- "If you're scared, you're in too big"
If you constantly find yourself making emotional decisions or feeling scared while in a trade, one possibility is that you're holding too big of a position. Try decreasing the size you trade with and see if that makes things more comfortable. That doesn't mean stop respecting your stop losses or take the trade less seriously because you aren't in as big. The point of this is so that you're less worried about having money on the line and more worried about what the stock's price action reflects. Your decisions should be based off of price action only.
- Hide your "unrealized profit/loss" column in your broker(s)
When I finally took this step, it made a surprisingly large difference. I no longer had my unrealized gain or loss staring me in the face. Although I knew in the back of my mind about how much I was up or down, I didn't have to constantly see it. As I mentioned above, this allowed me to focus more on price action and less on my potential profit or loss if I closed the trade that moment. As a trader it is imperative that you are trading primarily on price action. When other factors such as your gains/losses creep in you will begin making trades for the wrong reason.
- Accept that you're not perfect
Many traders picture the perfect trade. They buy dead bottom, sell dead top, and everyone marvels at what a genius they are. Unfortunately, the vast majority of the time it doesn't work out this way. Rather than trying to nail perfect entries and perfect exits, accept imperfection. On the best setups, you don't have to be perfect. You can catch the meat of the move and still walk away with a very nice gain. Strive for nailing the easy part of the trade, strive for consistency, don't strive for perfection. It is consistent gains that grow accounts, not the rare perfect trade.
I totally can relate to & agree with the hiding of the Unrealized/realized P&L columns. Especially for an open position. By starring at this, it definitely can cause you to start trading your P&L instead of just making sure you are doing the right thing. When I trade my P&L I can tell a difference for sure.
ReplyDeleteInvesting online has been a main source of income, that's why knowledge plays a very important role in humanity, you don't need to over work yourself for money.All you need is the right information, and you could build your own wealth from the comfort of your home! Binary trading is dependent on timely signals, assets or controlled strategies which when mastered increases chance of winning up to 90%-100% with trading. It’s possible to earn $10,000 to $20,000 trading weekly-monthly in cryptocurrency(bitcoin) investment, just get in contact with Mr Bernie Doran my broker. I had almost given up on everything about binary trading and never getting my lost funds back, till i met with him, with his help and guidance now i have my lost funds back to my bank account, gained more profit and I can now trade successfully with his profitable strategies and signals! Reach out to him on Gmail ( BERNIEDORANSIGNALS@GMAIL.COM ) , or his WhatsApp : +1(424)285-0682 for inquiries
DeleteMany traders picture the perfect trade. They buy dead bottom, sell dead top, and everyone marvels at what a genius they are. Unfortunately, the vast majority of the time it doesn't work out this way. Rather than trying to nail perfect entries and perfect exits, accept imperfection. On the best setups, you don't have to be perfect. You can catch the meat of the move and still walk away with a very nice gain. Strive for nailing the easy part of the trade, strive for consistency, don't strive for perfection. It is consistent gains that grow accounts, not the rare perfect trade.
"Strive for nailing the easy part of the trade, strive for consistency, don't strive for perfection".
ReplyDeleteThank you, Tim, what you said make a lot of sense to me.
This blog is a "page turner".
ReplyDeleteCan't believe I found it.
It is pretty meaty. (a good thing)
Seconded.
DeleteI know this sounds like a really easy question but, How did u learn to deal with actually trusting your judgment. I am not trading with a large amount of money, and even during SIMPLE price action, I begin to panick and most of the time I sell to early. I would say 90 percent of the time, I would have been correct if I would have just held the stock longer. do you have any tips for situations like this?
ReplyDeleteIt's really just something you have to push through... I went through it myself. I can't think of any one specific thing I did to get over it, I think it just comes with time and getting increasingly comfortable every time you see the same setup and gaining that valuable experience. Wish I had something more specific for you here
DeleteHey thanks for this great post. However before a trade do you ever get the feeling of nervousness or fear? And do you notice that if you are calm and confident before a trade that the probabilty of the trade going in your direction is heightened? Thanks
ReplyDeletethis is really helpful thanks tim
ReplyDelete
ReplyDeleteI will always advice, that when you want to trade, you should seek the assistance of a well trained personnel. I've been trading with Richard Smith and it would be selfish of me, if i don't recommend them. With their well guarded signals and forever active(master class) strategies i have been able to make over 11,200usd weekly, he offers services to both experience and inexperience trader and also make recovery of lost funds So feel free reach out to him on email: richardsmith2488@gmail.com
WhatsApp: +1 225-277-1646
He is a professional hacker, he is absolutely reliable and I strongly recommend him for any types of hacking jobs you require. why i said this is because I have engaged him severally in various hacking jobs and he has never disappointed me nor any of my friends who have hired him also, He has really proven himself to be a professional and a reliable hacker, He can help you out with any hacking jobs including this:
ReplyDelete-Cell Phones hacking (remotely)
-Credit Repair
-Bitcoin Recovery (Any type of Cryptocurrencies)
-Make money from Home (Any Countries)
-Social media Hacking
-Website Hacking
-Erasing of criminal Records (Any Countries)
-Grade Change
Email him via: hackingsetting50@gmail.com