Most aspiring traders think you learn a trading methodology, master trading psychology and work on risk and money management and they will become successful trader. The fact is, things aren’t that easy. Understanding and listening to the markets and working on your trade execution is the Key here to be successful.
Trading success does not fall into our laps, sadly. The reason is to do with our inability to recognize a few simple universal laws and follow them. Our trading psychology is dominated by our ego and this prevents us from opening up to new ideas and change our habitual thinking and our trading minds.
Any time when you are placing your ego above the markets you are resisting trading success and making trading life more difficult for you than it needs to be. The market will tell you when it is ready to change direction and you will know when the trend changes. There is plenty of time to hop onto the gravy train.
When you learn to go with the flow and don’t allow your thoughts to interfere with what the market is doing you will start to trade well.
When you don’t think, you cannot resist. You may make mistakes, but that is part of the learning curve and part of trading. Trading will teach you the art of losing gracefully.
“A Trader doesn’t care whether he wins or loses on a trade. If a trade doesn’t work, he’s confident enough about his ability to win on other trades that he can easily walk away from the position. There are a lot of shoes on the shelf; wear only the ones that fit. If you’re extremely confident, taking a loss doesn’t bother you.”