When it comes to trading, you may very well be your worst enemy at times. Right before you get into a trade, you are level-headed, calculating, and pragmatic. You analyze the various scenarios and make a no nonsense decision. Then the trade goes live and you turn into the kid in front of the ice cream truck counting his pocket change, salivating over an ice cream cone. You become nervous and anxious and all your planning goes out the window.
When you go into a trade, you should know that this is not the time to second-guess yourself. A general doesn’t re-plan a battle while in the middle of it. A general accounts for different scenarios ahead of time so that he can react according to his plan.
Guest post by Yael Warman, Content Manager at Leverate
While experience is a phenomenal teacher, you should not expect to learn while “experiencing”. You learn after the fact. While your trades are “live”, it is normal to become doubtful, but know that this is not the right time to evaluate your decisions and change them.
You should make your trading plans in advance. Define what a good trade might look like and what a bad trade might look like and plan to act according to your plans. Remember the words of successful trader Victor Sperandeo: “the key to trading success is emotional discipline. If intelligence were the key, there would be a lot more people making money trading”.
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