Many new traders find difficult to follow their trading rules. Have you ever wondered why?
There is more than one reason behind this common issue. The most important is a lack of self-confidence and a lack of confidence in their strategy. These traders tend to break these rules because of the circumstances and the uncertainties surrounding them.
Have you heard of the phrase: Plan the Trade and Trade the Plan? Most new traders develop their strategy around this basic concept. However, when faced with difficult decisions, they plan the trade, but then end up trading their emotions. It is very common and it is a part of the human nature.
So how do you deal with that?
Discipline. Discipline in trading can turn the tide in your favor. It will help in understanding the market dynamics and make a decision accordingly.The big question is, how do we have that kind of discipline?
Self-confidence. No one can achieve trading discipline without self-confidence. Your confidence will help keep the discipline intact, day in, day out. A successful trader needs to have confidence in his method and himself.
Self confidence is built or demolished a bit each single day of our life. Everytime we make good decisions for ourselves, we build self confidence. The more difficult the decision we make, the more we build an emotional asset. When we make poor decisions we may be doing the easy thing, but ultimately we are destroying your confidence. This concept goes beyond speculating endeavor. It applies to our lives.
How many times have you broken your rules this this month? How are you going to act to build a stronger self confidence?