Certain, conserving rating of your stats is superior. However numbers are simply gonna be numbers and so they don’t actually inform the entire story.
When you’ve already caught your self considering that you just’re doing one thing mistaken time and again however you don’t know what it’s, possibly it’s time you begin a psychological journal too!
You know the way the market has tendencies?
Effectively, in the identical means that it tends to react to market occasions and environments in sure methods, particular person merchants even have repetitive reactions and behavioral tendencies. Nevertheless, we regularly overlook them and the way they could be affecting our buying and selling efficiency.
See, via our lifetime we’ve developed coping mechanisms to assist us cope with misery.
For instance, the primary time you jumped right into a pool you’ve realized that the water might be unbearably chilly. To keep away from repeating the stunning expertise, you’ve realized to dip your toes first earlier than leaping in.
Ultimately, coping mechanisms like these flip into habits and are available off naturally after we are confronted with comparable conditions.
Though we subconsciously develop these knee-jerk reactions to maintain us from feeling ache, they could additionally lead us to make unhealthy/impulsive buying and selling selections.
Give it some thought. What number of instances have you ever closed a successful commerce early the second the market moved in opposition to you by a number of pips?
And also you’ve in all probability crushed your self up for doing it time and again despite the fact that you knew that you possibly can have ended your final commerce with an even bigger win had you adopted your plan.
For this reason it is best to have a psychological journal. It’s a software that can show you how to acknowledge your character patterns.
When you’re questioning how one can get began, listed below are a number of ideas:
1. Describe the market state of affairs
Attempt to describe the present market state of affairs and why your commerce setup might work in that particular atmosphere.
Ask your self the next questions:
What are the dominant market themes proper now?
Is threat on or off?
Am I about to take a commerce that’s in step with these themes and threat sentiment?
2. Be aware of the way you felt
Other than the market atmosphere, additionally embrace your ideas and feelings whereas buying and selling.
Certain, it might really feel humorous to jot down about your emotions at first, however someplace down the street, you’ll acknowledge some behavioral patterns.
When you wanna write about having a horrible hair day or having an excessive amount of espresso within the morning, go forward! It’s vital to notice down all of the attainable components that would have an effect in your decision-making.
Some questions you possibly can ask your self are:
What had been you feeling earlier than opening your commerce? (nervous, assured, uncertain, and so on.)
What had been your ideas whereas the commerce was open and whereas the market was transferring in favor or in opposition to your place?
Was there something you remorse about your commerce execution?
Did you’re feeling optimistic or detrimental after closing your commerce and why?
3. Write down the outcomes
Jot down the outcomes of your buying and selling selections to assist discover out what feelings have a optimistic or detrimental affect.
To pinpoint attainable points, ask questions like:
Did you shut your commerce too early since you had been feeling further impatient that day?
Was it troublesome so that you can focus and why?
Did you progress your stops farther since you had been too hungry for a win?
Have been you feeling assured in your commerce concept that you just determined to extend your place measurement?
Keep in mind that the objective is to acknowledge behavioral patterns and their standard penalties.
From this, you possibly can determine these situations that negatively impression your decision-making and simply determine to chorus from buying and selling if these patterns recur.
Quickly sufficient you’ll have the ability to construct sufficient consciousness of those behavioral patterns, clearly determine what causes you misery, and have the ability to maintain these conditions from damaging your buying and selling account.
