Despite what some people may lead you to believe , day trading , swing trading and trend trading is nowhere as difficult as they want you to think . It really boils down to two major components .
First, you need an approach that helps you trades that consistently high probability of making money identify . Once you have this, this " edge" use over and over again .
The only way to do this is to use the necessary discipline to never deviate from your system . The moment you start tinkering or tweaking things is when you lose your edge !
You will probably be tempted to do after you have had a few. Losers this This time , however, to keep your focus and remind yourself that your system is kept in local time. Statistical advantage that up
Think about this for a moment ? If you gamble in Las Vegas and even a 1 % advantage over the house you can make by taking advantage of this edge . Literal fortune That little can make the casino an advantage percent lose a lot of money over time . As a matter of fact when they notice that you have a viable system they will label a cheat and ban you from playing . It is certainly a good thing that can not happen to traders !
Now consider what happens when you produce a trading strategy that trades that go into the money more than 60 to 80 % of the time ?
Now the second step to success is to control your emotions. Two of the biggest indicators of a trader who does not manage their emotions FEAR & greed . These two emotions will wipe every trader in time , both experienced and inexperienced alike.
Let's talk about them for a minute ...
FEAR : Fear of losing money or fear of being wrong is what causes traders to have this emotion .
" Trade with scared money" often causes the fear of losing money . This is when a trader risking money to be used for rent, food , children's education , etc. If this is the case, the only solution is to which you are willing to find additional resources are put at risk. This helps to keep the mind at ease and reduces anxiety .
Fear is simply the wrong part in all of us that just do not like to be wrong. The remedy is to simply realize and accept that losses are part of this game . Think about this ? A football player just hit the ball once every three times on the plate and this will put him in the Hall of Fame .
I feel this every once in a while and remind myself that ... My approach to trade has both historical and real-time consistent winning trades . This gives me the confidence to step up to the plate and keep swinging. I also tell myself that the only way to make big money is to get into the game .
GREED : Traders who are greedy are often the exact opposite of those who are afraid . They have no fear and this can they get into trouble . They will tend to over trade , not actually follow the rules and " wing it " . Sometimes this will work , but it always ends up back - firing .
One of the biggest problems when greed sets in is the inability to know when to take . To profit These traders are so bent on making a killing they are never satisfied . If they are to 10 , 20 or 30 % they do not even think about cashing out , if they want more . This often leads to the inability to see the trade against then and they will allow winning trades into losing large ones .
A solution to this is to realize that the use of 3, 5, 10 or 15% on a regular basis a short time is added up very fast. I know that for me personally , once I was confident in my method, I no longer felt the occasional feelings of greed . Now I " go for broke " as I know there is always a good trade waiting. Me not to worry about
Dr. Jeffrey Wilde, a trading veteran with 16 years experience is a trading coach to over 3,500 dealers in 63 countries . His new blog provides free trading articles, tips and advice . He also provides a variety of courses available at
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