Self control and trading
Self control and trading
Self-control is something that you need for any analytical decision and the execution of trades.
Your success and sustainability will be determined within the market through your ability to maintain a centered and clear mind before executing a trade.
Often when a trader makes a mistake, they will be aware of that mistake. They also know that it’s only them to blame.
Most common mistakes:
– Trade too big Lot Sizes.
– Replacing your Stop losses.
– Open up too many trades.
– Use of wrong leverage.
– Leave trade open too long.
You and only you have control over your actions in the market.
Along your trading journey you will definitely have to fight your inner demons, nevertheless it is a great journey of self-development and discipline.
” Self control and trading ”
The temptation to trade just becasue you’ve got a good feeling about i twill always be there!
From the moment you open your laptop in the morning your thoughts will constantly be focused on opening a position.
This temptation can lead to the opening of each trade that shows you, but it must be fought with good discipline.
In a business like forex, only persons who have good self-control are rewarded with positive and consistent trading results over time.
To reach these consistent trading results over time you have to be aware of the differentiation of all scenario’s. Even as recognizing when it’s your time to step in or when it’s time to sit back, relax and just watch the show.
It’s really important to learn how to set realistic and reachable goals for yourself. This doesnt mean you can’t be a millionaire on one day, but it means that you need to understand a skill like this is highly valued so obviously it takes time to master.
Set monthly goals and keep an honest, close relation with your trading notebook. Do this the day you start trading. Don’t let the losses bring you down during your road to success. Take them as an opportunity to grow.
Forget about the money you are trying to make. To be consistent should be your only goal.
Consistent analyses, consistent drawings, consistent PIP calculations and a consistent positive attitude.
Finally, your trading plan should be as honest and as organized as possible. Other questions you need to ask yourself:
How many time a day will a look at the market?
Which pairs should I trade?
How many trades can I open at once?
What is the max. risk on my account?
What sort of trader am I?
This questions are really important to get to know yourself as a trader. Where are your flaws and where are your talents? Know who you are and who you are as a trader.
Experience a winning trade streak could possibly lead to a “On top of the mountain” feeling. Be aware of that. This is the result of not keeping your eyes on the price (being consistent) anymore, but letting gread and money take over your emotions. This may very well lead to a big mistake that brushes away half of your account. Remember to take the small steps in order to be successful on the long run!
Best broker: IC MARKETS.