If you can't keep your emotions in check when trading, you will lose money. Lots of it. Pipsychology was created to help minimze this from happening to you. The most significant action that you can do to improve trading profits is to work on yourself. Really knowing yourself and how you think can give you an edge that others in the market don't have. My goal is to share practical advice to improving your mental side of trading without boring you to death. Hopefully you can develop the mental edge you need to become the best trader you can be.
Be Flexible
The markets constantly change.
What drives price action today, this week, or this year, will be different next year, next week, and even tomorrow.
As a trader you must be just as flexible and adaptive. You must adapt to changing trading environments, either ranging markets or trending markets.
You must be able to quickly change your bias on price direction as new information (i.e. economic report, political events) arises.
A short-term memory and not being stubborn leads to flexibility in your trading.
Short term memory means that you start every trade fresh without any preconceived notions of what will lead to success or failure. Start from scratch. Not being stubborn means you are open to change and changing your opinions as necessary.
The flexibility to adapt not only leads to survival in nature, but in the markets as well. A single individual animal is not stronger than the forces of nature. A single trader is not stronger than all the aggregate forces in the market.
Don't relive yesterday's trades during today's trading session. The decisions or opinions you had yesterday that lead to success yesterday can lead to failure today.
Don't ever think you can stick to your outdated opinions and views, when the market tells you are obviously wrong, you will lose everytime.
