Has your confidence been shaken in your trading?
Most of us start our trading careers in the last phase of Bull run where making money seems very easy and thinking how simple this business is compared to others. Open Terminal Put Buy and Sell Orders and you are done, No complexities involved as compared to other business. No products or services to create or market. No employees, no customers, vendors or even competitors – so simple.
As a result, nearly everyone jumps right in with dream of making lot of money. With this false-confidence in hand, the account gets open, funded, and the trading begins. Soon after comes the disappointment and frustration.
It isn’t that simple, that you’ve underestimated what it takes to make money as a trader and especially consistently over the long haul. It looked so easy at before you place a trade , but after series of Losses you very quickly realized that you are missing some pieces to the puzzle.
The most essential skill set for any trader concerns trading systems which will guide you where t enter and where to exit.
Your trading system is your central most important matter. It is the foundation of your business, your daily guide to trading, the means by which you implement your strategies to make money, and your greatest source of confidence or lack thereof.
If your system is solid and you trust it , this goes a long way towards profitable trading. But there is a catch…
Not all systems are equal Some will be more ‘trade-able’ than others. If the system you are using is difficult to execute due to the way it was designed.While executing the trades it will create anxiety, doubt and other issues commonly attributed to a lack of ‘discipline’. If you don’t know how to evaluate a system’s ‘trade-ability’, then you may wind up blaming yourself when in fact the problem lies within your system itself and is the real reason you aren’t as consistent as you’d like to be.
If your expectations are significantly out of alignment with your trading system’s ability to deliver, your confidence will continually be crushed as your trading will simply not be able to meet your expectations, and disappointments will occur again and again. In Simple Terms You want to trade intraday but the system you are trying gives best results on Daily charts, this will create chaos and lead to series of losses and crushing your confidence.
Many traders are very willing to try different things to get their trading working, but do not know how to go about it in an organized manner. Thus changes get made, but it doesn’t take long and many things have been tried, but performance is still not desirable, and now they don’t know what has helped and what hasn’t. This only further saps your confidence when it happens. Thats where it always advisable to consul the trades who are doing good and learn from there trading systems.
In summary, when your trading system is solid, well-constructed, and is in alignment with your expectations, you will find yourself feeling quite confident and secure in your trading. This facilitates establishes the solid foundation on which to trade with confidence regarding both your trading system and your ability to deal with the problems associated with your system.