This is going to be short and precise.
One thing traders fail to understand is that there is no Holy grail in trading. Many new traders focus on Technical Analysis, technical analysis is great but so are self-discipline and self-development.
It is easier to think a trader somewhere out there is better than you do, this is completely far from the truth. Every trader is unique because trading gives everyone different unique experiences, which is why comparison is something that is pointless in the trading space.
Being a successful trader doesn’t mean you won’t lose or you are exempt from certain innate emotions being experienced by traders.
A trader has to spend more time preparing his mind than he does preparing his charts.
Just like the previous post we published about the psychology of trading.
There is more to trading success than technical analysis. Fundamental analysis also plays a vital role in contributing to a trader’s success. That is why we are here for you at Global Institute of Trading, we bring you institutional market insights and daily reports. We coach you personally and we like to know our members and their goals and how best to help them achieve them. Stick around.
HIGH LEVELS OF LEVERAGE
Over-leveraging is one of the most prevalent reasons traders fail. The result of a trader’s overconfidence in the success of a trade is over-leveraging. It’s like hitting a home run every time you take a swing. The issue with this strategy is that it is completely unsustainable.
Traders can get one of two results when they use a lot of leverage. The best case scenario is that the trade goes well and you make a lot of money. High-leverage positions, on the other hand, can result in a similar amount of losses if the trade goes against you.
Novice traders are prone to the ‘go big or go home’ mentality, risking a large portion of their capital on a single trade. This is not only irresponsible and hazardous, but the rationale is also wrong. When you’re first starting out, every penny counts. As a result, in order to secure your money, you should follow stringent money management guidelines. In truth, the most successful traders adhere to a set of rules and limitations for each trade.
Poor risk management is another reason why traders fail. Any amount of loss should be extremely detrimental to risk management strategies. Stop-loss orders allow traders to exit their position if they don’t perform as expected.
When traders don’t use trading tools that assist and protect them, it exposes their investment capital to undue risks. Not only do tools like stop orders assist traders to protect their cash.
Keep it simple! Simplicity is key in trading. There isn’t a need to overcomplicate things. The more experienced a trader gains, the more he realizes a need for him to keep his trading system as simple as possible. Trading is a hard way to make easy money, the more you keep your system simple the more clarity you get.
One of the most essential habits that help traders prepare their minds for the market is Meditation. Meditation helps traders a lot, it clears your mind, improves concentration and makes you laser-focused.
There are many good reasons to practice meditation. In trading terms, it can lead to better concentration, calm under pressure and improved overall performance.
The benefits extend way beyond trading, however. You will probably find that you are more relaxed in your everyday life and are able to cope with situations that may have overwhelmed you in the past.
I made some research on a simple and effective way to meditate in case you are wondering how to = Guided Meditation For Calming The Mind (5 Minutes)
You have to be willing to take responsibility for your mistakes, trading is a one-man business, you have no employer or boss to make rules for you.
It’s advantageous and also could be a trap in disguise, because you tend to want to do things however you like. That is why we have a higher failure rate in the trading business.
Set rules for yourself and be willing to follow them without deviation. Journal your mistakes, learn from them and try not to repeat those mistakes.
You are closer to success than you think. There is no secret to success other than just simple steps taken and constant discipline practiced everyday.
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