The lack of a proper trading plan which includes precise rules for entering and exiting a trade will most certainly guarantee failure over the long-run. Beginners usually suffer from as is common ailments. They abandon trading plans purely on impulse because things are not going exactly as how they had envisioned. Repeatedly they use unreliable methods that fail to produce a profit. Many traders hold the line to losing positions telling themselves “it’s going to turn” when every indicator says otherwise because they cannot bear the concocted a loss.

Why do they torture themselves? Why don’t they just identify what’s failing and make a change? For some people recognizing that a trade or even a trading method isn’t working and making a change is easy, but for others it’s very difficult. They’ve to take their limitations admit that they’ve made a mistake and that’s hard because it hurts our ego. Psychologically it’s risky, it’s often easier to fool ourselves. Just keep on, living in a state of denial until your account is depleted. If you recognize any of these traits in yourself you must stop trading immediately.

Take a good consider what back-number happening, try and identify the problem. If you look close enough you may see a pattern. This is why it is vital to record every trade and as much information about it as possible. You’ve to break away of old patterns and see things in afresh light.

You’ll never be a successful trader if you continue to sleep in a state of denial. What can be done to return to reality? There’sA good deal you can do. First off make a point you’re not trading under stress. When stressed out you can’t see clearly, you become rigid and unable to see alternative views. Among the easiest solutions is to trade smaller. The smaller the trade the less the stress, especially for the beginner. If you’re experienced and in a loosing streak reduce your contracts until you get your confidence returns. Some people need to take a break altogether. Break loose from it all. Take your mind off the trading.

The second thing you’ll be able to do is to be sure you’ve a life. Trading can be addictive especially when you’re winning. Don’t put all your emotional eggs in the trading basket. You need to have other roles that give your life meaning and purpose. By defining your identity in a variety of ways, you’ll not place un-natural importance on trading events. Therefore, you’ll be able to take losses in good spirits and consider your trading more objectively.

Finally, radical acceptance is a key mental strategy for confronting market uncertainty. Many traders make the mistake of thinking they can control the markets. Nobody can control the markets. We must learn to accept anything that comes our way and to trade accordingly. Adopt the attitude that trading is a journey and that all we can do is go where the markets take us.

To succeed on this journey you cannot afford to lose overmuch. Manage risk and just accept what you get and enjoy the ride. This way you’ll trade more freely and creatively. Don’t live your life in denial. Accept your limitations, work around them, and become a winning trader. Write up your trading plan with precise entry and exit points. Most important set your stops and mentally decide you’ll not break them. Test your system on paper and when confident test at once with the minimum contract size. You’ll have losing trades, accept them with grace and carry on to the next trade.

 

 

 

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