EGO NO GO Traders’ Downfall part 2: Five Actions to Avoid
This is part two of the EGO NO GO Series.
So if you missed the first one click here to catch up.
We’ve all been there.
We want to revenge trade.
We want to make up for any losses.
We want to think we know better than the markets.
We feel special when we sit in front of the screen
But what happens when our inner daredevil elbows out the voice of reason?
You might dominate the markets that day – 100%.
But be warned. You WILL lose in the medium to long run.
So let’s stop the ego before it stops you.
EGO NO GO #7: CHASING TRENDS
Picture this: the market’s hot and the news events are favourable.
Stocks are soaring.
You missed the train.
You missed your entry according to your system.
So, you jump in to try chase the trend.
And then right at the top, the market turns and down it goes.
That’s for trying to be a trend chaser.
You want to get into the trend about 20% once it’s established – NOT 80%.
The next market trend is imminent – be patient.
EGO NO GO #8: OVERLEVERAGING: A Slippery Slope
Alright, so leverage can be the trading equivalent of a double-edged sword.
On one edge, you have the potential for amplified gains. On the other?
The specter of amplified losses.
Overleveraging is that moment when you think, “Go big or go home,” but end up going home with empty pockets.
Trading should never be about risking a lot in any trade no matter what type of trader you are.
More leverage means more risk.
More leverage means more emotional impact.
More leverage means more chance of bigger losses.
Rather trade less leverage with less risk.
EGO NO GO #9: DISREGARD STOP LOSSES: Dancing on the Edge
The biggest ego traders do not trade with a stop loss.
They think they know better.
They think their portfolio is big enough to handle any losses.
They think the market will turn for the better.
It never does.
It’s all wishful thinking and trying to beat the trading gods.
You need to always have a trading stop loss in place – no matter how good a trade looks.
You need to see trading as probabilities and never certainties.
EGO NO GO #10: DISMISS DISCIPLINE: The Wild Card Play
When you forgo a trading plan, you might as well be throwing darts blindfolded.
Consistency is your ally in the trading battlefield.
Wake up and prepare your trading station.
Sit in front of the screen and focus on taking the trades.
Discipline is king but consistency is queen.
When you start trading it’s a business.
Go on holiday but have your phone or computer close by you.
Work your job, but prepare to take on the markets.
Take this more seriously, and you’ll see great rewards.
EGO NO GO #11: LETTING EMOTIONS RUN
Fear and greed are two things.
But EGO is what will destroy you financially and emotionally as a trader.
You need to put the emotions on the side.
Be the robotic, mechanical computer inside that can handle any trades to come.
You got this.
So let’s sum up the 11 EGO NO GOs to stop you from being an egotistical trader.
EGO NO GO #1: Overtrade: More is Not Always More
EGO NO GO #2: Revenge Trade: The Emotional Spiral
EGO NO GO #3: Ignore Risk Management: The Silent Killer
EGO NO GO #4: Dismiss Market Analysis: Gut Feelings vs. Hard Data
EGO NO GO #5: Blame Everything: The Pointless Game
EGO NO GO #6: Fail to Adapt: Evolve or Be Left Behind
EGO NO GO #7: CHASING TRENDS
EGO NO GO #8: OVERLEVERAGING: A Slippery Slope
EGO NO GO #9: DISREGARD STOP LOSSES: Dancing on the Edge
EGO NO GO #10: DISMISS DISCIPLINE: The Wild Card Play
EGO NO GO #11: LETTING EMOTIONS RUN
You know what NOT to do – So go out there and conquer the markets with a humble mind.
Trade well, live free.
Timon Rossolimos
Founder, MATI Trader
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Trade well, live free.
Timon Rossolimos
Founder, MATI Trader
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