How to continue in trading during uncertainty timeHello traders:
Recently I received many messages from traders about taking many losses during this uncertain time.
What's going on globally right now may have a different impact on all the different markets.
Many have told me of your frustration, stress, and negative emotion on losing money and continue to feel defeated.
Today I will explain a few things that you can implement into your current trading plan,
approach and perspective during this period of time.
First, you must acknowledge risk management.
Too many traders ignore this key important aspect of trading.
Especially during this time where the market can be volatile and irregular.
It's in your best interest to understand how to manage your risk. You should have a plan that lists out how your approach would be.
For example for my risk management right now:
-1% per trade of account capital.
-No more than 1 trade on the same currency, unless the first trade is secure in profit.
-No more than 2 trades open during a day, max drawdown 2% per day
-10-15 trades per month
-3 trades maximum per week
-Minimum 3:1 RR allow before entry
-Will Take profit on average when in profit 3:1 RR.
Second, learn to control your mindset and emotions.
More often when traders approach me these days, they are telling me they are taking too many trades, chasing profits and revenge trading their losses.
All these arise from the mistakes of FOMO, get rich quick mindset, enter multiple trades.
IF a trader can truly understand the fact that the market will always be there tomorrow, next week, next month..etc, then it's an easier thing to deal with on a psychological level.
You will no longer stress about trying to enter too many trades, worry that the market may not be available tomorrow.
Third, less social media exposure.
In today’s world, unfortunately in trading, most of the things you see on social media are fabricated and fake.
Their sole purpose is to sell you a dream, lifestyle, and easy money concept.
ITs always during this uncertain time, you will see more and more of these “gurus” who will show you how much $ they made during this time.
Now, I am not saying all are fake or scam, I am sure small # of them are doing well.
But, most of the things you will see in your social media feed, are likely to be photoshopped, faked, fabricated to make you believe whatever you are doing is wrong, and you tend to “compare” your result with these people.
This ended up becoming very negative and stressful to continue.
ITs important to understand trading is one of the toughest professions out there.
IT requires so much emotion control, clear mindset, and proper psychology on a regular basis.
If you are struggling, it's usually not to do with your trading strategy, but rather your approach, perspective, and perception.
So, eliminate as many unrealistic things you might see, and focus on yourself and your journey.
Any questions, comments or feedback welcome to let me know.
Thank you
