Why Do You Keep making The Same Trading Mistakes?

Most traders fail because they can't control themselves.

 

Have you ever had someone say something negative to you and your first response was to say something negative right back? Do you believe in fighting fire with fire? This is the reason you are not a good trader. You can't control your emotions. Good traders learn to keep their composure at all times. I love to watch movies. Especially movies about rich people for some reason. The ones that have been rich for so long that money isn't even a factor in their day-to-day lives. Power is what they seek. One thing you will notice is that the characters in these movies are always thinking of different ways to outsmart each other. They don't resort to violence at first. They sit back and create obstacles for their opponent. They calculate each move until the other person falls into their trap. This is the Forex market.


You came to this game because you think you can outsmart the market. But over and over, time and time again the one that gets outsmarted is you. Why is that? Because just like I mentioned before the market knows you are emotionally weak. The market knows it's only a matter of time before you spazz out and lose your cool. First, it starts with a few wins following your trading plan. Good for you. Then one day you see the perfect opportunity. This is the big one you say. You get all geared up and enter your trade. But before you know it the rug is pulled from under your feet. You didn't see the trap. You start falling and spinning out of control. It was a trick. Your first instinct should be to just close the trade and accept the loss. But not this time. This time you decide "I'll just wait for it to come back up and then I'll close it" But it doesn't come back up. It just keeps falling and falling.


Your emotions got the best of you. You reacted exactly how you knew you shouldn't. A perfect example is when Will Smith slapped Chris Rock. He knew the second he left his chair that he was headed for disaster. Instead of turning back around, he committed to his own downfall. He let his emotions get the best of him. He was no longer playing chess. He was now a victim of his own stupidity. This is how trading works. Before you step off that bridge over and over, think bout why you started. Think about how sick of losing you are and focus on winning. You have what it takes, but you are letting your emotions control your trading. Sit back and wait for a bug to walk into your web instead of going out and chasing it. Wait for the fish to land on your hook instead of drowning and trying to catch it. You have what it takes, just trust the process and spend a little more time plotting and a little less time trading.


19 views0 comments

Recent Posts

See All