The following 7 favorite tips
can be used as timely reminders and need to be read and
absorbed on a regular basis:
#1 - Take Responsibility
"The buck stops here." Don't
blame the markets, or a host of other factors for a losing
trade. You entered it for whatever reasons you had at the
time. Take responsibility for it.
#2 - Use
Each Losing Trade As A Stepping Stone
You lost a trade? Good. It
will help you focus on a potential problem in your trading method. If after careful
analysis you are satisfied you worked according to your plan, fine.
#3 - Never Become
Impatient With The Market
New traders in the
early stages of their currency trading training can be eaten alive
by the market. During periods of consolidation with little liquidity
the anxious impatient trader will force trading opportunities where
Learn to accept the
fact that around 70% of the time price will be in a consolidation
#4 - Focus Daily
On Improving Your Trading Skills
training is an ongoing process. Day by day, step by step the trader
improves. So rather than be preoccupied with profits and losses,
concentrate on developing the skills. Your account will start to
reflect your focus in time.
#5 - Be Pleased
With Well Executed Trades Whatever The Outcome
Is this possible?
Yes. You can feel well pleased even with a losing trade if you stuck
to your methodology and executed the trade well. It is dangerous to
feel good about a winning trade when you went against your trading
method to achieve it. Your elation is likely to be short lived.
Learn to execute the plan!
#6 - If In Doubt
The feeling of regret
can drain a person mentally and emotionally from entering a poorly
considered trade. Once the trigger has been pulled and the trade
starts going wrong, the agony of watching it inch towards your stop
should renew in the trader the determination to stay out when in
#7 - Always Have A
training involves careful analysis of reasons for entering a trade.
Just because price is high is not a reason to go short or long if
price is low. Price will do what price wants to do so rather than
trading from gut reaction, e.g. "Price can't go any higher (or
lower)" learn to detach emotions and use pure technical analysis to
establish a number of reasons why you should take a trade.
As currency trading
training is a long term commitment, skills and disciplines learned
can sometimes be forgotten as bad habits creep in.
It is necessary to
constantly renew the thinking processes by repeating over and over
the habits of successful traders.
These 7 favorite tips
will keep the newer trader out of a lot of trouble!
by Michael A. Jones