"Desire is the starting point of all achievement." - Napoleon Hill
There are many
good books on trading available in the market, they cover all different aspects, such as: trading strategies, technical analysis,
money management... you name it.
All of them are
really important for a trader's growth and in pursuing his/her own
trading style, but one of the aspects of trading that is fundamental (and most difficult) to master for anyone seeking success in this business is without any doubt
the psychological aspect, the trader has to learn to master his/her
emotions before he/she can start seeing any degree of success, not
even the best strategy or trading system will work if the trader
can't pull the trigger at the right time. You will find hundreds of
books on that matter, but you will not learn how to master your
emotions just by reading books, it is not that easy, trading is an
art, you need to practice over and over again, to focus on doing what
is right, until you get up and running.
AS we know that a
good part of trading is psychological, if you don't have the right
state of mind when trading, no matter what you do or try will seem to work
and you will end up missing the good trades and taking the ones that
will not work, and that is so frustrating!
You will never
reach the level of excellence you're looking for if you don't find
the reason why you can't take the good trades, if many times, when
you decide to just watch the market, it does exactly what you
expected it to do with all the details, but every time you try, boom!
It fails! That drives you nuts!
So, what would be
the reason that is stopping you from succeeding when you have a
system that you're sure if you follow it and take those setups you will
lose sometimes, yes, but most of the trades will work and at the end
of the day you will be deep in green? What is holding you back? It
makes no sense at all, it's statistics, pure math, something logical,
isn't it? You're sure it works week in, week out and you still can't
make it! Why?!
See if any of the
situations below sound familiar to you and could be bothering your trading:
Is it the platform
you use? If your platform fails now and then, that might be the
reason why you're not confident enough, you're not sure you will be
able to sell your position when you have to and your platform stops
working for any reason... Do you think commissions are too expensive? They'll turn out to be affordable
if you get the right platform, get one you can trust.
Or maybe your internet
connection fails always at the most important time, right when you
decided you would enter the order the connection drops and when it is
back up again, you already missed the opportunity, then next time you
will be afraid that would happen again... Make sure you have a good
connection and an alternative way to have your order in either by a
second internet connection (dial up, 3G or other) or by phone.
Or maybe last time
you tried to trade you were instantly stopped out seconds after you
got in, and now you're afraid that will repeat over and over again... Shrug it off and be ready for the next opportunity.
Or maybe the place
where you work from, as you will have to spend several
hours in there everyday, is your office comfortable? is the
lighting good enough? is it pleasant to stay there? Is it noisy
outside?
Try to check
anything that might be bothering you, even a small thing that you take for granted could be
important.
All the above are
good reasons to make your mind fool you next time you have to
pull the trigger, making you miss one, two, three good setups, and then you're so upset you missed so many good setups you take a trade as a revenge... Exactly the one that fails and you
get stopped out again... it looks like a nightmare, a never ending
cycle!
Patience,
persistence and a calm state of mind are really important
qualities in this business, without those characteristics, it will be
really difficult for you to see any success, if not impossible!
If you already
have a system you have confidence on, a system you trust, start today doing it differently, you will not get different results by
doing the same thing you have been doing before, make the commitment
to take all the good setups that are presented to you by your system,
no matter what, if you get stopped out on the first trade, try the next
one, if your system is good it would be rare to be stopped out twice
in a row.
It might also be a
good idea to trade smaller than what you're used to, maybe half or
even 1/4 of the size you're used to trade, at least until you gain
some confidence again to trade bigger.
Another good idea is to use a good money management system, that is to scale out half size quickly after you get +2 or 3 points, for instance, so that if the market comes back to your entry level or below it, you
will be protected, and most important, in a relaxed state of mind as you will not be risking anything but your time,
consider it as an insurance price that will be deducted from your profits. Your success will
depend partly on your trading techniques and money management rules,
so give them some thought before taking the next trade.
It all will depend on your state
of mind, have a purpose for trading, a
strong reason why you need to make money in the markets day in, day
out. That will also help in most cases.
Our mind is very
powerful, much beyond what we can think of, decide to do whatever is
necessary to succeed and do it! And you will start moving towards
those targets and level of excellence you've been dreaming of. It
takes time, but once you start moving in the right direction it will
make you feel stronger, and the moves will be faster. Act now, stop
postponing your success!
"You cannot
expect to achieve new goals or move beyond your present circumstances
unless you change." - Les Brown
Best of luck!
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