How to get rid of Trading Pain

By | June 19, 2014
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  • Structure your position sizes and stop losses in trades so that if you are wrong you will not lose more than 1% of your trading capital on any one trade. Reducing your risk per trade to 2% of trading capital would be a huge improvement for many traders and if your account is big enough going down to half% of trading capital at risk would decrease stress dramatically.

 

  •     Only trade in the markets, stocks, options, and futures you are very familiar with, learning while you lose money is very stressful.
  •     Know where you will get out of a trade before you get in. Know where the maximum pain and except it before you enter the trade.
  •     Understand that the market determines whether you win or lose all you get to choose is your entry and exit. Accept that we have no control over the market moves.
  •     Develop a faith in yourself as a trader based on your past trading and study.
  •     After you have done your research have faith in your trading system as a winner then the belief that you have the ability to follow that system.
  •     Be primarily a bull in a bull market and a bear in a bear market until the end when the trend bends.
  •     Always trade with an edge on your side.
  •     Take only the trades where the winning percentage or asymmetry is in your favor.
  •     When there is no trade to take, then do nothing.

 

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