Learn from your Trading Mistakes
Success in Trading is 80% Psychology and 20%
If the perfect trading system was published on the front page of The Wall Street Journal, 10% of the people trading the system would make money while the rest would still lose money.
Why is that? Learn from your Trading Mistakes .The cause is a lack of self-control and confidence. We are taught from an early age to acquire power in order to manipulate and force change, so we can follow our destiny.
This, we are taught, is the only way to get what we want in life.
This mental attitude will definitely not work in the trading environment! Manipulating the markets is beyond our power and control.The only part of trading that we can control is ourselves.
How do I achieve Self-Control and Confidence? Learn from your Trading Mistakes ,Self-control is gained by exercising discipline and by gaining confidence through improving your skills in trading.In the market environment, you and you alone have to make the trading decisions – and you must have the discipline to abide by the decisions that you make.A trader has the power to give money to themselves – or to give it to other traders.In the trading environment a trader will make their own decisions and needs the discipline to abide by the rules!
The Thing about Statistics As a trader, can you admit that your trading system is just experiencing a draw down period? Everyone, including myself, has had their trading entry system generate multiple consecutive losses – and then you start thinking…It is the negative thoughts that influence your confidence,which eventually leads to greater losses.Likewise, many beginning traders will win. The winnings will erode the trader’s humility and at the same time, intensify their greed. It is a very serious issue that many traders in my experience have had trouble with. Overcoming this psychological barrier is crucial to a trader’s success. Learn from your Trading Mistakes
So, the Lesson Learned is – Apply your Rules! Say you start your account with $5,000 and risk no more than 1% of the total account equity on any given trade.Using this strategy, you will have to fail 100 times before you empty your account.Is it possible to fail 100 times in a row? Only if you do not learn from your mistakes!