Have you ever found it hard to pull the trigger and execute a buy or sell order?
If you said yes, you are not alone. So many people I meet have suffered from this one time or another. I asked myself why?
And I finally came realised that it’s because we all don’t like losing, and we all hate making ‘mistakes’.
The avoidance of loss and mistakes has been drilled into us from early childhood especially at school.
Hence, we bring this mentality into adulthood and must do everything ‘right’ and never make a mistake, which we all know is impossible through life.
So no wonder we find it hard to pull the trigger when trading and investing.
Here are the following actions you can do to help you immediately become a much better trader and investor who doesn’t hesitate when the time comes.
1.Accept that losses is part of the trading and investing game.
No one gets it all right, even Warren Buffett adits he makes a lot of mistakes. It’s just that his wins far outweigh his losses over time.
2.Accept that mistakes is part of the trading and investing game
Just like learning everything else, you will make mistakes, especially when you are starting out and learning a completely new skill set.
3.Plan the trades and trade the plan
Even the old saying applies to trading; If you fail to plan, you plan to fail.
4.Position size accordingly so no one trade will either make you or break you
If one can simply place small trades relative to their account size, committing to a trade will become so much easier since risk of a large loss no longer applies and thus doesn’t paralyse your decision making process.
5.Accept that trading and investing is a get rich slowly game and there is no rush to get there quickly if you want to succeed long term
We all live in a fast and immediate gratification world. We all want this ‘now’. Trading and investing is not like that. You can get lucky and hit a few large wins right off the bat. However, those stories are rare.
6.Create or buy trading systems that give you a ‘positive edge’ meaning you know that over a large number of trade and investment decisions, you are either more right than wrong or your profits are much larger than your losses.
Transform your thinking into a portfolio approach from an individual trade approach.
7.Know your numbers over a large trading sample size. Know that, and you will never be afraid to pull the trigger when the time comes.
8.Lastly practice practice practice.
Paper fake trading is never the same thing as putting real money on the line. So begin practising on a small scale until you are comfortable and then gradually scale up.
This makes ‘pulling’ the trigger so much easier in the short term and over a large series of decision-making actions, your long-term ability to pull the trigger becomes second nature.
Give yourself time. Remember, Rome was never built in a day.
Trading success is no different.
I truly hope this video helps you in your quest to become the trader and investor you want to be.