Sometimes it’s too easy to get worked up when trading. You just saw your account receive a World Star punch to the face… and it doesn’t feel good.
Believe me, I’ve been there… several times before I became a multi-millionaire.
A big trading loss can feel utterly devastating. It can even leave self doubts, like — can I recover? Should I give up on my trading goals? The negative thoughts can stream through your mind endlessly after taking a bad defeat.
Before I became a mentor in Weekly Money Multiplier, I took plenty of licks like these.
But the really twisted thing is… our mind can get us in trouble when we’re overconfident.
It is really easy to have a win and find yourself having a Leonardo DiCaprio “King of the World” Titanic moment.
That overconfidence leads to mistakes. And those mistakes will have you right back sitting in the dirt.
To get past emotional rollercoaster is to learn balance. Be confident but stay humble.
How do I stay balanced?
There are a series of steps that I go through, it helps with my preparation. And I believe they can help you too. I know I wouldn’t have eclipsed seven figures in trading profits this year without them.
Have a game plan
You wouldn’t just have your team run out on the green with no planning for the Superbowl would you? You do want to win right? Then why would you trade without the same kind of gusto?
That’s why a trading plan are a must have for successful traders. Otherwise, you’re just flying blind.
Trading plans don’t have to be cumbersome. Just make sure they include some of the following:
- How much you are going to put into a trade
- Your entry price, stop, and target
- Which strategy setup initiates the trade
After you develop your plan stick to it! Don’t allow yourself to get hyped up and deviate from it.
When you define your trading strategy you are setting parameters for yourself. This ensures that you will play through your trade s according to the plan and protecting yourself from loss.
Keep a trading journal.
This isn’t a Dear Diary situation but a written path for self-discovery. It enables you to follow your own trading progress.
When you are planning out trades jot down your reasoning for this trade.
- What drew you to it?
- How do you feel about it?
- What amount of money are you putting into it?
- What is your stop/loss plan?
- What was the outcome of your trade?
- Which setup did you use?
- What is going on in your head now that it’s done?
This simple exercise takes a few minutes each day and is the doorway to self-improvement. You will be able to recall exactly why you made a specific trade and when. Revealing your true strengths and weaknesses when it comes to trading.
Get yourself a demo account
Astronauts at NASA are fine with using a simulator to learn to fly the space shuttle. So why shouldn’t you be down with using a demo account to up your trading expertise.
It’s a wonderful way to gain your mojo back after a loss left your feeling beat up and spit out by the trading world. You play through your trades and don’t risk a dime.
You will find yourself considerably less stressed learning trade through a practice account on than doing it on the fly. There’s also the bonus of not worrying about a blowing up your account.
Yet, a demo account won’t produce the same emotions that you will need to learn to handle when it’s your money on the line.
Don’t go at it alone
When trading it can feel like it’s just you and your ideas that are guiding you along out there in this big world. You can find yourself bogged down and isolated by the experience.
Reach out to other to other traders. Receiving other opinions and tips gives you a major leg up when trading. Think of it as a helpful hand stopping from doing something stupid. It can reduce your stress level to have others to talk it out with.
Like starting a new diet as group you have someone to hold you accountable for that cookie cake, I mean, trades. No man should be an island when it comes to trading.
This lead us to…
Have A Mentor
When we were kids, we had someone that we idolized, whether it was an actor, athlete, or a teacher. We wanted to be just like them. Not wear their face. Somewhere along the way of adulting we lost that.
It’s time to get it back.
We live in a world where we constantly have negative trading personas in your face. Which makes it that much more important to have a positive and successful mentor. A person that will teach and guide you along the path to success.
Some that will show you how they handle their losses. How they keep level headed when the money starts to come in. How the run their trades like a business and keep those pesky emotions at bay.
A real example
The advice I offer isn’t something I hold back. I give you the exact same keys that I offer members of Weekly Money Multiplier.
One member highlights the journey to the t. Derrick wrote the following in the commentary of a daily recap video that sums up things nicely.
If you want to learn more about Weekly Money Multiplier, click the link below. I show members how even I, after all these years, still maintain a trade journal every day.