How do you feel today? Good luck? It is sad? Angry? Quietly? Have you ever thought about how your daily emotions can affect your trade?
This is definitely worth considering. Of course, the essential aspect of any successful trading is a well-tested trading strategies, along with the discipline to stick to its plan for the execution of transactions and money management. But for a strategy requires an appropriate mental attitude. You may know a lot about the markets. You can be an expert on the fundamental and technical analysis. You can have a fine intuition for the movement of shares, which is observed by many successful traders. But even the most intelligent, competent, interested traders can be brought to the bankruptcy, unable to take into account the emotional signals that warn about the detrimental trading decisions.
Perederzhivanie positions too early and way too late entry: all of this evidence is not erroneous trading system, and the wrong mental attitude to trade. So, what the parameters of psychological mood characterized by a successful trader? Mark Douglas, in his excellent book "Trading in the Zone", identifies what he calls the "four primary fear trade" that are responsible for most of our mistakes in trading. Here they are: "the fear of making a mistake, fear of losing money, fear to miss a bargain" and "fear not to take the profit." He said that the significant difference between consistent winners and losers in trade consistent is that "the best traders are not afraid!
So, how do we overcome the fear that many of us naturally bring to market? Here are a few suggestions:
1. In his analysis of each potential transaction, ask yourself "what have I done to limit risk as far as possible?" The risk of inciting fear, as it should be. And there are various ways to reduce it. First, make sure that your entry price is the best available price on the last movement of the market in which you sell. If you sell at the break level, be sure to set a stop - a warrant out of the potential return. In case of refund, wait until you receive confirmation of the return. Of course, the use of reasonable stop - orders are always a part of any plan for risk management.
2. Do not overload any position. I teach their clients to share their own expense for several positions, which they plan to keep at a time, and then only to distribute this amount in each trade. And if you rot, consider the reduction of this amount. Mark Cook, a famous trader S & P, wrote it on your computer is simple: "Take little by little! This is good advice for us all.
3. Do not trade at all, when you are in any of the following states:
You are angry or upset by something;
You have financial problems or debts are concerned;
You do not feel well physically;
You are 100% not sure about the direction of the market;
You feel "victim" of the market.
4. Repeat this simple but useful adage "trading plan, and plan the trade." One way to specify that the motto is to keep a journal of trade. Write down the reasons for entry into a new transaction before you have entered into, including notes about the risks and profits. Update this entry at the end of each day. Manage your foot and the goal respectively. Markets are very flexible, organic objects, and the need to constantly monitor their evolutionary development, not to wait for their indulgence.
That's all. Follow this simple. Stick to the plan. And remember, if you want to sell to live, you must sell to live!
This is definitely worth considering. Of course, the essential aspect of any successful trading is a well-tested trading strategies, along with the discipline to stick to its plan for the execution of transactions and money management. But for a strategy requires an appropriate mental attitude. You may know a lot about the markets. You can be an expert on the fundamental and technical analysis. You can have a fine intuition for the movement of shares, which is observed by many successful traders. But even the most intelligent, competent, interested traders can be brought to the bankruptcy, unable to take into account the emotional signals that warn about the detrimental trading decisions.
Perederzhivanie positions too early and way too late entry: all of this evidence is not erroneous trading system, and the wrong mental attitude to trade. So, what the parameters of psychological mood characterized by a successful trader? Mark Douglas, in his excellent book "Trading in the Zone", identifies what he calls the "four primary fear trade" that are responsible for most of our mistakes in trading. Here they are: "the fear of making a mistake, fear of losing money, fear to miss a bargain" and "fear not to take the profit." He said that the significant difference between consistent winners and losers in trade consistent is that "the best traders are not afraid!
So, how do we overcome the fear that many of us naturally bring to market? Here are a few suggestions:
1. In his analysis of each potential transaction, ask yourself "what have I done to limit risk as far as possible?" The risk of inciting fear, as it should be. And there are various ways to reduce it. First, make sure that your entry price is the best available price on the last movement of the market in which you sell. If you sell at the break level, be sure to set a stop - a warrant out of the potential return. In case of refund, wait until you receive confirmation of the return. Of course, the use of reasonable stop - orders are always a part of any plan for risk management.
2. Do not overload any position. I teach their clients to share their own expense for several positions, which they plan to keep at a time, and then only to distribute this amount in each trade. And if you rot, consider the reduction of this amount. Mark Cook, a famous trader S & P, wrote it on your computer is simple: "Take little by little! This is good advice for us all.
3. Do not trade at all, when you are in any of the following states:
You are angry or upset by something;
You have financial problems or debts are concerned;
You do not feel well physically;
You are 100% not sure about the direction of the market;
You feel "victim" of the market.
4. Repeat this simple but useful adage "trading plan, and plan the trade." One way to specify that the motto is to keep a journal of trade. Write down the reasons for entry into a new transaction before you have entered into, including notes about the risks and profits. Update this entry at the end of each day. Manage your foot and the goal respectively. Markets are very flexible, organic objects, and the need to constantly monitor their evolutionary development, not to wait for their indulgence.
That's all. Follow this simple. Stick to the plan. And remember, if you want to sell to live, you must sell to live!
Thomas Carr Ph.D. "Oxford University" Leading trader "Trend Trading Systems"
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