Well done your on your way to making a great trader ,just keep on as its a daily challenge,soon will become part of you!!!Hi all
There has been quite a bit of discussion recently regarding the part that the traders mindset plays in their success. Thanks to recommendations made here I have read the Mark Douglas book 'Trading in the Zone' and found it a real eye-opener. Because he goes into so much detail about the mistakes that traders make and why I now understand that I can change the parts of my mindset which stop me from succeeding.
That knowledge is what opens the door but it is my actions that will change the mindset. As he recommends I am starting to be an observer of my own behaviour. Over the last few weeks I have experienced the same greed and fear and the same drives to react when I shouldn't. The difference is that I have been much more aware of what is going on and have managed to not respond when I otherwise would have - sometimes .
I think it may be helpful to others to have a thread to share experience and advice so I will post in this thread from time to time about my experience and would invite everyone else to join in. I'll not be posting about trades other than to use them to explain something.
Last week was a great example of negative mindset.
I have started trading GBPUSD mechanically. I passed on two trades the week before because I was just back from holiday and didn't want to rush in without being prepared. Both reached what would have been my target (COP)
I opened a trade early last week and it went straight against me until stopped out. I then opened another in the opposite direction to try to catch the move against me. I closed this for a small loss.
Missing the first two trades was the right thing to do as I wasn't fully prepared, but it left me feeling as if I've missed out.
The first losing trade actually had a strong contra indication which I didn't see until it was too late.
The last trade was just stupid and I was right to close it when I came to my senses!
While all of this was going on I was short EURUSD and made a healthy profit, more than offsetting my losses. My handling of the winning trades was much better despite having to fight the urge to close too early.
All of this is covered in Marks book but knowledge isn't the same as experience and that's why I just need to keep doing it mechanically until the mindset changes.
All the best