Sometimes there are days when the market does exactly what you want. For example today’s EUR/USD. Both my short and long levels were hit, the market made quick and precise reaction and I took 2 nice profits. There was no uncertainity nor too much nervousness about it. Just two clean and quick profits.
Have a look:
Did something like this happened to you? How did you feel afterwards? Let me guess – you felt very good and self-confident, right? What happened next? Maybe you were just too much self-confident and maybe you became too aggressive and took some really bad trades. Don’t feel bad if something like this already happened to you. Lets try to learn a lesson from it! I suggest that next time you take some really good trades and start to feel very confident try to become as humble and carefull as possible. Don’t take trades that you normally wouldn’t take and don’t risk more % of your capital than you would normally risk. You have earned some money and your job now is not to lose it! I know that the worst decisions and trades I made were when I was careless and over-confident.
I have one more tip for you regarding this topic: save screenshots of good trades and judgements you made. When you have a losing streak or have a bad trading day – go through them and focus on what you did right when taking these trades. These screenshots will cheer you up, you will see that your system works and it will give you back some self-confidence. It could also help to steer you back to the right track. I will definitelly save this screenshot from today 🙂
Please let me know your experience and ideas about this in the comments below!
Happy trading
Dale
Perfect article about our psychology! Thanks!
– very good day can turn into bad – exactly as you said because of “wrong” selfconfidence
– I have worse experience – bad day can turn into even worse day. Imagine you have some losses, taken systematically but still losses. Imagine there was nice trade you missed. Then it happens you take not systematical setups, trades that has nothing to do with your system you believe in. Another losses. Bad day can turn into hell day 🙁 🙂
– that is why my strongest rule is to trade only systematical setups. Every day I did not take any trade is also good and successfull as I was patient enough to keep my plan. No prob for me not to trade few days…
– yes, I do screenshots everyday. I learn from my trades, from the trades I missed, I learn from my success and also from mistakes and losses. Screenshots are useful tool for me how to move forward.
Yes indeed what happened me several times as a turning a good day to bad day. Thanks Dale
Agree with your comments Dale. Confidence can be both a good thing and a bad thing. Good as in it builds one faith in ones trading system making it easier to take subsequent trades and bad as in increasing risk etc. My biggest challenge is revenge trading. One thinks one is in control of it until it jumps on you suddenly and before you know it you down a few R for the day. My success rate at revenge trading is less than 10% which in itself should be a big deterrent, but such is the joys of trading.