PSYCHO GUIDELINES TO REMEMBER WHEN TRADING 3 SECTIONS : BEFORE/ DURING / AFTER BEFORE MARKET OPENS PERFECTIONISM and FORCASTING â¢ A Trader must allows assume they do not know what a market will do but to identify high probability key decision point. â¢ Donât try to predict where the market is goingâ¦ if you do, it gets you sucked in an opinion instead of thinking in probability. Itâs better to be reactive. Just look at the patterns and trend and play with that . Trade what is in front of you. â¢ if you are daytrading, one of the really neat things about it is you can trade both sides of the market without having to predict. At its simplest level, if the market is making lower lows and lower highs, then sell against the previous pivot high, vice versa for a bull trend. Of course, there are days when this will not work. but even so, you will be taking quite small losses. On days that trend you will more that make up for it. It does not have to be complicated. Learn to do this one thing and you will make money, not get hurt on bad days, and will learn about the mkt. in the process. â¢ You must always be prepared to adapt a new orientation as market conditions change. But, if you are not sure, just stay out. With time and experience you will be able to adapt to changes quicker. â¢ Understand why your are trading== not to be right , but to make money!! â¢ Accept that you will NEVER totally make it as a PERFECT trader. We are always learing more and more about ourselves. Enjoy the journey, not the destination. â¢ Mistakes are inherent to the process of doing anything, and certainly are an essential part of learning to walk without falling. Did you ride your bike the first time without wobbling? Of course not. Neither can you learn to trade effectively without making mistakes. You make a mistake, and then you make an adjustement. Maybe you over adjust and you need to readjust. Mistakes are like feedback. If you donât recognize a mistake or take responsibility for a failed action, you cannot learn from it. This leaves you primed to repeat the same error. Instead of saying: I will never do that mistake again say: What a wonderfkul learning experience! If you make a mistake ask yourself : what can I learn from this? Itâs easier to admit mistakes when you hold the attitude that mistakes are acceptable and are a natureal part of the learning and maturing process. For goodness sake, donât expect yourself to be perfect. Trading is not a game of perfect. â¢ The only thing that counts is to make money consistently. Having the perfect high or low of the swings is not the goal of the game. The goal is to take out of the market the most amount of money with the least risk. If you try to be perfect in trading you will never make it and give up since perfect does not exist. Even Tiger woods makes mistakes . â¢ Be emotionally detached of your actions & analysis; Donât let the emotional decision of greed & fear interfer with you analyses & action. â¢ Wanting to be right instead of making money .i.e. playing the forecast instead of the market â¢ Do not get married with you bias opinion.. only play it until proven wrong. Donât get married with your out view..adjust your view if warns you or shows you that the picture has changed. â¢ Better be reactive than proactive â¢ Never volunteer advice and never brag of your winnings. This would might cause you to be married to your position because of pried .Better staying humble. Or only discuss a trade once you have closed it. â¢ If a market doesn't do what you think it should do, get out. â¢ Good trading is less about predicting and more about reacting. â¢ Market not going where you expected. Turns sooner on you â¢ I seldom catch exact tops ot bottoms or bottoms... (Tomâs Comments) â¢ You must always be prepared to adapt a new orientation as market conditions change. But, if you are not sure, just stay out. With time and experience you will be able to adapt to changes quicker. â¢ Trade market not forecast. Trade to make money not to be right. not only that but u have to continually evaluate the situation and yr logic has to change according to market action, whatever u do don't try to force yr bias â¢ if the price action alters the pattern u were first regarding then u must change yr logic to match â¢ Loss is part of the gameâ¦accept that ARE YOU STARTING TO DOUBT YOURSELF? IS YOUR CONFIDENCE GETTING SHAKY? â¢ Donât listen to others opinion during your trading; stick with what you see on your chart â¢ Itâs important to believe in your trading plan and methodologyâ¦that is where confidence comes in. Good traders get out of their slump by trading to get their confidence back. â¢ Always discipline yourself by following a pre-determined set of rules & steps. â¢ Consistancy leads to confidence with time . Consistency means taking profits from all profiable trades. Not allowing the paper profit to dissapear again. â¢ The worst possible thing for me in the past was to see a good paper profit given back. More disturbing than a straightforward loss. â¢ The market will trying to consistently test your confidence by making head facks when you put on a position trying to give you an illusion that you put on a bad trade..the only way to avoid falling in itâs trape is to know that you did your due diligence by waiting for a good time to enter the market at a high probability level. â¢ Always discipline yourself by following a pre-determined set of rules & steps. â¢ If a trade doesnât jump at you then donât take it..if you hesitate then donât do itâ¦ If you are not sure of the trade that you are taking by not being sure of it when you took it, you are not going to have the conviction to stay with the trade; so it is best to wait for a set up that really makes sense and fits with your rules. This will make it much easier to stay with the trade. DISCIPLINE: â¢ Be disciplined to follow your rules & steps. â¢ Be sure to document all your trades with why you entered. Why you exited, how you felt , general comments, profits or losses, trade management on chart. If you do that you can learn from your mistakes + will help you to become a better trader.