To have to worry about the future and not knowing what happens next is the two basic problems which a trader handles every day. But it goes much deeper and the way you handle your previous experience and think of the future affects your trade in ways you not even aware of.
This article explains how to your trading environment affects your trading decisions and how to avoid the most common and most expensive mistakes.
The past – a merchant’s emotional baggage
After the trade you are looking at what has happened, what you should have done and how much money you could have earned. This can lead to a lot of pain and emotional challenges. But the real problem is when the pain of efterhandskunskap influence your future trading decisions.
Traders who close their trade too early, and see that they could have made more money, are more likely to violate their rules. Traders who see it with the help of stoppavbrott, could have avoided the loss but sees his SL as something that is against them and maybe even stop using them all together. Using a larger positionsstorlek to compensate for past losses or to reduce your position after the loss of fear is also something that needs to be avoided.
But there are a few things you can do to avoid the most common mistakes:
First, you need to be aware of your language. Using words like ”would”, ”should” or ”could” signals that you make assumptions based on efterhandskunskaper. The other tip is to walk away from your trading platform after the closing of the trade. Go and do something else for 5 – 10 minutes and when you come back, your perspective will change and you will be able to look at your charts more objectively. Third, track your performance. By keeping a handelsdagbok you know exactly what you should do.
The future – worrying for what you can’t change the Traders make decision based on assumptions. In trading, the future is unknown and no matter how good you are, you know as much about what’s going to happen as any other trader.
Traders who are concerned about the future often miss the shops and is too scared to get into a trade, despite the fact that they all look the criteria in front of them. Or traders who believe that a setting is ”too good to fail” will add too much on one trade and then will not be able to let a lost position.
To accept that you don’t know what happens next, and that you do not have any control over the outcome is important for a trader. Realize that your only responsibility is to follow your rules, to work on your skills, and then let the market do what it does, is one of the most important steps to becoming a better trader.
Trading in the present
”Trade what you see” is a very good word, and there is much more to it. In the context of this article, we suggest that you do not let your past handelsresultat interfere with your upcoming business and to let the fear of potential future losses getting in the way of your trading decisions is just as dangerous.
Lack of confidence is what causes amatörhandlare make mistakes. If you constantly change systems, add the never really in the work in order to develop a better methodology, you will lose. To develop self-confidence, then, is impossible. If you lack self-confidence becomes the past and the future are big factors and can easily destroy your entire handelsspel. Therefore, we encourage you to begin to focus on a single way and engage you in order to get it to work.
“If you are never certain about the viability of your edge, you won’t feel too confident about it. To whatever degree you varnish confidence, you will experience fear.” – Mark Douglas