A Better Trader

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					A Better Trader
What is the mental aspects of trading? Even the best traders realised
that they cannot control how the market behaves, but there are other
aspects that in our own mindset we can control, helping us to become a
better trader.
Whenever we go through a trading slump, we often tend to blame something
outside ourselves? It seems that many traders like blaming "the system" -
the system is working against me: the brokers are the only ones getting
rich, the market makers are killing me on these bid/asked spreads, etc.
When you blame an external situation, you are giving up control, and
instead letting yourself be controlled by outside events. This converts
you from a proactive trader into a reactive trader. If you are reacting
after the fact in the markets, you are in turn letting your emotions
start to rule you, instead of planning how you will react to any set of
circumstances. We all know that letting emotions control you will make
you wind up with bad trades.
Justifications and excuses are the hallmark of traders who consistently
lose money. Excuses seek to diminish the trader's responsibility for a
losing trade. Thus the trader believes he is acted upon by events beyond
his control. In comparison, a trader with a strong control of their
trading believes he is responsible for every reaction that happens to
each action he takes. Great traders take total responsibility for each
action they take. They do not carelessly take actions to buy or sell.
Such impulsive moves can destroy the trader's confidence. The successful
trader knows that every action taken will produce a reaction, and actions
taken with the probabilities on the trader's side will increase the odds
of favorable reactions over time. You must believe that you control.
After reading these thoughts, if you are not getting the results you
expect of yourself, start analyzing your actions and mindset. Are you
hanging on to losing trades too long? Are you selling profitable
positions too soon? Are you having trouble pulling the trigger on
potential trades because of fear? If you are experiencing these types of
troubles, start working on controlling your trading emotions and working
to make your trading plan as logical as possible and then follow the
plan.
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