This year should all be about…
Taking the right trade, with the right setup and at the right time.
It’s the only way to make it successfully as a trader.
Right?
I don’t want to see you taking trades for the sake of it, because you’re bored, because you took a loss, because you’re feeling revengeful or because you want to make some money for the day.
Let’s not give in to our primitive instincts. They are the reason why most people lose…
And besides, subjective trading (on hunches and no strategies) has never worked and it never will.
So, in this short article I’m going to help you to:
Avoid being an IMPULSE TRADER
An Impulse Trader is the one who makes quick, irrational decision to take a trade (long or short) for some form of immediate satisfaction it may bring in the short run.
These are the trigger happy people who disregard any form of strategy, logic and system.
And guess what?
The market doesn’t know you, doesn’t care about you and doesn’t work in mystical ways to reward you.
That alone should be a humbling fact, that you should follow your trading strategy to benefit your demo and live trading account.
I mean, there is some innate psychological reason for taking trades without thinking.
1st the market will either go up or down and so you have a 50% chance of winning.
2nd you might just flip or swing to the other side of the trade, in the idea that you’re now going to follow the new trend.
3rd your intention is to get in, make some type of profit and then get out.
But this very seldom works in your favour. I mean, it might work now and then and you’ll feel you’ve mastered the psychology of the markets. But what if, after a couple of winning trades, and you’re wrong?
You might not have placed a stop loss, where you can lose a ton of money.
You might hurt your trading confidence and psychology which will have a long lasting detrimental scar for the next time you take a trade…
And is it worth it? To give up your trading strategy, all your work, effort and time because of your desire to win for the day.?
I think not…
I have three solutions for you to stop being an Impulse Trader.
Solution #1:
Take an hour
Before you make some irrational quick trading decision, have a break for an hour. Close your computer, go cook something or go out for a bit.
Then come back, feeling refreshed and rational.
And ask yourself if it’s worth taking an impulse trade.
If you feel it is, first move to solution #2:
Solution #2:
Remember what you have
Open your trading track record, look at the past data and historical trends of your trading portfolio testing.
See the gains and losses and how you needed each and every one, to the T, to trickle your portfolio up.
Then ask yourself if it’s worth it…
By here you should probably have stopped the impulse trading.
But if not, this solution is DEFINITELY for you…
Solution #3:
Be an impulse trader but on certain conditions
What if you have that Megalomaniac Trading Ego?
Let’s be honest, we are human and we believe that what we see is stronger sometimes than what is written and what is known.
It’s a trading megalomaniac ego which we just can’t control sometimes.
Especially for new traders who’ve only been around the markets for under three years.
If you feel you want to be some form of subjective trader (take trades on a hunch basis rather than a proven and objective track record), by all means.
But open a separate trading account.
Deposit money you can throw away at the slots and go for it.
This way, you won’t interfere with your trading strategy and with the other account.
Think about your money and think about running a business rather than pulling a slot machine.
You might think twice the next time you want to take an impulse trade…
