Ten Ways To Decrease Your Trading Pain

Ten Ways To Decrease Your Trading Pain

Ten Ways To Decrease Your Trading Pain









  1. Structure your position sizes and stop losses in trades so that if you are wrong you will not lose more than 1% of your trading capital on any one trade. Reducing your risk per trade to 2% of trading capital would be a huge improvement for many traders and if your account is big enough going down to half% of trading capital at risk would decrease stress dramatically.

  2. Only trade in the markets, stocks, options, and futures you are very familiar with, learning while you lose money is very stressful.

  3. Know where you will get out of a trade before you get in. Know where the maximum pain and except it before you enter the trade.

  4. Understand that the market determines whether you win or lose all you get to choose is your entry and exit. Accept that we have no control over the market moves.

  5. Develop a faith in yourself as a trader based on your past trading and study.

  6. After you have done your research have faith in your trading system as a winner then the belief that you have the ability to follow that system.

  7. Be primarily a bull in a bull market and a bear in a bear market until the end when the trend bends.

  8. Always trade with an edge on your side.

  9. Take only the trades where the winning percentage or asymmetry is in your favor.

  10. When there is no trade to take, then do nothing.