As you start your new hobby or business of being a day trader, perhaps you are filled with visions of riches, ease, freedom and the travelling lifestyle–trading from the beach in some far-away land!
Before you get too tied up in the vision, check out these three habits to avoid as you get started.
One–Trading real money too soon
You don’t know what you’re doing yet! You wouldn’t want a surgeon to practice surgery on you? You’d prefer he learns, practices, gets a medical license, and is supervised first, no?
Same, well . . .similar anyway, with trading. Sure, you can trade and make money, but have some discipline, and wait until you have got your ducks in a row and have proven yourself. Use a simulated account until you are successful. (For tips, see: Keeping the Simulator Pristine. . .) Train to be a Great Trader, first. Worry about making money later.
Two–Getting overconfident too soon
. . .with your initial success. Winning trades might continue, even for a while. Statistics show though, for many traders—that after that big winning streak is often an explosion (mental meltdown!) losing them all their gains.
Don’t let this be you! Take it slow and steady and LEARN as you go. About the market, but also about you. . . (See: Learning to Trade—the Right Approach.)
Three–Putting all your learning focus on the market
Sure, the market is key to learn about–your platform, your system and strategy, your charts, etc. So, yes you will be studying about these factors and perfecting them. But don’t forget YOU.
What do I mean when I say, “learning about YOU in the market”? You are the most important part of trading and the component most likely to “break”, “falter” or be the “weakest link”. As you learn about yourself, you can start to better control your thoughts and actions. And then better follow plans and disciple, for example.
How do you do this? Well, focus some of the learning and growth attention on you. Your thoughts, feelings, expectations, body reactions (sweaty palms, tension, etc.), moods, behaviors, triggers, etc. These all contain bits of information, letting you know what is happening inside you. And, is all important as you maneuver yourself through your trading day.
Get some help along the way!
Get some help if needed. Find methods (books, classes, a coach or therapist, trading groups, a trading partner, etc.) to help learn about you–while you study, practice, and progress. It is easy to skip this part, but important not to! Studying YOU will provide you most bang for your buck as you learn to be a successful trader.
Wishing You Awareness,
Andrea Wylan, MPH, CPCC
For a complimentary private consultation, please contact
Andrea at email@example.com or 619-665-7558