How do you know if you’re really cut out to be a professional trader? That is, a trader who makes a living by trading the markets. What makes you think you’re any different from the other 95% of traders that lose money and quit?
It is almost impossible to earn a living from the markets without a thorough understanding of how your psychology plays a huge part in your success.
This means that you need to be completely at peace with yourself and whatever trading ‘setup’ or ‘style’ you use. Some great traders have managed to control this aspect of their self by implementing very strict, almost mechanical rules to their system. My approach is quite different and instead of trying to compartmentalise those aspects of myself that would be considered bad for trading (my emotion, instinct, gut, greed, fear, everything that makes up me), I am trying to embrace them all and use them as my trading edge.
In order to do this, it is important that I am able to fully accept who I am and what I am, and find a way to fuse all of these characteristics into a ‘style’.
In much the same way that I need to tap into every aspect of my being in my practice of martial arts, my trading requires no less, and these posts sum up my psychological journey so far.
Do you admit your trading losses? Do they depress you? Believe it or not, losing is not only essential for your health and wellbeing, but it is actually vital to your longterm success as a trader. You see, ‘losing’ trades are no more inseperable from ‘winning’ trades as the moon is from its reflection in the lake. Neither can exist without the other…
It’s been a tough few days on the markets for me with confidence seemingly oozing out of every position I had open. I’m sure you can all imagine how close my finger has been to the close position button on all of my trades but, mostly, I somehow managed to hold on.
After the Google fiasco on Thursday, the entire US market seemed to take a dive on Friday. As a result, a few of my strongest positions reduced in value.
If you’re trading already, you’ll know exactly what I’m talking about here. If you’re not but you want to start, you’d better make sure you’ve got the bollocks for it because the trading demons will try to tear them off for as long as you keep at it; unless you do something about it…
An excellent end to today’s trading is welcome relief from the murky depths of hopelessness I’ve been feeling over the last week. I was starting to wonder if I really could carry on the way things were and was even advised by a fellow trader to stop trading in a live account to help ease my lows.
Wow, what can I say, after redefining my trading strategy at the end of August and making solemn promises to myself to stick to it, I’ve managed to ignore everything I promised myself I’d do and almost blow up my £500 account. Painful? Check.
Have you ever found yourself second guessing when you should close your positions? I had this very same dilemma today with a position I opened yesterday and although I fretted like a girl about it in the beginning, I’ve found a good strategy to help me choose when to close.
Before today, I was sitting on a handsome profit of £520. I’d managed to accumulate this since 1st August and was feeling pretty good. A list of all the trades I made to get there can be found in my twitter account. Today, however, I had a bad that saw me lose almost 50% of my profits.
Been a quiet day today after the big losses of yesterday. I basically bottled out of any trades for the best part of the day because yesterday’s £100+ loss in one trade really shook me up. When curiosity got the better of me and I logged into my account I was pleasantly surprised to find my only open position in Chime Communications (CHW) was up by 5 points at £10 …Read More