In my concluding post, nosotros took a await at trading journals in addition to how those tin endure used to amend performance. The study carte du jour format for journaling is peculiarly helpful for goal-setting, tracking progress, in addition to recognizing patterns inward our ain trading. In this post, I'll review simply about of the patterns that most often seem across magazine entries--and that are of import to travel on.
1) Patterns of Negative Self-Talk: These occur during frustrated moments inward markets. We missy a trade, a merchandise blows through our stop, nosotros hand dorsum our coin on the day: all of these exercise frustration. This frustration in addition to hence triggers an anger reply that nosotros instantly toward ourselves. For example, nosotros mightiness discovery ourself saying, "Here it goes again! Other people are killing these markets, in addition to I can't larn it going." At that point, your frustration is no longer nearly the specific merchandise or marketplace event, but is directed to *you equally a person*. Trading should endure nearly trading; non nearly you. After all, yous wouldn't endure boasting in addition to crowing inward the magazine if the merchandise went your way. If yous wouldn't similar to postulate heed your message coming from someone else (imagine your buddy at the workstation side yesteryear side to yours saying, "Whoa, dude, other people are killing these markets, in addition to yous can't larn it going!") in addition to if yous wouldn't endure speaking that agency to your trading buddy, in addition to hence yous shouldn't endure speaking that agency to yourself. Interrupting that negative self-talk in addition to turning your frustration toward a constructive kicking inward the pants ("C'mon, Brett, yous know yous shouldn't endure trading hence large inward the chopfest. Let's stick amongst the rules!") tin endure rattling helpful inward preventing frustration from snowballing.
2) Patterns of Impulsivity - Out of excitement, boredom, wish to find profits, or overconfidence, yous discovery yourself trading equally good often or amongst equally good much size. This, inward turn, leads to uneven functioning in addition to outsized trading losses, which in addition to hence create discouragement. Many traders proceed their goals--and their trading rules--taped to their screens; this helps proceed them inward the forebrain equally a cheque on impulsivity. One trader I worked amongst truly had a brief checklist that he had to cheque off earlier placing whatever trade. This prevented him from acting hastily. If yous tin figure out the triggers that brand yous impulsive (sometimes these are winning trades, where yous begin playing amongst "house money"), yous get got a expert postulate a chance to position on the brakes earlier yous deed on impulse.
3) Patterns of Fear - Particularly afterwards losses, but sometimes afterwards making coin in addition to beingness afraid of losing it, traders neglect to deed on expert signals or exercise non size their trades adequately. The final result is missed opportunity. Often this occurs if the trader is engaging inward "catastrophizing": making a normal potential loss into something much larger. Worry, physical tension, in addition to feelings of nervousness are corking clues to rails inward a journal. Once yous recognize your fright patterns, yous tin get got simply about deep breaths, calm yourself, in addition to focus on assessing chance (and focus on those trading rules). One agency of breaking overwhelming fright afterwards large losses is simply to position on simply about pocket-size trades when your signals are expert in addition to larn your beat in addition to confidence back. Then yous ramp dorsum upwards to normal size inward a gradual, but steady manner. Playing defence forcefulness is non giving into fear: having rules nearly jeopardy command in addition to hanging onto a day's profits tin assist yous distinguish the two.
Once yous notice your patterns, it's easier to build specific goals for the side yesteryear side day's in addition to week's trade. The overarching destination is changing your patterns: controlling how yous intend in addition to experience rather than having them command you. It's hard to imagine changing your patterns if you're non aware of them inward the commencement place!
RELEVANT POSTS:
Using Emotion to Change Emotion
Some 2007 Posts on Trading in addition to Emotions
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