August 9, 2017
How can Day Traders with a good strategy still lose money? I see it ALL the time. In fact, I was one of them for 3 years! Let me explain what I was missing and how serious this is in the video below. Be forewarned, I get a little upset!
So I've put together the Top 5 Ways to improve your trading psychology. Trading psychology is the most ignored yet most important aspect of being a successful trader. Also, stay tuned as at the end I have a Special Announcement!
Top 5 Ways to Improve Your Trading Psychology!
1) Controlling your Emotions
Trading stocks is a very visually demanding as a traders mind needs to be focused on many things, i.e. your stock charts moving, indicator levels, Level 2 numbers flickering, and price action. As a result a trader can easily forget to monitor one's emotional state as well. HUGE MISTAKE! The best traders have a persistent state of mind when trading. While profiting or losing emotions can't get in the way and discipline is needed to stick to your trading plan. Sounds simple right? Wrong. Mastering your emotions is the most difficult aspect of trading! Luckily, I have a NEW solution for you that I'll tell you about later.
2) Learning a Complete Strategy
To consistently profit, traders must understand a successful trading strategy from A-Z. I lay out my entire strategy in Fous4 & Fous4x2 where you can learn everything from "what's a stock?" to how to find stocks to trade, and know exactly when to buy and sell. Once traders understand a complete strategy they know how and when to execute trades correctly with direction. There's no way to gain confidence unless traders and learning to become consistent with a specific strategy. Confidence is one of the most important emotions in trading as trading a strategy and plan with confidence can totally erase the feelings of anxiety and fear.
3) Proper Routine an Preparation
Consistency is key in trading. The same is true for traders that have consistency in daily routine and preparation. A traders repeated actions eventually lead to success or failure. As a trader you create your results in life and trading, no one else. Therefore, it's very important to prepare as trading is a profession that must be taken seriously to succeed. Creating stability in your life and in your trading will have a direct result on your trading psychology. Imagine yourself as a pilot. Would you take off without preparing knowing that hundreds of lives are in your hands? Of course not! Same with trading except your life and your trading account is on the line everyday. The purpose of the Fous4 Training system is to learn my entire strategy with Fous4 and Fous4x2 and trade with me daily on Fous4Live. I spend hours a day preparing for me and my students providing the most relevant stock market information and realtime trade alerts. However, my best students learn from my routine and preparation methods not just follow my alerts blindly.
4) Learn to Take Small Losses
Losing is the toughest part for any trader regardless of experience level as it can impact your emotions when you take a big loss or when a stock hits your stop loss and then reverses and ends up being a winning trade idea. Taking a big loss can set a chain reaction that can lead to days or even weeks of mentally unstable trading such as revenge trading, micro-managing, trading too cautiously, or any number of the other trading psychology downfalls. The best step to avoid the above is to embrace taking small losses. The best trades take small loses as this is unitizing proper risk management. One big win can make up for a lot of small losses and then some! Taking small losses will keep you less stressed and help preserve your trading psychology.
5) Patience for the Best Setups
One of the most difficult psychological hurdles to overcome is the urge to overtrade. The market action can be very enticing and even addicting as excitement and greed take over. Fighting back these urges takes disciple and going back to #1 learning and sticking to a complete strategy means being patient for the best setups. The strategy and setups I teach in Fous4 and Fous4x2 are all about quality over quantity. I teach students powerful daily chart patterns that when aligned with ideal intraday setups can be very profitable. Control your trading and don't let the trading control you!
If you are perceptive you may have seen at the end of the video above there's something new!
Yes that's right! I've just completed a completely new training program called Cloud9: Achieving Greatness through Mental Clarity
Above anything, your emotions and mental state dictate success in trading. In Cloud9 I give you easy solutions to mastering the above Top 5 Psychology subjects. I'll teach you exactly how to 1) control your emotions through a serious of internalized practices that anyone can do; and 2) how to maintain confidence, the prized and most precious resource for any trader, and 3) how to establish the best routine that will ensure mental clarity and consistency in your trading, and 4) being humble and learning how and when to take small loses instead of "holding and hope," and 5) how to know when NOT to place a trade and wait for the ideal setups and much more!
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This post was written by dieselEdge