By Rob Colville on November 9, 2017 in
Thinking about trading might be the most obvious thing to do once you start, but it could be the worst thing you can do if you want to make a success of this new career. It’s the trades that you think too much about that most often go wrong. The entire idea of trading is that you should trust your charts and leave well alone once you’ve put a trade on. Anything else could risk that; anything else could cost you money.
Controlling your emotions during a trade is paramount. If you are emotionally involved, you can get too excited and overtrade. Or you can get too nervous and pull out of a trade before you get to the profit-making part. Either way, you’ve made a mistake because you are letting your emotions control the trade rather than the charts that you have meticulously plotted. If you are thinking about trading after you have put on a trade, you run the risk of making a loss. It’s not a good idea.
The market doesn’t have a brain, and one win doesn’t mean that lots more are coming. One loss doesn’t mean you’ll never get back into a winning position. This is why instead of thinking about trading you should be looking at your trading charts. Your brain might be telling you otherwise, your emotions might be pleading with you, but your chart isn’t going to lie. That’s what you need to focus on. No thinking required once you have worked out how to create your chart in the first place.
There really is no point in trying to guess what the market will do. You might believe that you are thinking cleverly, but you only have a fifty percent chance of getting it right – and those are not great odds. You stand a much better chance of finding the right level of profit if you stick to what your charts tell you, and don’t try thinking about trading because thinking about trading will point you in entirely the wrong direction.
Winning on a trade is a good thing, but it doesn’t make you an expert trader. Losing on a trade may not be ideal, but it doesn’t make you a poor trader. Sometimes these things happen. Thinking about trading is where things go wrong, and simply trading because you know the facts and know the figures is a much more secure and safe option.