Are you being as successful a trader as you would hope for or expect?
All the opportunities do not necessarily mean success so the chances are that you have had setbacks. Indeed, given that setbacks are more the rule than the exception it would more unusual if you were able to say all had been going brilliantly.
After all, success depends on identifying the winning trading strategy and that is hard to do, especially as the markets shift and so strategies need to be shifted as well. In the process of establishing the correct approach the path will be littered with losses and setbacks, it is how you react to them that is the true key to success. It is all too easy to get frustrated.
Frustration can quickly build up as one trade after another goes awry, or the markets block your planned execution or other setbacks come into play. For anyone, non-stop frustration can lead to an inclination to give in, to become resigned to things going wrong. This isn’t what is going to make a successful trader though so you have to get up and keep going. What matters is that you remind yourself that setbacks are normal, none of this is personal and frustration is a destructive emotion. You need to build up your tolerance levels such that frustrations are brushed aside and you can keep going.
There is an argument that could be made that within the trading world, setbacks are almost a requirement. Turn it around and consider the fact that setbacks and losses are part of what help refine trading plans. To identify a winning trading strategy from the outset is almost impossible and therefore the setbacks are what help tweak the strategy and turn it to the best it can be for profit making. Therefore setbacks are an opportunity and not a hindrance or negative statement about your skills so they should be something that inspires you to try again, review and learn.
To be fair, no matter how experienced you are and how positive you try to be, every setback is going to take energy to deal with, far more than when you make a profit. Too many setbacks in a row and it would be all too easy to get physically and mentally exhausted, so what is the best way to deal with it all?
Ideally you need to start with the expectations that there will be setbacks, you need to be psychologically ready to deal with them. You need to acknowledge the physical cost as much as the mental one and so a good routine of exercise and proper eating will help build the defenses.
Add into this rest with a good night’s sleep and you are doing a good job of protecting yourself physically. Remember though to ensure that you also have realistic expectations, where you acknowledge your skill levels, the difficulties of the markets and that trading opportunities, but it doesn’t mean you are going to catch them all.
So prepare yourself for losses, have a routine that helps you shrug them off and move on as frustration can build quickly if left unchecked. Successful traders have a plan and that plan identifies the upside and the downside, hope for the former but expect the latter and you will be ready to trade.
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