Psychological Trading: What are the Ten Tips to Win?
The success of trading is 90% can be affected by the psychological factors. Follow the ten psychological trading here, so you can master your trading world.
One: Put Believe in Your Methodology
Some people don’t sure that they have a good opportunities to make money from trading. Although they do have some believe, but they still feel some doubts. What you have to do is following the trends. Do back test on various historical data. Check if it gives you good result mostly and whether it is based on the solid concept or not. If you are sure the results are good, you need to believe for your action.
Two: Make a Plan and Stick to It
Do not only make one plan, but you need to have several plans and put some flexibility to the plans. For example, as a day trading, you need a method to decide the currency pairs each day for your trading activity. Rather than stick to the plan, you can allow yourself to change your mind regularly. It’s called as a “plan” which has some flexibility in it.
Three: Appreciate the Planning and Living Something Differences
Planning a written plan is different with experience the real plan in a real time. In those planning, don’t expect you will always experience success, but you can also feel the worst case. When you do the back test, you can feel the consecutive losing trades in weeks or months. It’s a good practice in bad times for your trading psychology.
Four: Don’t Afraid or Too Eager to Take a Trade
You need to put in your mind that you need to take action now or never. Dare to take several trades is better than none. You need also to adapt with the circumstances. The trade is depending on the market condition not your mood and wallet. So, decide wisely when you need to take action and when you shouldn’t.
Five: Don’t Easily Deal with Market
Don’t easily lose confident and decide to exit the trade when you see the price isn’t in your side. The best thing is you need to hold firm and sticking with your plan.
Six: Save Your Profit for Later
Once you get profit, you are itching to take it and stop the trade, don’t you? Don’t do it! Fight this desire. The profit is only allowed to take when you believe that it’s not going to raised further in your planning.
Seven: Don’t Bail Out the Loss Early
Like you want to take the profit, you also need to consider your strategy of risk management.
Eight: Don’t Let the Losers Run
Avoid the losers to run using hard stop loss. You can’t also widen it and let your guard down.
Also read: How to create a winning trading plan
Nine: Take Responsibility
Once to start the action, it means you need to take the responsibility with you. Don’t make any excuses to avoid the responsibility. Trading is a long journey, not a short visit. You need to believe that there will be better things happened later, although you feel some loses between it.
Ten: Stop Chasing the Better Expectation
Once again, stick to your methodology. For example, your strategy is making an average of 25% per year, but suddenly you find that you can get 30%. You start wavering and testing how to make it real. Once you lost your way beside your original plan, you can lose time and money at the same time. You can do the testing, but remember not to affect your trading.