Expectations shape our satisfaction and the gap between what we want and what we get. They are our mental image of future outcomes, based on past experiences and knowledge.
How expectations filter our behavior:
We often imagine how the market will look after a trade and try to force the outcome. We forget that even if a pattern appears identical to the past, the result is never guaranteed.
2. We start to think that the outside environment is compelled to do exactly as we expect. In trading, the one thing you cannot control or manipulate is the environment; you learn tools that help you look inwardly so you can be neutral with the market.
3. Having expectations unmet, we become emotional, and our decision-making becomes distorted.
I have since learned to remind myself that I do not have control over the outcome, and it becomes easy to accept the loss. On Friday, i took a trade on Gold just after the NFP Unfortunately, that trade was a loss, about 237.00 hadn't i been able to accept any outcome i probably would have revenge traded, which can lead to an account being blown.
One way to kick-start counteracting the expectation is by setting SMART goals.
Setting SMART goals to replace expectations:
- Setting goals becomes the bridge between mindset and method, which assists with taking the pressure off the need to win mentality and focusing on the process.
I noticed that at the beginning of my journey, that is all i had expectations. i.e Every week I will make 8 per day. The issue with this is how certain am I that the outcome will favor me? Do I have concrete evidence when it comes to the market volatility? Absolutely not.
Goals are structured intentions that help focus on the system that is process-driven, leading to the desired results.
Going forward, I then changed from having a specific amount to saying that i will focus on executing my plan for the next 3 months consistently.
Comparing the two was that with expecting to win meant i would eventually forget my rules and push to meet the target even if there are no quality setups. The goals I set helped focus more on the process than the outcome, which ultimately helps avoid overtrading.
Focusing on things you can control allows you to be less vulnerable to human error.
1. Market entry - learning to wait for a confirmation and valid setups instead of predicting
2. Risk Management - if you are sweating over your trade, your lot size is probably too big.
3. Emotional discipline - the capacity to handle FOMO, fear, hesitation, and leaving money on the table.
The less you try to force profits, the more consistently you start to grow because your focus shifts to what is within your control.
How expectations filter our behavior:
We often imagine how the market will look after a trade and try to force the outcome. We forget that even if a pattern appears identical to the past, the result is never guaranteed.
2. We start to think that the outside environment is compelled to do exactly as we expect. In trading, the one thing you cannot control or manipulate is the environment; you learn tools that help you look inwardly so you can be neutral with the market.
3. Having expectations unmet, we become emotional, and our decision-making becomes distorted.
I have since learned to remind myself that I do not have control over the outcome, and it becomes easy to accept the loss. On Friday, i took a trade on Gold just after the NFP Unfortunately, that trade was a loss, about 237.00 hadn't i been able to accept any outcome i probably would have revenge traded, which can lead to an account being blown.
One way to kick-start counteracting the expectation is by setting SMART goals.
Setting SMART goals to replace expectations:
- Setting goals becomes the bridge between mindset and method, which assists with taking the pressure off the need to win mentality and focusing on the process.
I noticed that at the beginning of my journey, that is all i had expectations. i.e Every week I will make 8 per day. The issue with this is how certain am I that the outcome will favor me? Do I have concrete evidence when it comes to the market volatility? Absolutely not.
Goals are structured intentions that help focus on the system that is process-driven, leading to the desired results.
Going forward, I then changed from having a specific amount to saying that i will focus on executing my plan for the next 3 months consistently.
Comparing the two was that with expecting to win meant i would eventually forget my rules and push to meet the target even if there are no quality setups. The goals I set helped focus more on the process than the outcome, which ultimately helps avoid overtrading.
Focusing on things you can control allows you to be less vulnerable to human error.
1. Market entry - learning to wait for a confirmation and valid setups instead of predicting
2. Risk Management - if you are sweating over your trade, your lot size is probably too big.
3. Emotional discipline - the capacity to handle FOMO, fear, hesitation, and leaving money on the table.
The less you try to force profits, the more consistently you start to grow because your focus shifts to what is within your control.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.