I want to propose a question. What would you do if you you started the trading day like this:
- First trade – breakeven
- Second trade – loss
- Third trade – missed fill
Would you have the confidence to stay disciplined and not get scared out of a good trade?
What if the next trade came within a tick of your stop and made you sweat like jimbo at fat camp? Would you move your stop? Would you freak out and take profit early?
Would you keep your head on straight, leave your stop in place, and hold for your profit target?
If you’re new to trading this might seem like a no-brainer. But you don’t really know how you’ll react in a high-pressure trading situation until you’ve personally experienced it for yourself. And it’s not easy for humans to look at themselves objectively and make corrections to their beliefs and execution.
I’m not originally wired to be patient and disciplined, so I have to constantly work at it every day. And 99% of traders would probably agree with me that they need work in that department as well. If that’s you, I highly recommend reading “The Mental Game of Poker” by Jared Tendler. This guy’s taken a lot of the intangible psychological concepts that are applicable to trading and put them in practical steps.
That’s it for my rant. Here’s your videos:
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