How To Avoid Making Same mistakes In Trading

How To Avoid Making Same Mistakes In Trading

Embrace losses

Losses and winnings are a siamese twin in trading. You can't have one without the other. Your success in trading is dependent on how much you accept the inevitables- losses. Each trade will end up either a win or a loss.
What are the odds the trade you are about to take is a win? Much depends on how much you stack in your favour.  You should read the article 5 Things To Do Before Taking Your Next Trade: https://t.co/Mk13Z5xLI3

You have to tilt the odds in your favour.
And this is where thinking in probabilities comes in. Your odds of getting a win should be more than the loses. Or the weighted wins must be more than the weighted loses. Accepting and embracing the lose even before taking the trade is sure way of showing respect for your capital.  And your capital in turn will work for you in the longer term.

Be positive.

Focus on the wins even when the losses are there. Move quickly from a lose. Ensure to plan for a bigger weighted win than losses and Focus on that. Look for opportunities to increase the edge of your trade entries. You don't have to rush into a trade. The best opportunity will always give you the best of odds. In a matter of hours or days the opportunities will presents itself. Do not take an entry until the opportune time or monent arrives. Respect your setup.

Set a realistic goal.

The market exposes you to a multi-billion-dollar business waiting to be grabbed. Unfortunately the more you stayed to grab, the more you exposed your capital to be grabbed. Hence, it is good you set a realistic goal. And when you achieve your goal, bow out for the day. This becomes easy, when you know what your needs are, and getting your needs from the market is always not a big deal. The market always offers every one that enters it a fear share, but stay too long and you become the offering. Bow out when the market offers you a compensation that commensurate your trading plan. Tomorrow will present to you another opportunity if you are patient enough. Keep doing this each day, and trading success will beckons.

Be modest and be kind to yourself.

Modesty is knowing and accepting your limits and acting within the boundaries of your limits. A very sure way to lose your trading capital is not trading within the borders or strenght of your capital. More than 90 percent of traders suffer the negative impact of this occurrence. Be modest enough to know that your capital can only take so much when drawdown hits. And they always hit, loses are constant parts of trading. You will be kind to yourself and your trading capital if each time you enter a trade, you did so with full awareness of your limits.

Avoid self criticism and negative self talk.

When the loses happen, and they always do, learn from each of your negative experiences rather self pity or self criticism. Being kind and modest will help you a great deal in this sphere. Self pity helps no one, it only put you in a condition of perpetual fear of the market rather than making you embrace the many potentials that the market offers.

Get a reliable time tested mentor.

Sometimes, experience is not the best teacher. Rather than personally experiencing the negative impact of an event to learn from it, you can actually avoid it but learn how to maneuver it from the experiences of a time tested mentor. You don't need to get your capital burnt several times, to know how much emotional pain the experience can cause. Get yourself a reliable mentor.

Focus on solutions and be proactive about solving the problems.

You will incur loses as a trader, nothing is as sure as that realisation. Hence it is important that you focus on stacking the odd to your favour by increasing your trading edge. Be proactive about it, do not leave anything to chances. You should read the article: Five Things To Do Before Taking Your Next Trade: https://t.co/Mk13Z5xLI3 

Develop a generational wealth attitude

Avoid get rich quick mentality. Little drops of water makes a big pool if given time. A generational wealth is built over time and not in one day or one year. Avoid the 'get it now or never' mentality. There is always a tomorrow.