Trader Mindset The four feelings traders must make peace with
May 28, 2024
Discover the emotions traders must manage: hope, fear, greed, and regret. Learn how clear trade structures and disciplined behavior can bolster confidence without tipping into overconfidence. Dive into strategies for minimizing regret, like using stops and progressive exposure. Explore the difference between greed and abundance in trading. Plus, find out how to effectively manage positions and avoid the pitfalls of constant market monitoring. Michael shares insights from top traders, ensuring you gain valuable lessons to enhance your trading mindset.
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Avoid Emotional Trading
- Avoid hope, fear, greed, and regret by sticking to your trading rules and discipline.
- Control position sizing and behavior since prices are often random in the short run.
Use Stops And Accept Being Stopped Out
- Do set protective stops and accept that some trades will be knocked out as within model.
- Do not adjust stops impulsively to avoid creating regret from larger losses or premature exits.
Add To Winners Progressively
- Try progressive exposure: add to winners rather than taking profits too early.
- Build positions incrementally to think more like institutions and grow capital faster.