Trading is all about making money, right?
But sometimes, just sometimes, you seemingly get stuck in a trading rut. Nothing seems to be going your way, and you simply cannot see the light at the end of the tunnel. If you’re an experienced trader, this has probably already happened to you, but if you’re just starting to trade this might seem like an obstacle that you won’t be able to jump over.
It’s easy to start feeling overwhelmed, lost, or even stuck, but you should not do that. Even the most experienced traders and hedge fund managers have had the same thing happen to them. What’s important is that you do not lose faith and quickly improve your trading so that you can get back to the top. For that you need to have a strategy, so let’s take a look at some things you can do to become your old self.
No, don’t stop trading altogether. That is not something you want to do. But, experienced traders know when they should stop trading for a while. When you’re in a rut, you’re not yourself, and there’s a big chance that you’ll make a decision that’ll cost you even more. Be disciplined. Stop trading for a while and allow regret, disappointment and negative emotions to go away.
The market isn’t going to disappear if you take a break for a day or two to clear your head.
As you all know, trading is all about taking a risk. But no one said that that risk shouldn’t be calculated. Knowing how much you’ll lose on a trade (potentially, that is), is much more important than knowing how much you’ll possibly earn.
If you notice that you simply cannot take your eyes off a trade, that only means one thing – you’ve risked too much. Next time lower the risk and get some sleep. If your quality of life improves, there’s a much bigger chance that you’ll be able to make better calculated decisions.
Consider why you’re trading
Knowing why you’re trading will help you concentrate better, and in the long run, it will make you a better trader. For example, some Forex trading experts keep a picture of their loved ones next to their computer. The picture is there to remind them that they’re trading because they want to earn enough money to be able to spend more time with their family in the future. In short, put a picture of your ultimate goal on the table to help you keep your end goal in mind.
Just because you don’t have a boss that doesn’t mean you shouldn’t review yourself. It’s easy to start lying to yourself that everything is going according to plan when you grab a couple of wins. Do what the most successful traders do – review yourself at the end of the week. Put everything on a piece of paper. What worked well and why? Where did you go wrong? By doing this, you’ll discover your strengths, and over time, you’ll become a better trader.
Don’t doubt yourself
Contrary to popular belief fear is not the mind killer – doubt is. If you constantly doubt yourself, you’ll end up at the bottom rather quickly. Stick to your decisions. Not every decision you make will be perfect, but you’ll learn something from it. Sometimes you’ll learn more by losing money than by making it.
Always be focused on your goal, and review yourself at all times. The surest way to earn money is to know what you’re looking for before the market even opens. But remember that trading is just one part of your life, so enjoy it while you can. Make the most of it, but make time for your family and friends too.