GOOD MORNING STEEMIT
You’ve all heard the saying don’t fall in love with a trade. I'm sure you've had a laugh when you've read it once or twice, but I assure you that if you're looking to take your trading to the next level, that it is one of the most important concepts that you simply must grasp.
Getting Tunnel Vision
Now ask yourself this - How many times has the following tunnel vision scenario happened to you while you're trading:
BTC/USD breaks above resistance and momentum is strong in your direction. Everything looks to have lined up perfectly with your trading strategy.
You move away from your trading screen to go and get a nice relaxing cup of coffee. Maybe a frothy cap with no sugar?
But when you return to your desk, your stop loss has already been triggered...
"Wait what?!" you say. "How could this have happened? Resistance broke and there was plenty of buying momentum."
"I was right..."
But the reality is that you weren't right. You were wrong.
You just think you SHOULD have been right. There's a big difference.
So you now flick back open your charts and notice that Bitcoin has suddenly dropped further than its average daily range, so you get back into your long.
You tell yourself that you were right before and this is just a better entry.
But it's not. You were wrong before and you're still wrong now. No matter how many times you tell both yourself and the market that you're right, nothing is going to change.
You were wrong.
It's now later that day and you've started adding sugar to your caps because you can't shake the fact that this perfect Bitcoin trade setup didn't go your way.
You decide to go long again, because well, you're right and the market is wrong.
The process repeats another couple of times and before you know it, your trading account is down 50% from where it was barely 24 hours ago.
A quiet "Fuck..."* is all you can muster.
So tell me. Does this scenario sound familiar?
To become a successful trader you have to separate your ego from your wallet. You just can't allow yourself to be caught up in the idea of being right or wrong. Trading is a long term risk management game and you have risk management procedures such as your stop loss in place for this reason.
Don't be your own worst enemy. You have enough enemies in the market all trying to take your money from you. You don't need to add yourself to that list.
It's you against the market, but so often traders end up making it you against your own ego.
You Against the Market
Don't ever lose track of why you're a trader in the first place:
It's not to be right, it's to make money.
If you're looking to be right and gain some sort of fucked up validation from that fact, then you're looking in the wrong place. Trading just isn't for you.
To make money, you're going to have to be wrong.
You're actually going to have to be wrong a LOT. You just have to get used to it and learn to embrace it.
Best of probabilities to you.
Peace 🏻.
Please leave a comment with your ideas or just share a chart.
Blogging about markets is all about sharing ideas and making us see all possible angles. I look forward to having you follow along and reading what you throw at me.
Twitter: @forexbrokr
Instagram: @forexbrokr
Website: www.forexbrokr.com
