We have gone over some guidelines to help keep our thoughts about trading clear and on track. We have talked about:
Having a trading system and a set of rules.
Using trading capital that will not have an impact if it is lost.
Develop a win-loss ratio
Good money management
When we lose it can trigger negative emotions. You can lose money and recover but if our emotions and
self-confidence are lost then we will have a hard time trading and recovering from a loss. We can feel
bad about foolishly losing some resources and get angry at just plain losing, which will get things out
of prospective. We will then start to make some slight changes to our trading and not even realize it.
If we do not get it under control then our trading discipline can get lost and we will soon be out of
trading.
Traders need a system to keep them in control after losing on a trade. Many people that deal with real
time like traders and athletes will get a trainer or someone they can talk to. You will need another person
to talk to, to help you maintain balance and deal with things when you start to feel sorry for yourself.
Having a good attitude is just as important as money management and a good trading system. The system is
only as good as the trader and the execution of the trades. So we need to trade like a robot and suppress
our human emotions. Just follow the rules, develop a win-loss ratio so you know when to look for weaknesses
and manage the trades for maximum profit and minimum losses.