There are many factors that contribute to a trader’s success. They are all equally important. You will have to get knowledge about the market and the financial assets and learn to use all the features of the trading platform. Moreover, you will have to develop a trading strategy with the risk management plan included. You will also need to be able to manage your emotions. All these mean you have to be committed to what you are doing. And a trading commitment is a topic of today’s article.
Being committed to trading requires you to invest your time in it. It means you develop a trading system and are faithful to it. You do not give up when something does not work as you thought it would but you try to find the problem and solve it. Only then you may work on steady earnings.
There are some difficulties that the traders often experience. Read the list below, maybe something happened to you. Further on, you will find some useful tips on how to deal with these problems.
Obstacles to the development of trading commitment
Having a trading plan on hand is a must. It is possible to profit from opening random transactions but it is more luck than true achievement and in a long perspective it never works. You must prepare a trading plan and follow it. It might be useful to write a trading diary. Such a tool helps to keep track of all transactions taken in the past. There should be notes about what position was opened, when, for what amount, in what circumstances, even in what mood you were at the time. When the results are not as you have wished, you may review the journal and find out what should be improved.
Fear of losing is a quite popular feeling among the traders. It is natural that nobody wants to lose but it is also natural it will happen. To all traders. More important is how you react to it. Fear may cause temporary paralysis so that you are unable to act. You just watch the price going in the not expected direction in the hope it will reverse. It will, but it may be too late for you. You may need to close in the least opportune moment. You should work on cutting losses short instead. Note how big risk you can take in your trading journal and place a stop loss.
There are people who live on adrenaline. They seek experiences that trigger strong emotions. Trading has the potential to be such an experience. The market is unpredictable. Opening the session and observing where the price is moving while your position is opened can give an adrenaline rush. But this is not a good way. Trading needs to be done calmly and patiently.
Laziness is the enemy of commitment. Lazy traders do not make a deep analysis of the market. They just want the fast results without putting much effort into it. They quit the strategy at the first failure instead of looking for the flaws and trying to repair them. Jumping from one strategy to another is not a good way to work on consistent profits.
Tips on fighting the obstacles
Define a problem
The first step is to find out what is wrong, what does not function. You should study your actions and consider if you take the decisions under strong emotions, you tend to close transactions too early or maybe miss too many opportunities. The trading journal will help you in this task. With it, you will be able to review your past transactions and use the conclusions to your benefit.
Use your imagination
You may underestimate the power in you. Don’t. Use your imagination to work on the proper approach. Facing a loss may cause strong emotions which in turn will cloud your judgment. Imagine it would be the biggest loss in your career. What would happen? What would be your reaction? What feelings would accompany you? You may discover that playing such a scenario in your head will minimise the fear widely. And with much less fear you will be able to make better decisions.
Tell yourself it is someone else
Another trick you can use is imagining that this difficult decision you are about to make is not yours. Think about your mum or your best friend. What would they do in such a situation? Or try to invent the advice you would give them if they asked for your opinion. It will change your perspective.
The path to trading success is not that easy. You will encounter many difficulties on the way. But the good news is you may deal with the problems.
I have shared some tips on how to work on the development of trading commitment. Be ready to invest your time, keep the trading journal and prepare a trading plan. Do not quit on the first obstacle. Be patient and persistent. Use the power of your imagination.
The last tip I have for you is to use the Binomo demo account. It is offered for free and you will find there all the features available in the real account. Go there whenever you want to check new indicators or to see how the adjustments in your strategy work.
I wish you all the best!