How to cope with this problem
So, you are convinced that it is a good idea to ask yourself every day whether to act on the market or to stay calm. But how to decide? What criteria should you use? Make a list of questions that you may find helpful in such cases. Each day is different, so it is most likely a particular question to be topical for a certain day but not for the next one.
Take the list of your questions, change some of them to be relevant to your life, add some and hang up the final list on the mirror in your bathroom. Every morning while you are brushing your teeth re-read the list. Surprisingly, you will find that you cannot use the list without to be abstract at least once a week.
Following your own rules will significantly improve your trading beyond your expectations for better results. When you prohibit yourself to trade when you are not in shape, you will find that you have more energy and enthusiasm to succeed when you act on the market. As a result, your failures will decrease significantly and you will be able to trade better, to enter the market successfully and to stay in till the end of the trading.
We will suggest you an example of such question list. If you find a question that does not match to your situation, just eliminate it and add your own. As a final advice, find a question or two that work in your case and make them part of your daily routine.
You should not be ashamed when you do not trade
What is your mental and physical attitude for this day? Once you have looked at your list, you might say, „Well, maybe I’m not in my best shape today, but what the hell? I trade when I feel bad and I try to spend the day without any obstacles. If I have to wait for a time when I feel great, I will not trade ever”. There are a lot of traders who are convinced that they can trade ignoring the way they feel.
But what will happen after this day of bad mood and what if you just wait for it to pass. Once after a trader takes control of his behavior on the market, he will find himself in a better trading form. This happens only after testing this strategy, in which traders are able to look at their results and see the disadvantages of keeping some long-term trading rules. If you waste your energy in the first busy day, are you going to have the strength to accomplish something during the next day?
You must not feel uncomfortable if you do not trade. This is one of the concepts to which you have to adapt, especially if your goal is to reach the next level in the art of trading and success.
It will be a shame when you do things that are not prepared and to expose yourself and your capital at risk. So far, there hasn’t been any trader to apologize for being out of the market. On the contrary, many traders explain to their families the reasons for their losses on the market.
Are you in a good shape to trade?
The best way to decide if you are in a good shape to trade is to have discipline. The best protection for you against the unsuccessful trading days is your discipline that determines whether you are in good physical and mental condition or not. Besides, it is important to follow strictly your discipline, not just to have it as a plan. Your discipline may not protect you from large negative emotions in life such as divorce or death, but it will give you the strength to resist on these troubles and go back to more optimal trade.
Since a trading in the long-term perspective requires from you always to be in top form, there will be days when you may understand that you should not trade. Unlike many professions where you can just go through the bad days, bad days in trading could mean, in the best case, unexpected losses, and at the worst – the end of your career. You can improve your trading by simply asking yourself whether to trade or not. If the answer is no, then stay away.
Expect a suggestion for your question list on the next part of this article.