Anytime you let emotions make your trading decisions for you, that spells TROUBLE! As traders we have to be almost like machines. We see our edge or set up, and we go for it! If it is not there, we don’t make a trade. It really is that simple. Then why do so many traders struggle with it?
In training over one thousand people how to trade the index, I’ve only had two who claimed they could not make good trades on their demo accounts (one of those told me that every trade he made on his demo went against him – a feat that seems as hard as taking profit on every trade). Then when we go live, problems creep in for most of us. Why?
Many would say that it is because now you have real money on the table, and that is truly a big part of it. But, more accurately than the money is that we tend to let our emotions kick in and take over. Even if the amount we are trading is small (I use to think it was all about how large the trades were, but now I’ve come to see it really has little to do with it), problems can creep in.
For a few traders, emotions even kick in on their demo trades. That can actually be a good thing. The goal should be to trade your live account exactly like you would your demo account. If you can do that, you are on your way to unlimited profit (as long as you can also trade profitably on your demo – which my statistics show that 998 out of 1,000 can).
What some traders do is keep a journal of everything they were thinking and feeling while making trades. This can be good. It requires discipline, which is another great quality needed by traders.
You need to develop your trading formula, and stick to it. On every trade, every day! It takes time, but you can get there. Once you do, there is no stopping you!
Doug West has worked in Financial Planning and Investment training for over 20 years. Get his No-Cost Audio Report on how you can Secure Your Retirement with Free-Online Tools: Get your Free Report Here and discover Rock Solid income strategies, including how you may be able to increase your social security check by 50%. Learn the art of simple Mini-Dow Index Trading. Article Source:http://www.articlesbase.com/day-trading-articles/trading-mindset-control-your-emotions-1641830.html