One of the things that sets the best traders apart is their ability to constantly improve and innovate. By Constantly improving I mean learning from mistakes and not repeating the mistakes again. So how can you break your bad habits and become a better trader?
Understand How your mind works – Most Important part in trading is Understanding How your mind works. How you react when position goes against you. How your mind react when position is nearing SL or target. Do you have internal fight in your mind to exit or not to exit position when it hits target and SL. These kind of situation can only be sorted out when you know what wrong decision you have made in your last trade. So understand how your mind works.
Recognize the benefits of change – if you can understand how you will benefit from good habits you stand to embrace the changes and become a better trader as a result.You Lost money because you were unable to hold the trade due to lack of patience; making trades without researching; If for example you can approach trades with a greater level of focus and calmness, imagine how your trades would benefit from such changes.
Practice the change you did day in day out – One such example is if you’re always averaging a losing trade – it could be a sign that you’re emotionally attached to the trade, a self destructive habit causing anxiety. Write a plan that you can methodically follow so that every time you enter a trade you have a stop loss, or that reminds you not to catch a ‘falling knife’. you need to practice something until it becomes engrained within you. Put yourself in the mindset that if a situation arises that would normally trigger your bad habit(s), how are you going to react?Implement your new positive habits by systematically going through the appropriate response, and continue to do so until it becomes your habit.