Have you ever just sat there, staring at the computer monitor, wishing for a trade set-up? You sit there minute after minute, watching the bars form until finally... you can't stand it any longer. You make up a trade. Yes, all of us have done it. We are, after all, traders, aren't we? Are job is to trade, isn't it? So what happens when you take a trade that does not fit your trading plan? Do you exit immediately? Do you "hope" that the "trade fairy" will be good to you and deliver you with a nice big profit or do you think that the "trading gods" are against you when you end up with a loss? All traders face the dilemma of getting bored and taking trades that they shouldn't be in.
It Is How You Deal With That Situation That Determines Profitability
One can argue the point that the journey to profitability is more about the trading system that you use than the way that you manage the trade once your are in it. Obviously, it is made up of both components, but most traders need to only look inside themselves and develop a solid belief and conviction about whom they are and how they are going to deal with the constant barrage of information that they face on a daily basis. It is not only having the trading system in place but also having the integrity and conviction to follow that system that separates the good or break-even trader into a consistently profitable one.
Which Category Do You Fit Into?
So the question is, which category do you fit into? Becoming profitable is not impossible, but it does require the trader to do some real sole searching...to find out who the person is inside you that controls your trading actions. Is it a person who is timid and careless or a person that is confident and in self-control. If you are a timid type person, work on becoming more confident and visa versa. A word about being overconfident. To a certain extent, confidence is a good thing. A trader has to have confidence if they are going to be successful. It can also work against you. There have been many occasions where overconfidence or ego has caused a trader to violate their rules because they knew that they were right. The only thing right is the market. It doesn't care if you make a profit or not. So finding the right balance between self-confidence and overconfidence is vital to trading.
In Summary
The active trader has many types of obstacles to keep their minds busy. If there is one piece of advice that traders needs to adhere to it is to keep true to their trading plan. Letting your emotions take control of your trading is a sure fire way to lose money in a business that takes no prisoners. Working consistently toward the process of training the traders mind to follow their plan no matter what is the only way to consistent profitability.
This is not a solicitation to buy or sell.
There is a risk in any investment