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Sharp ways to improve your trading mentality

trading mentality
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Hey! Are you struck in a trading? ‘rut’ and aren’t quite sure how to pull yourself out, today we will teach you a lesson which will meant for you.We will help you to know the top 10 sharp ways to improve your trading mentality. If you are a beginning trader, you are bound to slip into a bad patch where is a chance for you that you can start developing some bad habits and you can struck in an losing streak.

Now I want to help you see the trading ‘light’ see the trading ‘light’ and in today’s lesson I want to share,10 pieces of insight that I have learned from my long carrier over 20 years and i am quite sure that will definitely help you to improve your trading mentality.

We describe the whole process in 10 efficient tips.Let us start counting from 10.

10. Suppose you’re lost and loosing often, STOP trading

trading mentality

May be the hardest ‘pill to swallow’ as a beginning trader is just owing up to your mistakes and ripping the Band-Aid off quickly, so to speak. When you are losing bad streak and you feel out of control, even angry, I think it is a high time to stop trading for a while. This is certainly true if you are dealing with real money and losing money in a regular basis. Keep a sentence in your mind that plug the whole before the entire ‘ship’ sinks.

I think this is the efficient way of trading because while you stop trading with real money you should eliminate all emotion-fueled trading mistakes and certainly you can understand the major mistakes. When you are in a losing streak, you may be in out-of-control then it is quite tough to fix your trading problems. Dear friend you need to get a clear objective and clear-head in order to see through the trading.Obviously you have to improve your trading mentality for the best outcome of your business.

9.You should understand trading is about probabilities,not certainties

Dear businessman, if you want to quickly improve your trading, you have to make a change in how you think about trading and what it actually means to be a successful trader. I have found, so many people come into trading and are totally confused as to what they are actually doing. A trader tries to take advantage of probabilities, not certainties. You may know that, there is nothing ‘certain’ except that the market will move. It is quite impossible to know which direction it will move for sure before it happens.

 Many traders seem to trade as if they know for certain what the market will do in the next term; a grave mistake. As consideration of traders, we are looking to trade a strategy that gives us a certain edge in the market. An edge gives a higher probability of one thing happening over another. My trading hero’s, Mark Douglas, sometimes talks about trading edges and this topic of trading in probabilities. The actual point you need to understand is that, there is a random distribution of winners and losers for any specific given trading strategy or edge over a large number of trades.

Now, what this actually means is that you cannot know for sure WHICH trade in any series of trades will be a winner and which trade will be a loser. At the same time, if you are trading a high-probability method like my price action strategies, over a large enough sample size or couple of series of trades, there is a certain chance that you should come out profitable. It’s critical to keep this fact in your mind after each trade you take, as the cause you cannot let one trade’s results influence your feelings or behavior in the market. You must have to stick to your plan and ensure trading with discipline and consistency.

8.You should learn to read and trade price action

Now, this topics should sort of go without saying. But, if you don’t actually know how to read a price chart and then you’re trying to trade the markets, you’re going to have a tough time, even if price action analysis isn’t your primary trading method.

Learning to read and trade with price action is going to quickly improve your trading if you currently not sure about the recent price action. If you don’t have  enough knowledge about  how to read or trade the price action on the very charts you’re trying to trade is like trying to navigate around a new city you’ve never been to without a map or GPS; it’s making the process of more difficult than it needs to be and nearly impossible.

7. You should turn off the news

Why I feel news-watching is a huge waste of time; it widely complicates the process of trading the markets. By normally turning off the news and ignoring all the ‘expert’ opinions present out there, both online and TV, about the markets, you must have a huge leg-up on the competition. You have to learn to trust your gut in the field of trading, not other peoples’ guts.

6. You should learn how to properly place stop losses

trading mentality

In a very recent article, I discussed how to stop loses like a pro trader. I discuss the significance of stop loss placement and how it can be the quick difference between a winning and losing trade, and I will gradually show you how to place stops properly.

How to properly place a stop loss can quickly improve your trading, because it can mean you to stay in so many trades that you may have gotten stopped out of. So Many inexperienced traders place stop losses way too close to the best entry price because they want to trade a bigger position size, this is a huge mistake that is born of greed. It causes them to take an unnecessary losses many times when they shouldn’t have to. If you think that, they would have placed the stop properly, based on price action and market structure, they would have stayed in so many trades they otherwise lost

5. You must have to learn about position sizing

Suppose you are sizing your trades wrong, it’s going to cause all kinds of regular problems, from procedural to emotional. Having a complete comprehensive understanding of how to properly size your trades is very crucial to proper trading. As a result, understanding position sizing properly will quickly eliminate many unnecessary and odd trading mistake you are making as a result of not having this understanding.

4.Please dial-down your risk improve your trading mentality

If you find that you are losing a lot of trades and a lot of money, it’s high time to dial-down the amount of money you are risking. This will very quickly improve your trading because it will certainly protect your account and your trading mindset from the damage dealt by uneven and unnecessary losses and losses that are larger than what you can financially or psychologically want to handle.

3.Please stop looking at intra-day charts all the time

Hey! Guys, if you have followed my blog or any length of time you know that I am a huge proponent of the daily chart time frame and higher time frame trading in general. Do you want to improve your trading? So please stop trading the intraday charts and start focusing ONLY on the regular chart time frame until you have it figured out.

2. Please stop over-trading

 Now, admittedly, this one is easier said than done for a number of reasons, but if you want to improve your trading very quickly, you need to stop over-trading. Over-trading can be defined as a trading when you trading strategy or trading edge does not exist. It’s relatively easy to over-trade, which is why it’s so hard to stop. The most effective way to stop over-trading is to create a trading mentality and follow it with the discipline of an Olympic athlete.

1.You should get a trading education

trading mentality

Lastly, I find that so many beginning traders spread themselves too thin, so to speak. I mean by that is, they do not focus enough on one trading strategy, instead they spread out their valuable time on so many strategies or systems or education sources. This causes serious confusion and cognitive dissonance in their business minds which eventually leads to over-trading / gambling in the market. So their trading mentality will down.

Final few words

I hope these tips about Top 10 Sharp ways to improve your trading mentality will certainly help you a lot. If you follow these rules and make a proper business rules in a cool head, obviously it will help you to reach the top of success.


About the author

Mahabub Alam

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