Positive, protecting rating of your stats is superior. However numbers are simply gonna be numbers they usually don’t actually inform the entire story.
In case you’ve already caught your self pondering that you simply’re doing one thing incorrect again and again however you don’t know what it’s, possibly it’s time you begin a psychological journal too!
You know the way the market has tendencies?
Properly, in the identical means that it tends to react to market occasions and environments in sure methods, particular person merchants even have repetitive reactions and behavioral tendencies. Nonetheless, we frequently overlook them and the way they could be affecting our buying and selling efficiency.
See, by means of our lifetime we’ve developed coping mechanisms to assist us cope with misery.
For instance, the primary time you jumped right into a pool you’ve discovered that the water could possibly be unbearably chilly. To keep away from repeating the surprising expertise, you’ve discovered to dip your toes first earlier than leaping in.
Finally, coping mechanisms like these flip into habits and are available off naturally after we are confronted with comparable conditions.
Though we subconsciously develop these knee-jerk reactions to maintain us from feeling ache, they could additionally lead us to make dangerous/impulsive buying and selling choices.
Give it some thought. What number of instances have you ever closed a successful commerce early the second the market moved towards you by a number of pips?
And also you’ve in all probability overwhelmed your self up for doing it again and again although you knew that you can have ended your final commerce with an even bigger win had you adopted your plan.
This is the reason it’s best to have a psychological journal. It’s a software that can aid you acknowledge your character patterns.
In case you’re questioning how one can get began, listed below are a number of ideas:
1. Describe the market scenario
Attempt to describe the present market scenario and why your commerce setup might work in that particular atmosphere.
Ask your self the next questions:
- What are the dominant market themes proper now?
- Is danger on or off?
- Am I about to take a commerce that’s in keeping with these themes and danger sentiment?
2. Pay attention to the way you felt
Other than the market atmosphere, additionally embrace your ideas and feelings whereas buying and selling.
Positive, it might really feel humorous to jot down about your emotions at first, however someplace down the highway, you’ll acknowledge some behavioral patterns.
In case you wanna write about having a horrible hair day or having an excessive amount of espresso within the morning, go forward! It’s essential to notice down all of the potential components that might have an effect in your decision-making.
Some questions you may ask your self are:
- What had been you feeling earlier than opening your commerce? (nervous, assured, uncertain, and so on.)
- What had been your ideas whereas the commerce was open and whereas the market was transferring in favor or towards your place?
- Was there something you remorse about your commerce execution?
- Did you are feeling optimistic or destructive after closing your commerce and why?
3. Write down the outcomes
Jot down the outcomes of your buying and selling choices to assist discover out what feelings have a optimistic or destructive affect.
To pinpoint potential points, ask questions like:
- Did you shut your commerce too early since you had been feeling further impatient that day?
- Was it tough so that you can focus and why?
- Did you progress your stops farther since you had been too hungry for a win?
- Have been you feeling assured in your commerce thought that you simply determined to extend your place measurement?
Keep in mind that the aim is to acknowledge behavioral patterns and their common penalties.
From this, you may determine these situations that negatively influence your decision-making and simply determine to chorus from buying and selling if these patterns recur.
Quickly sufficient you’ll be capable of construct sufficient consciousness of those behavioral patterns, clearly determine what causes you misery, and be capable of hold these conditions from damaging your buying and selling account.
