I’m sure that for most traders out there it is difficult to deal with a couple of losing trades in a row. I am no different.
Category: Tips / Psychology / General
trading related writing
Last week I wrote that my plan was to go short EURGBP and long USDCHF depending on certain levels that must be reached and confirmation in terms of candlesticks. You can find the post from last week here.
When we first start out trading it’s all about finding that trading strategy that will give us daily / weekly / monthly positive returns, the holy grail in other words. It’s all about instant gratification and unrealistic expectations. This can cause us to take risky trades, being greedy and all the other problems that come with being a newbie trader. Slow and steady is a much better approach to trading in my experience. This post is about how trading with a long – term mindset can help traders improve their trading.
People can spend a lot of time doing “things” that don’t contribute to their dreams / goals. And by simply doing the opposite, that is doing less of those “things” and more of what contributes to their dreams / goals, the faster success can be achieved in their various endeavours. This post is about learning to say NO to those various “things”. Saying NO takes a lot of discipline, over time it can become a habit, and can spill over into other areas of your life such as trading. And trading is what we are about. Let’s start.
In this post I’m going to explain the bare essentials that are necessary in a trading strategy. As part of a trading strategy you must, at the very least know: the markets you are trading, your trading time frame, entry reasons, risk of the trade and how you manage your trades. I’ll be discussing that next with the help of some examples. Let’s start.
In one of my previous posts, I wrote about how I want to practice becoming more patient and disciplined this year and beyond; not just in my trading, but also generally in my life. In that same post I mentioned how I would start by doubling down on practicing mindfulness. It is something I’ve been doing for some time, but I never really used the benefits that come with it. This post is about mindfulness and about how I’m currently using it to become more patient and disciplined.
In 2021 I want to work harder on my patience and discipline. It has always been something that I’ve been good in some areas of my trading and not too great in others. I’ve also come to realize that patience and discipline is something worth working on all the time, not just in trading but also my life in general.
A written out trading plan is good. Having a written trading plan that you know has an edge is great. Having a written out trading plan with an edge which was backtested is even better. But will such a trading plan (written + backtested + proven edge) be enough to trade successfully?
The following is an excerpt from a chapter called Stick to your Guns from the book “Technical Analysis of Stock Trends” which was written by Robert D. Edwards and John Magee:
As traders markets will often frustrate us. This is normal and especially so in the beginning of a trader’s journey. If you stay in the game long enough and are serious about trading, you will eventually find ways on how to deal with them.