Have you ever wondered what are some of the reasons that you failed to make money in trading/investment ?
If you think it has to do with the size of your capital, strategies and trading opportunities, read on. Here are some common sins that I can think of and hope you would learn from it :
1. Envy
While having lunch with your friends/colleagues, they boasted about their 100 plus % returns on some tech stocks that they bought. You felt uncomfortable, beating yourself up for not being fast enough to board the train. Somehow, you could not be happy for him to win. Actually, you felt imbalanced because you did not win.
2. Blame Game
Much like President Trump who likes to put the blame on everything else except himself, is that what you do as well when your portfolio goes under ? When you learn to assume responsibility and not let any external events be the cause of your performance, you begin to see things differently. You will take losses as part and parcel of this business, understand that it is part of the game. It is necessary as this is a probability game. You have a new sense of relief and perspective towards trading/investment. When your results are in the red, you can still sleep well, knowing you had done your research, have adequate stop loss in place,etc.
3. Fear of Success
Most time we think that a person failure is because of his fear of trying something out. On the contrary, some people stay where they are because they could not handle success. They are afraid to get rich for they have a limiting belief about how being rich should behave. Probably, they had some bad experiences when dealing with some rich people and their ostentatious behaviour puts them off. Subconsciously, they repel the idea of being rich and do not want to associate such behaviour.
There are many kind of rich people just as there are many kinds of poor people. There are humble, kind and encouraging rich people who would not mind helping you to seal a deal or introduce you to someone you need, etc. Expand your repertoire and you will change your mind.
4. Impatience
Too much stories online that brainwashed to become a millionaire in your 20's... So you hop on from one get rich scheme to another , hoping to beat the system. Learn the power of compounding , this is how one can become rich in trading (among other essential things)
5. Mr Know it All
After a few years of trading, you feel that you have know everything about trading. So , you become complacent, wanting to take short cuts and trading in a haphazard manner, at times increasing your position size or neglect to put a stop loss. All rules are thrown out of the window.
6. Lack of conviction
Don't fall for your limiting beliefs, believe in what makes your limitless. I shared previously how I self motivate myself in my trading regime. I make a conscious attempt to make my monthly profits my weekly and then from weekly to daily. It was stressful but I do learn about stretching myself and the unexplained excitement about achieving those goals.
Copy and paste your profits and put into your wallpaper , paste it on the walls, anywhere that you can see. Surround yourself with your own achievements, no matter how small. I started with making cents profits and still keep records of those to remind myself of where and how I started. It has been a long ride thus far. Take your profits and buy something for your loved ones, experience what it is like to be successful, to be making money. Set incremental goals not audacious ones that make you feel small. Challenging but achievable ones.
In the course of pursuing your goals, keep your risks constant like 1% risk per trade and never increase it just to reach the goals.
7. Discipline - Trading is using your mental muscle. When you read an article, what comes to your mind ? When you open the chart, what comes to your mind ? Train your mind to be alert and observant to the price action on multiple time frames. Understand how historical patterns evolve and arrive at your own conclusions. Test out your hypotheses!
The Olympic Champions train daily just to get qualified to compete in the games and to be a Gold medalist, the amount of sheer hard work, mental strength is unquestionable. Your discipline is the backbone of trading. Learn to trade in different seasons, sectors, countries to get an idea, the actual experience/results will shed light to you in ways much faster and effective compared to reading a book/attending a course.
This list is just the tips of the iceberg and I am sure you can identify many more. It is not easy but doable if you put your heart, mind and soul into practising each and every one of them. It takes time so the earlier one starts, the better his foundation would be.
All personal breakthroughs begin with a change in belief - Anthony Robbins
If you think it has to do with the size of your capital, strategies and trading opportunities, read on. Here are some common sins that I can think of and hope you would learn from it :
1. Envy
While having lunch with your friends/colleagues, they boasted about their 100 plus % returns on some tech stocks that they bought. You felt uncomfortable, beating yourself up for not being fast enough to board the train. Somehow, you could not be happy for him to win. Actually, you felt imbalanced because you did not win.
2. Blame Game
Much like President Trump who likes to put the blame on everything else except himself, is that what you do as well when your portfolio goes under ? When you learn to assume responsibility and not let any external events be the cause of your performance, you begin to see things differently. You will take losses as part and parcel of this business, understand that it is part of the game. It is necessary as this is a probability game. You have a new sense of relief and perspective towards trading/investment. When your results are in the red, you can still sleep well, knowing you had done your research, have adequate stop loss in place,etc.
3. Fear of Success
Most time we think that a person failure is because of his fear of trying something out. On the contrary, some people stay where they are because they could not handle success. They are afraid to get rich for they have a limiting belief about how being rich should behave. Probably, they had some bad experiences when dealing with some rich people and their ostentatious behaviour puts them off. Subconsciously, they repel the idea of being rich and do not want to associate such behaviour.
There are many kind of rich people just as there are many kinds of poor people. There are humble, kind and encouraging rich people who would not mind helping you to seal a deal or introduce you to someone you need, etc. Expand your repertoire and you will change your mind.
4. Impatience
Too much stories online that brainwashed to become a millionaire in your 20's... So you hop on from one get rich scheme to another , hoping to beat the system. Learn the power of compounding , this is how one can become rich in trading (among other essential things)
5. Mr Know it All
After a few years of trading, you feel that you have know everything about trading. So , you become complacent, wanting to take short cuts and trading in a haphazard manner, at times increasing your position size or neglect to put a stop loss. All rules are thrown out of the window.
6. Lack of conviction
Don't fall for your limiting beliefs, believe in what makes your limitless. I shared previously how I self motivate myself in my trading regime. I make a conscious attempt to make my monthly profits my weekly and then from weekly to daily. It was stressful but I do learn about stretching myself and the unexplained excitement about achieving those goals.
Copy and paste your profits and put into your wallpaper , paste it on the walls, anywhere that you can see. Surround yourself with your own achievements, no matter how small. I started with making cents profits and still keep records of those to remind myself of where and how I started. It has been a long ride thus far. Take your profits and buy something for your loved ones, experience what it is like to be successful, to be making money. Set incremental goals not audacious ones that make you feel small. Challenging but achievable ones.
In the course of pursuing your goals, keep your risks constant like 1% risk per trade and never increase it just to reach the goals.
7. Discipline - Trading is using your mental muscle. When you read an article, what comes to your mind ? When you open the chart, what comes to your mind ? Train your mind to be alert and observant to the price action on multiple time frames. Understand how historical patterns evolve and arrive at your own conclusions. Test out your hypotheses!
The Olympic Champions train daily just to get qualified to compete in the games and to be a Gold medalist, the amount of sheer hard work, mental strength is unquestionable. Your discipline is the backbone of trading. Learn to trade in different seasons, sectors, countries to get an idea, the actual experience/results will shed light to you in ways much faster and effective compared to reading a book/attending a course.
This list is just the tips of the iceberg and I am sure you can identify many more. It is not easy but doable if you put your heart, mind and soul into practising each and every one of them. It takes time so the earlier one starts, the better his foundation would be.
All personal breakthroughs begin with a change in belief - Anthony Robbins
Comment:
Praise the Lord. It continues to go higher though at a much tame manner.
Comment:
Praise the Lord. Your patience in not getting in and out is paid off, congrats !!