As a man and a human
being I accept that I have flaws. Those can be seen in my trading as
in other parts of life.
I have a tendency
to be impatient. Instead of waiting for a particular pattern to form
completely I sometime take it before it finishes forming. I sometime
t a good entry but I also get reversed on more time that I care to
admit. The question really is how do you correct your mistakes. Well
I happen to have the answer and I think its time I myself followed my
own advice. Knowledge is useless if you have it but don't incorporate
it in your life.
SO here is my answer.
Write down the flaw and come up with at-least one way to correct it.
In other words its time common sense became COMMON.
From now on if its
not complete am not in it PERIOD. So easy a caveman can do it.
Always have a reason to
take a trade. A stop and a Take profit. Always have a confirmation
signal and watch out for the fundamentals
and the overall direction
on the underline market. Watch out for the S&P it has a lot of
pull not only in the stock market but in the currency market as well
I tend to over-trade.
Which as you can tell from the start of my MAY traders contest is
the reason I am currently not where I think I should be. Taking a
loss is one thing. Taking a loss on 4 very correlated pairs is just
idiotic on any standards.
So my solution is to
stop taking trades on correlated pairs just because one of the pairs
has an entry signal. If the chart says enter on AUD/JPY I shouldn't
also take the NZD/JPY just because they move a bit similar. Again
simple common sense. Also I will stick to the higher time frames.
Mostly 4hr and Daily charts.
I over analyze the
chart. I see a trade on a certain pair and I have no problem taking
it. A few minutes later I take a second look at the chart and start
questioning the reasoning to the position I am in, which lead to
exiting the position or just simply reversing it. As I have come to
learn my first instinct is usually the right call.
once I enter a trade I
should have looked at every outcome and every exit point that the
price has suggested and take the trade only if the probability of a positive outcome outweighs the probability of a negative one.
A wise teacher told me to
remind myself the following on a daily basis:
the mind of man can conceive and believe, it can achieve”
am a successful trader”
am not emotionally affected by profit or loss”
believe in my trading strategy completely and whole heartedly”
am happy to take a profit and I will not be greedy”
will not over-trader, I will be patient and let trading opportunities
present themselves to me”
will not sit around and watch my trades after they are live”
practice proper risk management”
will never trade unless my reward outweighs my risk”
trade according to what the market is doing not what I think it
should be doing”
am not a gambler,I am a professional trader and I will not engage in
gambling my money in the market”
To conclude this
article I suggest that everybody look at their own flaws because you
can never progress if you are oblivious to the negatives in your
traders no matter how much you think you know there is always
something new around the corner. There are a lot of different points
of view to the same picture so keep trading, keep learning and
progression will be the by product to the knowledge you gain.
“AIM FOR THE MOON
EVEN IF YOU MISS YOU'LL LAND AMONG THE STARS”