Updated: Aug 5, 2020
Trading psychology is the battle we have to face daily, transitioning from thinking of the market as a adversary or ally, to thinking of the market as information. That is all the market is (whatever market you trade.) information.
The market is not out to get you, and no guru or indicator can protect you.
Hesitation,Anxiety and Doubt
What can cause hesitation?
The unknown , the unwillingness to try, the fear of failure.
What are the results of hesitation in trading?
Trading indecision, a inability to act on what the market is offering long or short. A constant inability to grow as a trader.
What are some ways to deal with hesitation?
Think in probabilities
Do not over commit emotional or actual capital to any one trade
Accept that you will be wrong it is inevitable
Why its so important that you address hesitation?
Its impossible to trade with hesitation present.
Doubt is the death of any good trading system.
You can only unlock your true trading potential if you do not hesitate.
How to attack these trading pitfalls daily? And win!
HAVE A PLAN!
It is the most overlooked part of all traders journey they take tips or advice from others because they think it is to hard or they do not actually want to take accountability for there trading actions.
Having a plan does not mean it needs to be complex! The biggest myth of trading is that it needs to be difficult! It actually should be effortless. A plan is just that allow the markets to come to you in a up or down market. I Have templates of my trading plan in the downloadable content page. for a reference or a guide how to create your own!
Once you have a plan, not risking too much actual capital or emotional capital on any individual trade is paramount to long-term success. Something I live by is the 22,500..... This is the number of trades a full-time trader will place over the course of a 30 year career with 3 trades placed a day. Keep that in mind next time you hesitate to take a trade or are fearful or anxious, it is literally one of thousands. So breathe,prepare,trade,review and REPEAT!