As traders we are forged to withstand a lot – losses, falls and surges, the process of choosing trading signals and those three brokers from our PRO CLUB membership. Every curve of the market is making a lot of hearts skip, but not ours. We are strong. We are standing and we are weathering. But it seems that even within our community we have weak spots which are to be tended to.
Yes, yes. Even traders have weak spots that are going to stand in the way of our profitability. What are they and can we overcome these weaknesses?
Let’s look into it!
1. You do not assess risks correctly.
2. You trade too much.
3. You look for entry points and can’t find them.
1. You do not assess risks correctly.
As the main trading theory goes – you need to change your risk assessment from trade to trade. You can’t look at every trade the same way. You need to understand that market conditions are changing and that every trade is unique. That is why we are to look at every situation and every trade with sober eyes.
Every trade is a risk. A risk to lose your account funding, a risk to lose everything on your account, a risk that you are not going to have enough for the next trade. And a lot of us are trying not to look at trading like that. For a lot of us it is fun and that is where our first weakness shines through.
Change your risk perception from trade to trade. Try and analyze general market conditions before going into trading. Use trading signals, learn to read the chart – do everything that is going to make your trading more understandable for yourself. This way you are going to have full understanding of risks in each and every trade.
2. You trade too much.
Has this ever happened to you – good and very profitable week turned bad right at the end of it? And then with a few hours to burn out until the end of trading you turn into John Wick and start killing every trade you see. Well that mode is never going to bring you profitability, believe me.
Earning through revenge is not an option for you.
And in the end the situation like that can be escaped by simply saying ‘Well, this week has been very good. I should quit right now’.
When you trade too much you are risking to lose much more than you have won. How? Well, too much trading is going to cloud your mind and make you tired. Of course after several executed trades you are in no condition to trade further. And one of our main weaknesses – we never admit that we are tired and that we have had too much trading for the day.
We just love the excitement too much. And we can’t stop cold. But we need to find strength and admit to ourselves – enough is enough.
3. You look for entry points and can’t find them.
Re-entering a trade is like coming back to apologize to mom – always difficult, you feel ashamed and have to admit your mistakes. And it might be very hard to do and it might be even harder to find that perfect point for re-entering the market and even more so for making a profit out of it.
Plus, learning and knowing how to re-enter makes it very easy to over-trade and that is going to lead you to our second point. Vicious cycle, I know.
What can help us look for the perfect re-enter point? Well, trading signals are making this much easier, that is for sure. And the more you use them the more likely it is that you are going to get this point right every time. Although that might not be enough.
Once again – analyze not only the situation in the market but your personal state as well. You might need to be done with trading for the day. Do not let this weakness take over you.
Onсe you acknowledge these weaknesses and learn to tame them you are going to see results and successes that you for sure are going to have.
