Has it ever happened that you did not take a trade and then looked back in hindsight and regretted it? Ever got into a great trade and exited a bit too soon because you felt under confident or over-thought it only to see it turn into a huge winner? What if you could reduce the number of these trading errors? Visit MultiBank Group if you need more information.
If standing in the same spot is bothering you, here are some ways to get things moving.
Don’t let fear of loss occupy you
Source: eightcap.com
Fearing a loss can turn out to be a powerful catalyst that makes you miss good trades. Though one can’t deny that it can be hard to take a trade after a losing streak, you’re a winner only when you stop losing! You can’t keep thinking that you’d remain a loser just because your last trade wasn’t a success. Focus on the trading itself. Don’t let the fear of loss prevent you from getting your profits. Keep your focus on the task at hand. Trade your system to capture what others may be overlooking.
One of the major risks in trading is trading when you have too much fear of losing. One of the signs of excessive fear of loss is when you try to trade in your system. You don’t trade because you want to be the “god” of trading. What you should be trading is the system that has been proven to produce profits. You trade in your system to achieve trading income. Just as one trades their system, one should trade a system that has proven to produce profits. Trading should be a process that is done to earn a profit. When trading your own system, you will find that trading is something that should be done in small trades.
When trading, you shouldn’t overcommit your capital in trading. If you commit your capital to trades that have big losses that could jeopardise your capital, you are trading at the expense of your capital. Instead, invest small amounts of capital in smaller trades. One shouldn’t go on to bigger and bigger. To get rid of this fear, you have to treat every trade as its own standalone event and as a unique experience since that’s precisely what it is. You’re not required to over-commit to a trade which implies that it is not necessary to risk a lot of money!
Don’t let overconfidence lead to under-confidence
Source: dailypriceaction.com
We all begin on a good, optimistic, and confident note which is shattered by the market in just some moment. We could be heading towards a prolonged period of pain if we attempt to trade without researching and practising enough.
We tend to start on a high note by being all excited and motivated, reading some books, watching a couple of videos, and probably even doing a course, and thus risk a large part of our hard-earned money. This could affect every good trader and even the finest may not make it if they’re not patient about their trades and adhere to the market’s processes as well as methods.
Any team that trades away two future first-round picks isn’t playing with confidence. Whether it’s from selling players or investing in other things, there is something to be said for confidence. For example, a team will usually trade a player at his highest value, unless he’s injured or the player isn’t part of the franchise plan.
Even if the team knows they are taking a big risk and risking losing the player in free agency, that’s still a chance they should take. An acquiring team can make up for any financial risk by acquiring a player that creates a winning environment.
That’s why trading for Nick Chubb at the 2018 NFL Draft is so important. The Georgia running back is expected to be the second running back off the board in the 2018 NFL Draft, and he’s one of several players worth taking a risk on.
Stats don’t lie
Source: unsplash.com
Several times, traders miss out on good trades only because they keep thinking about the trades without taking into account or fully comprehending the actual facts and statistics associated with trading. Wins and losses are always distributed randomly in the case of any given trading edge. What it implies is that irrespective of your trading edge which may have a certain win percentage, you can’t know for sure which trade would win and which one would lose. It makes no sense to keep changing your risk significantly between trades simply because you’re unaware of how your next setup will turn out on the basis of “how good” it looks.
Trading is a new way to make money in the stock market. When traders get hold of new information, they make trades with this new information. They then take their profits from trades in the market and reinvest in similar markets to continue making trades.Well, the good news is that they don’t have to lie in trading in stock trading, this will actually help in gaining better returns. This is because the buying and selling can happen at different times to manipulate prices.This is a very good thing for traders, but also a bad thing because the trader does not have full disclosure.This means that the trading has a lot of “trading secrecy” and they get away with trading with undisclosed information. This is wrong, and in trading, there is a lot of deception going on.
Conclusion
Trading does not have to do with never missing a trade or not losing a single trade ever. But, in case you discover that you are chronically missing trades and are getting a majority of your trades, it may be time to rethink your trading strategy.
For every trader, their top “enemy” and “competitor” in the market is themselves. The sooner one comes to terms with this and realises this, the earlier one would begin to earn profit in the market.
