Many a trader seeking success here, tend to lack a basic requirement and that’s the condition of being lazy. He assumes things are ok, ignoring losses and impatiently waiting to score a killer trade. Pushing the limits of his abilities and wanting to satisfy his ego rather than minding the conditions of trading either during before, during or after. The hard cold fact is that he usually just continues trading as usual and thereby accelerates his current situation and quickly bankrupts the whole trading account.
It is imperative, fundamental to know Oneself as a trader and having the time and courage to face the faults and strengths. It is knowing we have a basic flaw in our make up, somewhat genetic, that we are drawn to repeating our past mistakes until we wake up and acknowledge that fact. Usually it takes a big, bad financial fall or somebody who pulls you aside and wakes you up from this reverie mess. Most don’t and hence are dumped into the history of has-beens, drained of all money, blood and guts to ever return again.
Hence it is the discipline of patience to study each trade entry and exit and spend time to hone your “feels” for the market. Some will take 3 years, or even 10 years, or some just takes 3 weeks by watching the market, the traders, the charts and price action and come out with a profitable trading plan.
It is sheer determination to devote time, focus to implement a good profitable trading plan and going to extra-ordinary lengths to enact strict rules in order to overcome our emotions and fears of losing money, pride and mind.
How? Firstly to acknowledge our weakness, e.g. laziness to do the requisite study, painstaking going thru the lists of do’s and don’t’s.
Secondly to kaizen or continuous improvement activities i.e review and decide the components that will strength your trading plan thru better rules, such as to safeguard your capital, increase your wins, cutting show your losses, speed of taking actions and positive impacting your trading mindset. In other words being able to trade calmly and sitting out the fears of missing out a rally is a battle of mind over charts.
It ain’t easy but that’s what a successful trader must overcome mental blocks and awkwardness in order to overcome or control the emotional demons within. Such a trading mindset will add to your own profitability and quality of your life.
It is my contention, that it’s not just trading but it’s a battle royale for you to slay your past demons, un-working habits that you bring to the trading desk. Tending to this will lead you to a path of a successful stock trader.
Till then, Happy Kaizen Trading!