Psychological Preparation Of The Trader: Winners And Losers
Trade is a victory. It is something like a consecutive victory through any time. It is something like slow a growing increasing curve of the capital.
Trade is also a loss. As the trader you should reconcile to inevitability of losses. When you have psychological installation on a victory, you consider trading losses as an insignificant and natural part of trading. Some losses in trade aren’t more important at all, than loss of several points to your opponent in tennis or basketball. Even a long recession period, being a disturbing signal, it can be considered as a time situation. You can be the winner, even when you are lost.
Accepting of losses is a trade integral part. Traders, who aspire to avoid losses, finish losing. Or they drop transactions, being unable press in due time “trigger” or they lose, because they refuse to recognize a losing situation when they are in it and they not in a condition to reduce the losses, the huge damage won’t be received yet.
Losses can happen at everyone. At the best traders. It is a simple reality of our business. It is the price of this business and it should be considered in the trading budget. It very much resembles a lease payment or cost of the equipment of the trader.
Chronic losses, however, aren’t a part of the advantageous plan of game! Wonder, whether “really I am net the winner or, all the same, I am net loser since I have started to trade?” how were you affairs in last year? How they go this year?
If you were a loser, you should analyze the reason of losses. Whether really it occurs because of bad strategy? Whether really your inputs represent a problem or your exits to the market are an obstacle? Or both that and another? Maybe the problem is in your management of money ? Or a problem in the insufficient capital? It is your personal individuality or psychological installation which leads to repeating losses?
If you are losing, sit down before you continue to trade and will analyze what doesn’t work. You should cease to do that doesn’t work. Try to see that works and do it more often. Check up what can work.
Bravery is required to face the facts. Become the winner, taking responsibility for weaknesses of the trade. Find the teacher or the instructor if you need it. Remember John Vudena’s words – “Winners and losers determine themselves. But only winners are ready to recognize it”. What happens, if you can learn to think and act as the winner?
The relation of the successful trader
In the work with traders, I have noticed that there are certain relations, certain approaches, certain habits of thinking which are rate among successful traders. Usually, these relations are unknown, aren’t something that traders very much try to reach though these traders really work over self-improvement. Mainly, I have found out that successful traders naturally form certain opinion on trade.
Successful traders approach to trade with a favorable spirit. Their relation to key aspects of trade works on them. And if it doesn’t work, they change it. Their victorious psychological approach is so consistently supported that it becomes usual model of thinking and actions.
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