Read on Twitter
A good Trader feels good after a winning trade; but a great trader feels nothing after a winning trade.
Emotion kicks in not because of your trading making profit or loss. Emotions comes only when you trade with the money that you cannot afford to lose. 1/9
Emotion kicks in not because of your trading making profit or loss. Emotions comes only when you trade with the money that you cannot afford to lose. 1/9
I remember during my early years in trading in year 2008, I use to buy call options and hold it over night.
Once our markets closes, I keep checking Europe markets, to know whether its moving up or not, then I check Dow Jones in the night once in a while
Once our markets closes, I keep checking Europe markets, to know whether its moving up or not, then I check Dow Jones in the night once in a while
to see how American markets are performing, because I believed If Dow Jones can close in green, then next our markets might open gap up and my call options will make huge profits.
Then as soon as I wake up, I check how Japan markets opened, then how Shangai China performing. Last and the most important one, I check SGX Nifty, to see if Nifty is trading in green or red.
I completely lost my sleep. Its mainly not because of the fear that my analysis towards market would go wrong, its because I was trading with the money that I cannot afford to lose, so i keep checking the markets always losing my sleep. How does a professional handle emotions?
professional trader trades with conviction, which increases their confidence and they believe in trading system, so they know losses are part of this business, they accept it and conviction comes only when you backtest your trading rules and know the stats of the system.
Professional traders never watch their screen after placing the trades, there is no point in staring at your MTM screen every 5 mins, its not going to help you.
In fact staring the MTM screen will urge you to close your positions early when you are in profits and makes you reluctant to close your positions when its going against you.
They never focus on increasing their profits, instead they research more on how not to lose big, instead of searching for new trading strategy they work on risk management. How to control the risk. If you learn how not to lose big, eventually you will start making profits
