Look Inside Yourself

One trader wrote in that he was in a slump and wondered if he should switch markets or find another indicator.

Do you ever find that you also want to blame something outside yourself?

One of my favorites used to be blaming ‘the system’ – the system is rigged against me: the brokers are the only ones getting rich, robbing me on these bid/asked spreads, hunting all my stops, etc.

When you blame an external situation, you are giving up control, and instead letting yourself be controlled by outside events. This converts you from a proactive trader into a reactive trader. Or a winner into a whiner.

If you are reacting after the fact in the markets, you are then letting your emotions start to control you, instead of planning how you will react to any set of circumstances.

You know how letting emotions control you turns out in the markets. You go broke.

You must believe that you control your own destiny. If you are not getting the results you expect of yourself, look inside yourself.

Start analyzing your actions and behavior. Are you hanging on to losses too long? Are you cutting profits too soon? Are you having trouble pulling the trigger only to watch in frustration as your trade wins without you?

These and other frustrations should clue you in that you need to fix some element of your trading plan. Evaluate your present situation, and if it needs to change, take decisive action and change it.

2 comments

  1. TopofthePips

    Beautifully put!

    I have experienced much of what you have used as examples and more still. The market is a living entity and will never be fully predictable. Your experience of it however and how you react to it (like anything in life) is down to you and you only!

    It’s not always easy to admit to that amidst the frustration of multiple losses, but once you get beyond this, change your perspective, learn from experienced traders who stick to their systems through wins and losses, ending up winners in the long run, you begin to treat trading with the respect, diligence and patience it requires and once again trading becomes the enjoyable experience you had hoped it would be when you first started trading.

    Reply
  2. TopofthePips

    Beautifully put!

    I have experienced much of what you have used as examples and more still. The market is a living entity and will never be fully predictable. Your experience of it however and how you react to it (like anything in life) is down to you and you only!

    It’s not always easy to admit to that amidst the frustration of multiple losses, but once you get beyond this, change your perspective, learn from experienced traders who stick to their systems through wins and losses, ending up winners in the long run, you begin to treat trading with the respect, diligence and patience it requires and once again trading becomes the enjoyable experience you had hoped it would be when you first started trading.

    Reply

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>