Trading is difficult due to factors that have nothing to do with the basic fundamentals, because, fundamentally, trading should be easy; develop a set of rules that marry well with your trading style and trade lower risk trades with clear entries and exits in mind.
The problems that affect simple trading:
- Would, could, and should.
Doubt and negativeness will cause problems if you do not learn how to control it. Negative people that will say "you can't do that" are really saying I don't know how and hope you don't make me look bad. W-C-S are internal doubts that rise when you miss a trade, get out "early' only to see the trade zoom, or when you trade a bias even if counter trend and against an overwhelming trend in price.Here, W-C-S will say " not bad, but if you did this you would have twice the gain!"
Buying in a rising trend will seem easy as well as selling in a declining trend. The market will go through transitions between these two simple plans. The long that was easy now becomes difficult, and the difficult short becomes easier. Once you are feeling confident, the market rotates again: Easy to hard back to easy. The issue, you have to be able to change your position bias. After trading so many longs it is difficult to change to a short mentality even when the market is screaming short!.
- Over trading or revenge trading
It is a judgement call, but when is "enough enough?" What is your target gain per trade. per day or week? Are you looking for 1-2 trades a day, etc. If your on fire the tendency is to stray from your plan and over trade which can lead to the other poison, revenge trading trying to get your money back or to prevent a loosing day of trading. Both should be avoided.
Six long (counter) trades at key Break Out level pull backs, or bounce, with an overwhelming short bias in the market. Success, but plenty of W-C-S today...
Ignore it. Work to become a better trader.
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