Ok, I am going to say it – trading has way too many bells and whistles. Sometimes it is too complicated. Sometimes we wish it would be easier and more enjoyable. But the truth here is that more often than it would be acceptable we are messing up our trading all by ourselves.
That’s right. The time has come for us to give ourselves a good hard look and admit – we are messing up a lot. Especially it is true for beginners and those who are more used to long trading as there is no need to be in the markets every day with long trading.
Admitting is the first step to resolving the situation. Now we need to understand – what it is that we do to mess up our trading?
1. We trade in bad mood and in bad health.
2. We compare all the trades.
3. We want instant results and we want the NOW.
4. We take on trading for all the wrong reasons.
5. We do not count all of the possibilities.
6. We do not follow trading plans.
1. We trade in bad mood and in bad health.
Working or doing anything for that matter while you have bad mood is very bad. It is hard to get a desired result and the more you fail the worse your mood gets. And with trading it is even more true. Trading in bad spirits or when you feel bad is going to bring more losses and this time you are going to have to be serious about your fails as your money is on the line.
Do you really need to trade so hard that you need to do it in bad mood and bad health? Think about it. Give yourself pause.
2. We compare all the trades.
Think about trades as if they were snowflakes – there are no two similar. And comparing one to another is just wrong. Even when you put down two trades in a row there is a very high chance that by implementing the same strategy to the same couple two times in a row is not going to work and one of these trades is going to fail.
Comparing two trades and waiting for the same results from two different trades is wrong and bad for you.
3. We want instant results and we want them NOW.
The other thing that we do wrong – we want HUGE instant results. But has that ever happened to you? Have you ever got huge result? Well, if your answer is yes then CONGRATS! You have become a member of that tiny percentage of traders who have seen a miracle come true. In reality our small bids result in huge wins extremely rarely and there is absolutely no need for us to expect anything else from trading.
4. We take on trading for all the wrong reasons.
Why have you come into trading in the first place? Were you interested, were you recommended by someone? Were you simply bored? One of these reasons is not nearly as noble. Can you guess which one?
Boredom is not the reason for you to go out and put your money on the line. Pure entertainment is not the best reason for risking your budget and your well-being. If you are bored – take on knitting or something, not trading.
5. We do not count all of the possibilities.
Of course as people we always count on success. And we do not want to jinx everything by thinking that we are surely going to succeed. Of course this logic is going out the window when it comes to trading – after all why shouldn’t we count to win? Well, there are a lot of factors to trading and there is high chance that at least one of them is going to play against us.
We need to count all of the possibilities and the one with losses is going to have to come first.
6. We do not follow trading plans.
This is especially weird with those who are paying for their trading plan. If you have bought it or spent time building the plan why not follow it? It may help you minimize losses and maximize your knowledge and success rate. Trading plan, we are to stick by.
