“I knew that, if I wanted to be
successful, I needed to work smart, not hard.” – Marcello Arrambide
Do not place too
much emphasis on the trade you just opened. It might win or lose –and that’s
how it’ll always be. If it wins, the gain should be decent if you let your
profit run. If it loses, the loss should be insignificant and easily
recoverable (as you use a safe lot size and an optimal stop). Win or lose, skilled traders enjoy permanent
success. Trading psychologists the world over give much encouragement. Some
write books and articles. This helps us to keep positive trading attitude. We
remember that the markets cannot be predicted with certainty. If we dwell on
one losing trade, we might become victims of another. If we’re not trading the
right way, we might weaken in one way or another. Speculation is a journey of a
lifetime, not a short cut to gratification. And it requires psychological
stamina, persistence and sanity to hold the fort and win the battle.
When you change
your mind during an open position, and apply some style that you did not plan
initially, you’re involved in self-sabotage.
According to Dr.
Janice Dorn (www.jtrader.us), we shouldn’t trade
for excitement or entertainment. We need
to avoid the highs that come from quick profits or the lows that can appear
after losses. If we have a sound system, it does not matter whether any
particular trade makes a profit or a loss. What matters is that the
probabilities over time are in our favor. We must remember that no system is
perfect, and prepare for losses along the way. We should measure ourselves on
whether we followed our rules and executed our system, for both winning and
losing trades. The process of trading is much easier when we focus on execution
of a system rather than on whether each individual trade was right or not,
because we take our ego out of the process.
If you’re always
afraid of what an open trade might do, then you might look for more help from a
professional who can give you encouragement. Really, improving metamorphosis is
common to triumphant market speculators. Professional traders and investors
look for encouragement sometimes. Nevertheless, some traders still think that
they don’t need help. There are people that would still fail to take an
advantage of a wonderful situation if it were offered to them free. There are
many traders who lose and lose in the markets – no matter what they do. Yet,
they would prefer not to enlist for help. This thing isn’t a curiosity. It’s
obvious that some traders who really need help aren’t interested in getting
help.
There are
victorious traders who focus only chart analysis with focus on easy rules;
there are those who combine chart analysis with fundamentals. No matter what
kind of analysis you use, you’ll need to combine it with risk control so that
an open trade won’t mean the whole world to you.
You cannot be
sure whether the trade you’re about to open will go positive or negative, but
if you know that a trade can be positive, then you’d need to acknowledge that
it can go otherwise. The fact that a trade can go either way should be known
before you see any result. The result of the trade you’ve opened doesn’t
matter. What matters is having average losses that are much smaller than
average profits over a long period of time.
Strategies are
not the ultimate, but how you use those strategies is the deciding factor. The crucial thing is the chart and what you
can do on your portfolio. I know that speculation is easily done, though those
who choose not to persevere, concentrate or get serious enough to deal with the
uncertainty of the future, may find it challenging. In spite of this, when you
have certain winning techniques and are faithful to them, you can reap the
necessary rewards in the long run; when those without winning techniques give
up. As a speculator, if you obey your winning techniques, plus risk control
measures, eventually you will realize your dreams, not by avoiding losses
always, but by coming across losses that are your under control. It’s those
who’re no longer interested in making progress as traders that would reach an
impasse. Innumerable bears and bulls, sound speculation and the ability to
adapt to any market circumstances any time – these are a necessity.
This article is
concluded with a quote below. This is really a food for thought:
“If only we were omnipotent! Think of it.
Imagine being able to control your destiny. You could make the markets do
whatever you wanted, and you'd easily be a super trader. The truth, however, is
that we are all mere mortals. We must accept what the markets offer us. We
cannot control them. It's unfortunate, but true. The trick to living with this
fact is to try to persistently change what we can change, but humbly accept
what we cannot change. In the end, we have to persist as much as possible, but
at the same time accept our limitations. It's easier said than done. It is so
hard that some people never do accept their limitations. They overconfidently
think they have more power than they have. They manifest what psychologists
call an "illusion of control."’ - Joe Ross (Source: www.tradingeducators.com)
Azeez Mustapha
Market Analyst, Trading Signals Provider and Coach
Eye-opening trading lessons: Lessons from Expert Traders
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