Don’t Chase Trades; Let Them Come to You
If trader win a trade, he try to force another winning trade and mostly lose in second trade. And if trader lose first trade, most of traders try to quickly make back what they lost on the next trade.
This irrational behavior is mostly seen in person who are doing job. All salaried guys hard-wired to work from 9-6. If we work any less, we somehow feel that we don’t deserve the money we’re making. We believe we must “work hard” to earn a living.
This belief often carries over into trading, and so we “work hard at trading.” We enter trades even when there aren’t any good trades available. We trade for trading’s sake. Then, when our poorly placed trades move against us, that gambler’s fear of loss kicks and we begin making even more foolish decisions, which compounds our losses.
So Let the good trade come to you, Do not run or rush for the trade.
You don’t have to trade every day or even every week to make a very good living as a trader. You only have to make a few good trades when the opportunities present themselves. In trading, patience is most definitely a virtue.
Hit Singles before you try to Hit 6
Most of us watch cricket, Do any player Hit 4 and 6 on each and every ball ?
But in trading most of traders want every trade to be super duper hit .But it doesn’t work this way
With that in mind, it’s much better to aim for small consistent wins. Small consistent wins are much more realistic. And compounded over time, small wins can add up to truly staggering numbers.
The best part is this: While you are focusing on small consistent wins, you’ll be sure to experience some big wins as well, a natural byproduct of your “win small” strategy.
You Don’t Have to Win Every Trade
Sachin is considered one of the greatest cricket ever, did he score century in each and every match, Was he never out on Duck or single digit. He did it many time but over a period of time he scored runs on consistent basis and that’s what counts
The last mindset shift – and possibly the most difficult of all – is to understand that you don’t have to win every trade to make good money as a trader. In fact, losses should be expected and planned for.
Ultimately, it’s how you react to losing money that dictates whether you’ll succeed over the long haul. Do you stick to your stops? Do you follow your money management rules?
Change Your Mindset, Change Your Trading Account
The truth is, you trading account reflects what’s going on in the gray matter between your ears. So the next time you start wondering why you’ve been on a losing streak, or why your trading account is shrinking, take a moment to self-reflect.