There is the right way to motivate your trading and there is the wrong way.
Very wrong way.
You will be told what you should do by new and inexperienced traders which could have a major negative effect on your trading.
My job is to help spot the good from the bad so you can be steered in the correct direction to trading well.
In this article, I’m going to reveal some stupid advice that you may hear to help you avoid from making the wrong choices…
Let’s go.
Stupid #1: Go big or go home
You may here this statement from your friends or even from the voice inside your head.
Whether you’re in a losing streak or you took one whopper of a loss.
It’s very easy to want to fight back and claw your losses.
How you ask?
By taking the reverse position, increasing your size and hoping for the best.
This is where your ego takes over and you forget your good money management rules that you have been programmed to follow.
Instead, you get into an undefined and impromptu trade. You don’t calculate your take profit and you certainly don’t think of even putting in a stop loss.
This is a dangerous way of thinking. Remember, trading is a LONG term journey to consistent profits. You want to follow a strategy that you know works.
So, don’t listen to stupid advice of GO BIG OR GO HOME.
In the end you will end up going home and blowing your account.
Stupid #2: The next trade will be better
No.
We never know whether a trade will be a winner or a loser. Hence, we place our stop loss in every trade we take.
We can’t predict how the trade will play out because of numerous factors that drive the market. Price, demand and supply, fundamental analysis, algorithmic changes and new position sizes coming in.
You know when a trade is the best? At the entry.
If you followed your rules exactly and you follow your strategy, you’ve done the BEST you can do.
A trade never gets better than that.
#Stupid #3: Follow your heart
Does this trade feel good? Do you have a good feeling about this trade? Do you believe the universe will reward you with this trade you take?
Forget it. Cut out the emotions, feelings and instincts!
You need to stop with the expectations of trades. Either it will hit your take profit or stop loss, period.
No market knows you, cares about you and there is no financial angel who is looking down on you telling you the future of a market.
If that was the case, we’d have millions of successful traders without strategies.
The market is a cold, calculated and probabilistic entity – think like the market and you’ll have some chance of winning.
#Stupid #4: Everything happens for a reason
Another esoterical approach to why you lost money.
Because of karma, because of your friends wishing bad on you, because of some curse.
Come on… You are in the financial market den of demand, supply and probabilities.
We are bound to win some, lose some, rinse and repeat.
Only reason you should have is what your proven strategy tells you, when and what prices.
#Stupid #5: Work harder and you’ll win more
Financial markets has no correlation to working hard and profiting more.
Sometimes, the more you trade and are in the market – the higher the chances you’ll blow your account sooner.
Rather think and work smart, choose trades carefully and grow your account on a slow and consistent basis…
15 minutes a day is all you need for analyses and trading. Unless you’re an intraday trader, but that is different cattle of fish to deal with.
If you enjoyed the article or found it a tad useful, let me know by emailing info@timonandmati.com…
Trade well, live free.
Timon Rossolimos
Founder, MATI Trader
Not sure the best way to get started with MATI Trader?
Follow these steps to start your successful trading journey.
