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.
Don't Overtrade
Don't overtrade.
Focus on the quality of each trade, not on the quantity.
One of the hardest lessons for a trader to learn is not to overtrade.
You will lose BIG if you continue to overtrade.
Every time you enter the market, you expose your capital to the market. The more you expose your money to the market, the better chances your money will part with you.
Also, the more you trade, the more execution costs you pay, mainly the spread.
The most common misconception among new traders is that they have to constantly be in the market.
Wrong.
By being in the market all the time the trader does not give him or herself a chance to pause and will eventually lose because of the unfavorable market conditions.
If you don't see any trades, stay out. Don't force trades just because you feel you need to be in the market.
Trading out of boredom is the worst reason to be in the market. You have to be PATIENT!
Patience is one of the keys to becoming successful trader.
Patience will keep you from overtrading.
Patience will give you enough time to observe and look for a potential setup for the next trade.
Remember it's not the quantity of trades you take, but the quality of your trades you take.
