1. Trade With a Clear Mind
Do not make emotional decisions. Realize that emotions are emotions. What differentiates the successful traders from others is how we recalibrate our reactions to our emotions. Clear mind will never have Trading Fear
I was watching an interview with a surfer. The interviewer asked him what he does when a big surf comes and he goes underwater. The surfer said it was simple. “If I panic, I only have 3-5 seconds of air to breathe. If I stay calm, I have 45-60 seconds of air.“
What does surfing have to do with trading? If you panic and operate from a place of fear, you could lose all of your capital. However, if you take a moment and think about your strategies, you can have much better results.
2. Look at Your Trading Positions Objectively
Think about your portfolio as if you are looking at the portfolio of your best friend. How would you advise him/her?
3. Limit Your Input
There are a lot of conflicting points of view. If we want to listen to all of them, it becomes very confusing, and the confused mind does not make a decision.
Instead of listening to everybody, pick the top 3 people that you respect and listen to them. This way, you can remain focused and have much better trading results.
4. Be In Tune With the Markets
Trade the markets as they are and not as you want them to be.
If we are not in tune with the markets and don’t listen to them, we are going to be in a losing game.
After all, hope is a lousy hedge.
5. Be In a Supportive Environment
It is important to listen to the people that we respect and are successful.
There are traders whose spouse and/or friends have little or no risk tolerance. As a result, these traders allow the fear of their spouse and/or friends to become the boundaries of their success.
Who are you choosing to surround yourself with?