Wednesday, June 7, 2006
Embrace Your Flaws
Hi Forex Nation!!
I have returned! Sometimes you need a vacation from your vacation, if you know what I mean! While I was enjoying beautiful Southern Califoria I had time to reflect on my trading. I had some good points and some ... well, let's just say some not so good points. Instead of getting down about what I felt were flaws in my trading game I thought I would list them out and embrace them.
I had no problem listing my top five areas of trading psychology that required attention. I did this in order to identify strategies to counter these feelings and allow me better overall trade execution. That's what it's all about after all.
Before I continue, remember that I am a flawed individual, so be kind! I also recognize that these flaws serve me well in life and in trading I simply need to understand that they are present and devise methods for incorporating them into my trading plan so they have a positive effect.
Here they are!!
1. Afraid of Failure
This is presetn in almost every traders life.
Counter - read trading plan and mission statement before every trading session.
2. Lack of Discipline
I still find myself occasionally chasing trades.
Counter - I maintain a detailed trading journal that reminds me of how effective I am when deciplined.
3. Impulsive
My arch enemy!
Counter - I find I am more impulsive when tired. If I do not have enough rest I do not trade.
4. Competetive
The old athlete in me. In the past I have joined the herd.
Counter - I trade live in a focus environment with CNBC off and ensure that I make all decisions based on my trading plan and what the market is willing to allow me to take.
5. Greed
It cannot be a true list without fear AND greed.
Counter - Ironically, I employ discipline to maintain a rigid pip goal in my compounding account. Another trait that usually raises it's ugly head when I did not get enough rest.
Kowing what these negative trading traits are and when they are triggered will allow you too to manage your mind-set and turn these into positive currency trades!
Happy Trading!!
I have returned! Sometimes you need a vacation from your vacation, if you know what I mean! While I was enjoying beautiful Southern Califoria I had time to reflect on my trading. I had some good points and some ... well, let's just say some not so good points. Instead of getting down about what I felt were flaws in my trading game I thought I would list them out and embrace them.
I had no problem listing my top five areas of trading psychology that required attention. I did this in order to identify strategies to counter these feelings and allow me better overall trade execution. That's what it's all about after all.
Before I continue, remember that I am a flawed individual, so be kind! I also recognize that these flaws serve me well in life and in trading I simply need to understand that they are present and devise methods for incorporating them into my trading plan so they have a positive effect.
Here they are!!
1. Afraid of Failure
This is presetn in almost every traders life.
Counter - read trading plan and mission statement before every trading session.
2. Lack of Discipline
I still find myself occasionally chasing trades.
Counter - I maintain a detailed trading journal that reminds me of how effective I am when deciplined.
3. Impulsive
My arch enemy!
Counter - I find I am more impulsive when tired. If I do not have enough rest I do not trade.
4. Competetive
The old athlete in me. In the past I have joined the herd.
Counter - I trade live in a focus environment with CNBC off and ensure that I make all decisions based on my trading plan and what the market is willing to allow me to take.
5. Greed
It cannot be a true list without fear AND greed.
Counter - Ironically, I employ discipline to maintain a rigid pip goal in my compounding account. Another trait that usually raises it's ugly head when I did not get enough rest.
Kowing what these negative trading traits are and when they are triggered will allow you too to manage your mind-set and turn these into positive currency trades!
Happy Trading!!
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