Situations which shakes you emotionally ,Why & How ?
There are Four worst possible situations may happen even in a series of trades which can shake you Psychologically.
==================================================
1) After hitting your SL market straight goes in your favour --->>
You know prices are not random always, the patterns, support, resistances, trend line concepts works well but for whom. ? and how ?
Suppose you found a crucial support level and taken a buy position with stop loss just below the crucial support.
You have placed your SL at correct place no doubt about that, but do you know such levels where most of the people may place their SL or may panic and exit their positions can be predictable.
Second , If you are playing trends and created a long position , can you exactly guess the prices do not correct till your SL level.no …
Third , This may conflict with first one but believe me most of the time prices are random, market do not know you exist. The logic you inculcate for the upcoming move may not valid even if the movement happen exactly the way you predicted.
Now you will surely ask, is booking SL is a good Idea or not. ?
Answer : Yes It is a good Idea to book SL , even if market goes in your favour after taking SL.
Reason : See you cannot analyze all factors which are affecting price now. No system strategy is 100% accurate. You may see a series of trades where after booking SL prices going in your favour. You may think there is some problem with my strategy (even if you have properly back-tested it) or is there any need to change something.
Believe me this is normal ,such situation you cannot be eliminated completely. Even an experienced trader goes through it.
"In life we regret of quieting things early, we think if I had carried those things a little bit further instead of quieting , results may be drastically different"
Key Takeaway : Accept such things do not give up seeing multiple sl in a row. Because shit happens….
==================================================
2) You See Your Target Missed Just By One Tick ==>>
It is normal do not panic have you not seen in cricket team winning and losing just by 1 run .
""There are many couples where we see that one is healthier than other. When the unhealthier one become sick everybody thinks what will happen to the healthier one if he or she dies , but unhealthier survives and healthier dies first. It is just like you thinking that prices moving in your favour and your target is very close and suddenly something happens and SL triggers."
Note : Accept that such things may happen and you can't do much about it. It is Okay
==================================================
3) After You exited the price went further in your favour without taking SL ===>>
This happen with me all the time and deeply frustrate me I can take SL and relax but I cannot relax in this situation where I exited just seeing profit and prices went straight without hitting my SL level.
See any advice for such situation depend on your risk and reward ratio. If you have booked a decent risk reward then prices goes up or down , not a point to worry.
If you booked very normal risk reward and then , you have to work on your psychology. See holding a open profit position takes more courage than holding a loss making position.
If you are doing this mistake again and again It shows one clear thing about your psychology "your have less courage."
Harsh but true........
Note: Work on your mindset .
==================================================
4) You get Frustrated with flat market Exited Early ===>>
See most of the time market remains flat it is a fact. If you getting frustrated with this nature of market. You should learn to be patient with your open position.
Note : You just place SL and Target that's it.
==================================================
Acceptance is the key , if you getting good results changing your predefined well back-tested ,proper risk reward giving system ,it does not mean you doing right thing. Many times you make profit by just taking random trade setups. It does not mean random trading works. Even a layman can predict market movement correctly in a series of days.
If you getting Bad results it also does not mean you doing wrong things.
==================================================
==================================================
1) After hitting your SL market straight goes in your favour --->>
You know prices are not random always, the patterns, support, resistances, trend line concepts works well but for whom. ? and how ?
Suppose you found a crucial support level and taken a buy position with stop loss just below the crucial support.
You have placed your SL at correct place no doubt about that, but do you know such levels where most of the people may place their SL or may panic and exit their positions can be predictable.
Second , If you are playing trends and created a long position , can you exactly guess the prices do not correct till your SL level.no …
Third , This may conflict with first one but believe me most of the time prices are random, market do not know you exist. The logic you inculcate for the upcoming move may not valid even if the movement happen exactly the way you predicted.
Now you will surely ask, is booking SL is a good Idea or not. ?
Answer : Yes It is a good Idea to book SL , even if market goes in your favour after taking SL.
Reason : See you cannot analyze all factors which are affecting price now. No system strategy is 100% accurate. You may see a series of trades where after booking SL prices going in your favour. You may think there is some problem with my strategy (even if you have properly back-tested it) or is there any need to change something.
Believe me this is normal ,such situation you cannot be eliminated completely. Even an experienced trader goes through it.
"In life we regret of quieting things early, we think if I had carried those things a little bit further instead of quieting , results may be drastically different"
Key Takeaway : Accept such things do not give up seeing multiple sl in a row. Because shit happens….
==================================================
2) You See Your Target Missed Just By One Tick ==>>
It is normal do not panic have you not seen in cricket team winning and losing just by 1 run .
""There are many couples where we see that one is healthier than other. When the unhealthier one become sick everybody thinks what will happen to the healthier one if he or she dies , but unhealthier survives and healthier dies first. It is just like you thinking that prices moving in your favour and your target is very close and suddenly something happens and SL triggers."
Note : Accept that such things may happen and you can't do much about it. It is Okay
==================================================
3) After You exited the price went further in your favour without taking SL ===>>
This happen with me all the time and deeply frustrate me I can take SL and relax but I cannot relax in this situation where I exited just seeing profit and prices went straight without hitting my SL level.
See any advice for such situation depend on your risk and reward ratio. If you have booked a decent risk reward then prices goes up or down , not a point to worry.
If you booked very normal risk reward and then , you have to work on your psychology. See holding a open profit position takes more courage than holding a loss making position.
If you are doing this mistake again and again It shows one clear thing about your psychology "your have less courage."
Harsh but true........
Note: Work on your mindset .
==================================================
4) You get Frustrated with flat market Exited Early ===>>
See most of the time market remains flat it is a fact. If you getting frustrated with this nature of market. You should learn to be patient with your open position.
Note : You just place SL and Target that's it.
==================================================
Acceptance is the key , if you getting good results changing your predefined well back-tested ,proper risk reward giving system ,it does not mean you doing right thing. Many times you make profit by just taking random trade setups. It does not mean random trading works. Even a layman can predict market movement correctly in a series of days.
If you getting Bad results it also does not mean you doing wrong things.
==================================================
Comment:
