10 Steps to Mental Trading Success
Keeping emotions out of trading is often easier said than done, here are a few tips on how to keep a level-head while trading.
Most traders know that the key to a successful trading plan is to always have a pre-outlined strategy, but what if that strategy is not executing according to plan and you are taking losses? As Victor Sperandeo once eloquently put it, “The key to trading success is emotional discipline. If intelligence were the key, there would be a lot more people making money.”
Here are a few key pointers on how to develop and maintain your emotional discipline while trading:
1. Stops:
These tools are here to help. It can be easy to watch a trade and spontaneously move your stops but this almost always results in greater losses than you would have taken if the stop remained. Respecting your stop-orders will provide insight into where and why your trade went wrong and how to adjust your strategy going forward.
2. Stay Consistent:
You may have heard this many times before but it is essential that you stick to your preconceived strategy. If you have put in the time and effort to formulate a plan then respect and trust your research. You can always adjust as you gain more experience.
3. Start Small:
Don’t get distracted by ‘Big wins’ and forget about your strategy, it’s important to understand and follow the relevant patterns. Taking smaller positions can offer traders greater control while they are gaining experience. Once you have a good handle on things, you can increase your position size.
4. Lifestyle Matters:
It should be obvious but don’t invest your energy in watching 60 charts if you can only dedicate time to look at 5 charts. Quality over quantity – focus on a few great opportunities rather than too many mediocre ones.
5. Reduce Noise:
Trading comes with many details and a lot of data; this can overwhelm and over-stimulate even the most seasoned trader. Take regular reflective breaks and try to focus on the bigger picture as to not let it get too loud in your head.
6. Set Realistic Goals:
This is one secret tip many traders wish they knew before starting. Unattainable and unrealistic profits will not only cause stress, they can make traders impulsive and reckless. Start with small goals and work your way up.
7. Taking Losses:
Losses are a natural part of the trading ecosystem and big losses can occur. Prepare your mind for sudden and big emergency exits and don’t take any losses personally; KEEP EMOTION OUT OF IT.
8. Always Keep Learning:
Discipline and technique can be learned and there are many great resources you can invest in. Whether it is online tutorials or paperback advice books, use what’s available and never stop evolving your trading mind.
9. Trust Yourself:
Trading communities and chat groups can be a huge help but at the end of the day, you know what’s best for your pre-outlined plan. Spending too much time discussing others trades and speculations is a fast way to self-doubt and confusion. Trust yourself and the plan you have made, you can always adjust once you have learned what works and what doesn’t.
10. Big Picture:
These tips apply to life in general, not just trading. If you can consistently practice discipline and build your willpower, staying neutral while trading will feel more natural and easier.
Which Broker Offers the Best Trading Conditions?
Our choice is the world’s first eco broker – CedarFX. You can invest in over 150+ Forex pairs, Commodities, Cryptocurrencies, Indices, Stocks and Metals 24 hours a day, 5 days a week with CedarFX. They also offer round-the-clock Cryptocurrency trading so you may invest and manage your trades 24 hours a day, 7 days a week. Combined with the ease of device compatibility, you can conveniently trade from anywhere with an internet connection.
Why We Choose CedarFX – The World’s First Eco Broker:
CedarFX is a robust and reliable broker with a conscience and a wide variety of international assets to invest in, with leverage of up to 1:500. Currently they offer two excellent account options; An Eco Account and a 0% Commission Account
.
0% Commission:
The first type of account is the Zero Commission Account. Traders are able to register and deposit capital without any commission charged before, during, or after trading. This means your full deposited funds are available to be traded in
their entirety with no hidden fees associated anywhere. They offer same-day Bitcoin withdrawals for this account as well.
Eco Account:
The Eco Account from CedarFX is a commission-based account with an environmentally friendly feature, aimed at combatting global warming and reducing the carbon footprint of humans. The commission is charged on a pro- rata basis according to the physical trades you place. This is at a rate of $1.00 per lot traded.
For every $1 commission paid by clients, the amount is matched and used to plant trees. These funds are sent to the Eden Reforestation Project, who are responsible for planting millions of trees around the world in an attempt to neutralize humans’ carbon footprint.
CedarFX Support:
This broker’s customer support is highly impressive and efficient. Contact them via Live chat, email or call-back request 24 hours a day, 7 days a week. Their specialty trading and finance departments can handle even the most technical queries and provide detailed feedback and assistance.
