My first postal service inwards this series explained why frustration is possibly the most destructive forcefulness affecting active traders. The instant postal service outlined cognitive strategies for preventing as well as overcoming trading frustration. This terminal postal service volition explicate a solution-focused approach for dealing alongside the frustrations that tin generate overtrading, missed opportunities, as well as impulsive decision-making.
Whereas cognitive techniques for dealing alongside trading problems focus on changing negative patterns of thinking nigh ourselves as well as markets, solution-focused approaches stimulate from the premise that--at times--we are already enacting the positive patterns ("solutions") that nosotros desire. Instead of focusing on what we're doing incorrect as well as trying to forestall ourselves from doing it (which solely keeps us problem-focused), nosotros instead arts and crafts solution patterns out of our best trading.
There was a menstruum inwards which I institute myself trading every bit good much as well as losing coin needlessly. I recognized that I was inwards a frustrated state when I was putting the trades on. In the dorsum of my mind, I sensed that they were pitiful trades from their inception.
I also recognized that in that location were times inwards which I traded inwards a rattling harmonious state of mind. I had clarity nigh what I was doing as well as it felt every bit though the marketplace position was coming to me. I wasn't trying to brand things happen.
From the solution-focused advantage point, I began to dissect those harmonious periods. The visit was that, if I could figure out what I was doing correct at those times, I could plough those "best practices" into routines--and ultimately into habit patterns.
One of the clearest conclusions that emerged from this analysis was that, during my harmonious trading, I had an explicit "top-down" perspective on the markets. I focused clearly on what was happening at larger fourth dimension frames as well as aligned myself alongside the market's broader construction (trending/non-trending) as well as themes. During my frustrated trading, I worked from "bottoms-up", looking for short-term setups regardless of the market's broader picture.
Little wonder that I would boot the bucket run over on those bottoms-up trades, catching the side past times side ticks, but missing the side past times side points. My frustration stemmed, non but from my losses, but also from my feelings nigh what I was doing. At to a greater extent than or less level, I was frustrated alongside myself for non trading the means I know how to trade. In short-circuiting my decision-making process, I felt that I was losing a business office of myself, my integrity.
From the solution-focused frame, I institute in this postal service as well as its links, every bit good every bit Chapter Four of The Daily Trading Coach.
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