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3 Tips To Make You A Better Trader
By Ian McAfee | October 25, 2007
Trading is an art as much as a science, probably more so. You need to have the mental strength and stamina to be able to handle making and losing money on a day-to-day basis. Trading with a practice account will help you learn the basics of the market, but will not give you that mental and psychological strength and stamina, the skills you need most. Here are a few things you can do.
1. Look at the trade from BOTH sides. Are you looking to buy a certain pair? Try to imagine the feelings you have if you were to SELL that pair. What feeling do you have when looking at the opposite side? Remember these feelings and you will notice improvements as you become accustomed to the feelings of both sides.
2. Decide to make money, not to be RIGHT. Many people have an obsession with being right. Remember, trading isn’t an exam, it’s for you to make money. Just because you are down on a trade doesn’t mean to have to stay in it to prove anything. Cut your losses if your trade looks bad, or your feelings go from confidence to HOPE. When this happens, you are putting yourself in dangerous position and setting yourself up for more losses.
3. You don’t HAVE to trade. Many of us log in at the same time everyday looking for set ups. This is great. You will develop a sense for the pairs and stay in tune with the market. But just because you spend an hour looking at set ups doesn’t mean you have to trade that day. The hour isn’t wasted. You don’t have to frantically look around for a trade just before you have to go to work or bed. This seems like common sense, but you’d be surprised at how many trades you get into just for the sake of being in the market. Be comfortable with being flat.
noneTopics: Tips |
October 25th, 2007 at 10:09 am
Interesting tips. Thanks.
November 8th, 2007 at 11:20 pm
Thank you for this!..you hit on tremendously crucial points, just when I was thinking I was the only one that has done this.
January 20th, 2008 at 3:04 pm
This is really a great tip. I am sure this will help me alot in cutting my losses.