You need emotional discipline or your trading will become erratic. The worst thing that can happen to a trader is that they experience a dose of ‘beginner’s luck’. An enhanced sense of confidence as the result of a few good trades (probably flukes) is a huge threat to your working capital. If you make a good trade – don’t let the adrenaline rush send you headlong into another attempt. Instead, analyse your trade – do you really understand why is went well for you ? If you do – great ! Use this knowledge towards the development of a controlled trading method. If you don’t understand why this trade was a good trade -heave a sigh of relief at your good luck – and recognise it as such.
You need discipline to develope your trading method, to stick to your trading method, to follow the rules of that method and to close down your trading platform if you cannot see a trade.
It bears repeating – if you cannot see a trade close down the trading platform and don’t open it again until the next day’s session.
There is a very thin line. I maintain that most traders ARE gamblers. They use markets as a substitute for a casino. Here are some of the sign posts that you have crossed the line.
When does trading become gambling? There is a very thin line. I maintain that most traders ARE gamblers. They use markets as a substitute for a casino. Here are some of the sign posts that you have crossed the line. I love Jeff Foxworthy so I will steal his “you just might be a redneck.”