Observe Your Self Talk
Submitted: 30 Jul 10 16:19
 

A self directed trader does not has the luxury of a risk manager to determine his daily maximum losses, positions or risks. The trader’s account is entirely at the mercy of his actions on a daily basis. When one is faced with a string of losses, it is common that negative self talk starts to manifests into actions that greatly jeopardizes his account. He may starts to doubt his trading system which has served him well for months, he may start blaming factors that he has never used to take into his usual trading considerations or he may start to think that trading for a living is just a fairy tale, and stop short when he was just about to find success. Even when a trader is having a string of great trades, he may also talk himself from taking valid trades as he starts to get conservative in order to protect his winning streaks. Trading a system requires an unwavering determination to squeeze the trigger when the moment comes, to follow all the rules that has brought you success and also to obey all the parameters that determines your risks/loss exposure. Trading success comes with self mastery and a great way to begin is to be attentive to what you say to yourself.