Three Enemies of Trading Success
Trading has three cronies.
They are inevitable and difficult to avoid.
But you can learn to control them, harness them.
We need to explore these foes and try get you to overcome them emotionally and financially.
Do you feel:
You’re scared to lose?
You’re afraid of failure?
You’re afraid of wasting time?
Fear is a paralyzing emotion and one of the most primal of human emotions.
You feel fear because you feel you are about to be attacked in some way.
And so, survival is the thing that kicks in.
So either you hesitate, don’t act, exit positions prematurely, or avoid potentially profitable opportunities.
We need to get rid of the fear factor. And here are some solutions:
SOLUTION #1: Education and Preparation
Nothing will teach you better than experience.
This will prepare you for the trading battle and will make you a more confident trader.
But you need to take the time to learn and understand the markets, your trading strategy, and risk management techniques.
SOLUTION #2: Emotional Control
You need to almost see into the future.
Know you’re going to risk money, take trades and develop self-awareness and discipline to keep fear in check.
Say to yourself…
“Trading is a game where I need to lose to win but I need to make sure my losses are smaller than my winners”
2: Greed – The Double-Edged Sword
Wanting to win more, is a given.
It’s also what will drive yourself to keep going.
You will gain ambition and desire once you are on that winning streak.
But do not EVER feel like you are the king of the markets.
Here’s how to manage your greed.
SOLUTION #1: Set Realistic Goals:
Understand that trading is not a 100% method to grow your riches without losses.
You need to almost set achievable goals and stick to them.
For example. Have an idea of:
How many trades a year you’ll be taking.
How many of those will be winners and losses.
What your win rate will be along.
How long you can expect a drawdown (losing period).
How to manage your drawdown period.
Also, make sure you have other income streams at the same time. See trading as a SECOND or third hobby. This will also take away the need to bank big when you have other incomes coming in.
SOLUTION #2: Take Profits, take losses and Stick to a Plan:
Once you reach your predetermined profit targets or stop losses – EXIT.
Take your profit. Take your loss and stick to your trading plan.
Greed can tempt you to keep pushing for more, often leading to losses.
Yes! You do need to learn how to ride your winners, but do it with a strategic and winning system approach.
Ego – The Greatest Enemy of All
I truly believe EGO is why most traders lose.
Ego is what makes them feel entitled to bank more than you should.
It’s also the element that keeps you in a losing trade, because you think you know better than the general markets.
And this will cause a number of dangerous actions like:
Moving stops and take profits
Staying in losing trades
Not accepting any losses and
Just giving up.
SOLUTION #1: Stay Humble
Accept that the market is unpredictable.
Accept that you are just the employee while your winning system is the boss.
Accept that EVERY successful trader takes losses.
Stay humble and open to learning from your successes and failures.
SOLUTION #2: Stay Disciplined
Stick to your trading plan and rules, regardless of ego-driven temptations to deviate.
Your plan should be your guiding light, not your ego.
Once you overcome Fear, Greed and Ego – you will enter into a state of trading nirvana.
I call this the Self-Actualization phase of trading.
Once you enter, there will be the point of no return to your enemies.
Order via our secured website:
Click here to order The Complete Charts Patterns and Candlesticks Guide by MATI Trader book
Or order via EFT payment”
Click here to order the book via EFT (all info in the invoice).
Enjoy and remember…
You won’t need to buy or order another book on chart patterns and candlesticks ever again as I will be updating it very often and will let you know.
Not sure the best way to get started with MATI Trader?
Follow these steps to start your successful trading journey.