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Being confused while trading!

A thorough understanding of who you are and what makes you tick is essential in trading. How and what you think, what you believe, and how you behave are critical parts of winning in trading as well as winning in life. It seems very few traders understand, or are aware of this subtlety in the trading profession. You can get by without knowing who and what you are in most other careers but in trading, you are quickly eliminated if you don't discover the truth about yourself. The sad part is that so many wannabe traders lose their money, yet have no idea why they have failed.

It is essential that you keep a journal of all your trades so that you can discover your behavior patterns in a variety of trading situations. It is also highly beneficial to keep a diary of your feelings. Try to discover which emotions go with your winning trades, and which emotions go with your losing trades. Write down how you feel just before you receive a fill. What are you feeling and what was the result? What are you feeling immediately after you find out you are filled? What was the outcome of that trade? What are you feeling now that it is time to exit the trade? Did you win or did you lose? Finally, record your feelings upon exit from a trade. You are now flat, what are you feeling? Did you win or did you lose?




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Wednesday, 04 December 2024

Derivative transactions, including futures, are complex and carry a high degree of risk. They are intended for sophisticated investors and are not suitable for everyone. There are numerous other factors related to the markets in general or to the implementation of any specific trading program which cannot be fully accounted for in the preparation of hypothetical performance results, and all of which can adversely affect actual trading results. For more information, see the Risk Disclosure Statement for Futures and Options.