Here are 7 psychological ways to propel your trading into success.
1. Prepare for the Trading Day: Assess your market every night. Identify areas where trades may set up tomorrow. Preparation helps you anticipate price movement and puts you in a position to take action with confidence.
2. Stick to Your Plan: Take only trades consistent with your plan. Sticking to your plan pays many dividends, including keeping your confidence high.
3. Keep a Trading Journal: Log all trades in a notebook. Record your thoughts and feelings about each trade. The journal can help you identify your patterns as well as record your progress.
4. Trade with your Mind in the Moment: When trading, stay focused on the here and now. Let past events and future concerns fall by the wayside. When you notice your mind wandering, gently bring it back to the trading task-at-hand.
5. Mentally Park Losses and Errors: Avoid an emotional hijacking by ‘parking’ losses and trading errors. Write them in your journal and forget about them until after the market closes. Mental parking signals to your mind that now is not the time to think about the loss or error. It helps keep your mind clear.
6. Attend to Process, not Results: While trading, concentrate only on what you need to do now. Refrain from thinking about money made, win:loss ratios, or other “stats.”
7. Review the Day for Self-Improvement: After the close, review the trading day and identify what went well and what didn’t go so well? Now is the time to review what you parked. Make a plan of corrective action, if needed.
These seven tips can give you a psychological edge. They are a powerful system for self-development and, with consistency and practice, improved self-control while trading.
The 7 ways highlighted here and other cutting-edge information can help take your trading to a new level.
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