Unlocking The World’s Most Powerful Trading Tool
Have you ever had a disastrous trading day? I have. Real train wrecks. The type that left your trading account and ego in shambles. I am thankful I stuck them out long enough to learn why they were happening and what I had to do to begin to limit them.
Let’s take a look at the anatomy of a typical disaster day and then I’ll go over a couple things I learned from them.
They usually go something like this: I’m sitting in front of my computers probably tired, hungry or both. I’m scanning looking for trade setups that meet my criteria. CNBC is on in the background. I’m not seeing any of my favorite setups and begin to get bored. I take a trade on a whim for some excitement which quickly turns to disappointment as the position goes against me and I’m stopped out.
&&^^$%^&* I can’t believe I just did that.
Now if thats where it ended it wouldn’t be so bad, but as some of you may already know when we first start trading, this is often just the beginning. Angry and needing to get my money back, I start a run of bad trades usually ending with one or more “I better double up my trade size to get back to break even” trades which almost never work out. The market beat me soundly and the proof stares me right in the face in the account balance column.
I am left thinking how could that have happened? I knew, while I was loading the next trade into the platit that what I was doing was going to end in disaster yet I pushed the buttons anyways?
For years all I read on the subject told to ignore emotions and leave my feelings at the door. The more mechanical I became the better I should trade.
After trying this for years I came to a different conclusion. The so called experts were WRONG, PERIOD.
Here is what I have learned and what I will be teaching on this area.
Emotions and feelings have everything to do with trading and need to be put first.
Self Awareness is the most powerful trading tool available. Proper interpretation of emotions and feelings allow you to determine the difference between impulse and intuition and to act accordingly.
Managing actions, not emotions and feelings, is the foundation of successful trading.
The great thing is, these are skills that can be learned.
This will be an ongoing subject in our “Trade Like a Pro” blog. Check back for more training on how use your emotions and feelings effectively. It will have a huge effect on your trading, I know it did on mine.
More to come soon………..