Click here for Post four of 'What Trading Really Is' Series
By seeing a trade develop you can see in your mind a win or a loss. Self-destructive behavior
can be seen in the markets. When the price is moving in front of you, you start to anticipate
what the market will do.
When traders enter the market they need to do so based on systematic methods and leave the
emotions behind. When emotions get involved then it is hard to see what the market is really
doing and to know how to react what is happening. Keep emotions out of trading. The current
trade is just one of thousands of trades in a career. Do not get attached to any one trade.
A good practice is to get mentally prepared before you start to trade each day. Do a little
visualization trading seeing the market moving up and down as it responds to the buyers and sellers. When you see yourself entering a trade notice how you feel about the trade. Make sure you are relaxed and entering on good signals with proper stops and the ability to see how you will get out of the trade.
When you see a loss, see it as a small loss. See each trade as part of a trading system.
Some trades will be big winners and many others will be small wins and even smaller losses.
This way your account just grows even with the losses.
This part of trading will take some practice to feel good about it just like live trading.
You should do it on a regular basis to feel comfortable about it. Do it every time you start
to trade. You should do it when you are returning from a break to get you up to speed quickly
and put you in the trading grove.
It doesn’t take much time and it doesn’t cost anything. Take care of you mind and your emotions
for maximum profits.