Trading Psychology Winning Trading Psychology

When everybody else is giving all they have, the winner finds that extra measure of strength and determination from somewhere inside themselves to push just that extra fraction ahead. It's not a kilometer, or even a hundred meters, it's a margin. Winners learn that when this principle is applied every day, although the margins are only incremental, the distance ahead can increase day by day.

• Confidence is something all successful traders have and is gained by gathering knowledge and practicing discipline. Knowledge and practice give you a mental edge and a lack of fear. Successful traders have confidence that the market will provide lots of opportunities they can take advantage of.

• You must risk losmg on a trade. No successful trader or trading system has won on every trade taken. Be prepared for anything. Playing it safe is dangerous. Don't sell too eariy for a paltry gain when you could have held on without sgnificant risk. Calculated risk is a form of safety as it allows you to make a lot of money from trading whereas using tight sops does not give the market room to retrace a little before it moves in your favour. Stick to your pan and st tight. Don't let fear of losmg some of your profits cloud your judgment. Keep your sops and let the market move according to your pan.

• Don't freeze up instead of taking action. Don't say out of the market just because the last trade was a loser. Use a losmg trade as feedback. Any draw down will only be temporary. You can make back the loss because you have a profitable trading method.

• Don't miss trades and find yourself on the sdenes during large moves. Don't overiook the obvious and notice it later. Say focused. If you miss a trade, don't worry about it as another trade will show up later. There are plenty of opportunities.

• Don't expect to get every pip from a move. You will miss some at the start and end of a move.

• Don't overtrade; you must wait for the right market setup before entering a trade. Excitement and the fear of missmg an opportunity can persuade you to enter the market before it is safe to do so. Patience and discipline are required. There are times when it is wise to say out of the market and observe from the sdene. Never enter a trade because of hope or greed.

• Don't hold too long and let winning trades turn into losmg trades.

• Say emotionally detached from the market. Focus your attention on following your method.

Was this article helpful?

0 0

Post a comment