Nine tips for trading without emotion. Part 3
Final three important tips on trader's mental toughness. We have already talked about consistency, patience, and understanding what the market is in the first и second part of the article. Let's see what other skills we need to improve as a trader.
7. Think more about the process of trading than the end result
This is a very important point - your general emotional background depends on it to a large extent. You should be able to distance yourself from the results of each trade, paying attention to the technical aspects of work. This will allow you to psychologically and emotionally detach yourself from the market, keeping control over your emotions, and at the same time remain calm and focused on your long-term goals, instead of reacting to every market movement.
In addition, you need to remain confident in yourself and your trading methods. On various forums there are often stories about how someone allegedly "lives from the market" or has earned a year's salary for a new apartment. Such stories excite the minds of beginners, causing envy and negative thoughts about their abilities. Attempts to repeat the result will not lead to anything good, and besides, such stories are most often just a fake.
You can only succeed in trading by gradually becoming a professional and trusting yourself.
If you know what you're doing, understand what you're using. trading strategy and system, that's the path to success. When used correctly in the right hands, almost any strategy can be profitable. The main thing is to figure out what is right for you. To do this, you need to focus on what brings you the most satisfaction, what is comfortable for you in your work, what creates a feeling of confidence and reliability.
Another important point is to properly understand your emotional background. You need to be able to recognize and interpret your emotions. They can tell you a lot and teach you a lot. When and at what moments do they become the strongest? When do you start trading, breaking the plan and the system? Professionals always stop at such moments, stopping trading immediately. They are well aware of the importance of breaks, which are necessary to put your head and nerves in order.
8. Do not let negative emotions control you
You need to learn not to let negative emotions influence your decisions. Trading is a stressful process, especially for a novice trader, and you will experience many setbacks at the beginning of your journey. Be prepared for them and don't let losses convince you that you are not capable of anything. Instead, observe yourself and your reactions, identifying what is hindering you and eliminating it by focusing more on the positive aspects of your character.
Successful traders know how to turn evil for good. They realize that losses are part of their business and they expect them. While taking away money, unsuccessful trades simultaneously bring knowledge, enriching experience.
Every loss is a reason to reflect and work on your trading system and strategy.
It's possible that your stop loss should be set a little further away from the entry price, or perhaps you need to change the methodology of determining the trend or market entry point. The main thing to remember is that you should learn from mistakes, not kill yourself. Otherwise, the fear of repeating a loss can make you either give up trading altogether, or rush into the market in an attempt to regain what you have lost. Both are equally bad.
And one more important point: never blame anyone for your failures and losses - neither the market, nor brokers, nor external circumstances. Learn to be honest with yourself and accept your failures, realize them and move on. Learn from your mistakes and grow in your profession. Fixating on failure will lead to stress and trying to rehabilitate yourself at all costs, and we know how that ends. You may seek revenge against an invisible enemy who is "responsible" for the loss. This is like fighting windmills - you will spend a lot of effort, but you will not get any result. All this will distract you from the main task - to become a professional.
9. Do it!
Trade. Don't let negative emotions and fear paralyze you and mentally crush you. You understand perfectly well what you need to do, so do it. Only moving forward can lead to your goal. Trading is always connected with mistakes and losses, but what business is not connected with them? This is no reason to give up. Be confident in yourself and your abilities, then you will succeed!