How you talk or think about your business can signal how you manage your trade. Your language can give information about whether you are about to commit an incorrect trading decisions before you actually do it. You may not even be aware of how your thinking influences your trading decisions, but when you read through the following article, you will see why it is so important to analyze your thought process during your trading decisions.
Would, could and should
Example # 1: I should have used the more risk to this winning trade.
Example # 2: If I had used another indicator, I could have avoided the losing trade.
Would have, could have and should have are the terms that describe the missed opportunities. When a merchant uses such words, they will likely change their trading strategy. If you try a different indikatorinställning and suddenly seeing that you could have avoided a losing trade, you are more inclined to use the new setting the next time, even if you do not have tested it fully. The fact that you could have avoided a lost trade with a random adjustment, however, can only have been a mere coincidence.
Tip: Keep at your trading system for a while and assess then how it was carried out.
Example # 1: I hope that the price goes much longer. It will be a great profit and I will then be able to buy some nice things with the money.
Example # 2: Hopefully this time will be not any loss again. I really need a win now.
Hope is a word that shows that you do not have any confidence in your trading strategy. In addition, if you hope for a certain result, it may signal that you have violated your trading rules and that you under normal circumstances, expect that trade will be lost. Another reason that traders hope of a win is when they have used too much risk and a loss of trade would mean a significant loss for their account.
Tip: If you hope for a certain outcome, you have done something wrong. Close your trade immediately, regain your focus and return to your trading plan.
Example # 1: the Price will be higher. This trade looks good; it turns a profit. I know it.
Example # 2: This is just a small rebound; it will not go below $100. It seems to look good.
When you use the word ”will” shows that you are very sure of what will happen. Traders who believe that they ”know” what price will be is less likely to realize a losing trade and are therefore more likely to interfere with their trade on a negative way.
Tips: Accept that you will never know what will happen. As a merchant it is your responsibility to act within the framework of your trading strategy and follow your rules religiously.
Never and always
Example # 1: the Price can never go below this level of support. It’s going to keep.
Example # 2: the Price always goes higher when it makes it here. I have seen it before and it always goes higher.
Never and always are words that signal a fixed train of thought. Traders who believe that the price always behave in a certain way, or who believe that the price is ”never” does something, can’t objectively think. As traders, it is important to be open and accept that everything can happen. If you act within a fixed setting, you are less inclined to accept the failure or not to see the warning signs that may signal that you can better come out of your trading.
Tip: Everything can happen and you never know what price will do next. Follow your rules and respond to what you see on your charts.
By analyzing your thoughts and your language you will discover handelsfel that you can do. Your actions are just manifestations of your thoughts. It is therefore very important to be aware of how you formulate your views about your business.