A trader may have a problem pulling the trigger to enter a trade for several
reasons. One they are not confident enough with their analysis. Two they
have not done enough demo trading to see the results of a trade. This is
part of the over 100 trades that need to be done in order to get their
win-loss ratio. Three The set up from their entry signals is not quite right
so they jump in any way and get a large dose of emotions and fear which
freezes their thinking. By staying out of a trade and watching the trade
go against what was initially decided will build confidence and give experience
to only take high probability signals. Four: This problem of pulling the
trigger is not the hesitation but the trying to get even for a good trade
missed or make up for a bad trade. So you get into the whipsaw cycle and
can be devastating for the new trader.
These examples of pulling or not pulling the trigger to get into a trade can
cause the new trader to get out of the trading business before they really
get started. But it doesn’t have to be this way. The trader has to learn
that mental and emotional parts of trading are just as important as having a
good trading system. No matter how good a trading system is there are going
to be losses.
If a trader doesn’t find out how to sustain themselves during the ups and downs
of trading they will find the trading will be a poor experience. Being able to
deal with the losing trades is what separates successful trades from those who
drop out of trading. It is not so much the traders ability to trade a system
but his ability to maintain the proper mental and emotional discipline to stay
in the game long enough to become successful.