You know the drill...
Efforts to 'be more disciplined' or 'stick to your rules' don't magically manifest into a steely resolve to maintain composure when trading. Correct?
A single instance of trading on tilt can undo weeks of diligent work. Worse still - it can spiral you into massive account blowouts. Sound familiar?
So what exactly is happening? Tell you in a minute.
Imagine you're running late for a crucial meeting. While you might have the chance to catch up on time, you don't risk running every red light on your way. Similarly, when your toast doesn't 'pop up,' you don't grab a knife to free it while the toaster is still plugged in. Right?
Why is that?
Because of your immediate heightened awareness of danger.
When asked to explain how he had such a big percentage of winning trades, market wizard Mark Weinstein replied:
"Because I have a real fear of markets... which has forced me to hone my timing with great precision... I also don't lose much on my trades because I wait for the exact moment."
But that fear didn't develop out of thin air...
Frequently it requires a metaphorical 'car crash' experience to genuinely comprehend the perils inherent in trading. Sound familiar?
Grasping the risks associated with a situation provides the tools to avert self-inflicted harm.
Most people fail to fully grasp the peril lurking within trading.
Placed a trade without developing a game plan (preparation that has edge)?
Placed a trade in the absence of a playbook of strategies with proven positive expectancy?
Place a trade based on a hunch or feeling?
Placed a trade that lacks a unique idea the competition isn't aware of?
Added to losers?
Waited for 'return to breakeven'?
So what's the solution? Tell you in a second.
Imagine you're about to set out on a drive in your car.
Each time you hear that distinctive click as the seatbelt locks into place, your mind registers it as a signal you're prepared for the journey ahead. Agree?
But what happens if you don't first buckle your seatbelt? It triggers a disconcerting sensation. Correct?
Your subconscious mind, which has grown accustomed to the routine, suddenly notices the absence of the expected action. It's like a small but persistent alarm bell ringing in the back of your mind, reminding you that something essential is missing.
It's such an uncomfortable feeling - you're compelled to buckle up. Agree?
By working with a qualified mentor or trading within a professional firm, you commit to crafting a daily game plan that involves meticulous preparation with a strategic advantage.
You also commit to executing prescribed playbook trades—strategies already rigorously tested.
Through this approach you establish familiarity. The notion of straying away is too distressing and unsettling. Make sense?
Often it takes painful losses to heighten your awareness of the dangers in trading. Only then do you truly understand the main goal of what's called 'your trading process'—to protect you. Making money becomes a secondary aim.
Honouring this principle is a cornerstone of sustained trading success. The outlined 'process' is, of course, partially encapsulated in the previously mentioned bullet points.
If you're serious about trading - first to protect yourself - and second to see success - investing in the necessary resources is available to you.
Forex and derivatives trading is a highly competitive and often extremely fast-paced environment. It only rewards individuals who attain the required level of skill and expertise to compete. Past performance is not indicative of future results. There is a substantial risk of loss to unskilled and inexperienced players. The high degree of leverage can work against you as well as for you. Before deciding to trade any such leveraged products you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with trading on margin, and seek advice from an independent