InDecision Academy · indecision.io/cheatsheets
Trading Philosophy & InDecision Framework
Trading Philosophy
The mental frameworks that separate profitable traders from the crowd.
Market Structure
Is the market making higher highs and higher lows (uptrend) or lower highs and lower lows (downtrend)? Structure is the map. Trade with it, not against it.
Volume Confirmation
Volume is the lie detector. Moves on low volume are suspect. Breakouts on high volume are real. If price moves without volume, wait for confirmation.
Key Level Context
Is the pattern forming at a significant support, resistance, or prior high/low? Patterns at key levels carry 3× the weight of patterns in empty space.
Momentum Alignment
Are short, mid, and long-term momentum indicators aligned? When all three point the same direction, the path of least resistance is clear.
Sentiment Divergence
What is the crowd feeling vs. what price is doing? When the crowd is extremely fearful and price is holding, or extremely greedy and price is stalling — that's alpha.
On-Chain Reality
For crypto: are wallets accumulating or distributing? Is exchange supply shrinking (bullish) or growing (bearish)? Chain data is the ground truth.
Never risk more than 1-2% of capital per trade
Define your stop loss BEFORE entering — not after
Your R:R must be at least 2:1. No exceptions.
Size down when uncertain. Size up when conditions are ideal.
A missed trade is $0 loss. A bad trade can be catastrophic.
Cut losers fast. Let winners breathe. This is the whole game.
Never average down on a losing position without a plan.
Protect capital first. Profits are a byproduct of surviving.
Recency Bias
Assuming the recent trend will continue forever. Markets mean-revert. The last 3 green candles don't guarantee a 4th.
Confirmation Bias
Only looking for evidence that supports your existing position. Seek out the strongest argument against your trade before entering.
Loss Aversion
Holding losers too long to avoid 'realizing' the loss. A paper loss is still a loss — and it gets worse the longer you wait.
FOMO
Fear Of Missing Out drives late entries at the worst price. If you missed the move, the next one is coming. Be patient.
Overconfidence
After a winning streak, traders take on too much risk. Markets are humbling by design — never mistake luck for edge.
Anchoring
Fixating on a prior price as a 'fair value' anchor. Markets don't care what you paid. The only price that matters is the current one.
“Markets are made of humans”
Every candle is a vote. Every pattern is a collective emotional state. Fear, greed, hope, denial — all of it shows up in the chart.
“Price discounts everything”
By the time you read the news, the smart money already moved. Trade what you see, not what you feel. The chart knows first.
“Crowd psychology is predictable”
Retail buys tops (greed peak) and sells bottoms (fear peak). Position yourself where the crowd will be wrong, not where they already are.
“Trends persist longer than logic suggests”
"It can't go higher" and "it can't go lower" are not trading strategies. Don't fight a trend without evidence it's ending.
I trade the setup, not the outcome
I protect capital above all else
I let data override my emotions
I accept small losses as the cost of doing business
I size according to conviction, not hope
I review every trade — winners teach, losers teach more