Newtron Bomb
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Hiya folks
The following was in responce to some quizzing over how to overcome certain problems on a poor aspect of their mindset when trading.
I hope that this will help some folks view trading and perhaps life from a different perspective.
The example is relevant to letting a trade run its course
An example of how you could overrule this would be to stop tinkering with your trades. Put in writing what you will do when certain conditions happen
eg
when in profit by x reduce stop loss by half
when in profit by xx move to break even
when in profit by xxx raise your stop profit by a proportional amount.
You can easily set alerts to tell you if your stop loss has been hit or to move your next stop loss/profit level. Set your self time to reassess your analysis. Until then you are not interested in what the market does. Then go for a long lunch, play golf switch the monitor off and read a book etc etc.
The above conditions are general and just an example you can easily insert your conditions into the equation be it time, price, chart pattern or set up.
The point is that only you know why you are doing things in a certain way and the reason is; you are not asking yourself why.
Indicators and patterns are great tools but, the only tool people dont learn how to use is their mind
This is what i meant by this previous quote of mine.
Start thinking for yourself
stop asking "how do i do this?"
ask yourself "what do i need to do to get the result i want?"
see beyond the problem
Psychologically, thinking and acting in this way you will be mentally conditioning yourself in several different ways to encourage you to become more disciplined.
This can equally go against you. If you do not have a complete trading method or have a bad habit or trait that you continually do it can be just as difficult to spot it and deal with it. This is another good reason for analysing your trades after the event and when the emotions of trading aren't involved and Mr Hindsight can start being helpful and productive to your development.
Happy trading
Newtron Bomb
The following was in responce to some quizzing over how to overcome certain problems on a poor aspect of their mindset when trading.
I hope that this will help some folks view trading and perhaps life from a different perspective.
The example is relevant to letting a trade run its course
An example of how you could overrule this would be to stop tinkering with your trades. Put in writing what you will do when certain conditions happen
eg
when in profit by x reduce stop loss by half
when in profit by xx move to break even
when in profit by xxx raise your stop profit by a proportional amount.
You can easily set alerts to tell you if your stop loss has been hit or to move your next stop loss/profit level. Set your self time to reassess your analysis. Until then you are not interested in what the market does. Then go for a long lunch, play golf switch the monitor off and read a book etc etc.
The above conditions are general and just an example you can easily insert your conditions into the equation be it time, price, chart pattern or set up.
The point is that only you know why you are doing things in a certain way and the reason is; you are not asking yourself why.
Indicators and patterns are great tools but, the only tool people dont learn how to use is their mind
This is what i meant by this previous quote of mine.
Start thinking for yourself
stop asking "how do i do this?"
ask yourself "what do i need to do to get the result i want?"
see beyond the problem
Psychologically, thinking and acting in this way you will be mentally conditioning yourself in several different ways to encourage you to become more disciplined.
This can equally go against you. If you do not have a complete trading method or have a bad habit or trait that you continually do it can be just as difficult to spot it and deal with it. This is another good reason for analysing your trades after the event and when the emotions of trading aren't involved and Mr Hindsight can start being helpful and productive to your development.
Happy trading
Newtron Bomb
