I want to make it clear that the explanation below does not apply to every trader. Having a trading account does not make you eligible to pull the trigger.
Prerequisites for pulling the trigger:
- A trading plan, consisting of a set of rules applied to a strategy.
- Trading with risk capital.
- Willing to do the homework and process the feedback.
If you have done the above you have given yourself a fair chance. Let me say that again, it gives you a fair chance. There are no guaranteed wins but if you continue to put yourself in a position to win, good things happen. It may seem like a lot of work to be in a position to win but chances are you already ahead of at least half of the other traders.
Traders who have done the work but can’t pull the trigger do not realize there is a risk to not executing. It is true that if you don’t use it you will lose it. Information and analysis has a shelf life. When you do the homework and dont take the trade, you lose. You do not lose money but you lose time and an opportunity. Most importantly you get use to not following your plan.
Potential mental blocks once you have completed the steps above:
- Needing a positive result- You have not redefined a positive result. If you are only looking at one trade or a week of profitable trades you are destined to fail. It does not work that way. You must identify a scenario, learn to b/e, learn to make money, notice change, and start all over again. A positive result is following your plan, getting the most out of yourself and the trading day and sometimes getting the most is losing less.
- Loss of control- What is unique about trading is that you control most aspects. You can control how much you trade, what products you trade, when you trade, and most importantly how much you lose. You can control how you feel about trading, where you focus, and how much time you put into trading. You do not control the market and when someone does it is only temporary, they are not in it for the long haul.
- Self-worth wrapped into net-worth- A losing or winning trade does not define a trader unless it is their last. If you continue to do the right things you will he ahead of most. The reason why it is important to accept risks and only trade risk capital is so that this thought never enters your mind. You should let go of the money and if you lose less or make money than it is as a positive. If I am risking $300 and I only lose $200 I have $100 more than I expected. (We are all here to make money and eventually you will run out of money if you do not make profitable trades but if you are not trading your plan you are wasting time and money.)
I am not saying to go crazy with your trades. I can’t speak about every persons situation. What I wanted to point out is that there is risk of not trading, especially for those that have done the right things. If you have done the work you should be rewarded. Not trying is still failing. There are many traders that never get to the position you are in, you must take advantage of it. That feeling of nervousness and uncertainty when you first get in a trade wont completely go away, it is payment for the right to trade. Learn to love it.
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