8 Common Problems That 90 % of the Traders Face
Problem 6: Taking revenge on the market
Seek to make back from the market whatever you have lost, instead of waiting for another high probability trade
Causes & Solutions:
This could be due to emotional attachment toward the trade, often due to too much capital is being invested into the particular trade, (rule of thumb never risk more than 2% of trading capital on a single trade), hence triggering the emotions in wanting to make back whatever is lost.
Another reason could be you have taken the losses personally. You feel market did it on purpose, knowing where your stop order is and try to kick you out from the game. In reality, the market is just a bunch of orders flowing in and out and the price move accordingly.
Do not take the losses personally, the market does not know your existence.
Besides, you need to be mentally prepared and accept the fact that it is okay if this trade were going to turn out to be a loser. Risk and treat every trade the same, simply because you cannot foresee and predict the future.
Last but not least
It is impossible to overcome all your mental obstacles just by reading books or watching videos alone. It requires hours of practices and dedication in order to get your mind reprogrammed. Without this, you will end up making the same mistake you promised yourself not to again and again.
However, with the right framework, this can be done effectively and save you from years of trials and errors, it also means money being saved from giving it to the market.
Learn how our "core of successful trading framework" that helped hundreds of traders around the globe obtaining consistency in trading in as short as 3 weeks time.