICATION

Lastly, dedication. I see this attribute as a by-product of having found a niche you are passionate about. If trading is something that ticks for you because of the personal challenge it represents to grow as an individual and know yourself much better, it will be way easier. The smooth the path to develop the quality of being dedicated and committed to a task or purpose. If you are not passionate, it will also become quite easy for you to look for another avenue.

About the author

Ivan Delgado

Ivan Delgado is a decade-long Forex Trader. Feel free to follow Ivan on Youtube. Join thousands of traders who follow Ivan's insights to increase their profitability rate by learning the ins and outs of how to read and trade financial markets. Ivan has you covered with in-depth technical market analysis to help you turn the corner.