Successful Traders Secrets (Part 1)
When trader’s make a profit, emotional boost usually follows, and that feeling can become associated too closely with a person’s self-image, greed and sense of worth. Thinking too far ahead of what the possibilities are with your profits can put you in a sense of delusion.
Three things happen when a person encounters fear. They either freeze, flee, or fight. Having any of these type of emotions while trading makes life more difficult in general.
Afraid to Trade?
When a trader loses, he/she often plays the blame game on everything and anything around themselves, not being accountable for their own actions. That’s when fear starts to linger and self-confidence is lost. Essentially, what you fear is not the markets, but rather your inability to do what you need to do, when you need to do it, without hesitation.
Find more helpful tips in the AAPLTrader Community room here.
Most traders have bi-polar emotions. One day you are extremely positive about your skill and ability, the next you could be negative and your ego starts to get badly bruised. That’s why it’s important to…
Don’t make a trade without writing it down. A successful game plan has three elements: an entry strategy, a get out of trouble strategy, and a winning exit strategy. A successful trader is never born a success, but trained to be one. There is always something new happening in the market, give yourself the time to learn everyday so you can prepare yourself for the future.
A described fact from blackjack players; if you over bet, you will lose your entire bank account, regardless of how skilled or successful you may be. Don’t put all your eggs in one basket. If you’re a beginning trader, try not to use a margin account and only trade 2-3% of your portfolio in any one trade.
“It’s not what you think the market is going to do, but what the markets can do.” Click to tweet this quote.
8 Helpful Tips for Success:
- Keep a record of your trades!
- Be patient.
- Don’t trade because you feel you’re going to miss out.
- When in doubt, get out.
- Stick to your game plan.
- Control your emotions.
- Learn your risk.
- Think of all the possibilities.
You don’t want to be afraid to trade. You want to be okay with possibly losing a trade and moving on to the next one without the fear of losing it all. Find a way to limit your risk and expand your reward. You want to feel good about a trade knowing all the different possibilities. Look back on all your winning & losing trades and dissect each part of each strategy. Stop doing what’s not working and expand on what is and you will become the trader you want to be.
Eric Consiglio – AAPLTrader.com
For further discussion on trader psychology make sure you check out our stock mastermind group which broadcasts live every Wednesday and Sunday here at AAPLTrader.com
PS. Make sure you check out Part One of this Series Successful Traders Secrets (Part II)
in the World!