Mindset of trading

Mindset of trading



These 5 areas to share the mindset and how to become a better trader and members below serve as reminder to me just as important (perhaps more importantly) the learning of technical indicators.

Developing Consistency - We should try to create a mindset of consistency with the development of beliefs that support us to obtain this result. In order to develop consistency, try to objectively identify your edges, defining the risk in each trade in advance, and accepting the risk of being able to exit the position when a defined level of loss is realized.

Likelihood Trading Game - You can be a perfectionist and is expected to be a merchant. Your losses (which they hope will return to breakeven) will kill you.

In early or come in late - These errors come from retailers do not have well-defined plan for how they will enter the market. This positions the trader as reactive rather than proactive sole trader, which increases the level of emotion, the merchant will feel in responding to market movements. Written plan helps a trader more systematic and objective, and reduces the risk that the emotions will cause the trader to deviate from his plan.

Not taking profits on winners and letting winners turn to losers - Again this is a function of not having properly thought out plan. Notes are easy, but it turns out difficult. You must have a plan for how you will exit the market and your winners and losers yours. Then your job as a trader it to execute your plan precisely.

Great traders do not place their own expectations for behavior in the market - traders Poor expect the market to give something. When conditions change, the smart trader will recognize this, and what the market gives.