Trading Mindset - Don't Try To Play Catch Up

Share:    

One of the worst things you can do as a trader is to try and get even on a trading day when you are down

. I'm not saying you can't do it, you can (get back to even or back to profit for the day), but the mind set you have while attempting a comeback for the day is what will make or break you.

Let's say that you get into an early trade where you lose $200. On your next trade you may start to think "I need to get that $200 back". If that is your thought process, you may likely end up further in the hole? Why is that?

The problem is that if you try to break even you will have a tendency to hold your trades too long. When trading we always have to take what the market is offering. Most of the time that is not much, but we take it anyway. We keep taking small profitable trades and then we get into a nice run or two. That makes for a great trading day!

The person who is attempting to catch up, or break even, has put himself in an undesirable mindset where they may not take profit as the market makes it available to them. I have been guilty of this myself. What happens is that you see a quick easy small profit, but you hold onto the trade waiting for the break even point. You don't move your stop up to protect profit like you normally do. You wait.

That waiting and catch-up mentality has just cost you! Sure, it may work at times, but in the long run it will bite you. After working with hundreds of traders I can tell you for sure that it will. You have to go into the next trade even in your mind. In fact, your daily balance should not even come to mind when you enter or exit your trade. If it does, you may want to shut down for the day and come back tomorrow (or later) with a clear head.

What is done is done. If the trade is over, it has NOTHING to do with your next trade. Just look for your edge and make every trade like you would no matter what your balance shows. Easier said than done I know, but you MUST get to the point where that is how you do it.

by: Doug West

POST COMMENT

How To Find A Local Dog Sitter Online Dog Senses The World Differently From You Californication Episodes Online-Watch Californication Episodes Choosing The Right Pet Hammock The Best Crate For Transporting Your Dog Zinnov Launches Web-based 'global Location And Talent Pool' Product Reviewed Information On Best Project Management Certification Programs Online A Way To Begin Training A Dog Plastic Dog Gates Simple Facts You Need To Understand About Dog Ticks Pet Insurance - Financial Protection If Your Dog Suffers From Cataracts by:Josie Anderson Getting The Right Dog Allergies Treatment The Spencer Institute's Online Stress Management Coach Certification Teaches Stress Reduction Busine