Every trader need to Identifying his Strengths and Weaknesses
Trading requires as much honesty as is objectively possible. To be able to go over each trade and determine what you did right and what you did wrong requires putting ego aside for the benefit of becoming a better trader. You have to be able to admit “I was wrong”. With that being said, you can move foreword and find out why you were wrong and try to learn from the loss.
You may feel that you can be honest with yourself but ego is a very strong factor in forming your self image. You must ask yourself if the goal is to become successful in reaching your goals or is trading really just an exercise in trying to pump up your self image. If it is the later, there are less expensive and more easily achievable ways to accomplish that goal.
The job of the trader is to constantly monitor and make sure that the trading plan is being followed and that the trader is keeping the proper attitude.
As per my interaction with Traders instead of working on there weakness they are always in a whim of what will happen Next !!
As soon as Market closes they start looking for Eurpoean Index,then Dow and morning SGX.
Is this really worth !! Can this time be invested in working on yourself improving our trading system.
Most of Trader Never Maintain a trading journal.It is key to success in trading
Consider that we are brought up to compete and aspire to win. Losing is for losers. From an early age, we are taught losing is a negative thing. However, as winners mature they learn that mistakes are really learning opportunities. Traders must have this attitude at all times. It’s normal to have loses but a successful trader learns to swallow the emotion, analyze what happened from the losing trade, and move on. This is a necessary attitude for a trader and an excellent one for life in general.
Imagining your worst trading nightmare
Your system generated a Buy and you took a long on your trade. You want this trade to win. Market opens price is near your buying price. Suddenly a basket selling came and price is near your sl.You get nervous and remove your sl as you are confident on the trade.
Same time you got an emergency work at home and you need to rush out of trading system and you forgot to put a revised sl.
Market just kept on falling when you are not present in front of system. You complete the work and rush to see the screen to find out you had got a BIG LOSS
How you will react at such an instance
1. Learn from mistake
2. Stop trading
Imagine the worst scenarios it will help in improving yourself and control your emotion if and when you come across such scenarios.
Prepare yourself for TRADING EMERGENCY!!
Work on Yourself to be a better trader !!