- Are you trading because you want to trade? Consider trading a business not a game.
- Are you not trading? This is the opposite of trading too often. You may be so scared of taking a loss that you avoid trading altogether.
- If you get stopped out of several stocks, walk away.Paper trade until the profits return.
- Follow the system.Would you be making more money if you followed your trading signals? Understand why you’re ignoring the signals you receive.
- Don’t overtrade.Sometimes the best place for cash is in the bank. You don’t HAVE to trade.
- Learn from mistakes. Review your trades periodically. It’ll uncover bad habits.
- Focus on the positive. The loss your suffered today pales to the killing you made last week.
- Ignore profits. If you find yourself getting nervous about a winning trade or making too much money, then concentrate not on the bottom line but on improving your trading skills. Get used to making too much money.
- Obey your trading signals. Otherwise, what are you trading for? Plan your trade and trade your plan.
- Don’t trade when you’re upset.This also goes for being too excited.
- Abandoning a winning system. Don’t become bored with your winning system and search for new, more exciting ways to lose money.
Archives of “paper trade” tag
rssTrading Psychology
Are you trading because you want to trade? Consider trading a business not a game.
Are you not trading? This is the opposite of trading too often. You may be so scared
of taking a loss that you avoid trading altogether.
If you get stopped out of several stocks, walk away. Paper trade until the profits return.
Follow the system. Would you be making more money if you followed your trading
signals? Understand why you’re ignoring the signals you receive.
Don’t overtrade. Sometimes the best place for cash is in the bank. You don’t HAVE
to trade.
Learn from mistakes. Review your trades periodically. It’ll uncover bad habits.
Focus on the positive. The loss your suffered today pales to the killing you made last
week.
Ignore profits. If you find yourself getting nervous about a winning trade or making
too much money, then concentrate not on the bottom line but on improving your
trading skills. Get used to making too much money.
Obey your trading signals. Otherwise, what are you trading for? Plan your trade and
trade your plan.
Don’t trade when you’re upset. This also goes for being too excited.
Abandoning a winning system. Don’t become bored with your winning system and
search for new, more exciting ways to lose money.
Trading On Fear & Panic
First, no matter what, as a trader it is your #1 job never to put yourself in a “panic” position. No trade, no matter what you think of its future potential, outweighs that rule. If you trade for a living, your goal is always to “live to trade another day” which means tight risk management and taking every step to avoid this situation.
On every trade I make, I know where I have to exit no matter what before I make the trade. If I can’t figure that out, then I don’t make the trade. I learned, like you are right now, that trying to figure out an exit after you’re down significantly in a position never is to your advantage. Right now, you’re emotionally connected to that trade, if not trapped by it. (more…)